Aureus
AExcellent

Philip Morris International Inc(PM)

A

Financial data as of Dec 31, 2025Improving · Consumer Staples

FCF Margin26.2%Free Cash Flow / Revenue
Cash Conversion107.8%Operating CF / Net Income
Free Cash Flow$10.7B
Revenue$40.6B
Net Cash-$44.0BNet debt position
Debt / FCF4.6xElevated debt burden
Current Ratio0.96Tight short-term liquidity
YoY FCF Growth+14.5%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (26.2%, 4.6x)
→
-1Current ratio below 1.0 (0.96)
→
+0.5Modest YoY FCF growth (14.5% YoY)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (26.2%)
  • Excellent cash conversion (108%)
  • FCF trend is improving

Concerns

  • Net debt position ($44.0B)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin26.2%
Net Margin27.9%
Operating CF Margin30.1%
CapEx Ratio3.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$44.0BNet debt position
Debt / FCF4.6xElevated debt burden
Current Ratio0.96Tight liquidity
Debt / Equity0.00Low leverage

Quarterly FCF Trend

+14.5% YoYImproving (+14.5%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NamePhilip Morris International Inc
SectorConsumer Staples
Free Cash Flow$10.7B
Revenue$40.6B
Net Income$11.3B
Operating Cash Flow$12.2B
Capital Expenditure$1.6B
FCF Margin26.2%
Cash Conversion Rate107.8%
Net Margin27.9%
Total Debt$48.8B
Total Cash$4.9B
Net Cash-$44.0B
Current Ratio0.96
Debt / Equity0.00
Debt / FCF4.6x
YoY FCF Growth+14.5%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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