Philip Morris International Stock Beneish M Score

PM Stock  USD 122.91  0.87  0.70%   
This module uses fundamental data of Philip Morris to approximate the value of its Beneish M Score. Philip Morris M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Philip Morris Piotroski F Score and Philip Morris Altman Z Score analysis.
  
At this time, Philip Morris' Net Debt is very stable compared to the past year. As of the 26th of December 2024, Net Debt To EBITDA is likely to grow to 3.52, while Short Term Debt is likely to drop about 3.5 B. At this time, Philip Morris' Days Payables Outstanding is very stable compared to the past year. As of the 26th of December 2024, Return On Tangible Assets is likely to grow to 0.31, while Dividend Yield is likely to drop 0.04.
At this time, it appears that Philip Morris Intern is an unlikely manipulator. The earnings manipulation may begin if Philip Morris' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Philip Morris executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Philip Morris' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.79
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.22

Focus
Asset Quality

0.45

Focus
Expense Coverage

1.08

Focus
Gross Margin Strengs

0.76

Focus
Accruals Factor

1.08

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

1.39

Focus

Philip Morris Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Philip Morris' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.8 B4.4 B
Fairly Down
Slightly volatile
Total Revenue24.8 B35.2 B
Way Down
Pretty Stable
Total Assets41.7 B65.3 B
Way Down
Slightly volatile
Total Current Assets17.4 B19.8 B
Fairly Down
Pretty Stable
Non Current Assets Total23.1 B45.5 B
Way Down
Slightly volatile
Property Plant Equipment18.6 B17.8 B
Sufficiently Up
Slightly volatile
Selling General Administrative7.7 B10.1 B
Way Down
Slightly volatile
Total Current Liabilities16.1 B26.4 B
Way Down
Slightly volatile
Non Current Liabilities Total28.3 B48.4 B
Way Down
Slightly volatile
Short Term Debt3.5 B6.7 B
Way Down
Slightly volatile
Long Term Debt24.1 B41.2 B
Way Down
Slightly volatile
Operating Income11.5 B12.7 B
Moderately Down
Very volatile
Total Cash From Operating Activities9.4 B9.2 B
Fairly Up
Slightly volatile
Long Term InvestmentsB4.9 B
Way Down
Slightly volatile
Gross Profit Margin0.480.6335
Way Down
Slightly volatile

Philip Morris Intern Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Philip Morris' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Philip Morris in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Philip Morris' degree of accounting gimmicks and manipulations.

About Philip Morris Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Current Deferred Revenue

794.73 Million

At this time, Philip Morris' Current Deferred Revenue is very stable compared to the past year.

Philip Morris Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Philip Morris. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables3.7B3.8B3.9B4.8B4.4B3.8B
Total Revenue29.8B28.7B31.4B31.8B35.2B24.8B
Total Assets42.9B44.8B41.3B61.7B65.3B41.7B
Total Current Assets20.5B21.5B4.5B19.6B19.8B17.4B
Net Debt24.2B24.3B(1.5B)39.9B44.8B47.1B
Short Term Debt4.4B3.4B225M8.2B6.7B3.5B
Long Term Debt26.7B28.2B24.8B34.9B41.2B24.1B
Operating Income10.5B11.7B2.9B12.5B12.7B11.5B
Investments355M(598M)432M264M(3.6B)(3.4B)

Philip Morris ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Philip Morris' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Philip Morris' managers, analysts, and investors.
Environmental
Governance
Social

About Philip Morris Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Philip Morris International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Philip Morris using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Philip Morris International based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Is Tobacco space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Philip Morris. If investors know Philip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Philip Morris listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.493
Dividend Share
5.25
Earnings Share
6.31
Revenue Per Share
23.958
Quarterly Revenue Growth
0.084
The market value of Philip Morris Intern is measured differently than its book value, which is the value of Philip that is recorded on the company's balance sheet. Investors also form their own opinion of Philip Morris' value that differs from its market value or its book value, called intrinsic value, which is Philip Morris' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Philip Morris' market value can be influenced by many factors that don't directly affect Philip Morris' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Philip Morris' value and its price as these two are different measures arrived at by different means. Investors typically determine if Philip Morris is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Philip Morris' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.