Pfizer (PFE) – like its mega-cap pharma brethren – has long been reliant upon capital returns to satisfy shareholders. The dividend is huge at nearly 4%, and PFE buys back stock by the billion as well, meaning it has tremendously high cash needs. Fortunately for PFE, it enjoys gargantuan FCF margins, so producing cash hasn’t been a problem up to this point. And in this article, I’ll attempt to quantify just how good PFE has been at producing cash to see what implications it has for shareholders going forward.
I’ll be using data from Seeking Alpha for this exercise.
