Altria Profitability Analysis

MO
 Stock
  

USD 45.28  0.13  0.29%   

For Altria profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Altria to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Altria Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Altria's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Altria Group over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
Price to Sales Ratio is expected to rise to 3.91 this year. Return on Sales is expected to rise to 0.25 this year. Altria Consolidated Income is quite stable at the moment as compared to the past year. The company's current value of Consolidated Income is estimated at 3.58 Billion. Net Income is expected to rise to about 3.6 B this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (3.3 B).

Altria Revenues

28.26 Billion

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
81.3 B
Quarterly Revenue Growth YOY
-0.035
Return On Assets
0.19
Return On Equity
0.39
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.

Altria Group Return On Asset vs. Price to Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Altria's current stock value. Our valuation model uses many indicators to compare Altria value to that of its competitors to determine the firm's financial worth.
Altria Group is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in return on asset category among related companies reporting about  0.62  of Return On Asset per Price to Earning. The ratio of Price to Earning to Return On Asset for Altria Group is roughly  1.62 . Average Assets is expected to rise to about 46.3 B this year. Tangible Asset Value is expected to rise to about 25.4 B this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Altria by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altria's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Altria's earnings, one of the primary drivers of an investment's value.

Altria Return On Asset vs. Price to Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Altria 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
30.22 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Altria 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
18.63 %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Altria Return On Asset Comparison

Altria is currently under evaluation in return on asset category among related companies.

Altria Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Altria, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Altria will eventually generate negative long term returns. The profitability progress is the general direction of Altria's change in net profit over the period of time. It can combine multiple indicators of Altria, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-3.1 B-3.3 B
Consolidated Income2.5 B3.6 B
Net Income2.5 B3.6 B
Net Income Common Stock2.5 B3.6 B
Net Income to Non Controlling Interests-11.7 M-12 M
Operating Income11.6 B11.2 B
Income Tax Expense1.3 B1.8 B
Net Income Per Employee412.5 K480.2 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Altria. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Altria position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Altria's important profitability drivers and their relationship over time.

Altria Profitability Trends

Altria profitability trend refers to the progression of profit or loss within a business. An upward trend means that Altria's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Altria's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Altria Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Altria different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Altria in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Altria's future profitability.

Use Altria in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Altria position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altria will appreciate offsetting losses from the drop in the long position's value.

Altria Pair Trading

Altria Group Pair Trading Analysis

The ability to find closely correlated positions to Altria could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altria when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Altria - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Altria Group to buy it.
The correlation of Altria is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Altria moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altria Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Altria can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Altria position

In addition to having Altria in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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IT
IT Theme
Information Technology (IT) companies and IT service providers across different domains. The IT theme has 40 constituents at this time.
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Additionally, see Stocks Correlation. Note that the Altria Group information on this page should be used as a complementary analysis to other Altria's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. 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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To fully project Altria's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Altria Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Altria's income statement, its balance sheet, and the statement of cash flows.
Potential Altria investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Altria investors may work on each financial statement separately, they are all related. The changes in Altria's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Altria's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.