What Has PM Stock Done for Investors?

• Especially lately, investors person cheered the company's pivot into next-generation products.

• It sells proportionally much of these than immoderate of its apical rivals.

• 10 stocks we similar amended than Philip Morris International ›

For years, Philip Morris International (NYSE: PM) has been a reliably well-performing concern for investors consenting to bargain successful a "sin stock." Although planetary depletion of accepted cigarettes continues its long, downward spiral, the institution has done good processing and selling next-generation alternatives similar its Iqos heated baccy merchandise and the Zyn nicotine pouches.

Let's analyse a fewer charts to spot however good Philip Morris has performed implicit time.

Below are the one-, three-, and five-year graphs comparing the full instrumentality (i.e., banal show positive dividend payouts) of Philip Morris' shares with that of the S&P 500 index. In each three, you tin spot an extended play of outperformance with the banal recently.

To a degree, that's the marketplace rewarding Philip Morris for its occurrence pivoting distant from accepted combustible baccy products (mainly cigarettes), into those ostensibly healthier alternatives. Cigarette portion income person been successful diminution for years, arsenic radical astir the satellite collectively effort to unrecorded healthier lives (and tightened anti-smoking regulations, positive excise taxes, marque it prohibitive to puff a ciggie).

In its 3rd 4th of this year, Philip Morris derived 41% of its $10.8 cardinal successful nett gross from "smoke-free products," arsenic the institution refers to specified alternatives. These goods contributed astir the aforesaid stock to gross nett for the period.

This compares rather favorably to Altria, the successor concern to the institution Philip Morris International was spun retired of successful 2008. Altria remains babelike connected income of smokables, which accounted for 89% of its gross successful its latest completed quarter. Ditto for different incumbent institution successful the sector, British American Tobacco, with an 82% stock arsenic per its first-half 2025 net report.

Any benignant of pivot is hard for a company, particularly if it has spent decades making the aforesaid products the aforesaid way. Philip Morris International has been adjusting amended than others, clearly, and what's more, it has managed to turn cardinal fundamentals and support margins bully and precocious (an enviable diagnostic of the accepted baccy industry).

In the aforementioned 3rd quarter, that $10.8 cardinal connected the apical enactment was 9% higher twelvemonth implicit year. Attributable nett income according to mostly accepted accounting practices (GAAP) roseate by astir 14% to $3.48 billion.