Saturday, June 13, 2009

Pfizer Profile

Pfizer (PFE) is next. Key stats:

Price/Book: 1.65
PE: 12.50
Price/Sales: 2.10
Price/Cash Flow: 5.50
Free Cash Flow Yield: 16.7%

Quick Ratio: 1.90
Current Ratio: 2.32
Financial Leverage: 2.04
LT Debt to Equity: 35.00%
Total Debt to Equity: 47.65%

ROA: 6.48%
ROE: 13.24%
ROIC: 16.89%

Gross Margin: 90.31%
Operating Margin: 36.16%
Net Margin: 16.80%

Profitability: A-. Best margins we've seen so far.

Financial condition: B+. On one hand there's a good percentage of investment in front of the common. But on the other, there is a lot of working capital as a percentage of price.

Value: D+. A price to sales ratio over 2 shows that even at $14 to $15, shares aren't cheap (there's a lot of them). The price to return ratios are pedestrian given the high profitability.

Overall: This is the first company who has a higher intrinsic calculation than market value. Looking deeper however, Pfizer seems to have one of the poorest growth prospects of the major pharmaceuticals, according to analysts. Since I don't consider growth in my analysis, this is an important consideration.

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