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
Trailing Returns
Performance at a Glance
| Metric | Current stock: MO | Industry group median |
|---|---|---|
| 1-Year Return | 28.51% | -0.69% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: MO | Industry group median |
|---|---|---|
| 1-Year Volatility | 22.64% | 31.22% |
| Beta | 0.46 | 0.45 |
Company Profile
| Profile Item | MO |
|---|---|
| Name | Altria Group, Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco |
| GICS Industry | Tobacco |
| GICS Sub-Industry | Tobacco |
| Market Capitalization | 120.13 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 1962 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: MO | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.02 | 18.76 |
| Price-to-Sales Ratio (TTM) | 5.90 | 1.00 |
| Price-to-Book Ratio (MRQ) | -37.43 | 1.70 |
| Free Cash Flow Yield | 7.11% | 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
- --
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%
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%
Profitability at a Glance
| Metric | Current stock: MO | Industry 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
- --
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
- --
Financial Strength at a Glance
| Metric | Current stock: MO | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.62 | 1.60 |
| Debt-to-Equity Ratio (MRQ) | -- | 0.70 |
| Net Debt / EBITDA | 1.33 | 2.24 |
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%
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%
Dividends at a Glance
| Metric | Current stock: MO | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 5.89% | 3.19% |
| Dividend Payout Ratio (TTM) | 87.68% | 45.18% |