ALTRIA GROUP INC (1MO.MI) Stock Fundamental Analysis
BIT:1MO - Euronext Milan - US02209S1033 - Common Stock - Currency: EUR
Overall 1MO gets a fundamental rating of 6 out of 10. We evaluated 1MO against 6 industry peers in the Tobacco industry. 1MO scores excellent on profitability, but there are some minor concerns on its financial health. 1MO has a bad growth rate and is valued cheaply. With these ratings, 1MO could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year 1MO was profitable.
1MO had a positive operating cash flow in the past year.
Each year in the past 5 years 1MO has been profitable.
1MO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 31.94%, 1MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MO's Return On Invested Capital of 34.83% is amongst the best of the industry. 1MO outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MO is significantly above the industry average of 23.89%.
The 3 year average ROIC (34.47%) for 1MO is below the current ROIC(34.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.94% | ||
| ROE | N/A | ||
| ROIC | 34.83% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.47%
ROIC(5y)31.51%
1.3 Margins
The Profit Margin of 1MO (46.78%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of 1MO has grown nicely.
With an excellent Operating Margin value of 48.81%, 1MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1MO's Operating Margin has improved in the last couple of years.
1MO has a Gross Margin (59.71%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1MO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.81% | ||
| PM (TTM) | 46.78% | ||
| GM | 59.71% |
OM growth 3Y3.13%
OM growth 5Y3.4%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.41%
GM growth 5Y3.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MO is creating value.
Compared to 1 year ago, 1MO has less shares outstanding
The number of shares outstanding for 1MO has been reduced compared to 5 years ago.
Compared to 1 year ago, 1MO has a worse debt to assets ratio.
2.2 Solvency
1MO has an Altman-Z score of 4.52. This indicates that 1MO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.52, 1MO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of 1MO is 2.89, which is a good value as it means it would take 1MO, 2.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MO (2.89) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.52 |
ROIC/WACC4.49
WACC7.75%
2.3 Liquidity
1MO has a Current Ratio of 0.51. This is a bad value and indicates that 1MO is not financially healthy enough and could expect problems in meeting its short term obligations.
1MO has a Current ratio of 0.51. This is in the lower half of the industry: 1MO underperforms 66.67% of its industry peers.
1MO has a Quick Ratio of 0.51. This is a bad value and indicates that 1MO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1MO (0.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.64% over the past year.
Measured over the past 5 years, 1MO shows a small growth in Earnings Per Share. The EPS has been growing by 4.03% on average per year.
Looking at the last year, 1MO shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
Measured over the past years, 1MO shows a decrease in Revenue. The Revenue has been decreasing by -0.89% on average per year.
EPS 1Y (TTM)3.64%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%9.32%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%1.63%
3.2 Future
The Earnings Per Share is expected to grow by 4.09% on average over the next years.
Based on estimates for the next years, 1MO will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y7.23%
EPS Next 2Y5.4%
EPS Next 3Y4.74%
EPS Next 5Y4.09%
Revenue Next Year-0.2%
Revenue Next 2Y0.07%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.31%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.01, which indicates a very decent valuation of 1MO.
83.33% of the companies in the same industry are more expensive than 1MO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. 1MO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.27, the valuation of 1MO can be described as very reasonable.
66.67% of the companies in the same industry are more expensive than 1MO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1MO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than 1MO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1MO is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1MO may justify a higher PE ratio.
PEG (NY)1.52
PEG (5Y)2.73
EPS Next 2Y5.4%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
1MO has a Yearly Dividend Yield of 7.51%, which is a nice return.
1MO's Dividend Yield is a higher than the industry average which is at 5.83.
Compared to an average S&P500 Dividend Yield of 2.33, 1MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
5.2 History
The dividend of 1MO has a limited annual growth rate of 4.03%.
Dividend Growth(5Y)4.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
60.92% of the earnings are spent on dividend by 1MO. This is not a sustainable payout ratio.
The dividend of 1MO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.92%
EPS Next 2Y5.4%
EPS Next 3Y4.74%
BIT:1MO (3/3/2025, 7:00:00 PM)
53.97
+4.17 (+8.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners61.16%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap91.24B
Analysts73.64
Price Target53.51 (-0.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
Yearly Dividend3.96
Dividend Growth(5Y)4.03%
DP60.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.75%
Min EPS beat(2)-2.78%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-2.94%
Min EPS beat(4)-5.41%
Max EPS beat(4)-0.72%
EPS beat(8)0
Avg EPS beat(8)-2.94%
EPS beat(12)0
Avg EPS beat(12)-2.79%
EPS beat(16)1
Avg EPS beat(16)-2.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)5
Avg Revenue beat(12)4.41%
Revenue beat(16)9
Avg Revenue beat(16)8.27%
PT rev (1m)-0.5%
PT rev (3m)10.71%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.27 | ||
| P/S | 3.98 | ||
| P/FCF | 11.09 | ||
| P/OCF | 10.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.43 |
EPS(TTM)4.9
EY9.08%
EPS(NY)5.26
Fwd EY9.74%
FCF(TTM)4.87
FCFY9.02%
OCF(TTM)4.95
OCFY9.17%
SpS13.58
BVpS-1.26
TBVpS-12.52
PEG (NY)1.52
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.94% | ||
| ROE | N/A | ||
| ROCE | 44.41% | ||
| ROIC | 34.83% | ||
| ROICexc | 39.52% | ||
| ROICexgc | 274.39% | ||
| OM | 48.81% | ||
| PM (TTM) | 46.78% | ||
| GM | 59.71% | ||
| FCFM | 35.85% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.47%
ROIC(5y)31.51%
ROICexc(3y)39.7%
ROICexc(5y)36.4%
ROICexgc(3y)241.36%
ROICexgc(5y)177.5%
ROCE(3y)43.94%
ROCE(5y)40.18%
ROICexcg growth 3Y39.16%
ROICexcg growth 5Y48.09%
ROICexc growth 3Y4.74%
ROICexc growth 5Y13.62%
OM growth 3Y3.13%
OM growth 5Y3.4%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.41%
GM growth 5Y3.35%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 49.65% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 10.53 | ||
| Cash Conversion | 72.89% | ||
| Profit Quality | 76.64% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 4.52 |
F-Score7
WACC7.75%
ROIC/WACC4.49
Cap/Depr(3y)70.81%
Cap/Depr(5y)74.31%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.75%
Profit Quality(3y)109.56%
Profit Quality(5y)169.16%
High Growth Momentum
Growth
EPS 1Y (TTM)3.64%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%9.32%
EPS Next Y7.23%
EPS Next 2Y5.4%
EPS Next 3Y4.74%
EPS Next 5Y4.09%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%1.63%
Revenue Next Year-0.2%
Revenue Next 2Y0.07%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.31%
EBIT growth 1Y-2.01%
EBIT growth 3Y0.42%
EBIT growth 5Y2.48%
EBIT Next Year4.99%
EBIT Next 3Y3.08%
EBIT Next 5Y2.02%
FCF growth 1Y-5.28%
FCF growth 3Y1.5%
FCF growth 5Y2.55%
OCF growth 1Y-5.75%
OCF growth 3Y1.36%
OCF growth 5Y2.24%