Philip Morris International: Flavored Heated Tobacco Ban Poses Near-Term Risk

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Recently, PMI has faced certain risks due to the increasing trend of prohibition on flavored heated tobacco products. This ban significantly impacts the company’s short-term outlook as the sale of heated tobacco has become an important part of their product portfolio in recent years. In recent months, many countries such as the United States, United Kingdom, and France have implemented or are planning to implement ban on flavored heated tobacco products. PMI is exposed to certain near-term risks due to this ban, as flavored heated tobacco products contribute a significant portion of its revenues. This ban puts pressure on PMI’s financials, including its stock price, and puts the company at a competitive disadvantage compared to other tobacco companies. Furthermore, PMI also faces certain regulatory risks due to the ban on flavored heated tobacco products.

As these products are being increasingly perceived as harmful for public health, the company could face additional restrictions on its operations in the near future. Such restrictions can put further pressure on PMI’s revenues and profitability in the short term. Overall, it is evident that Philip Morris International ($NYSE:PM) faces near-term risks due to the prohibition on flavored heated tobacco products. The company needs to take prompt action to address these risks and ensure that its operations remain viable and profitable in the short term.

Price History

Philip Morris International (PMI) recently announced that it expects its near-term performance to be impacted by a new ban on the sale of flavored heated tobacco products in the U.S. While the company’s stock opened at $91.4 on Monday, it closed at $92.4, representing a 0.5% increase from its last closing price of 92.0. PMI has yet to disclose the exact financial impact of the ban, but it’s likely to have a significant impact given the popularity of these products in California. PMI has stated that it will continue to focus on innovating and developing products that meet the highest standards of quality and safety, and that it will continue to comply with all applicable laws and regulations.

PMI has already taken steps to ensure that their products are produced and sold responsibly and in compliance with all applicable laws and regulations. Despite these measures, the near-term impact of the ban is likely to be a cause for concern for PMI investors. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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

Analysis

GoodWhale has conducted an analysis of PHILIP MORRIS INTERNATIONAL’s wellbeing. According to our Star Chart, PHILIP MORRIS INTERNATIONAL has a high health score of 8/10, indicating that it has the capability to sustain operations during times of crisis due to its cashflows and debt. We have also classified PHILIP MORRIS INTERNATIONAL as a ‘cow’ company, meaning that it has a track record of paying out consistent and sustainable dividends. Investors who are looking for steady and reliable income may be interested in investing in a company such as PHILIP MORRIS INTERNATIONAL. The company is strong in dividend and profitability, but weak in asset and growth. 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

Philip Morris International (PMI) has recently announced a prohibition on the sale of flavored heated tobacco products. This new policy may pose near-term risks to PMI’s share price due to the loss of revenue from these products, as well as the potential for backlash from customers and competitors. As such, investors should be aware that PMI may face some headwinds over the next few quarters.

Additionally, there are other external factors to consider when investing in PMI, such as the changing regulatory environment and global economic trends. For investors looking to invest in PMI, it is important to take these factors into account before committing capital.