Is Philip Morris International Stock Built to Withstand More Downside?
Philip Morris International (PM) stock is down 5.2% in a day. The recent slide reflects renewed concerns around slowing growth in its smoke-free products and regulatory hurdles, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Philip Morris International stands today.
- Size: Philip Morris International is a $264 Bil company with $41 Bil in revenue currently trading at $169.70.
- Fundamentals: Last 12 month revenue growth of 7.3% and operating margin of 36.7%.
- Liquidity: Has Debt to Equity ratio of 0.18 and Cash to Assets ratio of 0.07
- Valuation: Philip Morris International stock is currently trading at P/E multiple of 23.3 and P/EBIT multiple of 17.1
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 55.8% within a year. See PM Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell PM Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PM stock falls another 20-30% to $119 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Is Philip Morris International Stock A Trap Or A Missed Opportunity?
- Is Philip Morris International Stock Poised for a Rally?
- Is Wall Street Underestimating Philip Morris International Stock’s Potential?
- Philip Morris International Stock Pulls Back to Support – Smart Entry?
- Philip Morris International Stock Hands $49 Bil Back – Worth a Look?
- Philip Morris International Stock To $203?
2022 Inflation Shock
- PM stock fell 25.8% from a high of $111.90 on 17 February 2022 to $83.01 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 July 2024
- Since then, the stock increased to a high of $189.80 on 25 February 2026 , and currently trades at $169.70
| PM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -25.8% | -25.4% |
| Time to Full Recovery | 664 days | 464 days |
2020 Covid Pandemic
- PM stock fell 33.1% from a high of $89.64 on 21 February 2020 to $59.98 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 March 2021
| PM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.1% | -33.9% |
| Time to Full Recovery | 360 days | 148 days |
2018 Correction
- PM stock fell 46.3% from a high of $122.90 on 19 June 2017 to $65.97 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 August 2024
| PM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.3% | -19.8% |
| Time to Full Recovery | 2,076 days | 120 days |
2008 Global Financial Crisis
- PM stock fell 42.2% from a high of $55.95 on 12 August 2008 to $32.34 on 3 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 September 2010
| PM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.2% | -56.8% |
| Time to Full Recovery | 566 days | 1,480 days |
Feeling jittery about PM stock? Consider portfolio approach.
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