Market and
partners news

Uncategorized
Analysis of Philip Morris which is one of the world’s largest companies in the production and sale of cigarettes and other tobacco products.

Analysis of Philip Morris which is one of the world’s largest companies in the production and sale of cigarettes and other tobacco products.

2 December 2020

Philip Morris International is one of the largest companies in the world for the production and sale of cigarettes and other tobacco products. The company owns 46 factories for the production of its own products and operates in more than 180 countries around the world.

The most famous brands are Marlboro, Parliament, Bond, Chesterfield, L&M, Next, Philip Morris. In recent years, the company has presented a new product which is the IQOS smokeless heating system. The company also produces sticks for this product.

The main competitors of the company are the Chinese company STELS and the American company British American Tobacco with market shares of 33.7% and 15.1% respectively.

The largest shareholders of the company are well-known American funds such as The Vanguard Group, BlackRock, Morgan Stanley Investment Management.

Revenue is $ 7.4B for the 3rd quarter (+ 12% Q3)

Operating Income is $ 3.2B for the 3rd quarter (+ 18.5% Q3)

Net Income is $ 2.3B for the 3rd quarter (+ 20% Q3)

Earnings per share are $ 1.42, which is better than the forecast of $ 1.36

The company managed to survive the main drop and now the company’s financial indicators are returning to pre-crisis values.

Credit rating is А (stable)

Income by region as follows

Europe – 32.94%

East Asia and Australia – 18%

Southeast Asia – 17.09%

Middle East and Africa – 13.56%

Eastern Europe – 11.01%

Latin America and Canada – 7.4%

EPS forecast for the current quarter is $ 1.2

One of the company’s biggest problems is that investors are reluctant to invest in companies whose products are detrimental to the health of consumers. Even despite various programs to maintain the environment, the company’s shares are not popular among the younger generation. Because of this according to analysts the company’s share price is below fair value.

Thus, Philip Morris is a company with a rich history and strong consumer reputation. The company’s products can be found in almost any country. The business margin remains high from year to year.

Philip Morris tries to follow current trends and, in fact, has created a new market for tobacco heating devices that is actively developing. But one of the most serious problems for the growth of the company’s quotes can be the personal preferences of investors, who for the most part bypass the tobacco companies.


Get advice on company shares

    2 December 2020
    Macro overview of the current week

    China Stocks: Buying for the future US hedge funds are buying up Chinese stoc...

    Money transfers abroad via SFP: attention to the Central Bank commission

    A lawyer will always understand a lawyer, but will ordinary people understand...

    Golden Dubai visas: an ideal "safe haven"

    Vague prospects, unclear expectations and constant doubts about the future — ...

    Private flight: reliable, fast, fascinating

    In the end, everything consists of impressions. A flight by a private jet of ...