ALTRIA GROUP INC (MO) Stock Fundamental Analysis
NYSE:MO - New York Stock Exchange, Inc. - US02209S1033 - Common Stock
We assign a fundamental rating of 6 out of 10 to MO. MO was compared to 8 industry peers in the Tobacco industry. MO scores excellent on profitability, but there are some minor concerns on its financial health. MO has a bad growth rate and is valued cheaply. Finally MO also has an excellent dividend rating. This makes MO very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
MO had positive earnings in the past year.
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
The Return On Assets of MO (30.03%) is better than 100.00% of its industry peers.
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.
MO had an Average Return On Invested Capital over the past 3 years of 31.67%. This is significantly below the industry average of 65.76%.
The 3 year average ROIC (31.67%) for MO is below the current ROIC(33.68%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 42.72%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
MO's Operating Margin has improved in the last couple of years.
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.
MO's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MO is creating value.
MO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MO has been reduced compared to 5 years ago.
Compared to 1 year ago, MO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that MO is not in any danger for bankruptcy at the moment.
MO has a Altman-Z score of 4.47. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
The Debt to FCF ratio of MO is 2.96, which is a good value as it means it would take MO, 2.96 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.96, MO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 4.47 |
ROIC/WACC4.29
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.44 indicates that MO may have some problems paying its short term obligations.
MO has a worse Current ratio (0.44) than 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
MO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.41%.
MO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.41% yearly.
Looking at the last year, MO shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
The Revenue has been decreasing by -0.70% on average over the past years.
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
Based on estimates for the next years, MO will show a small growth in Earnings Per Share. The EPS will grow by 4.00% on average per year.
MO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.87% yearly.
EPS Next Y6.78%
EPS Next 2Y5.57%
EPS Next 3Y4.7%
EPS Next 5Y4%
Revenue Next Year-0.9%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.04%
Revenue Next 5Y0.87%
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
With a Price/Earnings ratio of 10.25, the valuation of MO can be described as very reasonable.
Based on the Price/Earnings ratio, MO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
MO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.33, the valuation of MO can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than MO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, MO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MO is valued a bit cheaper than 62.50% of the companies in the same industry.
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 | 10.27 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)2.33
EPS Next 2Y5.57%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
MO has a Yearly Dividend Yield of 7.97%, which is a nice return.
Compared to an average industry Dividend Yield of 4.64, 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 2.28, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
5.2 History
The dividend of MO has a limited annual growth rate of 5.89%.
MO has paid a dividend for at least 10 years, which is a reliable track record.
MO has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y5.57%
EPS Next 3Y4.7%
ALTRIA GROUP INC
NYSE:MO (1/21/2025, 8:15:03 PM)
After market: 51.45 -0.02 (-0.04%)51.47
-0.39 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners60.21%
Inst Owner Change-0.23%
Ins Owners0.06%
Ins Owner Change0.48%
Market Cap87.23B
Analysts74.29
Price Target56.72 (10.2%)
Short Float %1.75%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
Yearly Dividend3.82
Dividend Growth(5Y)5.89%
DP66.73%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.07%
Min EPS beat(2)-5.41%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-2.85%
Min EPS beat(4)-5.41%
Max EPS beat(4)-0.72%
EPS beat(8)0
Avg EPS beat(8)-2.91%
EPS beat(12)0
Avg EPS beat(12)-2.76%
EPS beat(16)1
Avg EPS beat(16)-2.73%
Revenue beat(2)0
Avg Revenue beat(2)-3.79%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.51%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-2.59%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)5
Avg Revenue beat(12)4.76%
Revenue beat(16)9
Avg Revenue beat(16)8.58%
PT rev (1m)3.21%
PT rev (3m)9.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.33 | ||
| P/S | 3.63 | ||
| P/FCF | 10.27 | ||
| P/OCF | 10.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.37 |
EPS(TTM)5.02
EY9.75%
EPS(NY)5.52
Fwd EY10.72%
FCF(TTM)5.01
FCFY9.73%
OCF(TTM)5.1
OCFY9.9%
SpS14.17
BVpS-2.05
TBVpS-13.82
PEG (NY)1.51
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.03% | ||
| ROE | N/A | ||
| ROCE | 44.2% | ||
| ROIC | 33.68% | ||
| ROICexc | 36.31% | ||
| ROICexgc | 204.08% | ||
| OM | 48.16% | ||
| PM (TTM) | 42.72% | ||
| GM | 59.12% | ||
| FCFM | 35.36% |
ROA(3y)14.28%
ROA(5y)9.92%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.67%
ROIC(5y)27.63%
ROICexc(3y)36.88%
ROICexc(5y)31.67%
ROICexgc(3y)177.45%
ROICexgc(5y)125.67%
ROCE(3y)41.56%
ROCE(5y)36.26%
ROICexcg growth 3Y72.17%
ROICexcg growth 5Y61.82%
ROICexc growth 3Y12.69%
ROICexc growth 5Y18.7%
OM growth 3Y2.54%
OM growth 5Y4.74%
PM growth 3Y24.8%
PM growth 5Y3.86%
GM growth 3Y4.09%
GM growth 5Y3.42%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 50.86% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.86% | ||
| Profit Quality | 82.77% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 4.47 |
F-Score7
WACC7.85%
ROIC/WACC4.29
Cap/Depr(3y)77.34%
Cap/Depr(5y)86.15%
Cap/Sales(3y)0.76%
Cap/Sales(5y)0.83%
Profit Quality(3y)195.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.41%
EPS 3Y4.32%
EPS 5Y4.41%
EPS Q2Q%7.81%
EPS Next Y6.78%
EPS Next 2Y5.57%
EPS Next 3Y4.7%
EPS Next 5Y4%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-2.18%
Revenue growth 5Y-0.7%
Sales Q2Q%1.27%
Revenue Next Year-0.9%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.04%
Revenue Next 5Y0.87%
EBIT growth 1Y-4.44%
EBIT growth 3Y0.31%
EBIT growth 5Y4%
EBIT Next Year0.78%
EBIT Next 3Y2.29%
EBIT Next 5Y1.49%
FCF growth 1Y5.02%
FCF growth 3Y3.69%
FCF growth 5Y2.2%
OCF growth 1Y4.1%
OCF growth 3Y3.46%
OCF growth 5Y2.05%