Having come into operation in 1849 as a small company manufacturing light chemicals, Pfizer rose to become a global leader in the pharmaceutical market, conducting its operations in over 150 countries of the world and having a diversified portfolio of innovative medicines for treating and preventing many different medical conditions. The company’s geographical revenue diversification (share): US – 44.4%, emerging markets – 22.8%, Europe – 19.9%, other countries – 12.9%. Largest shareholders in the company include: Blackrock (6.89%), Goldman Sachs (2.11%), Bank of America (1.71%) and J.P. Morgan Chase & Co (1.46%).
The recent purchase of Hospira, one of the leading manufacturers of injectable drugs, generic drugs and biosimilars, will provide for an extension of the company’s medicine product range: the technology received will allow Pfizer to soon start producing alternative medicines whose patent protection has or is running out.
The prolonged growth of the company’s business: revenue in the previous quarter was 19.7% (YoY).
High marginality: net profit to revenue for the previous year was 23.9%. Return on equity is 10.23%. Return on assets is 4.15%.
Low debt level: aggregate debt to assets is just 24.16%, aggregate debt to EBITDA is 2.19 and net debt to EBITDA is 1.11.
The company is trading with a discount (undervalued) in relation to analogues:
Discount for P/E against analogues is 20%.
Discount for EV/EBITDA against analogues is 19%.
Discount for EV/EBIT against analogues is 22%.
Discount for EV/Revenue against analogues is 6%.
Discount for P/BV against analogues is 33%.
Investment period ends: 16/06/2017
Expected yield is calculated according to 98% capital protection and the price of the base asset at expiry, equal to 49 USD.
Pfizer’s share price has broken upwards through the 50-, 100- and 200-daily moving averages and has left the Ichimoku indicator cloud upwards. The price movements for shares are continuing to sit in an upward long-term trend. The significant technical levels are: 28.56; 30.81; 33.15; 35.54; 39.58; 45.06; 48.66.