Altria Group Inc

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MO : NYSE : Consumer Goods
$65.22 up 1.50 | 2.40%
Today's Range: 63.79 - 64.99
Avg. Daily Volume: 5,262,500
10/24/16 - 2:41 PM ET

Financial Analysis

ALTRIA GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ALTRIA GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.17 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 12.99% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)4881.04875.0
EBITDA ($mil)2461.02279.0
EBIT ($mil)2412.02228.0
Net Income ($mil)1653.01448.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)819.01166.0
Total Assets ($mil)31324.031869.0
Total Debt ($mil)12837.013920.0
Equity ($mil)3140.02779.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin61.4859.84
EBITDA Margin50.4146.74
Operating Margin49.4245.7
Sales Turnover0.610.58
Return on Assets18.0215.99
Return on Equity179.77183.48
Debt Q2 FY16 Q2 FY15
Current Ratio0.830.74
Interest Expense192.0195.0
Interest Coverage12.5611.43

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1954.011961.97
Div / share0.570.52
Book value / share1.611.42
Institutional Own % n/a n/a
Avg Daily Volume5253971.06003027.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 19.95 for the Tobacco industry and a discount compared to the S&P 500 average of 24.64. For additional comparison, its price-to-book ratio of 38.49 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 19.18. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ALTRIA GROUP INC proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MO 21.48 Peers 19.95   MO 21.55 Peers 23.92

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MO 18.41 Peers 12.80   MO 1.62 Peers 2.75

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MO is trading at a significant premium 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MO 38.49 Peers 19.18   MO 10.76 Peers 3.11

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.


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

MO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MO 6.32 Peers 5.88   MO 3.26 Peers -1.33

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 significantly exceeds its peers.



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