Altria Group Inc.
MO : NYSE : Consumer Goods

$32.02 -0.11 | -0.34%
Today's Range: 31.94 - 32.22
Avg. Daily Volume: 10,003,500
05/30/12 - 4:00 PM ET
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Financial Analysis


ALTRIA GROUP INC's gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ALTRIA GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 32.12% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.



Income Statement Q1 FY12 Q1 FY11
Net Sales ($mil)3994.03943.0
EBITDA ($mil)1702.01605.0
EBIT ($mil)1646.01545.0
Net Income ($mil)973.0937.0


Balance Sheet Q1 FY12 Q1 FY11
Cash & Equiv. ($mil)4156.03432.0
Total Assets ($mil)37815.038584.0
Total Debt ($mil)13689.012194.0
Equity ($mil)3701.05453.0


Profitability Q1 FY12 Q1 FY11
Gross Profit Margin56.6155.95
EBITDA Margin42.6140.71
Operating Margin41.2139.18
Sales Turnover0.450.44
Return on Assets9.0610.44
Return on Equity92.5773.89
Debt Q1 FY12 Q1 FY11
Current Ratio0.90.89
Debt/Capital0.790.69
Interest Expense293.0278.0
Interest Coverage5.625.56


Share Data Q1 FY12 Q1 FY11
Shares outstanding (mil)2034.932093.32
Div / share0.410.38
EPS0.480.45
Book value / share1.822.61
Institutional Own % n/a n/a
Avg Daily Volume1.0221805E71.2872307E7

Valuation


BUY. ALTRIA GROUP INC's P/E ratio indicates a premium compared to an average of 18.58 for the Tobacco industry and a premium compared to the S&P 500 average of 15.19. To use another comparison, its price-to-book ratio of 17.74 indicates a significant premium versus the S&P 500 average of 2.12 and a significant discount versus the industry average of 453.71. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MO 19.32 Peers 18.58   MO 19.15 Peers 14.71

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MO is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MO 13.61 Peers 17.63   MO 0.56 Peers 1.41

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MO is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MO trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MO 17.74 Peers 453.71   MO -13.48 Peers 9.22

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MO 3.83 Peers 4.31   MO 1.63 Peers 7.76

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MO is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MO significantly trails its peers on the basis of sales growth

 

 

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