Global stock markets soared in response to the news that American pharmaceuticals company Pfizer (PFE) has developed a vaccine, tested on 43,500 people, which it claims is 90% effective.
On the day of the announcement, Pfizer's share price rose 15%, before falling back and closing 7% up on the previous day. Other industries reacted positively to the news, with global economic hopes seemingly pinned on the vaccine.
Since the stock market crash in March caused by coronavirus, Pfizer's share price has had significant positive movement.
Its last market close was $37.95, which is 10.70% up on its pre-crash value of $33.89 (accounting for the 17 November 2020 split) and 43.48% up on the lowest point reached during the March crash when the shares fell as low as $26.45 (accounting for the 17 November 2020 split).
If you had bought $1,000 worth of Pfizer shares at the start of February 2020, those shares would have been worth $759.55 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,066.40.
|52-week range||$25.6315 - $39.8388|
|50-day moving average||$35.3267|
|200-day moving average||$34.7632|
|Wall St. target price||$41.78|
|Dividend yield||$1.52 (4.14%)|
|Earnings per share (TTM)||$1.538|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2020-11-19)||2.87%|
|1 month (2020-10-29)||11.23%|
|3 months (2020-08-28)||3.51%|
|6 months (2020-05-29)||2.75%|
|1 year (2019-11-29)||1.87%|
|2 years (2018-11-29)||-13.78%|
|3 years (2017-11-29)||8.37%|
|5 years (2015-11-27)||19.67%|
Valuing Pfizer stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Pfizer's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Pfizer's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, Pfizer shares trade at around 23x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, Pfizer's P/E ratio is best considered in relation to those of others within the drug manufacturers—general industry or those of similar companies.
Pfizer's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 5.1911. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Pfizer's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Pfizer's PEG ratio in relation to those of similar companies.
Pfizer's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $19.3 billion (£14.4 billion).
The EBITDA is a measure of a Pfizer's overall financial performance and is widely used to measure a its profitability.
To put Pfizer's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$48.6 billion|
|Operating margin TTM||29.24%|
|Gross profit TTM||$41.7 billion|
|Return on assets TTM||5.09%|
|Return on equity TTM||13.33%|
|Market capitalisation||$204 billion|
TTM: trailing 12 months
There are currently 45.9 million Pfizer shares held short by investors – that's known as Pfizer's "short interest". This figure is 1.7% up from 45.2 million last month.
There are a few different ways that this level of interest in shorting Pfizer shares can be evaluated.
Pfizer's "short interest ratio" (SIR) is the quantity of Pfizer shares currently shorted divided by the average quantity of Pfizer shares traded daily (recently around 23.8 million). Pfizer's SIR currently stands at 1.93. In other words for every 100,000 Pfizer shares traded daily on the market, roughly 1930 shares are currently held short.
To gain some more context, you can compare Pfizer's short interest ratio against those of similar companies.
However Pfizer's short interest can also be evaluated against the total number of Pfizer shares, or, against the total number of tradable Pfizer shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Pfizer's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Pfizer shares in existence, roughly 10 shares are currently held short) or 0.0083% of the tradable shares (for every 100,000 tradable Pfizer shares, roughly 8 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Pfizer.
Find out more about how you can short Pfizer stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Pfizer.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 33.15
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Pfizer's overall score of 33.15 (as at 01/01/2019) is pretty weak – landing it in it in the 60th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Pfizer is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Pfizer's total ESG risk score against those of similar companies.
Environmental score: 7/100
Pfizer's environmental score of 7 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Pfizer is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 18.47/100
Pfizer's social score of 18.47 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Pfizer is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 13.68/100
Pfizer's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Pfizer is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Pfizer scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Pfizer hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||33.15|
|Total ESG percentile||60|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||3|
Dividend payout ratio: 53.33% of net profits
Recently Pfizer has paid out, on average, around 53.33% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.14% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Pfizer shareholders could enjoy a 4.14% return on their shares, in the form of dividend payments. In Pfizer's case, that would currently equate to about $1.52 per share.
Pfizer's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Pfizer's most recent dividend payout was on 1 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 5 November 2020 (the "ex-dividend date").
Pfizer's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Pfizer's shares were split on a 1054:1000 basis on 17 November 2020. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1054 shares. This wouldn't directly have changed the overall worth of your Pfizer shares – just the quantity. However, indirectly, the new 5.1% lower share price could have impacted the market appetite for Pfizer shares which in turn could have impacted Pfizer's share price.
Over the last 12 months, Pfizer's shares have ranged in value from as little as $25.6315 up to $39.8388. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Pfizer's is 0.6415. This would suggest that Pfizer's shares are less volatile than average (for this exchange).
To put Pfizer's beta into context you can compare it against those of similar companies.
Pfizer Inc. develops, manufactures, and sells healthcare products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and pain under the Eliquis, Chantix/Champix, and Premarin family brands; biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Sutent, Xtandi, Xalkori, Inlyta, Braftovi + Mektovi brands; and sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Vfend, and Zithromax brands. The company also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, and tick-borne encephalitis under the Prevnar 13/Prevenar 13 (pediatric/adult), FSME-IMMUN, Nimenrix, and Trumenba brands; biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, and Eucrisa brands; and amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, Genotropin, and Refacto AF/Xyntha brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as disease control and prevention centers. The company has collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company and Astellas Pharma US, Inc.; a licensing agreement with Akcea Therapeutics, Inc; a strategic alliance with Verily Life Sciences LLC; collaboration agreements with Merck KGaA and Valneva SE; a clinical trial collaboration and supply agreement with IDEAYA Biosciences, Inc.; a material transfer and collaboration agreement with BioNTech SE; a clinical supply collaboration with Jiangsu Alphamab Biopharmaceuticals Co., Ltd; a research collaboration and license agreement with BioInvent International AB; and a multi-target drug discovery collaboration with Sosei Group Corporation. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
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