Altria Stock Price and Research (NYSE: MO)
Altria stock is underperforming the market. It’s beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company using data from Bloomberg LP.
Our system looks at six key metrics…
✗ Earnings-per-Share (EPS) Growth: Altria reported a recent EPS growth rate of -50.66%. That’s below the tobacco industry average of 27.01%. That’s not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the tobacco industry is 64.34. And Altria’s ratio comes in at 17.10. It’s trading at a better value than many of its competitors.
✗ Debt-to-Equity: The debt-to-equity ratio for Altria stock is 90.12%. That’s above the tobacco industry average of 71.58%. That’s not a good sign.
✓ Free Cash Flow per Share Growth: Altria has increased its FCF per share over the last year relative to its competitors. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins: The profit margin of Altria comes in at 105.35% today. And generally, the higher, the better. We also like to see this ratio above competitors. Altria’s profit margin is above the tobacco average of 14%. So that’s a positive indicator for investors.
✓ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Altria is 72.6% and that’s above the industry average ROE of 34.14%.
Altria stock passes four of our six key metrics today. That’s why our Investment U Stock Grader gives it a Buy with Caution.*
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing.
*The views and opinions expressed in this piece are those of the author and do not necessarily reflect the official position of professional analysts.