CompetitorsNarrow moat

Philip Morris International (PM) — moat facet

PMI's fiercest price-setter is not a rival but the finance ministries that take $1.31 of excise for every dollar it keeps.

PMI's annual report names its competitors as Altria Group, British American Tobacco, Japan Tobacco, Imperial Brands, new market entrants and, in some markets, state-owned tobacco enterprises1. That list hides four very different relationships.

Market value, September 2026 ($bn)Philip Morris International296.9British American Tobacco119.4Altria114.9stockanalysis market-cap data, 25 September 2026
Worth two and a half times either peer.

British American Tobacco and Japan Tobacco are the head-on rivals: the same products, the same markets, the same fight for smokers and for the heated-tobacco consumer. Altria is the former parent, from which PMI was spun off in March 20082, then a partner on IQOS in America, then the seller of those rights, and from 2027 a customer for contract-made cigarettes3. The makers of rival nicotine pouches are the challengers to ZYN, the one business where PMI is being out-grown. And the finance ministries that levy excise are the party that sets the retail price: PMI collected $53,211 million of excise in 2025, more than its own net revenues of $40,648 million4.

Competition among the tobacco companies is mostly muted. Advertising bans, high excise and brand loyalty mean share moves slowly: PMI's share of the international market, outside China and the United States, moved from 28.6% to 29.2% in two years5. The contests that matter are in new products, where PMI leads heated tobacco and is under pressure in pouches.

By market value PMI has pulled away from its peers. At $296.88 billion in September 20266 it was worth about two and a half times British American Tobacco and Altria78.

PMI's list of rivals also includes new market entrants9. They matter most in pouches and e-vapor, where a company needs no cigarette business, no heated-tobacco device and little regulatory history to start selling, and that is where PMI's growth has come under the most pressure.

The competitive position is narrow and stable. International share is the test of it, 29.2% in 202510; a fall would mean the rivals are finally winning the heated-tobacco consumer.

Moat trajectory: Holding steady

International share rising slowly; pouch share under pressure.

The number that tests this moat
Reported
Excise tax collected, latest quarter
$14,973M, +12.8% (Q2 2026)

The price-setter's take; growing faster than revenue means governments are claiming more of each pack.

Source: PMI Form 10-Q, Q2 2026 ↗
Dig deeper
DIG DEEPER 01
BAT and Japan Tobacco: The Head-On Rivals
Against BAT and Japan Tobacco PMI holds its cigarette share and about three-quarters of heated tobacco, and the market values it at two and a half…
DIG DEEPER 02
Altria: The Former Parent Turned Counterparty
Altria was PMI's parent, its IQOS partner and the seller of the IQOS rights, and from 2027 it will buy cigarettes PMI makes for it.
DIG DEEPER 03
The Pouch Rivals in an Uneven Market
ZYN still holds about two-thirds of American pouches, but its offtake went flat in a growing market and PMI blames an uneven field.
DIG DEEPER 04
Treasuries: The Partner That Sets the Price
Governments took about $1.31 in excise for every dollar of revenue PMI kept in 2025, and they set their share without asking.
References
  1. ReportedPMI's annual report names its competitors as Altria Group, British American Tobacco, Japan Tobacco, Imperial Brands, new market entrants and, in some markets, state-owned tobacco enterprises.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedAltria is the former parent, from which PMI was spun off in March 2008, then a partner on IQOS in America, then the seller of those rights, and from 2027 a customer for contract-made cigarettes.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
  3. ReportedAltria is the former parent, from which PMI was spun off in March 2008, then a partner on IQOS in America, then the seller of those rights, and from 2027 a customer for contract-made cigarettes.
    Philip Morris International release, 24 August 2026 - contract manufacturing of combustible cigarettes for Philip Morris USA. — August 2026 · publ. 24 August 2026 · source ↗
  4. ReportedAnd the finance ministries that levy excise are the party that sets the retail price: PMI collected $53,211 million of excise in 2025, more than its own net revenues of $40,648 million.
    Philip Morris International Form 10-K for fiscal 2025 - financial statements and notes: income statement, excise, cash flow, debt, acquisitions and impairments. — FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedAdvertising bans, high excise and brand loyalty mean share moves slowly: PMI's share of the international market, outside China and the United States, moved from 28.6% to 29.2% in two years.
    Philip Morris International Form 10-K for fiscal 2025 - financial statements and notes: income statement, excise, cash flow, debt, acquisitions and impairments. — FY2025 · publ. 6 February 2026 · source ↗
  6. ReportedAt $296.88 billion in September 2026 it was worth about two and a half times British American Tobacco and Altria.
    Philip Morris International (PM) market data - $190.48 a share at the close on 25 September 2026, market cap $296.88B, 52-week range 142.11-207.76, beta 0.40, 16 analysts with a consensus Buy rating and a price target of $208.13. — September 2026 · publ. 25 September 2026 · source ↗
  7. ReportedAt $296.88 billion in September 2026 it was worth about two and a half times British American Tobacco and Altria.
    Philip Morris International market capitalisation history - year-end values 2015-2025, and peers British American Tobacco and Altria. — 2015-2026 · publ. September 2026 · source ↗
  8. Moat Explorer calcAt $296.88 billion in September 2026 it was worth about two and a half times British American Tobacco and Altria.
    Moat Explorer calculation from Philip Morris International's reported figures ($ millions unless stated). Excise and revenue 2025: 53,211 / 40,648 = 1.31 dollars of excise per dollar of net revenue; gross of excise 53,211 + 40,648 = 93,859, excise share 53,211 / 93,859 = 56.7%; excise growth 2023-2025 53,211 / 49,404 - 1 = 7.7% against net revenue growth 40,648 / 35,174 - 1 = 15.6%. Product mix 2025: smoke-free 16,854 / 40,648 = 41.5%; combustible 23,794 / 40,648 = 58.5%; smoke-free 2023 12,840 / 35,174 = 36.5%, 2024 14,660 / 37,878 = 38.7%; smoke-free growth 2023-2025 16,854 / 12,840 - 1 = 31.3%; smoke-free revenue 2016 733 to 2025 16,854 = 23 times. Segments 2025: International Smoke-Free 13,996 / 40,648 = 34.4%; International Combustibles 23,436 / 40,648 = 57.7%; U.S. 3,216 / 40,648 = 7.9%; recast gross profit shares 9,576 / 27,304 = 35.1%, 15,523 / 27,304 = 56.9%, 2,206 / 27,304 = 8.1%. Growth 2025: ISF 13,996 / 12,126 - 1 = 15.4%; IC 23,436 / 22,807 - 1 = 2.8%; U.S. 3,216 / 2,944 - 1 = 9.2%. Growth 2024: ISF 12,126 / 11,102 - 1 = 9.2%; IC 22,807 / 21,903 - 1 = 4.1%; U.S. 2,944 / 2,169 - 1 = 35.7%. IC gross profit 15,523 / 13,972 - 1 = 11.1% against IC revenue 23,436 / 21,903 - 1 = 7.0% (2023-2025). Recast reported gross margins 2023: ISF 7,021 / 11,102 = 63.2%, IC 13,972 / 21,903 = 63.8%; 2024: ISF 7,831 / 12,126 = 64.6%, IC 14,687 / 22,807 = 64.4%. Segment sum 2024 12,126 + 22,807 + 2,944 = 37,877 against 37,878 reported. IC shares of net revenues 21,903 / 35,174 = 62.3% (2023), 22,807 / 37,878 = 60.2% (2024). U.S. revenue 3,216 / 2,169 - 1 = 48.3% (2023-2025). Q2 2026 shares: ISF 3,877 / 11,192 = 34.6%, IC 6,459 / 11,192 = 57.7%, U.S. 856 / 11,192 = 7.6%. U.S. gross margin Q2 2026 555 / 856 = 64.8% against 611 / 862 = 70.9%. Swedish Match: 14,460 + 1,495 + 883 = 16,838 total cash paid; U.S. adjusted operating companies income 1,124 / 16,838 = 6.7% pre-tax; reported U.S. OCI 322 / 3,216 = 10.0% of U.S. revenue; adjusted 1,124 / 3,216 = 35.0%. Goodwill and other intangibles 17,264 + 10,884 = 28,148, 28,148 / 69,185 = 40.7% of total assets. Volumes: cigarettes 607,367 / 616,827 - 1 = -1.5% (2025), 607,367 / 612,949 - 1 = -0.9% (2023-2025); heated tobacco units 155,133 / 139,743 - 1 = 11.0% (2025), 139,743 / 125,263 - 1 = 11.6% (2024); HTUs 155,133 / (607,367 + 155,133) = 20.3% of cigarette plus HTU shipments. U.S. ZYN cans 793.7 / 384.8 = 2.06 times (2023-2025), 793.7 / 580.5 - 1 = 36.7% (2025); international nicotine pouches 879.6 - 793.7 = 85.9 million cans (2025), 644.0 - 580.5 = 63.5 (2024); snus 227.9 / 240.4 - 1 = -5.2% (2023-2025); e-vapor 3,330 / 1,651 = 2.0 times. U.S. segment: cigars 358 / 410 - 1 = -12.7%, 358 / 431 - 1 = -16.9% (2023-2025); wellness 238 / 333 - 1 = -28.5%. Cash and dividends: free cash flow 12,233 - 1,569 = 10,664 (2025), 12,217 - 1,444 = 10,773 (2024), 9,204 - 1,321 = 7,883 (2023); dividends paid / free cash flow 8,624 / 10,664 = 80.9% (2025), 8,197 / 10,773 = 76.1% (2024), 7,964 / 7,883 = 101.0% (2023). Payout of declared dividends per share over diluted EPS: 5.64 / 7.26 = 77.7% (2025), 5.30 / 4.52 = 117.3% (2024), 5.14 / 5.02 = 102.4% (2023); over adjusted EPS 5.64 / 7.54 = 74.8%. Annualised dividend 1.60 x 4 = 6.40; 6.40 / 5.64 = 1.13; dividend 5.64 / 1.54 = 3.7 times since 2008; yield 6.40 / 190.48 = 3.4%. R&D 756 / 40,648 = 1.9% of revenue; capex 1,569 / 40,648 = 3.9%. Customers: two customers 12% + 10% = 22% of 2025 net revenues; related-party revenue 4,582 / 40,648 = 11.3%; Megapolis 2,805 / 40,648 = 6.9%; Megapolis growth 2,805 / 2,393 - 1 = 17.2%. Japan 4.2 / 40.6 = 10.3% of net revenues. Canada: RBH carrying value 3,280 fair value at deconsolidation to 51 at 30 June 2026; impairments 2,316 + 511 = 2,827. Valuation: trailing twelve months to June 2026 revenue 40,648 + 21,338 - 19,441 = 42,545; net earnings 11,348 + 5,255 - 5,729 = 10,874; P/E 296.88 / 10.874 = 27.3; P/S 296.88 / 42.545 = 6.98; 2018 P/E 103.78 / 7.911 = 13.1; 2025 P/E 249.68 / 11.348 = 22.0; free cash flow yield 10,664 / 296,880 = 3.6%. Other PMI cigarette brands: 25.4 - 9.8 = 15.6% (2023), 25.3 - 10.7 = 14.6% (2025), a loss of 1.0 point against Marlboro's gain of 0.9. Excise Q2 2026 14,973 / 13,272 - 1 = 12.8% against net revenues 11,192 / 10,140 - 1 = 10.4%. U.S. smoke-free H1 1,584 - 1,311 = 273 decline. ISF H1 2026 gross margin 5,400 / 7,713 = 70.0%. Gross margin 2025 27,282 / 40,648 = 67.1%. ROIC average 2015-2025 (45.6 + 50.2 + 43.4 + 50.7 + 48.7 + 52.1 + 57.2 + 40.6 + 26.8 + 28.6 + 32.5) / 11 = 43.3%. Employees 84,900 - 82,700 = 2,200 (2023-2025); net revenues 40,648 - 35,174 = 5,474, about 5.5 billion. Snus 240.4 - 227.9 = 12.5 million cans. Europe smoke-free 8,127 / 16,854 = 48.2%, about half. Cigarette decline 2% to 3% of 607,367 = 12,147 to 18,221 million units. Operating cash flow over R&D 12,233 / 756 = 16.2 times. Blocked markets 440 / 2,587 = 17%, about a sixth. Market cap against peers 296.88 / 119.41 = 2.5 times British American Tobacco; 296.88 / 114.91 = 2.6 times Altria. Net debt to adjusted EBITDA 43,963 / 17,375 = 2.53. Interest 966 / 14,892 = 6.5% of operating income. Guidance midpoints: (8.35 + 8.50) / 2 = 8.43, reported (7.28 + 7.43) / 2 = 7.36, gap 8.43 - 7.36 = 1.07; earlier adjusted midpoints (8.38 + 8.53) / 2 = 8.46, (8.31 + 8.46) / 2 = 8.39, (8.26 + 8.41) / 2 = 8.34; 8.43 / 7.54 - 1 = 11.8% - growth rates, volumes, margins and excise. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in PMI's Forms 10-K and 10-Q, the recast segment schedules, results releases and market data; operands shown in the source line.
  9. ReportedPMI's list of rivals also includes new market entrants.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
  10. ReportedInternational share is the test of it, 29.2% in 2025; a fall would mean the rivals are finally winning the heated-tobacco consumer.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
Sources
Generated September 26, 2026