Is the business good?
How good a business is PM?
Philip Morris International earns 37% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
37%
Return on invested capital · cost of capital 9.0% · 28 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Consumer Defensive median 9.0% · 12 months to Q2 2026
- Cash conversion
- 1.17×
Cash conversion · 1.09× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.13%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 41% |
| FY2022 | 39% |
| FY2023 | 33% |
| FY2024 | 35% |
| FY2025 | 37% |
Details›
- Gross margin12 months to Q2 2026
- 68%
- Operating margin12 months to Q2 2026
- 38%
- Net margin12 months to Q2 2026
- 26%
- Free cash flow margin
- 30%
- Revenue, trailing twelve months
- $42.5B
- Free cash flow, trailing twelve months
- $12.7B
- Net income, trailing twelve months
- $10.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 37%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Consumer Defensive
Ranks #28 of 106 by Smart Score