Philip Morris International Inc. (PM)

Philip Morris International's stock has shown strong performance, surging by 49.29% over the last six months and 84.54% over the past year. As of June 26, 2025, the stock price was $180.66. The company reported strong Q1 2025 earnings, with $1.69 EPS, beating analyst estimates of $1.61, and revenue for the quarter was $9.30 billion, exceeding expectations of $9.10 billion. The company's focus on a smoke-free future and the expansion of its smoke-free product portfolio have been positively received by investors. Philip Morris International declared a regular quarterly dividend of $1.35 per share on June 13, 2025.

The tobacco industry experiences relatively stable demand due to the addictive nature of nicotine, but regulatory changes, health awareness campaigns, and shifts in consumer preferences can influence demand. PMI's quarterly financial reports indicate fluctuations in shipment volumes, with IQOS user numbers reflecting normal seasonal quarterly trends. The company's diversified product portfolio and global presence help mitigate the impact of consumer behavior swings, as growth in smoke-free products offsets the decline in traditional cigarette sales.

Philip Morris International Inc. is a leading multinational tobacco company operating globally, selling products in over 180 countries. PMI is transforming its business towards a smoke-free future by investing in reduced-risk alternatives. The company's product portfolio includes traditional cigarettes and smoke-free products, with major cigarette brands including Marlboro, Parliament, and Bond Street. Its flagship smoke-free product is IQOS, and other smoke-free brands include HEETS, TEREA, VEEV, and ZYN. PMI aims for smoke-free products to account for over two-thirds of its total net revenues by 2030, with the ultimate goal of phasing out cigarettes completely; as of March 31, 2025, 42% of PMI's total net revenues came from its smoke-free business.

Philip Morris International operates in over 180 countries worldwide and divides its operations into several key geographic regions: Europe, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa, East Asia, Australia, PMI Duty Free Region, Americas Region, and Wellness and Healthcare. PMI is directly involved in tobacco leaf agriculture and processing in 15 countries, manufactures its products in 30 countries, and has distribution operations in 51 countries. Asia Pacific is a significant regional market for cigarettes, with PMI selling around 30% of its cigarettes in this region, slightly less than in Western Europe.

Philip Morris International is actively reshaping its brand reputation through its commitment to a smoke-free future and sustainability initiatives. PMI has invested over $14 billion since 2008 to develop smoke-free products, aiming to end cigarette sales completely. The company received recognition for its environmental efforts, including being ranked first in Forbes' Net Zero Leaders list and achieving a Triple A score from CDP. Despite these efforts, PMI faces scrutiny as a significant portion of its revenue still comes from traditional tobacco products.

Philip Morris International is primarily owned by institutional shareholders, who hold approximately 80.73% to 86.93% of the company's stock. Retail investors hold about 18.71%, while insiders own a smaller percentage, around 0.16% to 0.56%. The largest individual shareholder is Vanguard Group Inc., owning 140.62 million shares representing 9.03% of the company. Other major institutional owners include Capital World Investors, BlackRock, Inc., and State Street Corp.