Key Highlights about Pfizer
Significant Dividend Yield: Pfizer currently offers a strong dividend yield of approximately 8%, significantly above the industry average. For FY24, the company has distributed around $9 billion in dividends, reflecting a consistent year-over-year increase, and current financial indicators suggest that maintaining this level of dividend payout is sustainable for the foreseeable future.
Cheap” P/E Valuation: The stock is currently trading at a low forward P/E ratio- 11-12x, considerably below the S&P 500’s average and its industry peers. This suggests it might be undervalued relative to its expected earnings.
Post-COVID Revenue Decline: Pfizer has experienced a significant decline in revenue and stock price since the peak of its COVID-19-related product sales. The stock is down over 60% from its highs.
Cost-Saving Initiatives: The company is actively pursuing aggressive cost-saving programs, with a target of approximately $7.7 billion in net cost savings by the end of 2027. This aims to improve operating margins and financial efficiency.
Mixed Q1 2025 Results: Pfizer reported mixed results for Q1 2025, with earnings per share (EPS) crushing expectations but sales missing estimates. The company reaffirmed its full-year 2025 guidance for revenue and adjusted EPS.
PFE Stock Prediction 2025,2030,2035
***All revenue, Net income and cash flow are in thousands***| Year | Revenue | Net Income | EPS | Stock Price($) | Free Cash Flow |
|---|---|---|---|---|---|
| 2024 | $63,627,000 | $8,031,000 | $1.4 | 21.2 | $9,835,000 |
| 2025 | $62,500,000 | $10,625,000 | $1.9 | 28.0 | $8,750,000 |
| 2026 | $68,750,000 | $11,687,500 | $2.1 | 30.8 | $9,625,000 |
| 2027 | $75,625,000 | $12,856,250 | $2.3 | 33.9 | $10,587,500 |
| 2028 | $83,187,500 | $14,141,875 | $2.5 | 37.3 | $11,646,250 |
| 2029 | $91,506,250 | $15,556,063 | $2.7 | 41.0 | $12,810,875 |
| 2030 | $100,656,875 | $17,111,669 | $3.0 | 45.1 | $14,091,963 |
| 2031 | $110,722,563 | $18,822,836 | $3.3 | 49.6 | $15,501,159 |
| 2032 | $121,794,819 | $20,705,119 | $3.6 | 54.6 | $17,051,275 |
| 2033 | $133,974,301 | $22,775,631 | $4.0 | 60.0 | $18,756,402 |
| 2034 | $147,371,731 | $25,053,194 | $4.4 | 66.0 | $20,632,042 |
| 2035 | $162,108,904 | $27,558,514 | $4.8 | 72.6 | $22,695,247 |
Conclusion
Pfizer offers an attractive 8% dividend yield, strong cash flow, and a commitment to consistent payouts, making it a great option for income-focused investors. Its stable financial outlook and undervalued stock price further position PFE as a compelling buy for long-term dividend growth.
