Pfizer Inc reports 45.9% Net Income growth in 2019
28 Jan 2020 • About Pfizer Inc (
$PFZ) • By InTwits
Pfizer Inc reported FY2019 financial results today. Here are the key drivers of the company's long term financial model: It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is 1.1x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Pfizer Inc's Revenue decreased on 3.5%.
Gross Margin increased slightly on 1.2 pp from 79.0% to 80.3% in FY2019. During FY2015-FY2019 Gross Margin bottomed in FY2016 at 76.7% and was growing since that time. SG&A as a % of Revenue increased slightly on 0.78 pp from 26.9% to 27.7% in FY2019.
Net Income margin surged on 10.7 pp from 20.8% to 31.4% in FY2019.
Management team
Pfizer Inc's CEO Albert Bourla is a founder and has spent 1 year with the company. The company's CFO is Frank A D'Amelio. Frank A D'Amelio has 9 years tenure at the company.
Financial and operational results
FY ended 30 Nov -0001
Pfizer Inc ($PFZ) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 48,851 | 52,824 | 52,546 | 53,647 | 51,750 | -3.5% |
| Gross Profit | 39,203 | 40,495 | 41,306 | 42,399 | 41,531 | -2.0% |
| SG&A | 14,809 | 14,837 | 14,784 | 14,455 | 14,350 | -0.7% |
| EBITDA | 16,981 | 17,763 | 19,889 | 20,385 | | |
| EBIT | | | | 14,001 | | |
| Interest expence | | | | 1,316 | | |
| Tax | | | | 706 | | |
| Net Income | 6,960 | 7,215 | 21,308 | 11,153 | 16,273 | 45.9% |
| Stock Based Compensation | | | | 949 | | |
Balance Sheet
|
|---|
| Cash | 3,641 | 2,595 | 1,342 | 1,139 | | |
| Accounts Receivable | | | | 8,025 | | |
| Inventory | | | | 7,508 | | |
| Accounts Payable | | | | 4,674 | | |
| Short Term Debt | 10,159 | 10,688 | 9,953 | 8,831 | | |
| Long Term Debt | 28,740 | 31,398 | 33,538 | 32,909 | | |
Cash flow
|
|---|
| Capex | 1,397 | 1,823 | 1,956 | 2,042 | | |
| Dividends | | | | 7,978 | | |
Ratios
|
|---|
| Revenue growth | -1.5% | 8.1% | -0.5% | 2.1% | -3.5% | |
| EBITDA growth | -9.6% | 4.6% | 12.0% | 2.5% | | |
|
|---|
| Gross Margin | 80.3% | 76.7% | 78.6% | 79.0% | 80.3% | 1.2% |
| EBITDA Margin | 34.8% | 33.6% | 37.9% | 38.0% | |
| EBIT Margin | | | | 26.1% | |
| SG&A, % of revenue | 30.3% | 28.1% | 28.1% | 26.9% | 27.7% | 0.8% |
| SBC, % of revenue | | | | 1.8% | |
| Net Income Margin | 14.2% | 13.7% | 40.6% | 20.8% | 31.4% | 10.7% |
| CAPEX, % of revenue | 2.9% | 3.5% | 3.7% | 3.8% | | |
|
|---|
| ROIC | 9.1% | 9.2% | 10.9% | 12.3% | | |
| ROE | 10.2% | 11.6% | 32.6% | 16.6% | | |
| Net Debt/EBITDA | 2.1x | 2.2x | 2.1x | 2.0x | |
| Interest expence / Average debt | | | | 3.2% | | |
People
|
|---|
| Insider ownership | | | | 0.1% | | |
| Employees | | | | 92,400 | | |
| Revenue/Employee, th. $ | | | | 581 | | |
Peers in Pharmaceuticals & Biotechnology
Below you can find Pfizer Inc benchmarking vs. other companies in Pharmaceuticals & Biotechnology industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| C4X Discovery Hldg ($C4XD) | | -10.6% | -48.7% | 4,839.9% | |
| Evocutis ($EVO) | 57.3% | 51.2% | 54.5% | 37.6% | |
| Ixico ($IXI) | | 4.9% | 25.8% | 31.2% | 40.2% |
| Benchmark Hldgs ($BMK) | | 147.5% | 28.2% | 8.1% | -15.9% |
| GlaxoSmithKline ($GSK) | 4.0% | 16.6% | 8.2% | 2.1% | |
| |
|---|
| Median (7 companies) | 4.5% | 7.2% | 10.4% | 8.1% | 12.1% |
|---|
| Pfizer Inc ($PFZ) | | 8.1% | -0.5% | 2.1% | -3.5% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Indivior ($INDV) | 90.4% | 89.9% | 90.5% | 87.3% | |
| Astrazeneca ($AZN) | 81.2% | 82.1% | 80.8% | 77.7% | |
| GlaxoSmithKline ($GSK) | 63.0% | 66.7% | 65.7% | 66.8% | |
| Ixico ($IXI) | | 48.6% | 56.5% | 58.8% | 65.4% |
| Benchmark Hldgs ($BMK) | 36.4% | 46.5% | 44.5% | 48.9% | |
| |
|---|
| Median (5 companies) | 44.9% | 47.7% | 49.1% | 66.8% | 65.4% |
|---|
| Pfizer Inc ($PFZ) | 80.3% | 76.7% | 78.6% | 79.0% | 80.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Evocutis ($EVO) | 35.4% | 38.6% | 45.2% | 43.9% | |
| Indivior ($INDV) | 37.3% | 15.4% | 18.8% | 33.0% | |
| Astrazeneca ($AZN) | 28.3% | 32.5% | 29.9% | 32.8% | |
| GlaxoSmithKline ($GSK) | 50.2% | 15.9% | 20.6% | 24.1% | |
| Benchmark Hldgs ($BMK) | -9.4% | -5.1% | 11.1% | 10.7% | |
| |
|---|
| Median (7 companies) | 21.9% | 15.4% | 16.6% | 24.1% | 6.7% |
|---|
| Pfizer Inc ($PFZ) | 34.8% | 33.6% | 37.9% | 38.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Benchmark Hldgs ($BMK) | 31.8% | 17.1% | 23.4% | 16.6% | |
| Evocutis ($EVO) | 6.3% | 18.2% | 5.8% | 7.3% | |
| Astrazeneca ($AZN) | 5.4% | 6.3% | 5.9% | 4.7% | |
| GlaxoSmithKline ($GSK) | 5.8% | 5.5% | 5.1% | 4.4% | |
| Ixico ($IXI) | | 0.7% | 1.2% | 1.4% | 2.9% |
| |
|---|
| Median (7 companies) | 5.3% | 5.5% | 5.5% | 4.4% | 2.9% |
|---|
| Pfizer Inc ($PFZ) | 2.9% | 3.5% | 3.7% | 3.8% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Indivior ($INDV) | 172.1% | 85.9% | 107.2% | 110.6% | |
| Evocutis ($EVO) | 62.4% | 59.8% | 70.1% | 53.2% | |
| GlaxoSmithKline ($GSK) | 42.9% | 10.9% | 20.2% | 23.3% | |
| Astrazeneca ($AZN) | 11.8% | 13.7% | 9.7% | 9.5% | |
| Benchmark Hldgs ($BMK) | -12.4% | -7.8% | -1.7% | -1.8% | |
| |
|---|
| Median (7 companies) | 14.2% | 10.2% | 10.3% | 9.5% | -87.3% |
|---|
| Pfizer Inc ($PFZ) | 9.1% | 9.2% | 10.9% | 12.3% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Benchmark Hldgs ($BMK) | | | 1.5x | 3.4x | |
| GlaxoSmithKline ($GSK) | 0.9x | 3.1x | 2.1x | 3.0x | |
| Astrazeneca ($AZN) | 1.3x | 1.6x | 2.2x | 2.0x | |
| Evocutis ($EVO) | -0.7x | -0.4x | -0.5x | -0.7x | |
| Indivior ($INDV) | 0.4x | -1.0x | -1.8x | -2.1x | |
| |
|---|
| Median (5 companies) | 0.7x | 0.3x | 1.5x | 2.0x | -14.4x |
|---|
| Pfizer Inc ($PFZ) | 2.1x | 2.2x | 2.1x | 2.0x | |
