Pfizer and Moderna stocks: Analyzes stock price movements over the past 5 years

Pfizer and Moderna stocks Analyzes stock price movements over the past 5 years (using stock price related ratios) I Pfizer 1 OverviewIntroduction Name Pfizer Inc Ticker symbol PFE Exchange NYSE Indus.

Pfizer and Moderna stocks: Analyzes stock price movements over the past 5 years (using stock price

related ratios).

I Pfizer

1 Overview/Introduction

- Name: Pfizer Inc

- Ticker symbol: PFE

- Exchange: NYSE

- Industry: Pharmaceuticals

- Market cap: $264.1B

- Headquarters: 235 East 42nd Street, New York City, U.S

- Founded: 1849 in New York City

- Founders: Charles Pfizer

Charles F Erhart

- Logo:

- Purpose: Breakthroughs that change patients’ lives

- Value: Courage, Excellence, Equity, Joy

- Their bold moves:

1 Unleash the power of our people

2 Deliver first-in-class science

3 Transform our go-to-market model

4 Win the digital race in pharma

5 Lead the conversation

- Their big ideas:

1 Source the best science in the world

2 Double our innovation success rate

3 Enhance health outcomes and patient experience

4 Digitize drug discovery and development

5 Focus the narrative on the value of our science

- Operating range: Over 55 countries worldwide The two largest foreignmarkets are China and Japan

Pfizer Inc is an American multinational pharmaceutical and biotechnologycorporation headquartered on 42nd Street in Manhattan, New York City Thecompany was established in 1849 in New York by two German entrepreneurs, CharlesPfizer (1824–1906) and his cousin Charles F Erhart (1821–1891)

Pfizer develops and produces medicines and vaccines for immunology, oncology,cardiology, endocrinology, and neurology The company has several blockbusterdrugs or products that each generate more than US$1 billion in annual revenues In

2020, 52% of the company's revenues came from the United States, 6% came fromeach of China and Japan, and 36% came from other countries In addition, thecompany is involved in the contract manufacturing business It serves wholesalers,retailers, hospitals, clinics, government agencies, pharmacies, and individual provideroffices, as well as disease control and prevention centers The company hascollaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US,Inc.; Myovant Sciences Ltd,

Pfizer was a component of the Dow Jones Industrial Average stock market index from

2004 to August 2020 The company ranks 64th on the Fortune 500 and 49th on theForbes Global 2000

During the COVID-19 era, Pfizer was one of the world's largest ordered vaccinebrands due to its high effectiveness against covid-19 (~95%), although it does notaccept commercialization.l cost Thanks to the sale of the vaccine, Pfizer has enjoyed

a sudden growth in revenue as well as attracting investment that has caused the shareprice to increase significantly Estimated revenue from Covid-19 vaccine Pfizeraccounts for about 42% of the company's total revenue

EPS is also one of the important components to be able to create the P/E ratio, alsoknown as the price-to-earnings ratio.Accordingly, in the P/E ratio, E is EPS At thesame time, the ratio (P/E) is also one of the extremely important indicators to be able

to conduct analysis and make decisions in the stock investment of any investor today.Pfizer's EPS fluctuates quite a lot from year to year In 2018, Pfizer’s EPS got $1.89,however in 2019, it had slightly soared to $2.92 because net income in 2019 is higher($15,950B) and Pfizer 2019 shares outstanding were 5.675B, a 5.05% decline from

2018 Moreover, in 2020 Pfizer EPS had suddenly dropped at 1.60 The reason whyit’d been dropped was that net income in 2020 had decreased $9.159B compared to

2019 and Pfizer 2020 shares outstanding were 5.632B, a 0.76% decline from 2019 In

the next 2 years, this ratio rises gradually ; EPS in 2022 is the highest thatdemonstrates Each share of Company Pfizer has a profit of about 5.31 USD

- P/E = Market value per share / Earnings per share

The price-to-earnings ratio (P/E) is one of the most widely used tools by whichinvestors and analysts determine a stock's relative valuation

The price-to-earnings (P/E) ratio relates a company's share price to its earnings pershare P/E ratios are used by investors and analysts to determine the relative value of acompany's shares in an apples-to-apples comparison A high P/E ratio could mean that

a company's stock is overvalued, or that investors are expecting high growth rates inthe future Companies that have no earnings or that are losing money do not have aP/E ratio because there is nothing to put in the denominator

The price-to-earnings ratio indicates the dollar amount an investor can expect to invest

in a company in order to receive $1 of that company’s earnings

The ratio (P/E) is one of the important indicators in analyzing and making investment decisions of investors The E in the P/E ratio is EPS

The calculation formula is:

P/E = Market price/ EPS

EPS and P/E have a negative relationship with each other

Looking at a table, P/E in 2018 is 22.23, which means investors are willing to pay

$22.23 for $1 of current earnings Although stock price in 2019 is lower than in 2018,EPS in 2019 higher than in 2018 at $1.03, this reason makes P/E in 2019 dropped at12.93 The highest P/E of Pfizer over the past 5 years is 23.3 in 2020 The reason isbecause EPS in 2020 reaches the minimum value of 1.6 After 2020, P/E ratio ofPfizer has gradually gone down reaching 15.34 and 8.41, respectively in 2021 and

Over the past 5 years, the P/B ratios of Pfizer Inc have been higher than 1, whichmeans that the market has high expectations for Pfizer company Investors believe that

the business will do well and develop in the future They are willing to pay more thanthe book value of the shares to be able to own them.

Pfizer's P/B ratio over the past 5 years has not differed too much In 2018-2020, theindex doesn’t change significantly, attaining 3.73, 3.254 and 3.24 respectively Thehighest P/B ratio of Pfizer Inc is 4.299 in 2021, so to own PFE shares, investorsaccept to pay 4.299 times the book value In 2022, the P/B ratio drops by 1.649 - thelowest number in 5 years

- ROE = Net income / Average Shareholder’s equity

As we can see, 2018-2022, ROE ratio is positive, so we can conclude the Pfizercompany is profitable In 2018-2020, indicators fluctuate unevenly showing that Thecompany uses capital inefficiently, does not earn more profit On the other hand, after

2020, ROE increases year-by-year , 2021 increased 16.7% and 2022 increased 23.06%when compared to 2020 A high and increasing ROE every year reflects:

→ Enterprises are using and managing capital effectively

→ The business is in a good stage of development, reflecting stronggrowth potential

→ The enterprise has a harmonious balance between shareholders'equity and debt (because if it is not balanced, a lot of debt will have to payinterest, which will reduce the profit of the Company)

- ROA = Net income / Total assets

- ROA, also known as return on assets, is a financial metric that tells you howmuch profit a company makes relative to the value of its assets The higher theROA, the better the company's capital efficiency This index is extremelyimportant in choosing good stocks Because businesses that operate effectively

in the long run always bring great value to shareholders

- Pfizer's ROA fluctuates up and down and is unstable between 2018 and 2022,showing that the company has not used its assets effectively and optimally withavailable resources The highest ROA in 2022 is 15.92 (%) and the lowest is5.42 (%) at the end of 2020 From 2018 to 2020, ROA fluctuated at 6.73 in

2018 and increased to 9.9 in 2019, after that halves to 5.42 in 2020

- Current ratio = Current assets/ Current liabilities

Current

Current ratio is a ratio of short-term debt solvency, used to measure the ability of abusiness to pay short-term debts The current ratio shows how many dollars of currentassets and short-term investments a business has to secure a dollar of short-term debt.

The higher the short-term ratio, the more reliable the company's solvency, and viceversa, the lower the ratio, the more difficult it is to trust the solvency The generallyaccepted short-term payout ratio is approximately 2.0

Based on the line chart, it can be seen that in 5 years Pfizer's current ratio has a slightfluctuation Most ratios are greater than 1, a high current ratio, which means thecompany's current assets are sufficient to pay off its current liabilities In 2018, theindex was at 1,567 and fell sharply the next year to 0.8793 However, in the next threeyears, the quick ratio of the company tends to increase again to reach 1,353 in 2020and slightly increase to 1,399 and 1,589 in the following years

- Quick ratio = (Current assets - Inventory) / Current liabilities

- The quick ratio is an indicator of a company’s short-term liquidity position andmeasures a company’s ability to meet its short-term obligations with its mostliquid assets The higher the quick ratio, the higher the solvency of thebusiness, and vice versa, the lower the ratio, the harder it is to trust the fastpayment ability of the payment enterprise Typically, the quick ratio accepted

is approximately 1

greater than 1 Only in 2019, Pfizer's quick ratio was less than 1, at 0.69 Itmeans that the company may not be able to pay off its short-term debts,whereas in other years, the company has a quick ratio greater than one, whichimplies that the company can pay off the short-term debts immediately

- Debt - to equity ratio = Total liabilities / Total Shareholders Equity

is a measure of the degree to which a company is financing its operations withdebt rather than its own resources The debt-to-equity ratio is a particular type

of gearing ratio The higher this ratio, the greater the level of risk, because thebusiness's operations are heavily dependent on debts, many of which are short-term debts with payment cycles of less than 1 year

- As we can see, Pfizer's debt-to-equity ratio (5 years) < 1, which means totalliabilities are less than total equity The majority of the capital investment made

by the owner and the accumulated after-tax profit over the years are used tofund the company's operations This demonstrates that the enterprise has thecapacity to be financially self-sufficient and does not need to borrowexcessively, thereby lowering the burden of debt on the company, loweringinterest costs, and postponing payment So it enhances business outcomes

- The debt-to-equity ratio tends to increase from 2018 to mid-2020 and peaks inmid-2020 According to the statistics in the table, the debt-to-equity ratio in

2018 was 0.6584 and increased to its highest level in 2019 at 0.8052 After that,Pfizer's debt-to-equity ratio tended to drop to 0.3852 on Sept 30, 2022, or half

of the 2019 figure

SO SÁNH VỚI AVERAGE INDUSTRY in 2022

By comparing with the industry average, we can see:

- Financial indicators: The profitability ratios (ROE, ROA) of PFE are muchhigher than the industry average Thus, the business operates with highefficiency; PFE Inc is managing assets effectively and more profitable thanother companies in the industry PFE's D/E ratio is smaller than the industryaverage, when the industry's D/E ratio is 0.7607 and PFE’s is 0.3852, it meansthat the enterprise has scarce capital, poor financial structure, and inefficientbusiness operations

- In terms of valuation, currently PFEs valuation is lower than the industry interms of P/E ratio

=> Thus, if compared with the industry average, PFE is currently an efficientbusiness, undervalued This is the first sign of a good investment opportunity and youcan dive into this business review From there, if you are intending to invest in thisbusiness, you can study more closely the many accompanying factors to consider for along-term strategy

KL TỔNG HỢP VÀ ĐƯA RA XU HƯỚNG TRONG TƯƠNG LAI

Through the numbers we searched and analyzed above, we can see that PFE stock is agood but undervalued stock As we all know, the whole world has faced a dangerousCOVID-19 epidemic, and Pfizer quickly cooperated with BioTech to prepare avaccine produced by new mRNA technology, with a two-shot course three times aweek The US Food and Drug Administration (FDA) on August 23 fully approved thePfizer vaccine, making it the first Covid-19 vaccine to be fully approved The fact thatPfizer made the drug and got it licensed is good news for the company's stock In

2020, Pfizer's net income was $9,159 billion, but by 2021 it had increaseddramatically to 21.98 billion, and until now, Pfizer's net income has reached $26,378billion (September 30, 2022) Besides, in 2021 and 2022, total assets and stockholders'equity will also increase, leading to an increase in ROE and ROA for Pfizer.Moreover, we can see that in the past 5 years, ROE has always been higher than ROA,proving that corporate financial leverage has a positive impact Pfizer Inc alwaysmaintains a ROE >=15% for 5 years, so the company is considered an efficientbusiness In addition, over a 5-year period, almost all of Pfizer's quick ratio andcurrent ratio were greater than 1, which is a positive for the company because it shows

it has enough liquidity to pay short-term debt However, only in 2019, both the quickand current ratios of Pfizer were less than 1, which explains the fact that in 2019, thecompany's (current assets - inventory) (25.74B) decreased less than the currentliabilities (37.30B) of the company Therefore, the quick ratio is only 0.69 Similarly,the current ratio is only 0.88 because current liabilities (37.80 billion) are greater thancurrent assets (32.30 billion) by approximately 5 billion

In conclusion, Pfizer is worth investing in for investors who adopt a value investingapproach based on 5 aspects: industry trend, business strategy, financial performance,valuation, and the epidemic Pfizer should be able to gain benefit in the future with thesupport of industry growth led by several favorable factors The company is expected

to grow further with its strong focus on innovative drug research and development,along with its transformation plan which makes it stand out from the crowd Besides,the rise of new coronavirus strains will sustain the demand for Covid-19 vaccines due

to the possibility for third-dose booster shots and more countries will approve theemergence use of Pfizer’s vaccine for the population below 18 Pfizer, as the mostpopular Covid-19 vaccine used by most countries, the sustained demand will benefittheir growth of revenue And Pfizer's strong cash flow will also further invest in thedrug pipeline, thus forming a good ecological cycle system From the otherperspective, Pfizer’s EPS is expected to increase sharply, which is very attractive.Besides, Pfizer’s beta is 0.74, which is lower than 1, meaning the PFE stock is lessvolatile than the market Thus, it will be a great target stock in the market, which istrading near all-time highs As a result, with positive financial performance andeffective business strategies, this is a good quality undervalued stock with a greatfuture prospect