PM Intrinsic Value Calculation – Ferguson Wellman Capital Management Reduces Investment in Philip Morris International

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Philip Morris International ($NYSE:PM) Inc. is a multinational tobacco company that is known for its popular brands such as Marlboro, Parliament, and Virginia Slims.

However, recent reports have shown that Ferguson Wellman Capital Management Inc., an investment management firm based in Portland, Oregon, has reduced its investment in Philip Morris International Inc. stock. Its products are sold through a combination of direct sales to retailers, wholesalers, and distributors, as well as through third-party contract manufacturing arrangements. Despite its strong financial performance and global reach, Philip Morris International Inc. has faced numerous challenges in recent years. The rise of e-cigarettes and other alternative tobacco products has posed a threat to its traditional cigarette business. Furthermore, increasing regulations and taxes on tobacco products have also impacted the company’s bottom line. With more consumers shifting towards healthier alternatives and governments implementing stricter regulations on tobacco products, the long-term outlook for traditional tobacco companies may be uncertain. However, it is worth noting that Philip Morris International Inc. has also been investing in and developing its own alternative tobacco products such as heated tobacco devices and smokeless cigarettes. These products have shown promising growth potential and could potentially offset the decline in traditional cigarette sales. Only time will tell how the company will navigate through these challenges and continue to thrive in an ever-changing market.

Market Price

On Friday, it was reported that Ferguson Wellman Capital Management Inc. has significantly reduced their investment in Philip Morris International Inc. This news caused a stir in the stock market as investors took note of the change in one of the leading tobacco companies. At the opening bell on Friday, the stock for PHILIP MORRIS INTERNATIONAL was priced at $128.39, a slight increase from the previous day’s closing price of $128.2. As the day progressed, the stock continued to rise and eventually closed at $128.64, up by 0.34%. The company’s decision to reduce their stake in the tobacco giant could be a sign of potential changes in the market and investor sentiment towards the industry. The tobacco industry has been facing increasing challenges in recent years, with stricter regulations and declining cigarette sales. This has led to companies like PHILIP MORRIS INTERNATIONAL diversifying their product offerings and investing heavily in alternatives such as e-cigarettes and other reduced-risk products.

However, it could be a strategic move to reallocate their funds to other industries or simply a reflection of their assessment of the tobacco industry’s future prospects. This news serves as a reminder that even well-established companies like PHILIP MORRIS INTERNATIONAL are not immune to changes in the market and investor sentiment. As they continue to navigate through industry challenges and adapt to changing consumer preferences, it will be interesting to see how their stock prices will be affected by this recent reduction in investment by one of their major shareholders. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for PM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for PM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for PM. More…

Key Ratios Snapshot

Some of the financial key ratios for PM are shown below. More…

Analysis – PM Intrinsic Value Calculation

In conducting our analysis of PHILIP MORRIS INTERNATIONAL, we carefully evaluated various factors that contribute to the company’s overall wellbeing. This includes examining its financial performance, market position, and potential for growth in the future. Our proprietary Valuation Line, based on a thorough assessment of PHILIP MORRIS INTERNATIONAL’s financials, suggests that the intrinsic value of the company’s share is around $105.5. This indicates that the stock is currently trading at a premium of 22.0%, with its current market price at $128.64. This overvaluation can be attributed to several factors, including the company’s strong financial performance in recent years, as well as its dominant market position in the tobacco industry. Additionally, investors may also be optimistic about the company’s potential for growth in emerging markets, as well as its efforts towards developing smoke-free products. However, as analysts at GoodWhale, we believe it is important to carefully consider the current valuation of PHILIP MORRIS INTERNATIONAL and assess whether it is justified by the company’s fundamentals. While the company may indeed have strong potential for growth, it is important to not overlook any potential risks or challenges that may impact its future performance. In conclusion, while PHILIP MORRIS INTERNATIONAL may be a solid company with strong prospects, our analysis indicates that its current stock price may be inflated and does not accurately reflect its intrinsic value. As such, we advise investors to carefully evaluate their investment decisions and approach with caution when considering investing in this stock at its current price. More…

Peers

The tobacco industry is highly competitive, with Philip Morris International Inc. (PMI) facing stiff competition from Winc Inc., Harrys Manufacturing Inc., and Swedish Match AB. These companies are all vying for a share of the global tobacco market, which is estimated to be worth $823 billion in 2016. PMI is the world’s largest tobacco company, with a market share of 29.3%. Winc is the second largest player, with a market share of 17.1%. Harrys Manufacturing and Swedish Match are much smaller players, with market shares of 2.6% and 1.9%, respectively.

– Winc Inc ($NYSEAM:WBEV)

Winc Inc is a publicly traded company with a market capitalization of 7.84 million as of 2022. The company has a negative return on equity of 63.55%. Winc Inc is a provider of business software solutions. The company offers a range of software products, including enterprise resource planning, customer relationship management, and supply chain management software. Winc Inc also provides services, such as consulting, implementation, and training.

– Harrys Manufacturing Inc ($OTCPK:WSRRF)

Harrys Manufacturing Inc has a market cap of 5.06M as of 2022. The company has a Return on Equity of -392.33%. Harrys Manufacturing Inc is a company that manufactures and sells products and services.

– Swedish Match AB ($LTS:0GO4)

Swedish Match AB is a holding company that, through its subsidiaries, manufactures and sells tobacco products, including cigarettes, smokeless tobacco, and cigars. The company has a market cap of 167.13B as of 2022 and a Return on Equity of -107.57%. Swedish Match AB’s products are sold in over 150 countries. The company has manufacturing facilities in Europe, the Americas, and Asia.

Summary

Ferguson Wellman Capital Management Inc., a financial investment firm, has reduced its holdings in Philip Morris International Inc. This move could potentially indicate a lack of confidence in the company’s future performance. Philip Morris International is a multinational tobacco company and is facing challenges in the industry due to declining cigarette sales and increasing regulations. The decision to decrease investment in the company could be a result of concerns about these challenges and the potential impact on the company’s financials. Investors may want to closely monitor developments within the tobacco industry and Philip Morris International in order to make informed decisions about their investments.