Altria Stock Analysis, Valuation (NYSE:MO)

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$57.78 $3.72 (6.05%) MO stock closing price Apr 19, 2018 (Closing)
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Altria
Updated on : Apr 19, 2018
previous close
MO 57.8 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Tobacco
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.8%
Operating Profit
Operating Margin:
37.4%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$757M
Net Income:
$4.97B
Dividend Yield
MO dividend yield:
4.4%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Dividend Yield
Recent Growth
Long Term Growth
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MO PS :
4.3
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
23.1%
Return on Equity:
78.6%
Free Cash Flow Margin:
11.6%
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Altria Stock Analysis

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Watch the robo advisor video of Altria stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for MO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Altria Group Inc Stock Rating 3.5/5

Amigobulls MO stock analysis uses latest quarter 2017 Q4 financial data like Altria revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Altria valuation analysis. Our Altria stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MO stock?

  • Altria had a healthy average operating margin of 37.4% over the last 4 quarters.
  • LTM Net margins were good at 40% for Altria.
  • MO stock is trading at an earnings multiple of 17 which is better than the industry average of 21.9.
  • Altria's dividend yield of 4.4% is attractive.
  • Altria has an attractive ROIC (Return on Invested Capital) of 23.1%
  • The LTM ROE of 78.6% for Altria is attractive.
  • The company has a healthy free cash flow margin of 11.6%.

Should you sell MO stock?

  • Altria sales declined by -2.4% year on year in 2017 Q4.
  • Revenue growth of 0.8% has been weak over the last 5 years.
  • Cash flow from operations is low at 0.2 times the net income.
  • MO stock is trading at a PS multiple of 4.3, which is a negative when compared to the Tobacco industry average multiple of 1.6.

Comments on this video and Altria stock

Amigobulls Altria stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of MO stock and helps investors in making good buy and sell decision.

Among the financials of the company, Altria revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about MO stock.