Altria Group Inc. (NYSE:MO) has a beta of 0.58, a 12-month trailing P/E ratio of 91.60, and a growth ratio of 16.36. The stock’s Relative Strength Index (RSI) is 59.05, with weekly volatility at 1.52% and ATR at 0.82. The MO stock’s 52-week price range has touched low of $30.95 and a $51.78 high. Its shares traded higher over the last trading session, gaining 0.75% on 12/23/20. The shares fell to a low of $42.62 before closing at $42.87. Intraday shares traded counted 7.53 million, which was 17.76% higher than its 30-day average trading volume of 9.16M. MO’s previous close was $42.55 while the outstanding shares total 1.86B.
Investors have identified the Tobacco company Altria Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $78.25 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Altria Group Inc. (MO) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For MO, the company has in raw cash 4.12 billion on their books with 1.5 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 6.4 billion total, with 8.29 billion as their total liabilities.
MO were able to record 5.68 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 2.02 billion. In cash movements, the company had a total of 5.84 billion as operating cash flow.
Potential earnings growth for Altria Group Inc. (MO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Altria Group Inc. recorded a total of 7.12 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.75% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 10.61%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.41 billion trying to sell their products during the last quarter, with the result yielding a gross income of 3.72 billion. This allows shareholders to hold on to 1.86B with the recently reported earning now reading -0.51 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (1.19 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.57 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MO sounds very interesting.
Is the stock of MO attractive?
In related news, Sr. VP, Chief HR Off. & CCO, Whitaker Charles N. sold 11,500 shares of the company’s stock in a transaction that recorded on Nov 16. The sale was performed at an average price of 40.98, for a total value of 471,290. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
10 out of 17 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Altria Group Inc.. 0 analysts has assigned a Sell rating on the MO stock. The 12-month mean consensus price target for the company’s shares has been set at $48.32.