Altria Group Inc

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MO : NYSE : Consumer Goods
$70.58 up 0.57 | 0.81%
Today's Range: 70.0 - 70.63
Avg. Daily Volume: 6766300.0
01/23/17 - 3:59 PM ET

Financial Analysis


ALTRIA GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ALTRIA GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.35 which clearly 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 remained virtually unchanged only increasing by 1.97% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)5193.04978.0
EBITDA ($mil)2439.02357.0
EBIT ($mil)2388.02307.0
Net Income ($mil)1093.01528.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2298.01950.0
Total Assets ($mil)32934.031999.0
Total Debt ($mil)13878.012921.0
Equity ($mil)2944.02887.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin61.5462.07
EBITDA Margin46.9647.34
Operating Margin45.9846.34
Sales Turnover0.590.59
Return on Assets15.8116.34
Return on Equity176.97181.15
Debt Q3 FY16 Q3 FY15
Current Ratio0.930.84
Debt/Capital0.830.82
Interest Expense179.0205.0
Interest Coverage13.3411.25


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1951.41960.68
Div / share0.610.57
EPS0.560.78
Book value / share1.511.47
Institutional Own % n/a n/a
Avg Daily Volume6878990.05394881.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.09 for the Tobacco industry and a value on par with the S&P 500 average of 25.41. For additional comparison, its price-to-book ratio of 46.10 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 21.67. The price-to-sales ratio is well above both the S&P 500 average and 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MO 26.15 Peers 21.09   MO 26.03 Peers 27.86

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MO is trading at a premium to 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MO 20.79 Peers 14.49   MO 1.97 Peers 4.40

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MO 46.10 Peers 21.67   MO -0.38 Peers 2.03

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.

 

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 7.02 Peers 6.21   MO 3.17 Peers -0.62

Premium. 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 premium to 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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