2024-05-20 09:15:20 ET
Summary
- In this update, I review Philip Morris International Inc.'s first-quarter results, answering whether the stock is really as safe as it appears to be - and what its valuation suggests.
- I take a look at combustible volumes, heated tobacco trends, market share, and, of course, oral nicotine products.
- ZYN posted surprisingly strong growth, but management is quite conservative for the rest of the year.
- I also make sense of Philip Morris's high debt ($44.7 billion) and how long it could take for leverage to decline to a level that allows a return to share buybacks.
- In light of the recent run-up to $100, I give a brief valuation update and share whether I still think PM stock is a buy.
Introduction
In my last article , I reviewed Imperial Brands PLC ( IMBBY , IMBBF ) interim results and reiterated my optimistic stance - even though the company remains focused on conventional cigarettes and does not have a meaningful smoke-free portfolio. In this article, I will take a fresh look at the tobacco company that operates at the other end of the spectrum - Philip Morris International Inc. ( PM ) aka PMI. With its IQOS heated tobacco franchise and following its acquisition of Swedish Match, it is the undisputed leader in smoke-free alternatives....
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Philip Morris International: ZYN Defying Gravity