ALTRIA GROUP INC (1MO.MI) Stock Fundamental Analysis
BIT:1MO - Euronext Milan - US02209S1033 - Common Stock - Currency: EUR
Overall 1MO gets a fundamental rating of 5 out of 10. We evaluated 1MO against 4 industry peers in the Tobacco industry. 1MO scores excellent on profitability, but there are some minor concerns on its financial health. 1MO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1MO had positive earnings in the past year.
In the past year 1MO had a positive cash flow from operations.
Each year in the past 5 years 1MO has been profitable.
Each year in the past 5 years 1MO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 28.48%, 1MO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
1MO's Return On Invested Capital of 36.74% is fine compared to the rest of the industry. 1MO outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MO is significantly above the industry average of 20.78%.
The last Return On Invested Capital (36.74%) for 1MO is above the 3 year average (34.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.48% | ||
| ROE | N/A | ||
| ROIC | 36.74% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.24%
ROIC(5y)31.38%
1.3 Margins
The Profit Margin of 1MO (42.97%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of 1MO has grown nicely.
1MO has a Operating Margin of 49.62%. This is in the better half of the industry: 1MO outperforms 80.00% of its industry peers.
1MO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.40%, 1MO is doing worse than 60.00% of the companies in the same industry.
1MO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.62% | ||
| PM (TTM) | 42.97% | ||
| GM | 60.4% |
OM growth 3Y2.47%
OM growth 5Y3%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.41%
GM growth 5Y3.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MO is creating value.
The number of shares outstanding for 1MO has been reduced compared to 1 year ago.
1MO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.52 indicates that 1MO is not in any danger for bankruptcy at the moment.
1MO has a Altman-Z score of 4.52. This is amongst the best in the industry. 1MO outperforms 100.00% of its industry peers.
1MO has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as 1MO would need 3.08 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.08, 1MO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.52 |
ROIC/WACC4.76
WACC7.72%
2.3 Liquidity
1MO has a Current Ratio of 0.57. 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's Current ratio of 0.57 is on the low side compared to the rest of the industry. 1MO is outperformed by 80.00% of its industry peers.
1MO has a Quick Ratio of 0.57. This is a bad value and indicates that 1MO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.47, 1MO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.89% over the past year.
The Earnings Per Share has been growing slightly by 4.03% on average over the past years.
1MO shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
The Revenue has been decreasing by -0.89% on average over the past years.
EPS 1Y (TTM)5.89%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%6.96%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-4.2%
3.2 Future
The Earnings Per Share is expected to grow by 3.38% on average over the next years.
1MO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.
EPS Next Y8.24%
EPS Next 2Y5.32%
EPS Next 3Y4.4%
EPS Next 5Y3.38%
Revenue Next Year-1.12%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.6%
Revenue Next 5Y0.73%
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.
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
Based on the Price/Earnings ratio of 11.50, the valuation of 1MO can be described as reasonable.
Based on the Price/Earnings ratio, 1MO is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, 1MO is valued rather cheaply.
1MO is valuated reasonably with a Price/Forward Earnings ratio of 10.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MO indicates a slightly more expensive valuation: 1MO is more expensive than 60.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1MO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MO.
Based on the Price/Free Cash Flow ratio, 1MO is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
1MO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1MO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)2.85
EPS Next 2Y5.32%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.84%, 1MO is a good candidate for dividend investing.
1MO's Dividend Yield is rather good when compared to the industry average which is at 5.82. 1MO pays more dividend than 100.00% of the companies in the same industry.
1MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
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
67.18% of the earnings are spent on dividend by 1MO. This is not a sustainable payout ratio.
The dividend of 1MO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.18%
EPS Next 2Y5.32%
EPS Next 3Y4.4%
BIT:1MO (7/7/2025, 7:00:00 PM)
50.96
-1.36 (-2.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners63.25%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap85.84B
Analysts72.17
Price Target51.08 (0.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend3.37
Dividend Growth(5Y)4.03%
DP67.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.08%
Min EPS beat(2)-2.78%
Max EPS beat(2)0.61%
EPS beat(4)1
Avg EPS beat(4)-2.07%
Min EPS beat(4)-5.41%
Max EPS beat(4)0.61%
EPS beat(8)1
Avg EPS beat(8)-2.46%
EPS beat(12)1
Avg EPS beat(12)-2.69%
EPS beat(16)2
Avg EPS beat(16)-2.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.57%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-3.63%
Revenue beat(12)4
Avg Revenue beat(12)2.55%
Revenue beat(16)8
Avg Revenue beat(16)6.85%
PT rev (1m)-2.04%
PT rev (3m)-4.32%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.54 | ||
| P/S | 4.26 | ||
| P/FCF | 11.95 | ||
| P/OCF | 11.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)4.43
EY8.69%
EPS(NY)4.84
Fwd EY9.49%
FCF(TTM)4.26
FCFY8.37%
OCF(TTM)4.34
OCFY8.51%
SpS11.96
BVpS-1.77
TBVpS-11.36
PEG (NY)1.4
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.48% | ||
| ROE | N/A | ||
| ROCE | 46.85% | ||
| ROIC | 36.74% | ||
| ROICexc | 45.27% | ||
| ROICexgc | 672.84% | ||
| OM | 49.62% | ||
| PM (TTM) | 42.97% | ||
| GM | 60.4% | ||
| FCFM | 35.66% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.24%
ROIC(5y)31.38%
ROICexc(3y)39.44%
ROICexc(5y)36.25%
ROICexgc(3y)239.58%
ROICexgc(5y)176.43%
ROCE(3y)43.65%
ROCE(5y)40%
ROICexcg growth 3Y38.27%
ROICexcg growth 5Y47.52%
ROICexc growth 3Y4.07%
ROICexc growth 5Y13.18%
OM growth 3Y2.47%
OM growth 5Y3%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.41%
GM growth 5Y3.35%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 49.66% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.32% | ||
| Profit Quality | 82.98% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 4.52 |
F-Score7
WACC7.72%
ROIC/WACC4.76
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)5.89%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%6.96%
EPS Next Y8.24%
EPS Next 2Y5.32%
EPS Next 3Y4.4%
EPS Next 5Y3.38%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-4.2%
Revenue Next Year-1.12%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.6%
Revenue Next 5Y0.73%
EBIT growth 1Y-0.23%
EBIT growth 3Y-0.22%
EBIT growth 5Y2.09%
EBIT Next Year5.6%
EBIT Next 3Y3.07%
EBIT Next 5Y1.64%
FCF growth 1Y6.3%
FCF growth 3Y1.5%
FCF growth 5Y2.55%
OCF growth 1Y5.28%
OCF growth 3Y1.36%
OCF growth 5Y2.24%