Altria Group, Inc. Fundamental Analysis (NYSE: MO)
Altria Group, Inc. (NYSE: MO) shows moderate financial fundamentals with a PE ratio of 13.88, profit margin of 36.46%, and ROE of -2.65%. The company generates $21.8B in annual revenue with weak year-over-year growth of -1.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -129.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMO demonstrates superior asset utilization.
Valuation Score
ExcellentMO trades at attractive valuation levels.
Growth Score
WeakMO faces weak or negative growth trends.
Financial Health Score
ModerateMO shows balanced financial health with some risks.
Profitability Score
ModerateMO maintains healthy but balanced margins.
Key Financial Metrics
Is MO Expensive or Cheap?
P/E Ratio
MO trades at 13.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MO's PEG of -1.63 indicates potential undervaluation.
Price to Book
The market values Altria Group, Inc. at -41.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.46 times EBITDA. This is generally considered low.
How Well Does MO Make Money?
Net Profit Margin
For every $100 in sales, Altria Group, Inc. keeps $36.46 as profit after all expenses.
Operating Margin
Core operations generate 55.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.65 in profit for every $100 of shareholder equity.
ROA
Altria Group, Inc. generates $23.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Altria Group, Inc. generates strong operating cash flow of $8.63B, reflecting robust business health.
Free Cash Flow
Altria Group, Inc. generates strong free cash flow of $8.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.97 in free cash annually.
FCF Yield
MO converts 7.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
-41.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-9.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.65
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.48
vs 25 benchmark
How MO Stacks Against Its Sector Peers
| Metric | MO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.88 | 20.66 | Better (Cheaper) |
| ROE | -265.17% | 698.00% | Weak |
| Net Margin | 36.46% | -2238.00% (disorted) | Strong |
| Debt/Equity | -9.21 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 0.44 | 2.30 | Weak Liquidity |
| ROA | 23.89% | 320.00% | Weak |
MO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Altria Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.06%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
72.30%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
22.75%
Industry Style: Defensive, Dividend, Low Volatility
High Growth