Altria Group, Inc. (NYSE:MO)- Profitability Ratios Proving Vital for Investment: Kimberly-Clark (NYSE:KMB)

Altria Group, Inc. (NYSE:MO) kept active in profitability ratio analysis, on current situation shares price raised 0.30% to $66.69. The total volume of 6.15 Million shares held in the session, while on average its shares change hands 6655.13 shares.  Altria Group, Inc. (MO) reported that its Board of Directors declared a regular quarterly dividend of $0.61 per common share, payable on January 10, 2017, to shareholders of record as of December 22, 2016. The ex-dividend date is December 20, 2016.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of 177.70%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 33.70%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of MO stands at positive 20.20%; that indicates a firm actually every dollar of sales keeps in earnings. The 15.90% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of MO, it holds price to book ratio of 44.03 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 19.95, and price to earnings ratio calculated as 24.99. The price to earnings growth ration calculated as 3.03. MO is presenting price to cash flow of 56.48 and free cash flow concluded as 217.77.

To stick with focus on profitability valuation, Kimberly-Clark Corporation (NYSE:KMB) also listed in significant eye catching mover, KMB attains returns on investment ratio of 15.60%, which suggests it’s viable on security that has lesser ROI.

To strengthen this concept we can use profit margin, which is standing at positive 11.00%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 17.10% and 36.30% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 15.60%; that gives an idea as to how efficient management is at using its assets to generate earnings.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -29.30%, and looking further price to next year’s EPS is 5.72%. While take a short look on price to sales ratio, that was 2.27 and price to earning ration of 20.88 attracting passive investors.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

Leave a Reply

Your email address will not be published. Required fields are marked *