PMI(PM) The Motley Fool·2025-04-27 22:24Core Viewpoint - Philip Morris International has experienced significant stock price appreciation, with shares up nearly 40% in 2025 and over 75% in the past year, following strong earnings results [1][2] Group 1: Earnings Performance - In Q1, Zyn, a nicotine pouch product, saw U.S. shipment volumes increase by 53% to 202 million cans, with international volumes also rising 53% [4][3] - Overall oral product shipments grew by 27%, while traditional cigarette volumes rose by 1.1% to 144.8 billion units [8][7] - Organic revenue increased by 10% year over year to 1.76 [8][9] Group 2: Growth Drivers - Zyn and heated tobacco units (HTUs), including the IQOS system, are key growth drivers, with HTUs volumes increasing nearly 12% to 37.1 billion units [7][6] - The company expects U.S. Zyn shipments to reach between 800 million and 840 million cans, up from a previous forecast of 780 million to 820 million cans [5][4] - The smoke-free business saw organic revenue surge by 20%, indicating strong demand for non-combustible products [9][10] Group 3: Future Outlook - Philip Morris has maintained its full-year outlook, with organic revenue growth projected between 6% to 8% and adjusted EPS expected to be between 7.14 [11][12] - The company is expanding its capacity in the U.S. for Zyn and testing IQOS in new markets, indicating ongoing growth opportunities [14][13] - The stock is considered undervalued with a forward P/E ratio of 23 and a PEG ratio under 0.4, suggesting potential for further appreciation [15][16]