July 23, 2012
Marlboro Maker Displaying High Figures
Altria Group has been reaffirmed by TheStreet Ratings as a purchase with a rating score of B. the manufacturer’s power can be found in different fields, as for instance significant stock price performance, growth in net revenue, profit growth, spreading profit margins and great return on equity. It is estimated that this power outweighs the fact that the manufacturer has usually had lower debt management on the major actions.
The main points of the rating report are the following:
- The stock has not only increased within the past year, but has done it a quicker pace than the S&P 500, demonstrating the profit growth and other positive moments resembling to those mentioned before. Even if speaking about the future direction of the stock, it is possible to say that even the most profitable stocks can drop in a whole down market. However, in any other conditions, this stock has positive upside potential despite that fact that it has already increased in 2011.
- The net profit increase from the same quarter one year ago has surpassed that of the S&P 500 and the tobacco industry average. The net profit boosted by 3.5% in comparison to the same quarter one year before, lifting from $940.00 million to $980.00 million.
- Despite its increasing profit, the company demonstrated poor results in comparison to the industry average of about 1.5%. Since the same quarter in 2011, profits have raised by 1.4%. The present increase in earnings seems to have trickled down and helped to improve the profits per share.
- The gross revenue margin for Marlboro cigarettes manufacturer is significant; nowadays it comprises about 55.57%. It has lifted from the same quarter in 2011. Along with this, the net revenue margin of 25.30% is higher than that of the industry average.
- Altria’s present return on equity significantly increased. This is a sign of great power within the company. In comparison to other tobacco manufacturers and the whole market.
Altria Group by means of its affiliated companies has engaged in the production and sale of cigarettes, smokeless products, and also wine in the U.S. and in other parts of the world. The company has a price-earnings ratio of 20. Cigarette producer has a market cap of $65.43 billion and takes part in the consumer goods sector and tobacco industry.