ALTRIA GROUP INC (MO)
US02209S1033 - Common Stock
We assign a fundamental rating of 6 out of 10 to MO. MO was compared to 10 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. With these ratings, MO could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year MO was profitable.
MO had a positive operating cash flow in the past year.
MO had positive earnings in 4 of the past 5 years.
In the past 5 years MO always reported a positive cash flow from operatings.
1.2 Ratios
MO has a better Return On Assets (21.03%) than 90.00% of its industry peers.
The Return On Invested Capital of MO (33.36%) is better than 90.00% of its industry peers.
MO had an Average Return On Invested Capital over the past 3 years of 31.67%. This is significantly above the industry average of 21.15%.
The last Return On Invested Capital (33.36%) for MO is above the 3 year average (31.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.03% | ||
| ROE | N/A | ||
| ROIC | 33.36% |
ROA(3y)14.28%
ROA(5y)9.92%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)31.67%
ROIC(5y)27.63%
1.3 Margins
MO's Profit Margin of 33.14% is amongst the best of the industry. MO outperforms 90.00% of its industry peers.
MO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 48.72%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 58.14%, MO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 33.14% | ||
| GM | 58.14% |
OM growth 3Y2.54%
OM growth 5Y4.74%
PM growth 3Y24.8%
PM growth 5Y3.86%
GM growth 3Y4.09%
GM growth 5Y3.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MO is creating value.
The number of shares outstanding for MO has been reduced compared to 1 year ago.
MO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MO has been reduced compared to a year ago.
2.2 Solvency
MO has an Altman-Z score of 3.66. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
MO has a Altman-Z score of 3.66. This is amongst the best in the industry. MO outperforms 90.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.89, MO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 3.66 |
ROIC/WACC4.35
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.49 indicates that MO may have some problems paying its short term obligations.
MO's Current ratio of 0.49 is on the low side compared to the rest of the industry. MO is outperformed by 90.00% of its industry peers.
MO has a Quick Ratio of 0.49. This is a bad value and indicates that MO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.39, MO is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
MO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.27%.
MO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.41% yearly.
Looking at the last year, MO shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
MO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.70% yearly.
EPS 1Y (TTM)2.27%
EPS 3Y4.32%
EPS 5Y4.41%
EPS growth Q2Q0%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-2.18%
Revenue growth 5Y-0.7%
Revenue growth Q2Q-2.23%
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 4.76% on average per year.
Based on estimates for the next years, MO will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
EPS Next Y5.34%
EPS Next 2Y4.8%
EPS Next 3Y4.55%
EPS Next 5Y4.76%
Revenue Next Year0.01%
Revenue Next 2Y0.44%
Revenue Next 3Y0.67%
Revenue Next 5Y1.43%
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 reasonably with a Price/Earnings ratio of 8.67.
MO's Price/Earnings ratio is a bit cheaper when compared to the industry. MO is cheaper than 80.00% 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 25.25.
The Price/Forward Earnings ratio is 8.23, which indicates a very decent valuation of MO.
80.00% of the companies in the same industry are more expensive than MO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.67. MO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MO indicates a rather cheap valuation: MO is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 7.89 |
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)1.62
PEG (5Y)1.97
EPS Next 2Y4.8%
EPS Next 3Y4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.49%, MO is a good candidate for dividend investing.
MO's Dividend Yield is rather good when compared to the industry average which is at 5.87. MO pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
5.2 History
The dividend of MO has a limited annual growth rate of 5.89%.
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)5.89%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
83.56% 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.
DP83.56%
EPS Next 2Y4.8%
EPS Next 3Y4.55%
ALTRIA GROUP INC
NYSE:MO (4/24/2024, 9:15:09 PM)
After market: 43.09 +0.17 (+0.4%)42.92
+0.05 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap73.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 8.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.03% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.72% | ||
| PM (TTM) | 33.14% | ||
| GM | 58.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.27%
EPS 3Y4.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-2.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y