MMarketMath

PFE

StalwartQuality: Medium (52/100)2 red flags

Pfizer · Health Care · Pharmaceuticals

$27.97

52w 23.58 – 28.75

20y monthly, adjusted

Mkt cap

$159.4B

P/E

20.5

P/FCF

17.6

FCF yield

5.7%

ROE

9.0%

Shldr yield

6.1%

div 6.1% + bb 0.0%

What today's price assumes

At $159.4B, the market is pricing in 5.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew -4.8% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $13 · $13 · $16 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 7.2× across 17 years, PFE would trade near $15/share (25th–75th percentile: $13–$22); it trades at 13.6× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

−12.0%

Rev 5y

+8.5%

Rev 10y

+1.6%

EPS 5y

−3.6%

EPS 10y

−6.9%

FCF 5y

−5.7%

FCF 10y

−4.8%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $48.4B
2008: $48.3B
2009: $49.3B
2010: $65.2B
2011: $61.0B
2012: $54.7B
2013: $51.6B
2016: $52.8B
2017: $52.5B
2018: $40.8B
2019: $40.9B
2020: $41.7B
2021: $73.6B
2022: $91.8B
2023: $50.9B
2024: $63.6B
2025: $62.6B
$0$25.0B$50.0B$75.0B
07
10
13
18
21
24

Net income

2007: $8.1B
2008: $8.1B
2009: $8.6B
2010: $8.3B
2011: $10.0B
2012: $14.6B
2013: $22.0B
2016: $7.2B
2017: $21.3B
2018: $11.2B
2019: $16.0B
2020: $9.2B
2021: $22.0B
2022: $31.4B
2023: $2.1B
2024: $8.0B
2025: $7.8B
$0$10.0B$20.0B$30.0B
07
10
13
18
21
24

Free cash flow

2007: $11.5B
2008: $16.5B
2009: $15.4B
2010: $9.9B
2011: $18.6B
2012: $15.4B
2013: $16.5B
2016: $14.4B
2017: $14.8B
2018: $13.8B
2019: $10.5B
2020: $12.2B
2021: $29.9B
2022: $26.0B
2023: $4.8B
2024: $9.8B
2025: $9.1B
$0$10.0B$20.0B
07
10
13
18
21
24

Diluted shares (lower is better)

2007: 6.9B
2008: 6.8B
2009: 7.0B
2010: 8.1B
2011: 7.9B
2012: 7.5B
2013: 6.9B
2016: 6.2B
2017: 6.1B
2018: 6.0B
2019: 5.7B
2020: 5.6B
2021: 5.7B
2022: 5.7B
2023: 5.7B
2024: 5.7B
2025: 5.7B
02.5B5.0B7.5B
07
10
13
18
21
24

Margins

20%40%071013182124
Net marginFCF margin

Capital returned (dividends + buybacks)

2007: $18.1B
2008: $9.1B
2009: $4.9B
2010: $7.0B
2011: $15.5B
2012: $14.8B
2013: $22.8B
2016: $12.4B
2017: $12.8B
2018: $20.3B
2019: $17.0B
2020: $8.6B
2021: $8.8B
2022: $11.0B
2023: $9.3B
2024: $9.6B
2025: $9.8B
$0$10.0B$20.0B
07
10
13
18
21
24

Cash vs long-term debt

$0$20.0B$40.0B$60.0B071013182124
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $13.0B
Q3'23: $13.5B
Q4'23: $5.9B
Q1'24: $14.9B
Q2'24: $13.3B
Q3'24: $17.7B
Q4'24: $17.8B
Q1'25: $13.7B
Q2'25: $14.7B
Q3'25: $16.7B
Q4'25: $17.6B
Q1'26: $14.5B
Q2'26: $15.0B
$0$5.0B$10.0B$15.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.3B
Q3'23: −$2.4B
Q4'23: −$3.4B
Q1'24: $3.1B
Q2'24: $41.0M
Q3'24: $4.5B
Q4'24: $410.0M
Q1'25: $3.0B
Q2'25: $2.9B
Q3'25: $3.5B
Q4'25: −$1.6B
Q1'26: $2.7B
Q2'26: −$248.0M
−$2.0B$0$2.0B$4.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$15.0B+2.6%−$248.0M−108.5%-0.04$835.0M
Q1'26$14.5B+5.4%$2.7B−9.4%0.47$2.6B
Q4'25 *$17.6B−1.2%−$1.6B−501.7%-0.29$5.3B
Q3'25$16.7B−5.9%$3.5B−20.7%0.62$4.6B
Q2'25$14.7B+10.3%$2.9B+6997.6%0.51−$582.0M
Q1'25$13.7B−7.8%$3.0B−4.8%0.52$2.3B
Q4'24 *$17.8B+199.5%$410.0M0.07$6.7B
Q3'24$17.7B+31.2%$4.5B0.78$6.7B
Q2'24$13.3B+2.1%$41.0M−98.2%0.01−$1.8B
Q1'24$14.9B−19.5%$3.1B−43.8%0.55$1.1B
Q4'23 *$5.9B−62.4%−$3.4B−167.5%-0.59$5.2B
Q3'23$13.5B−40.4%−$2.4B−127.7%-0.42$3.5B
Q2'23$13.0B−53.1%$2.3B−76.5%0.41−$1.2B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue−12.0%+8.5%+1.6%−0.3%
Operating cash flow−26.3%−4.1%−3.4%+0.1%
Free cash flow−29.6%−5.7%−4.8%−0.6%
EPS (diluted)−37.1%−3.6%−6.9%+1.9%
Equity−3.3%+6.5%+1.0%−0.1%
LT debt+23.3%+10.7%+6.0%+3.2%
Diluted shares−0.1%+0.3%−1.6%−2.3%
Stock price−1.4%−4.6%+2.9%+7.4%

$100, 3 years ago

$96vs $176 in SPY

-1.4% vs 20.7%/yr

$100, 5 years ago

$79vs $181 in SPY

-4.6% vs 12.6%/yr

$100, 10 years ago

$133vs $412 in SPY

2.9% vs 15.2%/yr

$100, 15 years ago

$292vs $813 in SPY

7.4% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$-0.25

−$6.2B created / $24.7B retained

Last 10 years

$0.63

$31.2B created / $49.6B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

7.9%

OCF ÷ (equity + debt)

OCF / EV yield

5.3%

MC vs 10× OCF

1.36

≤1 = priced under 10× OCF

Debt / FCF

6.8y

SBC / FCF

8.8%

Owner earnings

$8.3B

OCF − capex − SBC

OE yield

5.2%

Share count 5y

−1.1%

per year; negative = buybacks

Growth engine (5y): reinvested 50.9% of operating cash flow at an incremental return of -5.6% — an organically fundable growth rate of about -2.8% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

14 of 24 checks pass · 58%. Checks with structurally missing inputs are excluded.

Growth & Consistency

3/7

  • Revenue growth

    8.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    -3.6% · 5y CAGR ≥ 5%

    fail
  • FCF growth

    -5.7% · 5y CAGR ≥ 5%

    fail
  • Revenue rises consistently

    5 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    -4.1% vs 8.5% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

3/5

  • Net margin

    12.4% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    9.0% · ≥ 12%

    fail
  • Cash ROIC

    7.9% · ≥ 12%

    fail
  • FCF margin

    14.5% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $11.7B vs NI $7.8B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/4

  • Debt payable from cash flow

    6.8y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    2% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.71 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $86.5B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

3/4

  • Share count flat or shrinking

    -1.1% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    9% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    108% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    5 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    5.7% · ≥ 3%

    pass
  • Earnings multiple

    20.5 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    5.9% vs -4.8% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    6.1% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202562,5797,7711.3611,7042,6299,0759,7797991,14261,64186,4765,713
202463,6278,0311.4112,7442,9099,8359,57708771,04357,40588,2035,700
202350,9142,1190.378,7003,9074,7939,31605252,85361,53889,0145,709
202291,79331,3725.4729,2673,23626,0319,0372,00087241632,88495,6615,733
202173,63621,9793.8532,5802,71129,8698,81601,1821,94436,19577,2015,708
202041,6519,1591.6314,4032,22612,1778,57107551,78637,13363,2385,632
201940,90516,0262.8212,5882,04610,5428,1748,8656871,12135,95563,1435,675
201840,82511,1531.8715,8271,98413,8438,06012,1989231,13932,90963,4075,977
201752,54621,3083.5216,8021,95614,8467,7895,0008401,34233,53871,3086,058
201652,8247,2151.1716,1921,82314,3697,4465,0006912,59531,39859,5446,159
201351,58422,0033.1917,6841,20616,4786,50916,2905232,18330,46276,3076,895
201254,65714,5701.9416,7461,32715,4196,5378,22848110,08131,03681,2607,508
201161,03510,0091.2720,2401,66018,5806,5129,0004193,18234,92682,1907,870
201065,1658,2571.0211,4541,5139,9415,9641,0004051,73538,41087,8138,074
200949,2698,6351.2316,5871,20515,3824,91603491,97843,19390,0147,045
200848,2968,1041.2018,2381,70116,537-8,6175003842,1227,96357,5566,750
200748,4188,1441.1713,3531,88011,4738,1569,9944373,40665,1246,939

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.