Philip Morris International(NYSE: PM) The actions reached a maximum of time after their last results. The action now increases almost 40% by 2025, from this writing and more than 75% in the last year. I am the owner of the shares and I have written about it in the past, including Past April When I predicted that actions could soon be left out of their negotiation range for a whole year. Boy, he has ever done it.
That said, what investors really want to know is whether they can still buy the shares or if it is too late. We look closely at its first quarter results to find out.
Where to invest $ 1,000 right now? Our analyst team just revealed what they think are the 10 best stocks to buy right now. Continue »
Philip Morris’s largest growth engine is still Zyn. For those who do not know Zyn, it is a bag of nicotine dust and flavoring instead of tobacco, and has taken the North -American market by storm. It has become popular with young adults, offices workers and even women who like their discreet use, flavors and buzzing of the product.
In the first quarter, Zyn’s strong growth continued, with the north -Americans who increased 53% to 202 million cans. International volumes also increased by 53%, or 182%, excluding their established Nordic markets. Overall, oral product shipments increased by 27%.
That said, part of the growth comes from the restoration of the detail inventory. At the level of retail sale, the company experienced a solid volume growth outside Zyn dam about 15%. He hopes that this growth gradually accelerates in the coming months, as availability in the store improves and increases its marketing efforts. Due to their solid results, it now hopes that North -Americans will be between 800 million and 840 million cans, up to a previous perspective of between 780 and 820 million cans.
Image Source: Getty’s pictures.
Zyn was not the only strong interpreter of the company in the quarter. The volumes of the heated tobacco units (HTS), including the IQOS system, jumped almost 12% to 37.1 billion units. The company said that sales in the market (end users) increased by 9% in Japan and more than 7% in Europe. He also observed strong growth from outside Japan and Europe, including Jakarta, Seoul and Mexico. Philip Morris also saw the growth of the sending more than double for his electronic vapor product, Veev, directed by the growth of pruning in Europe.
Meanwhile, traditional cigarette volumes remain constant, increasing 1.1% to 144.8 billion units. Its market share, excluding the United States and China, increased by 0.2% to 23%, or 0.4% to 24.8% when it includes HTTS.
In general, organic revenue, which exclude the effects, acquisitions and currency provisions, increased by 10% year to $ 9.3 billion. ACCUDATED BENEFIT (EPS) increased by 17% to $ 1.76.
Organically, tobacco revenue fuels increased by 4%, driven by the increase in prices and increasing volumes. Smoke -free business increased organic income by 20%.
Oral products (zyn)
Htus
Cigarette
Smokeless
Total
Growth of volume
27.2%
11.9%
1.1%
N/a
3.9%
Growth of organic income
N/a
N/a
3.8%
20.4%
10.2%
Htus = heated tobacco units.
The dirty benefits gross margins that the traditional business cigarette business. The gross margins increased 340 basic points year after year. The company also said that the gross margins improved for three of their smokeless categories, helped by the increase in prices of Zyn and IQOS.
In the face, Philip Morris largely maintained his prospects throughout the year, which made a slight adjustment to the EPS forecast adjusted due to the coin.
Direction
Growth of organic income
From 6% to 8%
EPS tight
7.01 to $ 7.14
EPS Growth Adjusted, excluding currency
From 10.5% to 12.5%
Growth of volume
2%
Data source: Philip Morris International. Eps = earnings per action.
Philip Morris continues to see a strong growth led by Zyn and Iqos. The two products grow very well and they both have a better unity economy than the traditional Philip Morris cigarette business. That said, its traditional cigarette business is also solid, with modest growth of volume and a strong prices power. This is a very different picture of companies that sell cigarettes in the United States
Zyn and Iqos also continue to have solid expansion opportunities. The company continues to increase the capacity of the United States to keep up with Zyn’s demand, while just beginning to expand internationally outside the established Nordic markets. In the meantime, after buying U.S. rights at IQOS, Philip Morris has just started trying IQOS in Austin, Texas. He hopes to expand to other test markets, and then to make a complete release when his new IQOS IQOS ILUMA device receives the approval of the FDA.
From the point of view of the assessment, the actions are contributed to a percentage of prices for earnings (P/E) of 23 times, based on the consensus of the analysts of 2025, with a Peg (price/benefit-conference) proportion of less than 0.4. Stocks with a peg -less than 1 proportions are considered undervalued, so that, from this metric, the action is still cheap.
In general, Philip Morris is a growth stock in a defensive industry, with an attractive dividend performance of 3.2%. It has solid growth opportunities ahead and is quite resistant to rates, as it tends to use local manufacturing. As such, I think investors can still try to buy shares, especially in future deposits.
Before buying shares at Philip Morris International, consider this:
It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and Philip Morris International was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Think about whenNetflixMade this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation,you would have $ 594,046!* Or when NvidiaMade this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation,would have 680,390 $!*
Now it’s worth notingValue AdvisorThe total average profitability is872%: a market crushing performance compared to160%For the S&P 500. Do not miss the most recent list of 10 Top, available when you joinValue Advisor.
*The Exchange Minister returns from April 21, 2025
Geoffrey Seiler It has positions in Philip Morris International. The Motley Fool recommends Philip Morris International. The mold’s fool has a Outreach policy.
