Pfizer Stock Analysis, Valuation (NYSE:PFE)

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$43.78 $0.97 (2.27%) PFE stock closing price Oct 12, 2018 (Closing)

Watch the robo advisor video of Pfizer stock analysis on Amigobulls. Our PFE analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Pfizer Inc. Stock Rating 4.1/5

Amigobulls PFE stock analysis uses latest quarter 2018 Q2 financial data like Pfizer revenue growth, profit margins and cash flows. Pfizer valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Pfizer stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy PFE stock?

  • The TTM operating margin was good at 25.86 for Pfizer.
  • Net margins stood at a healthy 41.3% (average) for Pfizer in the Trailing Twelve Months.
  • The Pfizer stock currently trades at a price to earnings ratio of 15.3, compared to the sector average of 24.2. We rate this as a positive.
  • Pfizer's return on invested capital of 7.7 is good.
  • The LTM ROE of 33.9 for Pfizer is attractive.
  • The company has a healthy free cash flow margin of 12.4.

Should you sell PFE stock?

  • Pfizer salesgrew by a marginal 1% year over year in 2018-03.
  • Revenue declined at a CAGR of -1.8 over the last 5 years.
  • With a debt/equity ratio of 0.6, Pfizer is highly leveraged in comparison to Medical peers.
  • The company has an operating cash flow which is 0.5569 times the net income. This is not a healthy sign.

Comments on this video and Pfizer stock

Amigobulls Pfizer stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Pfizer revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of PFE technical analysis to check whether the fundamental story is reflected in the market sentiment.