Morningstar Rating

Stock Research and Analysis

by Philip Gorham, CFA, FRM

Bulls Say

With almost 29% global market share (excluding the U.S. and China), PMI is the largest publicly traded tobacco company in the world. Its addictive products give the firm meaningful pricing power.
PMI owns the international rights to Marlboro, the iconic global cigarette brand, and the strength of its product portfolio makes the firm the price leader in many international markets.
With a focus on premium products, the firm has benefited from consumers' desires to trade up. Its operating margins, above 40%, are higher than those of its peers. Read more 

Bears Say

Excise tax increases, additional regulation, or reduced consumer demand could have a negative impact on Philip Morris' cigarette volume and drive up the prevalence of illicit smokes.
Philip Morris generates 30% of its revenue from the EU, where volume has been falling about 6% per year. Additional economic uncertainty and austerity measures could further affect European cigarette volume.
With its revenue derived in foreign currencies and some of its input costs in dollars, a strengthening of the U.S. dollar could hinder Philip Morris' EPS growth. Read more 

Management

We believe the management team has been an Exemplary steward of shareholders' capital. The company has successfully invested for growth in emerging markets and built a bevy of leading brands. Since the separation from Altria, Philip Morris International   Read more 

Profile

Philip Morris International is the world's second-largest tobacco company, behind China National Tobacco, and holds almost 29% of the non-U.S./non-China global market. The   Read more 

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