ALTRIA GROUP INC (MO)
US02209S1033 - Common Stock
Taking everything into account, MO scores 6 out of 10 in our fundamental rating. MO was compared to 8 industry peers in the Tobacco industry. MO has an excellent profitability rating, but there are some minor concerns on its financial health. MO has a bad growth rate and is valued cheaply. MO also has an excellent dividend rating. These ratings would make MO suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year MO was profitable.
MO had a positive operating cash flow in the past year.
MO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 30.03%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 33.68%, MO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MO is in line with the industry average of 32.42%.
The last Return On Invested Capital (33.68%) for MO is above the 3 year average (31.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.03% | ||
| ROE | N/A | ||
| ROIC | 33.68% |
ROA(3y)14.28%
ROA(5y)9.92%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.67%
ROIC(5y)27.63%
1.3 Margins
MO has a Profit Margin of 42.72%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
MO's Profit Margin has improved in the last couple of years.
MO has a better Operating Margin (48.16%) than 87.50% of its industry peers.
In the last couple of years the Operating Margin of MO has grown nicely.
With a decent Gross Margin value of 59.12%, MO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.16% | ||
| PM (TTM) | 42.72% | ||
| GM | 59.12% |
OM growth 3Y2.54%
OM growth 5Y4.74%
PM growth 3Y24.8%
PM growth 5Y3.86%
GM growth 3Y4.09%
GM growth 5Y3.42%
2. Health
2.1 Basic Checks
MO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MO has less shares outstanding
Compared to 5 years ago, MO has less shares outstanding
The debt/assets ratio for MO has been reduced compared to a year ago.
2.2 Solvency
MO has an Altman-Z score of 4.58. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, MO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MO has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as MO would need 2.96 years to pay back of all of its debts.
MO has a Debt to FCF ratio of 2.96. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 4.58 |
ROIC/WACC4.33
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.44 indicates that MO may have some problems paying its short term obligations.
MO's Current ratio of 0.44 is on the low side compared to the rest of the industry. MO is outperformed by 87.50% of its industry peers.
MO has a Quick Ratio of 0.44. This is a bad value and indicates that MO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.30, MO is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.41% over the past year.
The Earnings Per Share has been growing slightly by 4.41% on average over the past years.
Looking at the last year, MO shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
Measured over the past years, MO shows a decrease in Revenue. The Revenue has been decreasing by -0.70% on average per year.
EPS 1Y (TTM)1.41%
EPS 3Y4.32%
EPS 5Y4.41%
EPS Q2Q%7.81%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-2.18%
Revenue growth 5Y-0.7%
Sales Q2Q%1.27%
3.2 Future
The Earnings Per Share is expected to grow by 4.66% on average over the next years.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y6.71%
EPS Next 2Y5.53%
EPS Next 3Y4.82%
EPS Next 5Y4.66%
Revenue Next Year-0.82%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.16%
Revenue Next 5Y0.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.16, the valuation of MO can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MO indicates a somewhat cheap valuation: MO is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MO to the average of the S&P500 Index (28.96), we can say MO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.16, the valuation of MO can be described as reasonable.
Based on the Price/Forward Earnings ratio, MO is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
MO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MO is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MO is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 9.96 |
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 MO may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)2.53
EPS Next 2Y5.53%
EPS Next 3Y4.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.37%, MO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.50, MO pays a better dividend. On top of this MO pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
5.2 History
The dividend of MO has a limited annual growth rate of 5.89%.
MO has been paying a dividend for at least 10 years, so it has a reliable track record.
MO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.89%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
MO pays out 66.73% of its income as dividend. This is not a sustainable payout ratio.
MO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.73%
EPS Next 2Y5.53%
EPS Next 3Y4.82%
ALTRIA GROUP INC
NYSE:MO (11/21/2024, 8:04:00 PM)
After market: 56.12 +0.09 (+0.16%)56.03
+0.05 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.66
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.03% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.16% | ||
| PM (TTM) | 42.72% | ||
| GM | 59.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.41%
EPS 3Y4.32%
EPS 5Y
EPS Q2Q%
EPS Next Y6.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-2.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y