This is a step-by-step stock review to answer the question, is Pfizer (PFE) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Pfizer (PFE) stock a good buy?
1. Pfizer Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded: Pfizer was founded in 1849 by Charles Pfizer and Charles F. Erhart in Brooklyn, New York.
- Early Products: Initially focused on producing chemicals, the company’s first product was a palatable form of santonin, used to treat intestinal worms.
- Expansion: Expanded rapidly in the 20th century, developing citric acid, and later penicillin, which became crucial during World War II.
- Innovations: Known for numerous groundbreaking drugs, including Terramycin, Lipitor (cholesterol management), and Viagra (erectile dysfunction).
- Mergers & Acquisitions: Acquired Warner-Lambert in 2000, Pharmacia in 2003, Wyeth in 2009, and Hospira in 2015, significantly expanding its product portfolio and global reach.
- Global Presence: Now one of the largest pharmaceutical companies in the world, operating in over 100 countries.
- COVID-19 Response: Partnered with BioNTech to develop one of the first COVID-19 vaccines, Comirnaty, which received emergency use authorization in 2020 and became widely distributed globally.
- Research & Development: Invests heavily in R&D, focusing on areas like oncology, immunology, cardiology, endocrinology, and neurology.
- Corporate Responsibility: Committed to sustainability, access to medicines, and corporate responsibility, with numerous initiatives to support global health.
Pfizer’s long history of innovation, strategic acquisitions, and significant contributions to global health make it a leading and influential player in the pharmaceutical industry.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 28
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Pfizer makes money:
- Pharmaceutical Sales: Generates significant revenue from the sale of prescription medicines, including blockbuster drugs like Prevnar, Ibrance, and Xeljanz.
- Vaccines: Earns from the sales of vaccines, including those for COVID-19, pneumonia, and influenza.
- Consumer Healthcare Products: Sells over-the-counter (OTC) products, including pain relievers and allergy medications.
- Research and Development (R&D): Invests in R&D to develop new drugs and treatments, which can drive future revenue growth.
- Partnerships and Collaborations: Partners with other pharmaceutical companies and organizations for joint ventures and co-marketing agreements.
- Licensing Agreements: Income from licensing its proprietary technologies and drug formulations to other companies.
- Government Contracts: Receives contracts from governments for vaccines and treatments, especially during health crises.
Here are a few of the other companies that Pfizer has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Hospira Inc.
- Medivation Inc.
- Array BioPharma Inc.
- Anacor Pharmaceuticals Inc.
- King Pharmaceuticals Inc.
- Wyeth
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Pfizer stacks up against other companies.
- Organon & Co.(OGN) – 61
- Novartis AG.(NVS) – 56
- Johnson & Johnson.(JNJ) – 50
- GSK plc.(GSK) – 44
- Eli Lilly and Company.(LLY) – 44
- Pfizer Inc.(PFE) – 28
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- COVID-19 Vaccine Development: Albert Bourla Spearheaded the rapid development and approval of Pfizer-BioNTech’s COVID-19 vaccine, Comirnaty, which became one of the first vaccines available worldwide.
- Strategic Partnership: Formed a key partnership with BioNTech to leverage mRNA technology for the COVID-19 vaccine.
- Operational Speed: Implemented “Project Lightspeed,” drastically accelerating vaccine development and production timelines.
- Global Distribution: Oversaw the global distribution of millions of vaccine doses, ensuring wide accessibility.
- Regulatory Approvals: Secured emergency use authorizations and full approvals from regulatory bodies around the world.
- Innovative Leadership: Promoted innovation within Pfizer, emphasizing the importance of cutting-edge research and development.
- Public Health Impact: Made a significant impact on global public health by addressing the COVID-19 pandemic and saving countless lives.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Pfizer (PFE) is 58/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Pfizer (PFE) stock a good buy?
Some of the top questions investors can have is Pfizer (PFE) stock a good buy or should I buy Pfizer (PFE) stock?
Pfizer is a strong investment option due to its leading role in the pharmaceutical industry. Known for the successful COVID-19 vaccine, Pfizer continues to innovate and develop new treatments. The company has a robust pipeline of drugs and vaccines, ensuring future growth. Pfizer’s strategic acquisitions expand its portfolio and market reach. Additionally, the company’s financial stability, strong dividend yield, and consistent revenue make it attractive to investors. However, consider potential risks like regulatory challenges and competition in the biotech sector. Evaluate your investment goals and risk tolerance before investing.
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To truly know if Pfizer is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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