MMHVW - I’m thinking of adding some Pfizer shares to my portfolio. Dividends is not bad either at 3.65%. Debt is well covered by operating cash flow (37.6%, greater than 20% of total debt). It is worth noting that the company’s level of debt (66.1%) compared to net worth is high I normally consider less than 40% to be okay.
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Valuation
Pfizer's valuation appears to be quite attractive. Its shares currently trade at less than 13 times expected earnings. That's definitely on the low end of the drugmaker's historical range.
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Pipeline
Pfizer wins again on the number of programs in its pipeline. The big drugmaker's pipeline includes close to 100 programs, with more than 30 of those programs in late-stage clinical studies or awaiting regulatory approval.
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Current products
You'd have to give Pfizer's current product lineup the advantage in sheer numbers. The company claims 10 blockbuster drugs compared with only three for AbbVie. On the other hand, AbbVie's immunology drug Humira ranks as the best-selling drug in the world with $19.9 billion in sales last year -- three times as much as Pfizer's best-selling product.
There's also a big difference in how much growth each company's current lineup is delivering. Pfizer's blood thinner Eliquis, breast cancer drug Ibrance, and immunology drug Xeljanz continue to generate strong sales growth. However, the pharma company also faces headwinds, with sliding sales of several other key drugs, notably including Enbrel and Viagra.
Pfizer will soon have another problem on its hands. Lyrica, which pulled in sales of more than $4.6 billion last year, loses patent exclusivity this year.