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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
16.1%
Sector: -43.5%
Dividend Analysis audit
HIGH YIELD
7.20%
Trailing Yield
$7.20
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
81%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PFIZER INC (PFE) receives a "Hold" rating with a composite score of 48.9/100, ranked #280 out of 4446 stocks. Key factor scores: Quality 50/100, Value 59/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
PFIZER INC (PFE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PFIZER INC Do?
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and women's health under the Premarin family and Eliquis brands; biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands; and sterile injectable and anti-infective medicines, and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands; biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; and amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Akcea Therapeutics, Inc; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York. PFIZER INC (PFE) is classified as a large-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Albert Bourla and employs approximately 83,000 people, headquartered in New York, New York. With a market capitalization of $162.4B, PFE is one of the prominent companies in the Healthcare sector.
PFIZER INC (PFE) Stock Rating — Hold (April 2026)
As of April 2026, PFIZER INC receives a Hold rating with a composite score of 48.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PFE ranks #280 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, PFIZER INC ranks #10 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PFE Stock Price and 52-Week Range
PFIZER INC (PFE) currently trades at $26.94. The stock lost $0.28 (1.0%) in the most recent trading session. The 52-week high for PFE is $27.94, which means the stock is currently trading -3.6% from its annual peak. The 52-week low is $20.91, putting the stock 28.8% above its annual trough. Recent trading volume was 27.9M shares, indicating strong institutional interest and high liquidity.
Is PFE Overvalued or Undervalued? — Valuation Analysis
PFIZER INC (PFE) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 11.22x, compared to the Healthcare sector average of 23.63x — a discount of 53%. The price-to-book ratio stands at 1.80x, versus the sector average of 2.75x. The price-to-sales ratio is 2.49x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, PFE trades at 11.26x EV/EBITDA, versus 6.34x for the sector.
Overall, PFE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
PFIZER INC Profitability — ROE, Margins, and Quality Score
PFIZER INC (PFE) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 16.1%, compared to the Healthcare sector average of -43.5%, which is within a healthy range. Return on assets (ROA) comes in at 6.7% versus the sector average of -33.1%.
On a margin basis, PFIZER INC reports gross margins of 74.7%, compared to 71.5% for the sector. The operating margin is 21.9% (sector: -66.1%). Net profit margin stands at 22.1%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 25.4% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PFE Debt, Balance Sheet, and Financial Health
PFIZER INC has a debt-to-equity ratio of 140.0%, compared to the Healthcare sector average of 32.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.16x, suggesting adequate working capital coverage. Total debt on the balance sheet is $61.71B. Cash and equivalents stand at $1.34B.
PFE has a beta of 0.50, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PFIZER INC is 86/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PFIZER INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, PFIZER INC reported revenue of $62.72B and earnings per share (EPS) of $1.37. Net income for the quarter was $13.92B. Gross margin was 74.7%. Operating income came in at $13.88B.
In FY 2025, PFIZER INC reported revenue of $62.58B and earnings per share (EPS) of $1.37. Net income for the quarter was $7.81B. Gross margin was 74.3%. Revenue grew -1.6% year-over-year compared to FY 2024. Operating income came in at $7.52B.
In Q3 2025, PFIZER INC reported revenue of $16.65B and earnings per share (EPS) of $0.62. Net income for the quarter was $3.55B. Gross margin was 75.0%. Revenue grew -5.9% year-over-year compared to Q3 2024. Operating income came in at $3.33B.
In Q2 2025, PFIZER INC reported revenue of $14.65B and earnings per share (EPS) of $0.51. Net income for the quarter was $2.93B. Gross margin was 74.2%. Revenue grew 10.3% year-over-year compared to Q2 2024. Operating income came in at $3.04B.
Over the past 8 quarters, PFIZER INC has demonstrated a growth trajectory, with revenue expanding from $13.28B to $62.72B. Investors analyzing PFE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PFE Dividend Yield and Income Analysis
PFIZER INC (PFE) currently pays a dividend yield of 7.2%. At this yield, a $10,000 investment in PFE stock would generate approximately $$720.00 in annual dividend income. With a net margin of 22.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PFE Momentum and Technical Analysis Profile
PFIZER INC (PFE) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PFE vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing PFE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PFE vs S&P 500 (SPY) comparison to assess how PFIZER INC stacks up against the broader market across all factor dimensions.
PFE Next Earnings Date
No upcoming earnings date has been announced for PFIZER INC (PFE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PFE? — Investment Thesis Summary
PFIZER INC presents a balanced picture with arguments on both sides. Low volatility (stability score 86/100) reduces downside risk.
In summary, PFIZER INC (PFE) earns a Hold rating with a composite score of 48.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PFE stock.
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Institutional Research Dossier
PFIZER INC (PFE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Pfizer Inc. (PFE) currently holds a 'Hold' rating, justified by a confluence of factors. While the company exhibits strong profitability metrics compared to its sector and boasts a relatively attractive valuation, concerns surrounding future growth prospects, particularly in the face of declining COVID-19 related revenues and the inherent risks associated with pharmaceutical development, temper our enthusiasm. The company's significant debt load and the need for strategic capital allocation to replenish its pipeline further contribute to the neutral stance.
The most critical takeaway is that Pfizer's future performance hinges on its ability to successfully navigate the post-pandemic landscape by effectively deploying its capital towards promising pipeline assets and strategic acquisitions. Failure to do so could lead to a sustained period of underperformance, while successful execution could unlock significant value for shareholders. The current valuation reflects this uncertainty, making a 'Hold' rating the most appropriate recommendation.
Business Strategy & Overview
Pfizer operates as a global biopharmaceutical company, discovering, developing, manufacturing, and marketing a wide range of medicines and vaccines. Its revenue streams are diversified across various therapeutic areas, including cardiovascular, metabolic, women's health, oncology, and immunology. The company's strategy revolves around developing innovative therapies and expanding its product portfolio through internal research and development, strategic collaborations, and acquisitions. A key aspect of Pfizer's business model is its focus on patent-protected drugs, which command higher prices and generate significant revenue streams during their exclusivity period.
Pfizer's strategic positioning within the pharmaceutical industry is characterized by its scale, global reach, and diversified product portfolio. The company competes with other major pharmaceutical companies, such as Johnson & Johnson, Merck, and AbbVie, in various therapeutic areas. Its competitive advantage lies in its established brand reputation, extensive distribution network, and expertise in drug development and commercialization. The company actively engages in collaborations and partnerships to access new technologies and expand its pipeline.
Pfizer's product pipeline is a critical driver of its future growth. The company invests heavily in research and development to discover and develop new therapies for unmet medical needs. Its pipeline includes a range of potential blockbuster drugs in various stages of development, targeting diseases such as cancer, inflammatory conditions, and infectious diseases. The success of these pipeline assets is crucial for offsetting the revenue decline from patent expirations and maintaining its competitive position.
The pharmaceutical industry is characterized by intense competition, high regulatory hurdles, and significant research and development costs. Companies must navigate a complex regulatory landscape, including clinical trials, drug approvals, and pricing regulations. The industry is also subject to patent challenges and generic competition, which can significantly impact revenue streams. Pfizer's ability to effectively manage these challenges and successfully commercialize its pipeline assets will determine its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
25.4%
Sector: 10.6%
+139% VS SCTR
Economic Moat Analysis
Pfizer possesses a Narrow economic moat, primarily derived from its intangible assets and, to a lesser extent, its efficient scale. The intangible assets stem from its patent-protected drugs, brand recognition, and proprietary knowledge in drug development and manufacturing. These patents provide a period of exclusivity, allowing Pfizer to generate substantial profits before generic competition erodes market share. The strength of the moat, however, is constantly challenged by patent expirations and the inherent uncertainty of drug development.
The pharmaceutical industry is characterized by a 'patent cliff,' where companies face significant revenue declines as patents expire and generic versions of their drugs enter the market. Pfizer has historically mitigated this risk through strategic acquisitions and the development of new drugs. However, the success of these efforts is not guaranteed, and the company's ability to maintain its moat depends on its continued innovation and effective capital allocation.
While Pfizer benefits from efficient scale in manufacturing and distribution, this advantage is not as significant as its intangible assets. The company's large-scale operations allow it to achieve economies of scale in production and distribution, but these advantages are not unique to Pfizer and can be replicated by other large pharmaceutical companies. Furthermore, the cost of developing new drugs is substantial, and the success rate is relatively low, which limits the extent to which efficient scale can contribute to its moat.
The company's brand reputation, built over decades, also contributes to its narrow moat. Physicians and patients often prefer established brands, which can provide a competitive advantage over generic alternatives. However, this advantage is not insurmountable, and generic drugs often gain significant market share due to their lower prices. The strength of Pfizer's brand reputation varies across different therapeutic areas and geographies.
The moat is under pressure. The reliance on blockbuster drugs exposes Pfizer to significant revenue volatility upon patent expiration. The increasing complexity and cost of drug development also pose a challenge to maintaining its competitive advantage. Furthermore, the rise of biosimilars, which are similar but not identical to branded biologic drugs, is eroding the pricing power of some of Pfizer's key products. The company must continue to invest heavily in research and development and make strategic acquisitions to replenish its pipeline and defend its moat.
Financial Health & Profitability
Pfizer's financial health presents a mixed picture. The company exhibits strong profitability metrics compared to the healthcare sector, with a gross margin of 74.7%, an operating margin of 21.9%, and a net margin of 22.1%. These figures significantly outperform the sector averages, indicating Pfizer's ability to generate profits from its operations. The company's ROE of 16.1% is also favorable compared to the sector's negative average, reflecting efficient use of equity to generate earnings.
However, Pfizer's revenue growth of 25.4% is largely attributable to the surge in demand for its COVID-19 vaccine and treatment. As demand for these products declines, the company's revenue growth is expected to moderate. The quarterly financial history reveals a fluctuating revenue trend, with significant variations in net income and EPS. The Q3 2023 results were particularly weak, with a net loss and negative EPS, highlighting the volatility of the pharmaceutical business.
Pfizer's balance sheet is characterized by a significant debt load, with a total debt of $61.71 billion and a debt-to-equity ratio of 140.00. This level of leverage is considerably higher than the sector average, raising concerns about the company's financial flexibility and its ability to invest in future growth opportunities. The current ratio of 1.16 indicates adequate liquidity to meet short-term obligations, but the high debt burden remains a concern.
Free cash flow generation is a critical aspect of Pfizer's financial health. The company generated $5.96 billion in free cash flow, which provides resources for debt repayment, dividend payments, and strategic investments. However, the free cash flow figure is not available for all quarters in the provided data, making it difficult to assess the consistency of cash flow generation. The negative free cash flow in Q1 2024 is particularly concerning and warrants further investigation.
Overall, Pfizer's financial health is supported by strong profitability metrics and free cash flow generation, but the high debt load and reliance on COVID-19 related revenues pose challenges. The company's ability to manage its debt, diversify its revenue streams, and maintain its profitability will be crucial for its long-term financial stability.
Valuation Assessment
Pfizer's valuation appears relatively attractive based on several key metrics. The company's P/E ratio of 19.7x is lower than the healthcare sector average of 24.3x, suggesting that the stock is undervalued relative to its peers. Similarly, its EV/EBITDA ratio of 5.1x is also lower than the sector average of 6.4x, further supporting the notion that Pfizer is trading at a discount.
However, it's crucial to consider the context of these valuation metrics. The pharmaceutical industry is characterized by high growth potential but also significant risks, including patent expirations, regulatory hurdles, and competition. Pfizer's valuation reflects these risks, as well as the uncertainty surrounding its future growth prospects in the post-pandemic era. The decline in COVID-19 related revenues is expected to impact the company's earnings, which could justify the lower valuation multiples.
A discounted cash flow (DCF) analysis would provide a more comprehensive assessment of Pfizer's intrinsic value. However, without detailed projections of future revenue growth, margins, and capital expenditures, it's difficult to determine whether the stock is truly undervalued. The DCF analysis would need to account for the company's pipeline assets, potential acquisitions, and the impact of patent expirations.
The current valuation appears fair, given the company's strong profitability metrics, but also the challenges it faces in the post-pandemic environment. The market is likely pricing in the expected decline in COVID-19 related revenues and the uncertainty surrounding the success of its pipeline assets. A higher valuation would be justified if Pfizer can demonstrate its ability to generate sustainable growth and effectively manage its debt.
Ultimately, the valuation assessment depends on an investor's outlook for Pfizer's future performance. If an investor believes that the company can successfully navigate the challenges and capitalize on its growth opportunities, then the stock may be undervalued. However, if an investor is more pessimistic about Pfizer's prospects, then the current valuation may be justified or even overvalued.
Risk & Uncertainty
Pfizer faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. A primary risk is the patent cliff, where the expiration of patents on key drugs leads to a significant decline in revenue as generic competitors enter the market. This necessitates a constant replenishment of the drug pipeline through internal research and development or strategic acquisitions, both of which are inherently risky and expensive.
Regulatory risk is also a significant concern. The pharmaceutical industry is heavily regulated, and changes in regulations or delays in drug approvals can have a material adverse effect on Pfizer's business. The company must navigate a complex regulatory landscape in multiple countries, and compliance with these regulations is costly and time-consuming. Unfavorable regulatory decisions could delay or prevent the commercialization of new drugs, impacting revenue and profitability.
Competition within the pharmaceutical industry is intense. Pfizer competes with other major pharmaceutical companies, as well as smaller biotech firms, in various therapeutic areas. The development of new and innovative therapies by competitors could erode Pfizer's market share and pricing power. The company must continuously invest in research and development to stay ahead of the competition and maintain its competitive advantage.
Product liability risk is inherent in the pharmaceutical industry. Pfizer faces the risk of lawsuits and claims related to the safety and efficacy of its drugs. Adverse events or unexpected side effects could lead to product recalls, litigation, and reputational damage. The cost of defending against product liability claims can be substantial, and the outcome of these claims is uncertain.
Finally, debt burden presents a risk. Pfizer's high level of debt could limit its financial flexibility and its ability to invest in future growth opportunities. The company must generate sufficient cash flow to service its debt obligations, and any decline in revenue or profitability could strain its financial resources.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPfizer's diversified product portfolio and robust pipeline of potential blockbuster drugs position it for long-term growth, mitigating the impact of patent expirations and driving future revenue streams.
BULL VIEWThe company's strong profitability metrics and free cash flow generation provide ample resources for debt repayment, strategic acquisitions, and shareholder returns, enhancing its financial stability and attractiveness to investors.
BULL VIEWPfizer's commitment to innovation and strategic collaborations will enable it to capitalize on emerging trends in the pharmaceutical industry, such as personalized medicine and gene therapy, creating new growth opportunities.
The Bear Case
BEAR VIEWThe anticipated decline in COVID-19 related revenues will significantly impact Pfizer's top-line growth, making it difficult to achieve its long-term financial targets and potentially leading to a re-rating of the stock.
BEAR VIEWPfizer's high debt load and reliance on acquisitions to replenish its pipeline create financial risks and uncertainty, potentially limiting its ability to invest in internal research and development and generate sustainable growth.
BEAR VIEWThe increasing competition from generic and biosimilar drugs will erode Pfizer's pricing power and market share, negatively impacting its profitability and challenging its ability to maintain its economic moat.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PFE and 4,400+ other equities.
PFIZER INC exhibits a 10% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.7%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
74.7%
Sector: 71.5%
Operating Margin
Core business profitability
21.9%
Sector: -66.1%
Net Margin
Bottom-line profitability
22.1%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $720 annually in dividends at the current trailing rate.
