VGR

High Yielding Philip Morris International’s Growth Runway Remains Intact

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Image Shown: Shares of Philip Morris International moved higher in the wake of its second quarter earnings report. By Callum Turcan Philip Morris International Inc (PM) reported second quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The company raised its full-year revenue and adjusted EPS guidance for 2022 on a pro forma basis (excluding its operations in Russia and Ukraine) versus previous estimates in conjunction with its latest earnings update. Now Philip Morris International expects to generate 6%-8% net revenue growth on an organic basis and 10%-12% diluted EPS growth in 2022 versus 2021 levels (these are non-GAAP metrics). We include Philip Morris International in the High Yield Dividend Newsletter portfolio as we are big fans of … Read more

High-Yielding Philip Morris Adeptly Navigating Exogenous Shocks

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Image Shown: In the face of major exogenous shocks, Philip Morris International Inc was still able to put up solid operational and financial performance in the first quarter of 2022. Image Source: Philip Morris International Inc – First Quarter of 2022 IR Earnings Presentation By Callum Turcan There are a lot of reasons to like Philip Morris International Inc (PM) as a high-yielding income growth opportunity. Its portfolio includes numerous top selling cigarette brands including Marlboro, L&M, Chesterfield, Parliament, and others. After splitting with Altria Group Inc (MO) back in 2008, Philip Morris has the right to sell these cigarette brands in international markets while Altria Group has the right to sell these branded tobacco products in the US market. … Read more

Philip Morris International Boosts Dividend, Cost Structure Improving

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Image Shown: An overview of Philip Morris International Inc’s guidance for 2021. Image Source: Philip Morris International Inc – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan On October 19, Philip Morris International Inc (PM) reported third quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The firm narrowed its reported diluted EPS estimate for 2021 in conjunction with the report, which saw the midpoint of its guidance move marginally lower. However, Philip Morris International’s non-GAAP currency-neutral adjusted diluted EPS forecast for 2021 now calls for 13%-14% growth over 2020 levels, which is an improvement from its previous guidance calling for 12%-14% growth. In the graphic at the top of this article, Philip Morris International provides … Read more

Update on High-Yielding Philip Morris

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Image Shown: Shares of Philip Morris International Inc have performed quite well over the past year. By Callum Turcan One of our favorite high-yielding plays is Philip Morris International Inc (PM)—5.0% yield—the tobacco giant behind the Marlboro cigarette brand (excluding the US market) and the incredibly popular IQOS product, a heated tobacco unit (‘HTU’) offering . Shares of PM are included as in idea in the High Yield Dividend Newsletter portfolio (more on that here) and as of this writing, Philip Morris’ stock price is up 23% year-to-date before taking dividend considerations into account. The top end of our fair value estimate range sits at $119 per share of Philip Morris, indicating there is ample room for shares of PM … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Altria May Never Make A Comeback

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Image Source: Altria By Brian Nelson, CFA About 15 years ago, I picked up a text from Professor Jeremy Siegel out of the University of Pennsylvania’s Wharton School of Business, The Future for Investors (1). I must have been at one of his talks. I ended up getting a signed copy from him; it was a neat experience. In any case, perhaps one of the more striking takeaways from his 2005 book was the following excerpt: Some readers may be surprised that (Altria) is a top performer for investors in the face of the onslaught of government restrictions and legal actions that have cost the firm tens of billions of dollars and threaten the cigarette manufacturer with bankruptcy. But in … Read more

Our Thoughts on Philip Morris International’s Latest Earnings Report

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Image Shown: Philip Morris International Inc has been able to maintain its global market share in the tobacco industry while pushing through price increases as indicated by its relatively strong ‘Combustible Tobacco Pricing’ performance seen through the first nine months of 2020. Image Source: Philip Morris International Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan Tobacco giant Philip Morris International Inc (PM) reported third quarter 2020 earnings on October 20 which saw the company beat both consensus top- and bottom-line estimates. Philip Morris International also raised its full-year guidance for 2020 in part due to industry volumes holding up better than expected in Indonesia, which raised the minimum selling price for cigarettes while also increasing cigarette … Read more

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!