Altria Group Inc ($MO) Confident Investor Rating: Poor

Company name Altria Group Inc
Stock ticker MO
Live stock price [stckqut]MO[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $27.65
Target stock price (averages with growth) $32.29
Target stock price (averages with no growth) $30.3
Target stock price (manual assumptions) $35.84

The following company description is from Google Finance: http://www.google.com/finance?q=mo

Altria Group, Inc. is a holding company. At December 31, 2012, Altria Group, Inc.’s direct and indirect wholly owned subsidiaries included Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes and certain smokeless products in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and is a wholly owned subsidiary of PM USA; and UST LLC (UST), which through its direct and indirect wholly owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless products and wine. Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary of Altria Group, Inc., maintains a portfolio of leveraged and direct finance leases. In addition, Altria Group, Inc. held approximately 26.9% of the economic and voting interest of SABMiller plc (SABMiller).

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Altria Group Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $36.98

Growth: 0.1

Current EPS (TTM): $2.56

P/E: 14

Future EPS Calc: $4.12

Future Stock Price Calc: $57.72

Target stock price: $35.84

I hope that this makes you a better investor. [/s2If]

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