Buffett Brain · Research note
Score updated 22 Oct 2026
PFE· Healthcare
Pfizer
Pfizer's declining EPS and high leverage overshadow its strong operating margin and dividend yield.
Buffett fit
Partial fit
Owner
56
Durability
40
Management
58
Price
53
Score updated 22 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Pfizer entirely, the next decade would focus on stabilizing earnings and managing debt.
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Pfizer's durability is challenged by declining revenues and high .
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Management has kept the share count stable with a slight yield of 0.27%, and a dividend yield of 6.58% suggests shareholder returns are a priority.
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With an earnings yield of 5.28% and yield of 6.17%, the valuation is not compelling compared to a no-brainer 8-10% yield.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 27.8% is top-quintile in the healthcare sector.
- 2 of 74.3% supports strong cash generation.
- 3Dividend yield of 6.58% provides substantial income to shareholders.
- 4 yield of 0.27% indicates moderate capital return to shareholders.
Concerns
5- 1 of 5.5% is below the sector's top-quintile cutoff of 10.7%.
- 2EPS CAGR of -37.12% over five years reflects significant earnings decline.
- 3Net debt/EBITDA ratio of 3.74 indicates high risk.
- 4Interest coverage ratio of 3.8 is below the 5x comfort level.
Price history
$29.85-30.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Pfizer operates in the biopharmaceutical sector, offering products across internal medicine, vaccines, and inflammation. Key brands include Eliquis for cardiovascular diseases and Paxlovid for COVID-19. With a of 74.3%, it generates substantial cash from its diverse product line. However, its revenue has declined by 14.8% over five years, indicating challenges in sustaining growth.
How this analysis has moved
The call has held across 2 reviews.
Oct 18, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
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