Phillip Morris International (PM, $83.67) forays into life insurance, encouraging smokers to quit
Philip Morris International, the tobacco company that sells Marlboro cigarettes, is foraying into the life insurance business. The initiative, called ‘Reviti’, will initially sell life insurance in the UK before moving overseas. Smokers will receive discounts if they reduce, quit or switch to less carcinogenic products.
According to the terms of the insurance, smokers who switch to e-cigarettes will receive 2.5% discount on premiums, people who switch to Philip Morris’ heated tobacco product iQOS for three months will receive a 25% discount, and people who quit smoking for at least a year will receive a 50% discount. Premium for a 20-year-old non-smoker is about £5 ($6.47) per month for a life insurance policy of £150,000 ($194,125). The same premium would buy a £60,000 ($77,650) policy for a 40-year-old non-smoker.
It is up to PM to decide how much discount to offer to people using alternative products that are less life threatening. PM’s most popular alternative is iQOS, a device that heats tobacco instead of burning tobacco. Offering people bigger life insurance discounts for switching to iQOS may push more people to try it. This is particularly popular in UK where more people are embracing e-cigarettes, if not quitting altogether.
PMI is even optimistic that non-carcinogenic alternatives like e-cigarettes will one day replace cigarettes altogether and then it will be a win-win situation for everyone: it will reduce life risks for the people and for the company it will mean lower excise taxes and better margins.
PM's Stochastic Oscillator stoops into oversold zone
The Stochastic Oscillator for PM moved into oversold territory on December 10, 2024. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PM advanced for three days, in of 368 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 349 cases where PM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on PM as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PM turned negative on December 03, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (3.262). P/E Ratio (21.030) is within average values for comparable stocks, (13.021). Projected Growth (PEG Ratio) (1.644) is also within normal values, averaging (1.980). Dividend Yield (0.040) settles around the average of (0.058) among similar stocks. PM's P/S Ratio (5.537) is slightly higher than the industry average of (1.816).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. PM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of cigarettes and other tobacco products
Industry Tobacco