Altria Beneish M Score

MO
 Stock
  

USD 46.86  0.49  1.06%   

This module uses fundamental data of Altria to approximate the value of its Beneish M Score. Altria M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Altria Piotroski F Score and Altria Altman Z Score analysis.
  
Altria Debt Current is quite stable at the moment as compared to the past year. The company's current value of Debt Current is estimated at 1.13 Billion. Long Term Debt to Equity is expected to rise to 9.57 this year, although the value of Total Debt will most likely fall to about 25.7 B. Altria Return on Investment is quite stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 42.56. Revenue to Assets is expected to rise to 0.71 this year, although the value of Interest Coverage will most likely fall to 9.10.
At this time, it appears that Altria Group is a possible manipulator. The earnings manipulation may begin if Altria's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Altria executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Altria's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.21
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.1Focus
Asset Quality0.79Focus
Expense Coverage1.02Focus
Gross Margin Strengs0.88Focus
Accruals Factor1.02Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.93Focus
Financial Leverage Condition0.93Focus

Altria Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Altria's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.3 B2.4 B
Sufficiently Down
Decreasing
Slightly volatile
Revenues24.3 B26 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables48.2 M47 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net1.6 B1.6 B
Notably Up
Decreasing
Slightly volatile
Operating Income9.7 B11.6 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations6.8 B8.4 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current32.2 B32.5 B
Slightly Down
Increasing
Slightly volatile
Current Liabilities8.2 B8.6 B
Sufficiently Down
Increasing
Stable
Total Liabilities36.4 B41.1 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current15.8 B13.5 B
Fairly Up
Increasing
Slightly volatile
Investments15.8 B13.5 B
Fairly Up
Increasing
Slightly volatile
Gross Margin47.1353.7885
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion259.5 M244 M
Notably Up
Increasing
Stable
Debt Non Current24 B26.9 B
Fairly Down
Increasing
Slightly volatile
Debt Current1.1 B1.1 B
Fairly Up
Increasing
Stable
Total Debt25.7 B28 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current38 B33.4 B
Fairly Up
Increasing
Slightly volatile
Current Assets6.7 B6.1 B
Significantly Up
Decreasing
Stable
Total Assets38.1 B39.5 B
Sufficiently Down
Increasing
Slightly volatile

Altria Group Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Altria's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Altria in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Altria's degree of accounting gimmicks and manipulations.

About Altria Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Cost of Revenue

12.11 Billion

Altria Cost of Revenue is quite stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 12.11 Billion

Altria Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Altria. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues25.58 B25.36 B25.11 B26.15 B26.01 B24.26 B
Total Assets43.2 B55.64 B49.27 B47.41 B39.52 B38.08 B
Current Assets4.34 B4.3 B4.82 B7.12 B6.08 B6.72 B
Assets Non Current38.86 B51.16 B44.45 B40.3 B33.44 B38.03 B
Total Liabilities27.82 B40.85 B43.05 B44.58 B41.13 B36.39 B
Current Liabilities6.79 B21.19 B8.17 B9.06 B8.58 B8.22 B
Total Debt13.89 B25.75 B28.04 B29.47 B28.04 B25.74 B
Debt Non Current13.03 B11.9 B27.04 B27.97 B26.94 B24.01 B
Operating Income9.56 B9.12 B10.33 B10.87 B11.56 B9.73 B
Investments17.95 B30.5 B23.58 B19.53 B13.48 B15.79 B
Gross Margin46.7348.3150.6249.853.7947.13

Altria ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Altria's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Altria's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Altria Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Altria Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Altria using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Altria Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia. Altria operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 6000 people.

Altria Investors Sentiment

The influence of Altria's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Altria. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Altria's public news can be used to forecast risks associated with investment in Altria. The trend in average sentiment can be used to explain how an investor holding Altria can time the market purely based on public headlines and social activities around Altria Group. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Altria's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Altria's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Altria's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Altria.

Altria Implied Volatility

    
  23.61  
Altria's implied volatility exposes the market's sentiment of Altria Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Altria's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Altria stock will not fluctuate a lot when Altria's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Altria in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Altria's short interest history, or implied volatility extrapolated from Altria options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Altria Group using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Additionally, see Altria Piotroski F Score and Altria Altman Z Score analysis. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Altria Group price analysis, check to measure Altria's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Altria is operating at the current time. Most of Altria's value examination focuses on studying past and present price action to predict the probability of Altria's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altria's price. Additionally, you may evaluate how the addition of Altria to your portfolios can decrease your overall portfolio volatility.
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Is Altria's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Altria. If investors know Altria will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Altria listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.58) 
Market Capitalization
84 B
Quarterly Revenue Growth YOY
(0.022) 
Return On Assets
0.2076
The market value of Altria Group is measured differently than its book value, which is the value of Altria that is recorded on the company's balance sheet. Investors also form their own opinion of Altria's value that differs from its market value or its book value, called intrinsic value, which is Altria's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Altria's market value can be influenced by many factors that don't directly affect Altria's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Altria's value and its price as these two are different measures arrived at by different means. Investors typically determine Altria value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altria's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.