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PFIZER 2017-18 Annual Report Analysis

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PFIZER 2017-18 Annual Report Analysis
Tue, 1 Jan

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 0.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 43.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.4% in FY18 as against 17.8% in FY17.
  • Depreciation charges increased by 5.3% and finance costs decreased by 56.3% 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 16.3% in FY17 to 17.3% in FY18.

PFIZER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 19,663 19,685 0.1%
Other income Rs m 1,012 1,143 13.0%
Total Revenues Rs m 20,674 20,828 0.7%
Gross profit Rs m 3,491 5,003 43.3%
Depreciation Rs m 629 663 5.3%
Interest Rs m 10 4 -56.3%
Profit before tax Rs m 3,864 5,479 41.8%
Tax Rs m 1,801 1,878 4.3%
Profit after tax Rs m 3,368 3,601 6.9%
Gross profit margin % 17.8 25.4
Effective tax rate % 46.6 34.3
Net profit margin % 16.3 17.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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%.
  • Long-term debt down at Rs 25 million as compared to Rs 25 million during FY17, a fall of 0.0%.
  • Current assets rose 18% and stood at Rs 24 billion, while fixed assets rose 4% and stood at Rs 10 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 25 25 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 9,175 9,514 3.7
Total Assets Rs m 32,610 36,900 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 2,834.5, stands at 34.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 30.4 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 429.8 430.3
TTM Earnings per share Rs 73.6 78.7
Diluted earnings per share Rs 73.6 78.7
Price to Cash Flow x 32.4 30.4
TTM P/E ratio x 34.2 34.2
Price / Book Value ratio x 3.5 3.4
Market Cap Rs m 129,676 129,676
Dividends per share (Unadj.) Rs 20.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PFIZER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 deteriorated and stood at 1,305.5x during FY18, from 403.5x 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 20 29
Interest coverage x 403.5 1,305.5
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: Company Reports, Regulatory Filings, 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 2,045.7 to Rs 2,834.5, registering a gain of Rs 788.8 or around 38.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,965.1 (up 0.3%). Over the last one year it has moved down from 14,799.4 to 13,965.1, a loss of 834 points (down 5.6%).

Overall, the S&P BSE SENSEX is up 6.3% over the year.

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

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For the quarter ended December 2018, PFIZER has posted a net profit of Rs 1 bn (up 51.2% YoY). Sales on the other hand came in at Rs 5 bn (up 12.5% YoY). Read on for a complete analysis of PFIZER's quarterly results.

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