ALTRIA GROUP INC (MO) Stock Fundamental Analysis
NYSE:MO - New York Stock Exchange, Inc. - US02209S1033 - Common Stock - Currency: USD
MO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. While MO has a great profitability rating, there are some minor concerns on its financial health. MO is cheap, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years MO has been profitable.
Each year in the past 5 years MO had a positive operating cash flow.
1.2 Ratios
MO has a better Return On Assets (31.94%) than 100.00% of its industry peers.
The Return On Invested Capital of MO (34.88%) is better than 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 16.58%.
The 3 year average ROIC (34.24%) for MO is below the current ROIC(34.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.94% | ||
| ROE | N/A | ||
| ROIC | 34.88% |
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
MO has a better Profit Margin (46.78%) than 100.00% of its industry peers.
MO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 48.87%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MO has grown nicely.
MO's Gross Margin of 59.71% is fine compared to the rest of the industry. MO outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of MO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.87% | ||
| PM (TTM) | 46.78% | ||
| GM | 59.71% |
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
MO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MO has less shares outstanding
Compared to 5 years ago, MO has less shares outstanding
The debt/assets ratio for MO is higher compared to a year ago.
2.2 Solvency
MO has an Altman-Z score of 4.67. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MO (4.67) is better than 87.50% of its industry peers.
MO has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as MO would need 2.89 years to pay back of all of its debts.
The Debt to FCF ratio of MO (2.89) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.67 |
ROIC/WACC4.38
WACC7.96%
2.3 Liquidity
MO has a Current Ratio of 0.51. 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 Current ratio of 0.51. This is amonst the worse of the industry: MO underperforms 87.50% of its industry peers.
MO has a Quick Ratio of 0.51. 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 (0.39) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.89% over the past year.
MO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.03% yearly.
MO shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
Measured over the past years, MO shows a decrease in Revenue. The Revenue has been decreasing by -0.89% on average per year.
EPS 1Y (TTM)5.89%
EPS 3Y3.63%
EPS 5Y4.03%
EPS Q2Q%6.96%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-4.2%
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 3.45% on average per year.
Based on estimates for the next years, MO will show a small growth in Revenue. The Revenue will grow by 0.96% on average per year.
EPS Next Y8.22%
EPS Next 2Y5.28%
EPS Next 3Y4.56%
EPS Next 5Y3.45%
Revenue Next Year-1.03%
Revenue Next 2Y-0.51%
Revenue Next 3Y-0.51%
Revenue Next 5Y0.96%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of MO.
Based on the Price/Earnings ratio, MO is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, MO is valued rather cheaply.
MO is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
Based on the Price/Forward Earnings ratio, MO is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, MO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MO indicates a rather cheap valuation: MO is cheaper than 87.50% of the companies listed 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 | 11.63 | ||
| EV/EBITDA | 10.21 |
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)1.39
PEG (5Y)2.83
EPS Next 2Y5.28%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.03%, MO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, 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 2.36, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
5.2 History
The dividend of MO has a limited annual growth rate of 4.03%.
MO has been paying a dividend for at least 10 years, so it has 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 Years14
Div Non Decr Years14
5.3 Sustainability
60.92% 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.
DP60.92%
EPS Next 2Y5.28%
EPS Next 3Y4.56%
59.45
-0.45 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners61.16%
Inst Owner Change2.62%
Ins Owners0.07%
Ins Owner Change3.44%
Market Cap100.14B
Analysts72.73
Price Target59.4 (-0.08%)
Short Float %2.3%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
Yearly Dividend3.96
Dividend Growth(5Y)4.03%
DP60.92%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.75%
Min EPS beat(2)-2.78%
Max EPS beat(2)-0.72%
EPS beat(4)0
Avg EPS beat(4)-2.94%
Min EPS beat(4)-5.41%
Max EPS beat(4)-0.72%
EPS beat(8)0
Avg EPS beat(8)-2.94%
EPS beat(12)0
Avg EPS beat(12)-2.79%
EPS beat(16)1
Avg EPS beat(16)-2.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-3.73%
Revenue beat(12)4
Avg Revenue beat(12)2.83%
Revenue beat(16)8
Avg Revenue beat(16)7.08%
PT rev (1m)5.15%
PT rev (3m)4.99%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)1.38%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.46 | ||
| P/S | 4.17 | ||
| P/FCF | 11.63 | ||
| P/OCF | 11.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.21 |
EPS(TTM)5.21
EY8.76%
EPS(NY)5.69
Fwd EY9.56%
FCF(TTM)5.11
FCFY8.6%
OCF(TTM)5.2
OCFY8.74%
SpS14.26
BVpS-1.33
TBVpS-13.15
PEG (NY)1.39
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.94% | ||
| ROE | N/A | ||
| ROCE | 44.47% | ||
| ROIC | 34.88% | ||
| ROICexc | 39.56% | ||
| ROICexgc | 274.72% | ||
| OM | 48.87% | ||
| PM (TTM) | 46.78% | ||
| GM | 59.71% | ||
| FCFM | 35.85% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 49.65% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 10.55 | ||
| Cash Conversion | 72.8% | ||
| Profit Quality | 76.64% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 4.67 |
F-Score7
WACC7.96%
ROIC/WACC4.38
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 Y8.22%
EPS Next 2Y5.28%
EPS Next 3Y4.56%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-2.62%
Revenue growth 5Y-0.89%
Sales Q2Q%-4.2%
Revenue Next Year-1.03%
Revenue Next 2Y-0.51%
Revenue Next 3Y-0.51%
Revenue Next 5Y0.96%
EBIT growth 1Y-1.9%
EBIT growth 3Y-0.22%
EBIT growth 5Y2.09%
EBIT Next Year4.38%
EBIT Next 3Y2.62%
EBIT Next 5Y2.05%
FCF growth 1Y-5.28%
FCF growth 3Y1.5%
FCF growth 5Y2.55%
OCF growth 1Y-5.75%
OCF growth 3Y1.36%
OCF growth 5Y2.24%