Stock of the Day- Pfizer (PFE)

[RunDownHouse]

Just some more data on PFE for you guys:

Metric.............'04.........'03........'02
FCFY.................7.4%........(25.7).....3.6
EBV/share.........$22.81.......11.33......17.58
P/EBV...............1.18..........3.12.......1.74
NOPAT margin...25.2%.......15.6.......27.4
IC Turns...........25.............22.........24
EPM .............(1.1%)........(4.2).......(1.5)

FCFY: free cash flow yield
EBV/share: economic book value per share
IC turns: invested capital turns
EPM: economic profit margin


Their 2003 numbers are a sort of blip because they had a ton of write-offs for merger related expenses, in-process R&D, and asset impairments (over $6B). Still, they look good from the quick glance I gave them. Relatively cheap, but not so-cheap-something-must-be-wrong cheap, good NOPAT margin and FCFY.

Their negative EPM is a bit worrisome, but only a little, because they look so good despite that. If they achieved an EPM of even 0, they'd probably see some good price appreciation. Essentially, they're pumping a ton of capital into their business (IC turns) - as all big pharms tend to do - but not getting an acceptable return on it. So it all comes down to what's in their pipeline, as has been mentioned.

It would be interesting to hear if anybody had some good qualitative research on what their pipeline is like and any management plans to bring EPM up, since all I have is pretty much quant stuff.

EDIT: Past performance is no guarantee of future performance, this is not intended to be serious investment advice, etc. Don't go out and put everything you own on this stock. Also, we've got PFE's beta at .85, for the poster that asked in the other thread.