Pfizer's stock had a particularly awful 2023, losing nearly half of its value. Much of that decline was fueled by a massive drop in revenue. And where there's a drop in revenue, we'll almost certainly see a drop in free cash flow. In 2022, Pfizer's free cash flow was $26 billion. Fast-forward to 2023, and we see that it fell to only $4.8 billion. That's an 81.6% drop in just one year. And it has me seeing red flags all over. On top of that, the decline in free cash flow resulted in a 194% payout ratio for the company. That's well above our 75% threshold. In addition to seeing red flags, I'm now hearing sirens in the distance for the company's dividend... |
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