ALTRIA GROUP INC (MO) Stock Fundamental Analysis
USA - NYSE:MO - US02209S1033 - Common Stock
58.05 USD
-0.36 (-0.62%)
58.13 USD
+0.08 (+0.14%)
MO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. 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.
In the past 5 years MO has always been profitable.
MO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MO has a better Return On Assets (25.26%) than 100.00% of its industry peers.
The Return On Invested Capital of MO (35.73%) is better than 100.00% of its industry peers.
MO had an Average Return On Invested Capital over the past 3 years of 34.16%. This is significantly above the industry average of 14.16%.
The last Return On Invested Capital (35.73%) for MO is above the 3 year average (34.16%), which is a sign of increasing profitability.
| 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
MO has a better Profit Margin (37.78%) 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 (52.01%) than 100.00% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
MO has a Gross Margin of 62.00%. This is in the better half 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MO is creating value.
Compared to 1 year ago, MO has less shares outstanding
Compared to 5 years ago, MO has less shares outstanding
MO has a worse debt/assets ratio than last year.
2.2 Solvency
MO has an Altman-Z score of 4.72. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
MO has a better Altman-Z score (4.72) than 100.00% 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 | 4.72 |
ROIC/WACC4
WACC8.93%
2.3 Liquidity
MO has a Current 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.
Looking at the Current ratio, with a value of 0.62, MO is doing worse than 87.50% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that MO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, MO is doing worse than 87.50% of the companies in the same industry.
| 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%.
Measured over the past 5 years, MO shows a small growth in Earnings Per Share. The EPS has been growing by 4.03% on average per year.
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
The Earnings Per Share is expected to grow by 3.90% on average over the next years.
The Revenue is expected to grow by 0.48% on average over the next years.
EPS Next Y8.98%
EPS Next 2Y6.04%
EPS Next 3Y5.13%
EPS Next 5Y3.9%
Revenue Next Year-0.99%
Revenue Next 2Y-0.41%
Revenue Next 3Y-0.22%
Revenue Next 5Y0.48%
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
With a Price/Earnings ratio of 10.73, the valuation of MO can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MO indicates a rather cheap valuation: MO is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. MO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.06, the valuation of MO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MO indicates a rather cheap valuation: MO is cheaper than 100.00% of the companies listed in the same industry.
MO is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.06 |
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 | 10.61 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
MO's 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)1.19
PEG (5Y)2.66
EPS Next 2Y6.04%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.40%, MO is a good candidate for dividend investing.
MO's Dividend Yield is rather good when compared to the industry average which is at 4.04. MO pays more dividend than 100.00% of the companies in the same industry.
MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
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
MO pays out 78.16% of its income as dividend. 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.
DP78.16%
EPS Next 2Y6.04%
EPS Next 3Y5.13%
58.05
-0.36 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change-0.36%
Ins Owners0.06%
Ins Owner Change-0.02%
Market Cap97.52B
Revenue(TTM)23.41B
Net Income(TTM)8.84B
Analysts71.3
Price Target64.58 (11.25%)
Short Float %2.12%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
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)1.98%
PT rev (3m)5.78%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.06 | ||
| P/S | 4.17 | ||
| P/FCF | 10.61 | ||
| P/OCF | 10.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.66 |
EPS(TTM)5.41
EY9.32%
EPS(NY)5.77
Fwd EY9.94%
FCF(TTM)5.47
FCFY9.42%
OCF(TTM)5.57
OCFY9.6%
SpS13.93
BVpS-1.58
TBVpS-12.85
PEG (NY)1.19
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 | 4.72 |
F-Score7
WACC8.93%
ROIC/WACC4
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 Y8.98%
EPS Next 2Y6.04%
EPS Next 3Y5.13%
EPS Next 5Y3.9%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-1.74%
Revenue Next Year-0.99%
Revenue Next 2Y-0.41%
Revenue Next 3Y-0.22%
Revenue Next 5Y0.48%
EBIT growth 1Y5.25%
EBIT growth 3Y-0.18%
EBIT growth 5Y2.09%
EBIT Next Year6.26%
EBIT Next 3Y3.66%
EBIT Next 5Y2.35%
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 10.73 and the Price/Book (PB) ratio is -36.85.
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 8.98% in the next year.