Orin
PFENYSE·Drug Manufacturers - General

Pfizer Inc. PFE

Market cap $161.4BP/E 37.2× trailingGross margin 71.3%Reports Tue 3 Nov, before the open
$28.31
+0.13 (+0.46%)live 09:30 ET
52-wk $23.58 – $29.21
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

Pfizer's FY2025 results show gross margin expansion to 70.3% and solid FCF of $9.1B, but revenue declined 1.7% and EPS fell 3.6% YoY, with total debt at $67.4B and a looming patent cliff weighing on the outlook. A cluster buy by three insiders including CEO Bourla (~$3.0M in August 2026) is a credible bullish signal, and the stock trades at a discount to peers on EV/EBITDA (17.2x vs 22.2x median), but at $28.24 the shares are overbought (RSI 75.4) and the P/E of 36.0x sits 37% above the peer median, limiting near-term upside.

The risk/reward is balanced enough to warrant a hold pending evidence that pipeline and cost initiatives can offset the patent cliff.

What could go wrong

  • Patent cliff. Seeking Alpha notes a looming patent cliff with management projecting high single-digit revenue CAGR only post-2028; revenue already declined 1.7% in FY2025.
  • Elevated leverage. Total debt of $67.4B against stockholders' equity of $86.5B as of FY2025 constrains financial flexibility and raises dividend sustainability questions.
  • Overbought technically. RSI at 75.4 with price of $28.24 well above the 50-day MA of $25.27 and 200-day MA of $25.96 suggests limited near-term upside and pullback risk.
  • Smart money outflows. Smart money score deteriorated from +0.126 in Q1 2026 to -0.078 as of Q2 2026, with several 13F filers reducing positions in the quarter ended 2026-06-30.

What would change my mind

Pipeline readouts. Positive Phase 3 or approval data for key pipeline assets (e.g., Lyme vaccine, oncology) that materially de-risk the post-patent-cliff revenue trajectorybullish
Debt reduction progress. Pfizer announces accelerated deleveraging or divestiture proceeds that reduce total debt below $60Bbullish
Revenue re-acceleration. Quarterly revenue returns to positive YoY growth driven by non-COVID commercial portfolio, reversing the -1.7% FY2025 trendbullish
Dividend cut or guidance miss. Management reduces or suspends the dividend, or misses revenue/EPS guidance meaningfully, signaling deeper structural stressbearish

Where this comes from: derived_metrics FY2025 · FMP FY2025 fundamentals · derived_metrics FY2025 revenue_growth_yoy · derived_metrics FY2025 eps_growth_yoy. Orin's read on PFE; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$9.0B0.2% of fund
State Street$7.4B0.2% of fund
Geode Capital Management$3.2B0.2% of fund
Vanguard Portfolio Management$2.9B0.1% of fund
Morgan Stanley$2.3B0.1% of fund
Norges Bank$1.5B0.1% of fund

139 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 137 Form 4 filings, net $46.5M. Of the 50 on hand, 3 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Healthcare
MetricNowOwn medianSector
P/E37.2×18.2×26.4×
EV/EBITDA17.6×11.9×
P/S2.52×2.73×
P/B1.9×1.8×

Its P/E sits 80th percentile of its own last 5 years (+0.40σ from its own mean).

What the price assumes

6.0%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $9.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

39 firms · 2026-09-23
Consensus target

$29

$26$31 · +1% against today's price

How they rate it
  • 15 buy or overweight
  • 23 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 26.6× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
PFEPfizer Inc.$161B37.2×17.6×71.3%6.8%5%
AMGNAmgen Inc.$219B25.0×15.9×72.7%22.9%89%
BMYBristol-Myers Squibb Company$125B13.5×9.6×70.2%18.9%47%
BSXBoston Scientific Corporation$66B18.0×13.8×71.2%17.5%15%
DHRDanaher Corporation$156B39.2×24.9×58.5%15.9%8%
GILDGilead Sciences, Inc.$188B331.4×79.6%-10.6%-16%
MRKMerck & Co., Inc.$366B117.5×29.8×75.4%4.8%7%
SYKStryker Corporation$105B28.1×18.6×65.2%14.4%16%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 40.1% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 20.6×FY25 18.3×

What its sector has traded at

Healthcare
FY14 6.5×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$39$25.63 · +53%2026-06-10
Levered DCF$29$25.63 · +13%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $28.31
52-week range$24 – $29
Analyst targets$26 – $31
Standard DCF$39 as of 2026-06-10, when it was $25.63
Levered DCF$29 as of 2026-06-10, when it was $25.63
At own 5y-median P/E (18×)$14
At 5y P/E range (9–76×)$7 – $58
At sector P/E (26×)$20

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.