NYSE:MO

Stock Analysis Report

Executive Summary

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Altria Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.1%

MO

4.0%

US Tobacco

0.4%

US Market


1 Year Return

-28.4%

MO

-28.5%

US Tobacco

6.9%

US Market

Return vs Industry: MO matched the US Tobacco industry which returned -28.5% over the past year.

Return vs Market: MO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

MOIndustryMarket
7 Day4.1%4.0%0.4%
30 Day10.5%10.0%-1.1%
90 Day-12.3%-12.8%-0.5%
1 Year-23.6%-28.4%-23.7%-28.5%9.3%6.9%
3 Year-19.5%-30.4%-18.8%-29.8%45.8%36.4%
5 Year16.8%-6.7%17.2%-6.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Altria Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Altria Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MO ($44.33) is trading below our estimate of fair value ($101.51)

Significantly Undervalued: MO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MO is good value based on its PE Ratio (13.2x) compared to the Tobacco industry average (13.2x).

PE vs Market: MO is good value based on its PE Ratio (13.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: MO is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MO is overvalued based on its PB Ratio (5.7x) compared to the US Tobacco industry average (4.1x).


Next Steps

Future Growth

How is Altria Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MO's forecast earnings growth (6.5% per year) is above the savings rate (2.7%).

Earnings vs Market: MO's earnings (6.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: MO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MO's revenue (1.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MO's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MO's Return on Equity is forecast to be very high in 3 years time (51.6%).


Next Steps

Past Performance

How has Altria Group performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MO's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: MO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MO had negative earnings growth (-40.5%) over the past year, making it difficult to compare to the Tobacco industry average (6.7%).


Return on Equity

High ROE: Whilst MO's Return on Equity (43.53%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MO's Return on Assets is below or equal to the Tobacco industry average last year.


Return on Capital Employed

ROCE Improving: MO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Altria Group's financial position?


Financial Position Analysis

Short Term Liabilities: MO's short term assets ($4.5B) do not cover its short term liabilities ($8.0B)

Long Term Liabilities: MO's short term assets (4.5B) do not cover its long term liabilities (35.0B)


Debt to Equity History and Analysis

Debt Level: MO's debt to equity ratio (201.6%) is considered high

Reducing Debt: MO's debt to equity ratio has reduced from 316.2% to 201.6% over the past 5 years.

Debt Coverage: MO's debt is well covered by operating cash flow (23.7%).

Interest Coverage: MO's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

Inventory Level: MO has a low level of unsold assets or inventory.

Debt Coverage by Assets: MO's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Altria Group's current dividend yield, its reliability and sustainability?

7.58%

Current Dividend Yield


Dividend Yield vs Market

company7.6%marketbottom25%1.4%markettop25%3.7%industryaverage6.4%forecastin3Years7.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MO's dividend (7.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MO's dividend (7.58%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: MO's dividends per share have been stable in the past 10 years.

Growing Dividend: MO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.2%), MO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MO's dividends in 3 years are forecast to be covered by earnings (82.1% payout ratio).


Next Steps

Management

What is the CEO of Altria Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Howard Willard (56yo)

1.4yrs

Tenure

US$11,573,699

Compensation

Mr. Howard A. Willard, III, BA (Hons), MBA., served as the Chief Operating Officer at Altria Group Inc., and served as its Executive Vice President and serves as its Director since 2018. He also serves as  ...


CEO Compensation Analysis

Compensation vs. Market: Howard has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Howard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

Experienced Management: MO's management team is considered experienced (3 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

66yo

Average Age

Experienced Board: MO's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$104,96923 May 19
W. Surgner
EntityIndividual
Role
Secretary
VP, Corporate Secretary & Associate General Counsel
Shares2,000
Max PriceUS$52.48
SellUS$173,49206 May 19
Jody Begley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Tobacco Products
Shares3,250
Max PriceUS$53.38
BuyUS$70,44826 Feb 19
Nabil Sakkab
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,352
Max PriceUS$52.11
SellUS$348,13826 Feb 19
Ivan Feldman
EntityIndividual
Shares6,802
Max PriceUS$51.18
BuyUS$52,03325 Feb 19
Nabil Sakkab
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,032
Max PriceUS$50.42

Ownership Breakdown


Management Team

  • John Nichols (88yo)

    Other Key Executive

    • Tenure: 0yrs
  • W. Surgner (53yo)

    VP, Corporate Secretary & Associate General Counsel

    • Tenure: 0yrs
  • Bill Marshall

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Howard Willard (56yo)

    Chairman & CEO

    • Tenure: 1.4yrs
    • Compensation: US$11.57m
  • Billy Gifford (49yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: US$7.60m
  • Murray Garnick (59yo)

    Executive VP & General Counsel

    • Tenure: 2.3yrs
    • Compensation: US$5.43m
  • Daniel Bryant (49yo)

    VP & Treasurer

    • Tenure: 4.6yrs
  • Jody Begley (47yo)

    Senior Vice President of Tobacco Products

    • Tenure: 1.3yrs
  • Sal Mancuso (53yo)

    Senior Vice President of Finance & Procurement

    • Tenure: 3.7yrs
  • Charlie Whitaker (52yo)

    Senior VP of Human Resources

    • Tenure: 0yrs

Board Members

  • Tom Farrell (65yo)

    Presiding Director

    • Tenure: 8.4yrs
    • Compensation: US$320.03k
  • Kathryn A. McQuade (63yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$345.03k
  • W. Kiely (72yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$355.03k
  • Debra Kelly-Ennis (62yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$311.78k
  • John Casteen (76yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$330.03k
  • Dinyar Devitre (72yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$343.75k
  • George Muñoz (67yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$326.03k
  • Nabil Sakkab (72yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$315.03k
  • Ginny Shanks (59yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$300.03k
  • Howard Willard (56yo)

    Chairman & CEO

    • Tenure: 1.4yrs
    • Compensation: US$11.57m

Company Information

Altria Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altria Group, Inc.
  • Ticker: MO
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$82.813b
  • Shares outstanding: 1.87b
  • Website: https://www.altria.com

Number of Employees


Location

  • Altria Group, Inc.
  • 6601 West Broad Street
  • Richmond
  • Virginia
  • 23230
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0R31LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
MO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
MOSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
PHM7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PHM7XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
MOSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
ALTRWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
MOBASE (Buenos Aires Stock Exchange)CEDEARS EACH 4 REPR 1 ORD USD0.3333ARARSJul 2001
MOOO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.333333BRBRLMay 2019

Biography

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. It offers cigarettes primarily under the Marlboro brand; cigars principal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.