# Philip Morris International Inc. (PM)

> Makes and sells cigarettes and smoke-free nicotine products, including heated tobacco, nicotine pouches, and e-vapor products.

- Exchange: New York Stock Exchange · Sector: Consumer Staples · Industry: Tobacco
- Headquarters: Stamford, Connecticut, United States
- Founded: 1987 (incorporated)
- Employees: 84,900 (December 31, 2025)
- SEC CIK: 0001413329 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001413329))
- Full page: https://inspectstocks.com/stocks/pm
- Data as of: price 2026-09-25; newest filing used 2026-07-24; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $42.5B | $33.2B |
| Revenue growing recently | passed | $42.5B | $40.6B |
| Free cash flow positive | passed | $12.7B |  |
| Free cash flow growing overall | passed | $12.7B | $7.4B |
| Free cash flow growing recently | passed | $12.7B | $10.7B |

Business quality (the + / − mark): 5 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 25.6% |  |
| Healthy profit margin | passed | 25.6% |  |
| Strong operating margin | passed | 37.7% |  |
| Good return on equity | failed | -108.8% |  |
| Debt under control | passed | -4.97 |  |
| Turns sales into cash | passed | 29.9% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $42.5B |
| Net income, trailing twelve months | $10.9B |
| Free cash flow, trailing twelve months | $12.7B |
| Net margin | 25.6% |
| Operating margin | 37.7% |
| Return on equity | -108.8% |
| Debt to equity | -4.97 |
| Diluted EPS, trailing twelve months | $6.96 |
| Share price | $190.48 |
| Market value | $296.9B |
| Price / earnings | 27.4x |
| Price / sales | 7.0x |

## What the business does

Philip Morris International sells cigarettes in about 170 markets and smoke-free products in 109 markets as of June 30, 2026. Its smoke-free products include heated tobacco products such as IQOS, oral nicotine products such as ZYN, and e-vapor products such as VEEV. It sells through distributors, wholesalers, retailers, e-commerce, and its own branded stores. The company also has a wellness business focused mainly on oral consumer products.

### How it makes money

- **International Combustibles** (56.9% (six months ended June 30, 2026)) — Revenue from cigarettes and other combustible tobacco products sold outside the United States, including sales through distributors and other trade channels.
- **International Smoke-Free** (36.1% (six months ended June 30, 2026)) — Revenue from heated tobacco, oral smoke-free, e-vapor, and related products sold outside the United States.
- **U.S.** (6.9% (six months ended June 30, 2026)) — Revenue from U.S. products, including ZYN nicotine pouches, cigarettes and cigars, smoke-free products, and the wellness business.

### Products

- **Cigarettes** — Combustible tobacco products sold under international brands such as Marlboro, Parliament, Chesterfield, L&M, and Philip Morris, as well as local brands.
- **IQOS heated tobacco products** — A device heats a tobacco or other specially designed consumable to create an aerosol rather than burning it. Consumable brands include TEREA, HEETS, DELIA, and LEVIA.
- **ZYN and other oral nicotine products** — Nicotine pouches are placed in the mouth; the company also sells traditional oral tobacco products such as General snus.
- **VEEV e-vapor products** — Electronic devices heat liquid to make an inhalable aerosol; VEEV includes closed-pod products.
- **Aspeya wellness products** — The wellness business develops and sells primarily oral consumer products, including medical and non-recreational cannabinoid products where permitted.

### Customers

- Distributors that supply retailers; the company also sells directly to retailers in some markets.
- Wholesalers that buy products and supply local shops and other retailers.
- Retailers and trade partners reached through the company's e-commerce and distribution systems.
- Adult consumers who buy products through shops, e-commerce, or the company's branded retail stores.
- In 2025, two individual regional distributors each accounted for at least 10% of consolidated net revenue (high confidence).

### Competitors

- Altria Group, Inc. (MO) — Tobacco and nicotine products, including cigarettes and oral nicotine products, particularly in the United States.
- British American Tobacco p.l.c. (BTI) — Cigarettes and smoke-free tobacco and nicotine products; BTI is the U.S.-traded symbol for the foreign company.
- Japan Tobacco Inc. (JAPAY) — Cigarettes and smoke-free products in markets where both companies sell; JAPAY is its U.S.-traded symbol.
- Imperial Brands plc (IMBBY) — Cigarettes and smoke-free tobacco and nicotine products; IMBBY is its U.S.-traded symbol.

### What it depends on

- Sales of tobacco and nicotine products depend on country-by-country laws governing product approval, taxation, marketing, packaging, flavors, and consumer access.
- The company depends on tobacco leaf and other agricultural inputs, including cloves for its Indonesian business, and buys materials from suppliers around the world.
- Heated tobacco and e-vapor products depend on electronic devices and components made by external electronics manufacturers and their suppliers.
- Products reach many markets through distributors and wholesalers; losing a distributor can temporarily disrupt sales in a market.
- Smoke-free sales depend on adult consumers choosing products such as IQOS, ZYN, and VEEV and continuing to use them.

### What could go wrong

- Regulators could prohibit or restrict smoke-free products, limit how the company communicates about them, or change product rules and taxes; this could impede sales of products such as IQOS, ZYN, and VEEV.
- Cigarette consumption is declining in many markets, while cigarette taxes and other tobacco-control measures may reduce demand or raise costs for the company's combustible business.
- The U.S. business depends on an evolving legal and regulatory framework, including product authorizations; changes or delays could affect the sale and marketing of products such as ZYN and IQOS.

## More on this company

- [Overview](https://inspectstocks.com/stocks/pm)
- [Financial statements](https://inspectstocks.com/stocks/pm/financials)
- [Competitors](https://inspectstocks.com/stocks/pm/peers)
- [Earnings](https://inspectstocks.com/stocks/pm/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.