ALTRIA GROUP INC (MO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MO - US02209S1033 - Common Stock
57.99 USD
-0.35 (-0.6%)
58.05 USD
+0.06 (+0.1%)
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 is valued quite cheap, but it does not seem to be growing. 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.
In the past year MO had a positive cash flow from operations.
Each year in the past 5 years MO has been profitable.
MO 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 25.26%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 35.73%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MO is significantly above the industry average of 14.25%.
The 3 year average ROIC (34.16%) for MO is below the current ROIC(35.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.26% | ||
| ROE | N/A | ||
| ROIC | 35.73% |
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
The Profit Margin of MO (37.78%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of MO has grown nicely.
MO's Operating Margin of 52.01% is amongst the best of the industry. MO outperforms 100.00% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
MO's Gross Margin of 62.00% is fine compared to the rest of the industry. MO outperforms 75.00% of its industry peers.
MO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.01% | ||
| PM (TTM) | 37.78% | ||
| GM | 62% |
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
MO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MO has less shares outstanding
MO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.70 indicates that MO is not in any danger for bankruptcy at the moment.
MO's Altman-Z score of 4.70 is amongst the best of the industry. MO outperforms 87.50% of its industry peers.
The Debt to FCF ratio of MO is 2.80, which is a good value as it means it would take MO, 2.80 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.80, 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 | 2.8 | ||
| Altman-Z | 4.7 |
ROIC/WACC4.13
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.62 indicates that MO may have some problems paying its short term obligations.
MO's Current ratio of 0.62 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 0.62. This is a bad value and indicates that MO is not financially healthy enough and could expect problems in meeting its short term obligations.
MO has a worse Quick ratio (0.49) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
MO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.77%.
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 -2.55% in the last year.
MO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.89% yearly.
EPS 1Y (TTM)7.77%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%5.07%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-1.74%
3.2 Future
MO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.00% yearly.
Based on estimates for the next years, MO will show a small growth in Revenue. The Revenue will grow by 0.50% on average per year.
EPS Next Y9.1%
EPS Next 2Y5.94%
EPS Next 3Y5.13%
EPS Next 5Y4%
Revenue Next Year-1.14%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.37%
Revenue Next 5Y0.5%
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
MO is valuated reasonably with a Price/Earnings ratio of 10.72.
Based on the Price/Earnings ratio, MO is valued cheaper than 100.00% of the companies in the same industry.
MO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 10.07 indicates a reasonable valuation of MO.
Based on the Price/Forward Earnings ratio, MO is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, MO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.07 |
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.
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 | 10.59 | ||
| EV/EBITDA | 9.6 |
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)1.18
PEG (5Y)2.66
EPS Next 2Y5.94%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.27%, MO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.64, MO pays a better dividend. On top of this MO pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.03%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
78.16% of the earnings are spent on dividend by MO. This is not a sustainable payout ratio.
MO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.16%
EPS Next 2Y5.94%
EPS Next 3Y5.13%
57.99
-0.35 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners62.4%
Inst Owner Change0.37%
Ins Owners0.06%
Ins Owner Change-0.62%
Market Cap97.35B
Revenue(TTM)23.41B
Net Income(TTM)8.84B
Analysts72.5
Price Target63.33 (9.21%)
Short Float %2.4%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
Yearly Dividend3.96
Dividend Growth(5Y)4.03%
DP78.16%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-2.79%
Max EPS beat(2)0.84%
EPS beat(4)2
Avg EPS beat(4)-1.03%
Min EPS beat(4)-2.79%
Max EPS beat(4)0.84%
EPS beat(8)2
Avg EPS beat(8)-1.94%
EPS beat(12)2
Avg EPS beat(12)-2.28%
EPS beat(16)2
Avg EPS beat(16)-2.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-3.21%
Revenue beat(12)1
Avg Revenue beat(12)-2.03%
Revenue beat(16)5
Avg Revenue beat(16)2.84%
PT rev (1m)-1.94%
PT rev (3m)-0.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.07 | ||
| P/S | 4.16 | ||
| P/FCF | 10.59 | ||
| P/OCF | 10.4 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)5.41
EY9.33%
EPS(NY)5.76
Fwd EY9.93%
FCF(TTM)5.47
FCFY9.44%
OCF(TTM)5.58
OCFY9.61%
SpS13.94
BVpS-1.58
TBVpS-12.86
PEG (NY)1.18
PEG (5Y)2.66
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.26% | ||
| ROE | N/A | ||
| ROCE | 45.56% | ||
| ROIC | 35.73% | ||
| ROICexc | 41.07% | ||
| ROICexgc | 221.44% | ||
| OM | 52.01% | ||
| PM (TTM) | 37.78% | ||
| GM | 62% | ||
| FCFM | 39.25% |
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%
ROICexgc growth 3Y38.33%
ROICexgc 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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.8 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 60% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.12% | ||
| Profit Quality | 103.9% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 4.7 |
F-Score7
WACC8.66%
ROIC/WACC4.13
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)7.77%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%5.07%
EPS Next Y9.1%
EPS Next 2Y5.94%
EPS Next 3Y5.13%
EPS Next 5Y4%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-1.74%
Revenue Next Year-1.14%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.37%
Revenue Next 5Y0.5%
EBIT growth 1Y5.25%
EBIT growth 3Y-0.18%
EBIT growth 5Y2.09%
EBIT Next Year6.25%
EBIT Next 3Y3.78%
EBIT Next 5Y2.43%
FCF growth 1Y8.37%
FCF growth 3Y1.5%
FCF growth 5Y2.55%
OCF growth 1Y7.84%
OCF growth 3Y1.36%
OCF growth 5Y2.24%
ALTRIA GROUP INC / MO FAQ
What is the fundamental rating for MO stock?
ChartMill assigns a fundamental rating of 6 / 10 to MO.
What is the valuation status for MO stock?
ChartMill assigns a valuation rating of 8 / 10 to ALTRIA GROUP INC (MO). This can be considered as Undervalued.
Can you provide the profitability details for ALTRIA GROUP INC?
ALTRIA GROUP INC (MO) has a profitability rating of 9 / 10.
What is the valuation of ALTRIA GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALTRIA GROUP INC (MO) is 10.72 and the Price/Book (PB) ratio is -36.79.
What is the earnings growth outlook for ALTRIA GROUP INC?
The Earnings per Share (EPS) of ALTRIA GROUP INC (MO) is expected to grow by 9.1% in the next year.