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Altria (MO) Stock Analysis

Here is a fundamental analysis of Altria (MO), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

MO
GSPC
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Altria (MO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Altria (MO) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
1-Year Return28.51%-0.69%

Risk

Drawdown

MO
GSPC
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Altria (MO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
1-Year Volatility22.64%31.22%
Beta0.460.45

Company Profile

Company profile fields for Altria (MO)
Profile ItemMO
NameAltria Group, Inc.
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryTobacco
GICS Sub-IndustryTobacco
Market Capitalization120.13 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 2, 1962
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Altria (MO) trades at P/E ratio of 15.02, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

MO

Food, Beverage & Tobacco industry group

15.02

Group distribution
Max
45.22
Q3
29.15
Median
18.76
MO
15.02
Q1
11.63
Min
5.43
Largest peers
MNST
44.85
KO
25.98
PM
25.96
BUD
22.97
PEP
22.61
MO
15.02
BTI
13.37
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Where Altria (MO) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Altria (MO) trades at 5.90 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

MO

Food, Beverage & Tobacco industry group

5.90

Group distribution
MO
5.90
Max
3.97
Q3
2.30
Median
1.00
Q1
0.57
Min
0.00
Largest peers
MNST
10.32
KO
7.21
PM
6.92
MO
5.90
BTI
5.26
BUD
2.63
PEP
2.07
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Where Altria (MO) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Altria (MO) has negative P/B ratio of -37.43, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

MO

Food, Beverage & Tobacco industry group

-37.43

Group distribution
Max
5.99
Q3
3.21
Median
1.70
Q1
0.96
Min
0.00
MO
-37.43
Largest peers
BUD
11.10
BTI
11.01
KO
10.57
MNST
10.40
PEP
9.23
PM
-30.95
MO
-37.43
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Where Altria (MO) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
Price-to-Earnings Ratio (TTM)15.0218.76
Price-to-Sales Ratio (TTM)5.901.00
Price-to-Book Ratio (MRQ)-37.431.70
Free Cash Flow Yield7.11%4.46%

Profitability

Return on Equity (TTM)

No usable ROE is available for Altria (MO) this period, so the shareholder-equity return read is skipped.

MO

Food, Beverage & Tobacco industry group

--

Group distribution
Max
37.95%
Q3
18.99%
Median
14.93%
Q1
3.88%
Min
-18.08%
MO
--
Largest peers
PEP
43.88%
KO
43.37%
MNST
26.65%
BTI
15.82%
MO
--
PM
--
BUD
--
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Altria (MO) doesn’t report ROE this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Altria (MO) keeps 39.52% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

MO

Food, Beverage & Tobacco industry group

39.52%

Group distribution
MO
39.52%
Max
27.80%
Q3
12.29%
Median
6.11%
Q1
1.28%
Min
-7.46%
Largest peers
MO
39.52%
BTI
30.32%
KO
27.80%
PM
26.74%
MNST
23.11%
BUD
11.90%
PEP
9.15%
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Where Altria (MO) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Altria (MO) turns 62.30% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

MO

Food, Beverage & Tobacco industry group

62.30%

Group distribution
MO
62.30%
Max
36.04%
Q3
17.34%
Median
10.44%
Q1
3.65%
Min
-7.33%
Largest peers
MO
62.30%
PM
36.04%
KO
35.06%
BTI
34.58%
MNST
31.02%
BUD
26.69%
PEP
16.96%
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Where Altria (MO) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
Return on Equity (TTM)--14.93%
Return on Assets (TTM)27.61%5.50%
Net Profit Margin (TTM)39.52%6.11%
Operating Profit Margin (TTM)62.30%10.44%
Gross Profit Margin (TTM)87.38%34.44%

Financial Strength

Current Ratio (MRQ)

Altria (MO) has current ratio of 0.62, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MO

Food, Beverage & Tobacco industry group

0.62

Group distribution
Max
5.06
Q3
2.66
Median
1.60
Q1
1.05
MO
0.62
Min
0.54
Largest peers
MNST
3.26
KO
1.36
PM
0.98
PEP
0.90
BTI
0.87
MO
0.62
BUD
--
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Where Altria (MO) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

No usable debt-to-equity ratio is available for Altria (MO) this period, so the balance-sheet leverage read is skipped.

MO

Food, Beverage & Tobacco industry group

--

Group distribution
Max
2.20
Q3
1.12
Median
0.70
Q1
0.35
Min
0.00
MO
--
Largest peers
PEP
2.45
KO
1.25
BUD
0.75
BTI
0.73
MNST
0.01
MO
--
PM
--
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Altria (MO) doesn’t report debt-to-equity ratio this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Financial Strength at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
Current Ratio (MRQ)0.621.60
Debt-to-Equity Ratio (MRQ)--0.70
Net Debt / EBITDA1.332.24

Dividends

Dividend Yield (TTM)

Altria (MO) has dividend yield of 5.89%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

MO

Food, Beverage & Tobacco industry group

5.89%

Group distribution
Max
10.71%
MO
5.89%
Q3
4.63%
Median
3.19%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.89%
BTI
5.36%
PEP
4.10%
PM
3.19%
KO
2.57%
BUD
1.62%
MNST
0.00%
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Where Altria (MO) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Altria (MO) has payout ratio of 87.68%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

MO

Food, Beverage & Tobacco industry group

87.68%

Group distribution
Max
159.06%
MO
87.68%
Q3
86.47%
Median
45.18%
Q1
0.00%
Min
0.00%
Largest peers
PEP
89.32%
MO
87.68%
PM
81.09%
BTI
68.73%
KO
64.78%
BUD
36.02%
MNST
0.00%
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Where Altria (MO) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Altria (MO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MOIndustry group median
Dividend Yield (TTM)5.89%3.19%
Dividend Payout Ratio (TTM)87.68%45.18%