Operating Margin

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Price: 90 CHF 2.27% Market Closed

Market Cap: CHf140B

38.7%

Improving

by 1.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

38.7%

Operating Income

$15.5B

Revenue

$40B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

38.7%

Operating Income

CHf15.5B

Revenue

$40B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Philip Morris International Inc NYSE:PM	267.5B USD	Loading...
UK		British American Tobacco PLC LSE:BATS	95B GBP	Loading...
US		Altria Group Inc NYSE:MO	103.8B USD	Loading...
JP		Japan Tobacco Inc TSE:2914	10T JPY	Loading...
UK		Imperial Brands PLC LSE:IMB	24.3B GBP	Loading...
IN		ITC Ltd NSE:ITC	4.1T INR	Loading...
SE	S	Swedish Match AB F:SWMC	15.2B EUR	Loading...
KR		KT&G Corp KRX:033780	15.6T KRW	Loading...
CN		Smoore International Holdings Ltd HKEX:6969	67.4B HKD	Loading...
ID		Hanjaya Mandala Sampoerna Tbk PT IDX:HMSP	93.1T IDR	Loading...
IN		Godfrey Phillips India Ltd NSE:GODFRYPHLP	311.5B INR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Philip Morris International Inc
Glance View

Economic Moat

Wide

Market Cap

140B CHF

Industry

Tobacco

Philip Morris International Inc. (PMI), once a division of the legendary Altria Group, has crafted its narrative as a global behemoth in the tobacco industry, with roots stretching back to the mid-19th century. Headquartered in New York since its spin-off in 2008, PMI has positioned itself as a leading player in the world of tobacco outside of the United States. The company's primary offering revolves around the manufacturing and sale of cigarettes and other nicotine-containing products. With iconic brands like Marlboro, marketed extensively across the globe, PMI commands a significant share of the market. This dominance is reinforced by robust distribution channels and a keen understanding of consumer preferences across diverse cultures, allowing the company to generate substantial revenues and sustain its expansive operations worldwide. Navigating through a period of transformation, PMI has been channeling efforts towards a future positioned beyond traditional cigarettes. Recognizing the shifting regulatory landscapes and growing consumer interest in smoke-free alternatives, the company has embarked on a strategic shift towards reduced-risk products (RRPs). A cornerstone of this transition is their flagship product, IQOS, a heated tobacco system that claims to reduce harmful chemicals compared to conventional cigarette smoking. This not only aligns with evolving health regulations but also paves the way for new revenue streams. By reinvesting the considerable cash flow from its conventional tobacco business into innovation and marketing of these RRPs, PMI seeks to redefine its identity and ensure sustained profitability, striving for a smoke-free future while maintaining its financial robustness.

View PMI Analysis

PMI Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Philip Morris International Inc
SIX:PMI

Peer Comparison

Market Distribution

Other Profitability Ratios

Philip Morris International Inc
Glance View

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Philip Morris International Inc SIX:PMI