PM - Embedded Expectations Analysis - 2018 11 12
Phillip Morris International Inc. (PM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 18.2x Uniform P/E. At these levels, the market is pricing in muted expectations for the firm, but management is confident about their IQOS performance, combustible product outlook, and growth in the Philippine marketSpecifically, management generated an excitement marker when saying that it's difficult to pick one or two IQOS markets that are particularly interesting since many are doing well. Additionally, they are confident that the robust fundamentals for combustible products support their 2018 business outlook, and that there is a small pricing difference between their Marlboro Heatsticks and Marlboro heated tobacco. Furthermore, they are confident that Marlboro continues to grow its share in the Philippine market, helping lift the overall share
Philip Morris International is a holding company. Through its subsidiaries, the company is a tobacco company engaged in the manufacture and sale of cigarettes, smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the United States. The company's portfolio comprises international and local brands including Marlboro, which is complemented in the premium-price category by Parliament. The company's other international cigarette brands are Bond Street, Chesterfield, L&M, Lark and Philip Morris. The company also owns various local cigarette brands, such as Dji Sam Soe, Sampoerna A and Sampoerna U in Indonesia, and Fortune and Jackpot in the Philippines.
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