0.26 | 0.70%
ALTRIA GROUP INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ALTRIA GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.41 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.56% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 3973.0 | 3994.0 |
| EBITDA ($mil) | 1724.0 | 1702.0 |
| EBIT ($mil) | 1670.0 | 1646.0 |
| Net Income ($mil) | 1385.0 | 1195.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 3775.0 | 4156.0 |
| Total Assets ($mil) | 36006.0 | 37815.0 |
| Total Debt ($mil) | 13878.0 | 13689.0 |
| Equity ($mil) | 3569.0 | 3701.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 56.38 | 56.61 |
| EBITDA Margin | 43.39 | 42.61 |
| Operating Margin | 42.03 | 41.21 |
| Sales Turnover | 0.49 | 0.45 |
| Return on Assets | 12.13 | 9.64 |
| Return on Equity | 122.44 | 98.56 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.75 | 0.9 |
| Debt/Capital | 0.8 | 0.79 |
| Interest Expense | 261.0 | 293.0 |
| Interest Coverage | 6.4 | 5.62 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 2008.67 | 2034.93 |
| Div / share | 0.44 | 0.41 |
| EPS | 0.69 | 0.59 |
| Book value / share | 1.78 | 1.82 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.0360091E7 | 9582285.0 |
BUY. ALTRIA GROUP INC's P/E ratio indicates a discount compared to an average of 17.86 for the Tobacco industry and a value on par with the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 20.93 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 11.43. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, ALTRIA GROUP INC seems to be trading at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MO 17.21 | Peers 17.86 | MO 19.25 | Peers 16.78 | |||||||||||||||||||||
|
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 premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MO 14.47 | Peers 16.22 | MO 1.07 | Peers 1.68 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. MO is trading at a valuation on par with 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| MO 20.93 | Peers 11.43 | MO 21.34 | Peers 20.47 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MO is trading at a significant premium to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MO is expected to keep pace with its peers on the basis of earnings growth. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| MO 4.27 | Peers 4.44 | MO 1.89 | Peers 1.59 | |||||||||||||||||||||
|
Average. 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 valuation on par with its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. MO has a sales growth rate that exceeds its peers. |
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