Altria Group Inc

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MO : NYSE : Consumer Goods
$72.21 -0.43 | -0.59%
Today's Range: 72.17 - 73.07
Avg. Daily Volume: 5411100.0
07/25/17 - 3:59 PM ET

Financial Analysis


ALTRIA GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 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 weak liquidity. Currently, the Quick Ratio is 0.65 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 greatly increased by 346.63% 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.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)4589.04530.0
EBITDA ($mil)2326.02148.0
EBIT ($mil)2274.02099.0
Net Income ($mil)1401.01217.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)5228.03815.0
Total Assets ($mil)46175.034063.0
Total Debt ($mil)13884.012850.0
Equity ($mil)12260.02745.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin62.0859.6
EBITDA Margin50.6847.41
Operating Margin49.5546.34
Sales Turnover0.420.56
Return on Assets31.2315.97
Return on Equity117.64198.17
Debt Q1 FY17 Q1 FY16
Current Ratio0.920.87
Debt/Capital0.530.82
Interest Expense179.0200.0
Interest Coverage12.710.5


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1935.151956.71
Div / share0.610.57
EPS0.720.62
Book value / share6.341.4
Institutional Own % n/a n/a
Avg Daily Volume5423365.06357253.0

Valuation


BUY. ALTRIA GROUP INC's P/E ratio indicates a significant discount compared to an average of 22.23 for the Tobacco industry and a significant discount compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 11.62 indicates a significant premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 10.89. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MO 9.96 Peers 22.23   MO 37.67 Peers 28.46

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MO is trading at a significant discount to 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 20.61 Peers 15.15   MO NM Peers 1.26

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MO 11.62 Peers 10.89   MO 165.82 Peers 25.54

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MO 7.34 Peers 7.15   MO 1.48 Peers 0.26

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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