ALTRIA GROUP INC (MO)
US02209S1033 - Common Stock
Overall MO gets a fundamental rating of 6 out of 10. We evaluated MO against 10 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 is valued correctly, but it does not seem to be growing. Finally MO also has an excellent dividend rating. This makes MO very considerable for 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
With an excellent Return On Assets value of 21.03%, MO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
MO has a Return On Invested Capital of 33.36%. This is amongst the best in the industry. MO outperforms 90.00% 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 21.15%.
The 3 year average ROIC (31.67%) for MO is below the current ROIC(33.36%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 33.14%. This is amongst the best in the industry. MO outperforms 90.00% of its industry peers.
In the last couple of years the Profit Margin of MO has grown nicely.
MO has a better Operating Margin (48.72%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of MO has grown nicely.
MO has a better Gross Margin (58.14%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of MO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| 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
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
Compared to 1 year ago, MO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.66 indicates that MO is not in any danger for bankruptcy at the moment.
The Altman-Z score of MO (3.66) is better than 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.
With an excellent Debt to FCF ratio value of 2.89, MO belongs to the best 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/WACC4.33
WACC7.71%
2.3 Liquidity
MO has a Current 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.
MO has a worse Current ratio (0.49) than 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%.
Measured over the past 5 years, MO shows a small growth in Earnings Per Share. The EPS has been growing by 4.41% on average per year.
The Revenue has decreased by -2.44% in the past 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
MO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.76% yearly.
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 8.50.
80.00% of the companies in the same industry are more expensive than MO, based on the Price/Earnings ratio.
MO is valuated cheaply when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.07 indicates a reasonable valuation of MO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MO indicates a somewhat cheap valuation: MO is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MO to the average of the S&P500 Index (21.26), we can say MO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
MO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MO indicates a somewhat cheap valuation: MO is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
The 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)1.59
PEG (5Y)1.93
EPS Next 2Y4.8%
EPS Next 3Y4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.46%, MO is a good candidate for dividend investing.
MO's Dividend Yield is rather good when compared to the industry average which is at 5.93. MO pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, MO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
5.2 History
The dividend of MO has a limited annual growth rate of 5.89%.
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)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 (4/19/2024, 7:04:37 PM)
After market: 42.05 -0.04 (-0.1%)42.09
+0.79 (+1.91%)
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 Cap75.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
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)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 8.5 | ||
| Fwd PE | 8.07 | ||
| 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)1.59
PEG (5Y)1.93
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