PFIZER 2023-24 Annual Report Analysis

Thu, 8 Aug

PFIZER has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

PFIZER Income Statement Analysis

• Operating income during the year fell 9.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.3% in FY24 as against 34.7% in FY23.
• Depreciation charges decreased by 41.0% and finance costs increased by 14.5% YoY, respectively.
• Other income grew by 78.6% YoY.
• Net profit for the year declined by 11.6% YoY.
• Net profit margins during the year declined from 25.7% in FY23 to 25.1% in FY24.

PFIZER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	24,248	21,932	-9.6%
Other income	Rs m	1,011	1,805	78.6%
Total Revenues	Rs m	25,258	23,737	-6.0%
Gross profit	Rs m	8,420	6,433	-23.6%
Depreciation	Rs m	1,055	623	-41.0%
Interest	Rs m	135	154	14.5%
Profit before tax	Rs m	8,240	7,461	-9.5%
Tax	Rs m	2,001	1,947	-2.7%
Profit after tax	Rs m	6,239	5,513	-11.6%
Gross profit margin	%	34.7	29.3
Effective tax rate	%	24.3	26.1
Net profit margin	%	25.7	25.1

Don't Miss: Key Information for Long-term Investors

PFIZER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -16.9%.
• Current assets rose 10% and stood at Rs 27 billion, while fixed assets rose 2% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 39 billion during FY23, thereby witnessing a growth of 7%.

PFIZER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	32,073	35,955	12.1
Current Liabilities	Rs m	6,574	5,466	-16.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	39,031	41,748	7.0
Current assets	Rs m	24,933	27,378	9.8
Fixed Assets	Rs m	13,780	14,053	2.0
Total Assets	Rs m	39,031	41,748	7.0

PFIZER Cash Flow Statement Analysis

• PFIZER's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 537 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 754 million from the Rs -262 million net cash flows seen during FY23.

PFIZER Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	3,557	2,568	-27.8%
Cash Flow from Investing Activities	Rs m	-361	537	-
Cash Flow from Financing Activities	Rs m	-3,458	-2,351	-
Net Cash Flow	Rs m	-262	754	-

Current Valuations for PFIZER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 120.5, an decline from the EPS of Rs 136.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,931.0, stands at 44.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 12.4 times.
• The company's price to cash flow (P/CF) ratio stood at 31.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	530.0	479.4
TTM Earnings per share	Rs	136.4	120.5
Diluted earnings per share	Rs	136.4	120.5
Price to Cash Flow	x	21.7	31.4
TTM P/E ratio	x	25.4	44.6
Price / Book Value ratio	x	5.8	5.4
Market Cap	Rs m	184,576	192,598
Dividends per share (Unadj.)	Rs	70.0	35.0

Ratio Analysis for PFIZER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY24, from 3.8x during FY23. 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 49.4x during FY24, from 62.1x during FY23. 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 15.3% during FY24, from 19.5% during FY24. 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 21.2% during FY24, from 26.1% during FY23. 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 13.6% during FY24, from 16.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	3.8	5.0
Debtors’ Days	Days	2	3
Interest coverage	x	62.1	49.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.3	13.6
Return on equity	%	19.5	15.3
Return on capital employed	%	26.1	21.2

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 3,922.4 to Rs 5,931.0, registering a gain of Rs 2,008.6 or around 51.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 41,162.7 (up 0.8%). Over the last one year it has moved up from 28,343.8 to 41,162.7, a gain of 12,819 points (up 45.2%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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