Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Pfizer (NYSE:PFE) in relation to its major competitors in the Pharmaceuticals industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within the industry.
Pfizer Background Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales). While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, and cardiovascular treatment Eliquis. Pfizer sells these products globally, with international sales representing close to 50% of total sales. Within international sales, emerging markets are a major contributor.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Pfizer Inc | 15.45 | 1.65 | 2.36 | -2.43% | $-1.1 | $3.96 | -41.55% |
| Eli Lilly and Co | 113.87 | 53.18 | 17.71 | -0.52% | $0.96 | $7.64 | 36.84% |
| Novo Nordisk A/S | 43.85 | 35.14 | 15.41 | 24.5% | $32.76 | $49.02 | 28.89% |
| Johnson & Johnson | 30.33 | 5.46 | 4.29 | 35.56% | $7.24 | $14.74 | 6.78% |
| Merck & Co Inc | 66.05 | 7.30 | 5.11 | 11.87% | $6.95 | $11.7 | 6.71% |
| Novartis AG | 28.04 | 5.83 | 4.22 | 3.91% | $4.88 | $8.97 | 12.14% |
| AstraZeneca PLC | 35.21 | 5.55 | 4.61 | 3.68% | $3.33 | $9.4 | 4.64% |
| Bristol-Myers Squibb Co | 12.72 | 3.52 | 2.34 | 6.32% | $4.85 | $8.46 | -2.25% |
| Zoetis Inc | 38.37 | 17.03 | 10.44 | 12.28% | $0.9 | $1.51 | 7.44% |
| GSK PLC | 10.54 | 4.89 | 2.16 | 11.34% | $2.55 | $5.88 | 4.06% |
| Takeda Pharmaceutical Co Ltd | 35.92 | 0.97 | 1.65 | -0.69% | $202.28 | $699.51 | 4.07% |
| Viatris Inc | 7.55 | 0.66 | 0.89 | 1.59% | $1.22 | $1.69 | -3.34% |
| Dr Reddy's Laboratories Ltd | 18.48 | 3.71 | 3.52 | 5.94% | $23.28 | $40.37 | 9.11% |
| Jazz Pharmaceuticals PLC | 140.39 | 2.10 | 2.14 | 4.19% | $0.33 | $0.87 | 3.35% |
| Amphastar Pharmaceuticals Inc | 21.50 | 4.43 | 4.82 | 8.31% | $0.09 | $0.11 | 50.3% |
| Corcept Therapeutics Inc | 30.52 | 5.45 | 6.14 | 7.06% | $0.03 | $0.12 | 21.5% |
| Average | 42.22 | 10.35 | 5.7 | 9.02% | $19.44 | $57.33 | 12.68% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through an analysis of Pfizer, we can infer the following trends:
- At 15.45, the stock's Price to Earnings ratio is 0.37x less than the industry average, suggesting favorable growth potential.
- The current Price to Book ratio of 1.65, which is 0.16x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
- With a relatively low Price to Sales ratio of 2.36, which is 0.41x the industry average, the stock might be considered undervalued based on sales performance.
- The Return on Equity (ROE) of -2.43% is 11.45% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
- Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $-1100 Million, which is -0.06x below the industry average, potentially indicating lower profitability or financial challenges.
- With lower gross profit of $3.96 Billion, which indicates 0.07x below the industry average, the company may experience lower revenue after accounting for production costs.
- The company's revenue growth of -41.55% is significantly lower compared to the industry average of 12.68%. This indicates a potential fall in the company's sales performance.
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Pfizer can be assessed by comparing it to its top 4 peers, resulting in the following observations:
- Pfizer exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.66.
- This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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