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PFIZER 2017-18 Annual Report Analysis
Sat, 31 Mar

PFIZER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

PFIZER Income Statement Analysis

  • Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.6% in FY18 as against 25.4% in FY17.
  • Depreciation charges increased by 5.3% and finance costs decreased by 60.7% YoY, respectively.
  • Other income grew by 13.0% YoY.
  • Net profit for the year grew by 6.9% YoY.
  • Net profit margins during the year grew from 17.8% in FY17 to 18.4% in FY18.

PFIZER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 18,906 19,568 3.5%
Other income Rs m 1,012 1,143 13.0%
Total Revenues Rs m 19,918 20,711 4.0%
Gross profit Rs m 4,806 5,006 4.2%
Depreciation Rs m 629 663 5.3%
Interest Rs m 20 8 -60.7%
Profit before tax Rs m 5,168 5,479 6.0%
Tax Rs m 1,801 1,878 4.3%
Profit after tax Rs m 3,368 3,601 6.9%
Gross profit margin % 25.4 25.6
Effective tax rate % 34.8 34.3
Net profit margin % 17.8 18.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PFIZER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 22.4%.
  • Current assets rose 18% and stood at Rs 24 billion, while fixed assets rose 5% and stood at Rs 13 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 37 billion as against Rs 33 billion during FY17, thereby witnessing a growth of 13%.

PFIZER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 24,189 26,832 10.9
 
Current Liabilities Rs m 7,797 9,544 22.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 32,610 36,900 13.2
 
Current assets Rs m 20,513 24,167 17.8
Fixed Assets Rs m 12,097 12,732 5.3
Total Assets Rs m 32,610 36,900 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PFIZER Cash Flow Statement Analysis

  • PFIZER's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 0.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -169 million from the Rs -35 million net cash flows seen during FY17.

PFIZER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,288 3,318 0.9%
Cash Flow from Investing Activities Rs m -2,496 -2,383 -
Cash Flow from Financing Activities Rs m -826 -1,104 -
Net Cash Flow Rs m -35 -169 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PFIZER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 78.7, an improvement from the EPS of Rs 73.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,185.4, stands at 27.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 5.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 413.2 427.7
TTM Earnings per share Rs 73.6 78.7
Diluted earnings per share Rs 73.6 78.7
Price to Cash Flow x 21.7 21.4
TTM P/E ratio x 25.7 27.8
Price / Book Value ratio x 3.5 3.4
Market Cap Rs m 84,773 91,267
Dividends per share (Unadj.) Rs 20.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PFIZER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY18, from 2.6x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 712.6x during FY18, from 264.7x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 13.4% during FY18, from 13.9% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 20.4% during FY18, from 21.4% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 9.8% during FY18, from 10.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.6 2.5
Debtors’ Days Days 2 3
Interest coverage x 264.7 712.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.4 9.8
Return on equity % 13.9 13.4
Return on capital employed % 21.4 20.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PFIZER has performed over the last 5 years, please visit here.

PFIZER Share Price Performance

Over the last one year, PFIZER share price has moved up from Rs 1,892.5 to Rs 2,185.4, registering a gain of Rs 292.9 or around 15.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for PFIZER and quarterly results for PFIZER)

Annual Report FAQs

What is the current share price of PFIZER?

PFIZER currently trades at Rs 4,193.5 per share. You can check out the latest share price performance of PFIZER here...

What was the revenue of PFIZER in FY18? How does it compare to earlier years?

The revenues of PFIZER stood at Rs 20,711 m in FY18, which was up 4.0% compared to Rs 19,918 m reported in FY17.

PFIZER's revenue has grown from Rs 9,964 m in FY07 to Rs 20,711 m in FY18.

Over the past 12 years, the revenue of PFIZER has grown at a CAGR of 6.9%.

What was the net profit of PFIZER in FY18? How does it compare to earlier years?

The net profit of PFIZER stood at Rs 3,601 m in FY18, which was up 6.9% compared to Rs 3,368 m reported in FY17.

This compares to a net profit of Rs 3,050 m in FY16 and a net profit of Rs 2,996 m in FY08.

Over the past 12 years, PFIZER net profit has grown at a CAGR of 0.5%.

What does the cash flow statement of PFIZER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PFIZER reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 3,318 m as compared to Rs 3,288 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -2,383 m as compared to Rs -2,496 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -1,104 m as compared to Rs -826 m in FY17.

Here's the cash flow statement of PFIZER for the past 12 years.

(Rs m)FY07FY08FY16FY17FY18
From Operations1662,3783,4553,2883,318
From Investments2,323-789-7,009-2,496-2,383
From Financial Activity-759-952-619-826-1,104
Net Cashflow1,731637-4,173-35-169

What does the Key Ratio analysis of PFIZER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PFIZER reveals:

  • Operating profit margins witnessed a fall and down at 25.6% in FY18 as against 25.4% in FY17.
  • Net profit margins grew from 17.8% in FY17 to 18.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of PFIZER for the past 12 years.

 FY07FY08FY16FY17FY18
Operating Profit Margin (%)20.652.622.925.425.6
Net Profit Margin (%)50.443.915.817.818.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of PFIZER

 

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