Philip Morris International's Share Price Surges 118% in 5 Years, Outpacing Earnings Growth

Philip Morris International's (NYSE:PM) five-year earnings growth is 2.5%, trailing the 17% share price growth over the same period. The company's total shareholder return (TSR) for the last 5 years was 181%, driven by its dividend payments. The TSR for the last 12 months is 51%, exceeding the five-year TSR. The stock's performance has improved in recent times, with the share price up 5.6% in the last week.

Philip Morris International (NYSE: PM) has seen its share price soar over the past five years, with a remarkable 118% increase. Despite this impressive performance, the company's earnings per share (EPS) growth has lagged behind, increasing by just 2.5% annually. This discrepancy suggests that market sentiment towards the company has been highly favorable, as investors have been willing to pay a premium for its shares [1].

In the last week alone, Philip Morris International's share price has risen by 5.6%, adding $14 billion to its market capitalization. The company's total shareholder return (TSR) for the past five years has been 181%, driven largely by its dividend payments. This TSR is significantly higher than the 23% annual growth seen over the same period, indicating strong dividend performance [1].

Recent institutional investment activity has also been robust. Aigen Investment Management LP, among others, has recently acquired new holdings in Philip Morris International, further boosting the company's stock. Additionally, several analysts have upgraded their ratings and price objectives for the stock, reflecting optimism about its future prospects [2].

However, it is essential to consider the risks associated with the company. Philip Morris International faces regulatory challenges and health concerns related to its tobacco products. Moreover, the company's net margin and return on equity have been relatively low, indicating potential operational inefficiencies [2].

In conclusion, while Philip Morris International's share price has performed exceptionally well, the company's earnings growth has been modest. The strong TSR and recent institutional investment activity suggest that investors remain optimistic about the company's future. However, investors should be mindful of the risks and conduct thorough due diligence before making investment decisions.

References:
[1] https://finance.yahoo.com/news/philip-morris-internationals-nyse-pm-130017391.html
[2] https://www.marketbeat.com/instant-alerts/filing-aigen-investment-management-lp-buys-new-holdings-in-philip-morris-international-inc-nysepm-2025-08-15/