ALTRIA GROUP INC (MO) Stock Fundamental Analysis
NYSE:MO - New York Stock Exchange, Inc. - US02209S1033 - Common Stock - Currency: USD
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 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
In the past year MO was profitable.
In the past year MO had a positive cash flow from operations.
Each year in the past 5 years MO has been profitable.
In the past 5 years MO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 27.10%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MO has a Return On Invested Capital of 37.10%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MO is significantly above the industry average of 14.16%.
The last Return On Invested Capital (37.10%) for MO is above the 3 year average (34.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.1% | ||
| ROE | N/A | ||
| ROIC | 37.1% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.16%
ROIC(5y)31.32%
1.3 Margins
MO has a better Profit Margin (37.13%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of MO has grown nicely.
MO has a better Operating Margin (51.20%) than 100.00% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
MO has a better Gross Margin (61.41%) than 75.00% of its industry peers.
MO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.2% | ||
| PM (TTM) | 37.13% | ||
| GM | 61.41% |
OM growth 3Y2.51%
OM growth 5Y3%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.67%
GM growth 5Y3.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MO is creating value.
Compared to 1 year ago, MO has less shares outstanding
MO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.15 indicates that MO is not in any danger for bankruptcy at the moment.
MO's Altman-Z score of 5.15 is amongst the best of the industry. MO outperforms 100.00% of its industry peers.
The Debt to FCF ratio of MO is 2.83, which is a good value as it means it would take MO, 2.83 years of fcf income to pay off all of its debts.
MO's Debt to FCF ratio of 2.83 is amongst the best of the industry. MO outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.15 |
ROIC/WACC4.72
WACC7.86%
2.3 Liquidity
MO has a Current Ratio of 0.39. This is a bad value and indicates that MO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MO (0.39) is worse than 87.50% of its industry peers.
A Quick Ratio of 0.24 indicates that MO may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, MO is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
MO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.54%, which is quite good.
The Earnings Per Share has been growing slightly by 4.03% on average over the past years.
Looking at the last year, MO shows a decrease in Revenue. The Revenue has decreased by -1.86% in the last year.
The Revenue has been decreasing by -0.89% on average over the past years.
EPS 1Y (TTM)8.54%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%9.92%
Revenue 1Y (TTM)-1.86%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%0.25%
3.2 Future
MO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.38% yearly.
Based on estimates for the next years, MO will show a small growth in Revenue. The Revenue will grow by 0.73% on average per year.
EPS Next Y8.1%
EPS Next 2Y5.41%
EPS Next 3Y4.63%
EPS Next 5Y3.38%
Revenue Next Year-1.17%
Revenue Next 2Y-0.59%
Revenue Next 3Y-0.48%
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
MO is valuated correctly with a Price/Earnings ratio of 12.02.
Compared to the rest of the industry, the Price/Earnings ratio of MO indicates a rather cheap valuation: MO is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. MO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of MO.
Based on the Price/Forward Earnings ratio, MO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, MO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MO is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
MO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MO is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
MO's 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)1.48
PEG (5Y)2.98
EPS Next 2Y5.41%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, MO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.69, MO pays a better dividend. On top of this MO pays more dividend than 100.00% of the companies listed in the same industry.
MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
The dividend of MO has a limited annual growth rate of 4.03%.
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)4.03%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
78.52% of the earnings are spent on dividend by MO. This is not a sustainable payout ratio.
The dividend of MO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.52%
EPS Next 2Y5.41%
EPS Next 3Y4.63%
64.19
+0.64 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners63.25%
Inst Owner Change0.11%
Ins Owners0.06%
Ins Owner Change3.6%
Market Cap108.12B
Analysts70.83
Price Target61.06 (-4.88%)
Short Float %1.99%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend3.96
Dividend Growth(5Y)4.03%
DP78.52%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.73%
Min EPS beat(2)0.61%
Max EPS beat(2)0.84%
EPS beat(4)2
Avg EPS beat(4)-0.51%
Min EPS beat(4)-2.78%
Max EPS beat(4)0.84%
EPS beat(8)2
Avg EPS beat(8)-2.07%
EPS beat(12)2
Avg EPS beat(12)-2.44%
EPS beat(16)2
Avg EPS beat(16)-2.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-3.41%
Revenue beat(12)2
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)4.03%
PT rev (1m)0.34%
PT rev (3m)2.69%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 11.26 | ||
| P/S | 4.58 | ||
| P/FCF | 12.39 | ||
| P/OCF | 12.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)5.34
EY8.32%
EPS(NY)5.7
Fwd EY8.88%
FCF(TTM)5.18
FCFY8.07%
OCF(TTM)5.27
OCFY8.21%
SpS14.01
BVpS-1.93
TBVpS-13.2
PEG (NY)1.48
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.1% | ||
| ROE | N/A | ||
| ROCE | 47.29% | ||
| ROIC | 37.1% | ||
| ROICexc | 39.06% | ||
| ROICexgc | 179.29% | ||
| OM | 51.2% | ||
| PM (TTM) | 37.13% | ||
| GM | 61.41% | ||
| FCFM | 36.99% |
ROA(3y)22.85%
ROA(5y)16.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.16%
ROIC(5y)31.32%
ROICexc(3y)39.35%
ROICexc(5y)36.18%
ROICexgc(3y)239.24%
ROICexgc(5y)176.2%
ROCE(3y)43.55%
ROCE(5y)39.93%
ROICexcg growth 3Y38.33%
ROICexcg growth 5Y47.52%
ROICexc growth 3Y4.11%
ROICexc growth 5Y13.18%
OM growth 3Y2.51%
OM growth 5Y3%
PM growth 3Y70.3%
PM growth 5YN/A
GM growth 3Y3.67%
GM growth 5Y3.35%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 51.21% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | 99.62% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 5.15 |
F-Score6
WACC7.86%
ROIC/WACC4.72
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)8.54%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%9.92%
EPS Next Y8.1%
EPS Next 2Y5.41%
EPS Next 3Y4.63%
EPS Next 5Y3.38%
Revenue 1Y (TTM)-1.86%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%0.25%
Revenue Next Year-1.17%
Revenue Next 2Y-0.59%
Revenue Next 3Y-0.48%
Revenue Next 5Y0.73%
EBIT growth 1Y4.83%
EBIT growth 3Y-0.18%
EBIT growth 5Y2.09%
EBIT Next Year6.39%
EBIT Next 3Y3.82%
EBIT Next 5Y1.64%
FCF growth 1Y1.75%
FCF growth 3Y1.5%
FCF growth 5Y2.55%
OCF growth 1Y0.83%
OCF growth 3Y1.36%
OCF growth 5Y2.24%