Altria Group Inc. (NYSE:MO)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited considerable volatility over the observed period. Starting with a value of 18.14 in 2020, it nearly doubled to 37.8 in 2021, indicating a significant increase in market valuation relative to earnings during that year. However, the ratio sharply declined afterwards, falling to 14.42 in 2022 and further dropping to 8.87 in 2023. This downward trend in the latter years suggests either a rise in earnings or a contraction in market price relative to earnings, reflecting an improving earnings scenario or a market reassessment leading to a more conservative valuation.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio showed a generally decreasing trend from 2019 through 2023. It started at 7.65 in 2019, slightly reduced to 7.45 in 2020, and then increased marginally to 8.09 in 2021. From 2021 onward, the ratio steadily declined to 6.97 in 2022 and to 6.25 in 2023, suggesting the company's operating profits have grown relative to its price or that the market valuation adjusted downward in relation to operating profit. This trend points to improved operational efficiency or profitability being recognized by the market over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio remained relatively stable with some fluctuations throughout the period. It was 3.14 in 2019, followed by a slight dip to 3.1 in 2020. There was an increase to 3.6 in 2021, indicating a higher valuation relative to sales, and a subsequent decline over the next two years to 3.31 in 2022 and further to 2.95 in 2023. The recent reduction in P/S ratio may reflect stabilization or modest growth in sales accompanied by either earnings improvement or a conservative market price adjustment.

Price to Book Value (P/BV) Ratio

This ratio exhibited a significant increase from 12.69 in 2019 to 28.54 in 2020, indicating a marked increase in market valuation relative to book value within that period. However, data for P/BV after 2020 is unavailable, precluding trend analysis beyond that year. The sharp rise up to 2020 may suggest substantial market optimism or revaluation of assets, but without further data, the persistence or reversal of this trend cannot be assessed.

Share Price Trend

The share price exhibited moderate fluctuations over the examined period. Beginning at $42.49 at the end of 2019, it experienced a slight increase to $43.60 in 2020, followed by a more substantial rise to $51.48 in 2021. Subsequently, the price declined to $46.54 in 2022 and further decreased to $40.90 by the end of 2023. Overall, the share price shows initial growth but a downward trend in the latter years.

Earnings Per Share (EPS) Patterns

EPS demonstrated significant variability and overall improvement across the period. It started negatively at -$0.70 in 2019, indicating a loss per share during that year. In 2020, EPS turned positive, reaching $2.40, followed by a drop to $1.36 in 2021. Thereafter, earnings improved notably to $3.23 in 2022 and continued rising to $4.61 in 2023. This progression suggests a recovery phase after initial losses and a steady increase in profitability per share through the later years.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio was unavailable for 2019 but was recorded as 18.14 in 2020, increasing sharply to 37.80 in 2021. This rise reflects relatively high investor expectations or valuation relative to earnings during that year. In 2022, the P/E ratio dropped to 14.42 and further decreased to 8.87 in 2023, indicating a potentially lower valuation or an improvement in earnings outpacing the stock price decline. The declining P/E ratio in the final years can imply an increasingly attractive valuation from an earnings perspective.

Overall Observations

The data reveals a company transitioning from losses to profitability with growing EPS. The share price trend suggests some investor uncertainty or market pressures in recent years, as prices fell after peaking in 2021. The substantial reduction in P/E ratio in the last two years, combined with rising earnings, may indicate a period where stock valuation became more conservative despite improving financial performance. The overall financial trend is one of improving earnings with cautious market valuation adjustments.

The financial metrics exhibit notable trends over the examined period. The share price experienced an initial increase from 42.49 US dollars at the end of 2019 to a peak of 51.48 US dollars by the end of 2021. Subsequently, there was a decline in share price to 40.9 US dollars by the end of 2023, indicating a decrease in market valuation in the latter years after the initial growth phase.

Operating profit per share showed a consistent upward trajectory from 5.56 US dollars in 2019 to 6.68 US dollars in 2022, followed by a slight reduction to 6.55 US dollars in 2023. This trend suggests improving operational efficiency or profitability per share over the period, despite a minor dip in the final year.

The price-to-operating profit ratio (P/OP) presents a declining trend from 7.65 in 2019 to 6.25 in 2023. This diminishing ratio indicates that the share price is becoming cheaper relative to its operating profit per share, reflecting a potentially more attractive valuation or increased profitability not fully reflected in share price appreciation recently.

Share Price

Increased from 2019 to 2021, followed by a decrease through 2023.

Operating Profit per Share

Consistently increased from 2019 to 2022, with a slight decrease in 2023.

Price to Operating Profit Ratio (P/OP)

Decreased steadily across the period, indicating the shares are valued lower in relation to operating profit over time.

Share Price Trend

The share price showed a moderate increase from 42.49 US$ in 2019 to a peak of 51.48 US$ in 2021, indicating a period of growth. However, the price subsequently declined to 46.54 US$ in 2022 and further to 40.9 US$ in 2023, reflecting a downward trend in the most recent years.

Sales Per Share Trend

Sales per share experienced a gradual increase from 13.51 US$ in 2019 to 14.31 US$ in 2021, suggesting a modest growth in revenue generation per share over this period. Thereafter, sales per share slightly decreased, reaching 13.88 US$ by 2023, indicating a slight contraction in per-share sales in the last two years.

Price-to-Sales (P/S) Ratio Trend

The P/S ratio remained relatively stable from 3.14 in 2019 to 3.10 in 2020, before rising significantly to 3.60 in 2021, which aligns with the peak share price. Subsequently, the ratio fell to 3.31 in 2022 and further to 2.95 in 2023, suggesting a decline in market valuation relative to sales in the recent periods.

Overall Insights

The financial data reflects a period of growth in share price and sales per share reaching their maximum values in 2021, followed by a decline in both metrics through 2023. The decline in the P/S ratio alongside the falling share price in the recent years points to a reduced investor valuation relative to sales. The stability and slight decrease in sales per share suggest that sales have not experienced significant volatility, implying that the drop in market valuation may be influenced by external factors or market sentiment rather than a sudden deterioration in underlying sales performance.

The share price demonstrated fluctuations throughout the analyzed period. It increased from $42.49 at the end of 2019 to a peak of $51.48 by the end of 2021, followed by a decline in subsequent years, reaching $40.90 by the end of 2023. This progression suggests an initial growth phase in market valuation, later followed by a downward adjustment.

The book value per share (BVPS) exhibited a consistent downward trend. Starting at $3.35 at the close of 2019, it sharply fell to $1.53 in 2020 and then turned negative, recording -$0.88 in 2021. The negative trend continued, reaching -$2.23 at the end of 2022 and slightly improving to -$2.01 by the end of 2023. This deterioration in BVPS indicates a significant reduction in shareholder equity on a per-share basis over the period.

The price-to-book value (P/BV) ratio was available only for the first two years, showing 12.69 at the end of 2019 and escalating to 28.54 in 2020. The notable increase reflects a higher market valuation relative to book value, which is consistent with the drop in BVPS. The absence of P/BV data for subsequent years limits further analysis of this ratio.

Overall, the data suggests a divergence between market price trends and the underlying book value per share. While the share price initially increased, the continuous decrease and eventual negative book value indicate underlying financial challenges that may concern investors and require attention.