ALTRIA GROUP INC (MO) Stock Fundamental Analysis
USA - NYSE:MO - US02209S1033 - Common Stock
58.03 USD
+0.76 (+1.33%)
58.1 USD
+0.07 (+0.12%)
We assign a fundamental rating of 6 out of 10 to MO. MO was compared to 8 industry peers in the Tobacco industry. While MO belongs to the best of the industry regarding profitability, 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
MO had positive earnings in the past year.
In the past year MO had a positive cash flow from operations.
MO had positive earnings in each of the past 5 years.
Each year in the past 5 years MO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 25.26%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MO has a better Return On Invested Capital (35.73%) 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 14.21%.
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
Looking at the Profit Margin, with a value of 37.78%, 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 Profit Margin of MO has grown nicely.
MO has a Operating Margin of 52.01%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of MO has grown nicely.
The Gross Margin of MO (62.00%) is better than 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
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.
MO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.68 indicates that MO is not in any danger for bankruptcy at the moment.
MO's Altman-Z score of 4.68 is amongst the best of the industry. MO outperforms 87.50% of its industry peers.
MO has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as MO would need 2.80 years to pay back of all of its debts.
MO has a Debt to FCF ratio of 2.80. This is amongst the best in the industry. MO outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 4.68 |
ROIC/WACC4.01
WACC8.9%
2.3 Liquidity
A Current Ratio of 0.62 indicates that MO may have some problems paying 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.
MO has a worse Quick ratio (0.49) than 75.00% 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%.
MO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.03% yearly.
The Revenue has decreased by -2.55% in the past year.
The Revenue has been decreasing by -0.89% on average over the past years.
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
Based on estimates for the next years, MO will show a small growth in Earnings Per Share. The EPS will grow by 3.90% on average per year.
Based on estimates for the next years, MO will show a small growth in Revenue. The Revenue will grow by 0.48% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 10.73, which indicates a very decent valuation of MO.
Based on the Price/Earnings ratio, MO is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. MO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable valuation of MO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MO indicates a rather cheap valuation: MO is cheaper than 87.50% of the companies listed in the same industry.
MO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than MO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | 9.51 |
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
MO has a Yearly Dividend Yield of 7.40%, which is a nice return.
MO's Dividend Yield is rather good when compared to the industry average which is at 4.18. MO pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, MO pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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%
58.03
+0.76 (+1.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change-0.35%
Ins Owners0.06%
Ins Owner Change-0.02%
Market Cap97.48B
Revenue(TTM)23.41B
Net Income(TTM)8.84B
Analysts71.3
Price Target64.58 (11.29%)
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)8.35%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.06 | ||
| P/S | 4.16 | ||
| P/FCF | 10.61 | ||
| P/OCF | 10.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.51 |
EPS(TTM)5.41
EY9.32%
EPS(NY)5.77
Fwd EY9.94%
FCF(TTM)5.47
FCFY9.43%
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 | 4.68 |
F-Score7
WACC8.9%
ROIC/WACC4.01
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 -36.84.
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.