Altria Group Inc. (NYSE:MO)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits notable fluctuations over the examined periods. Starting with an elevated level of 91.35 in late 2020, there is a sharp decline to approximately 18-20 range in 2021, followed by an increase reaching above 45 in late 2022. Subsequently, a steady downward trend is observed from early 2023, with the ratio descending to values below 10 by the first quarter of 2024. This decline suggests improved earnings relative to price or a reduced market valuation relative to earnings in the most recent quarters. Overall, the P/E ratio shows a transition from high volatility and elevated values towards a more stable and lower valuation metric in recent periods.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio demonstrates moderate variability, predominantly oscillating between 6 and 8 throughout the timeline. The ratio peaks around late 2021 and early 2022, reaching values close to 8.5. A declining trend follows through 2023, dipping to around 6, indicating that the price relative to operating profit became more attractive. However, there is a resurgence towards mid and late 2024, where the ratio climbs back above 7 and approaches 8.3, reflecting renewed investor willingness to pay a premium for operating profit. Overall, the metric remains within a relatively narrow band but shows cyclical variations corresponding to changes in estimated operating profitability valuation.

Price to Sales (P/S) Ratio

The P/S ratio fluctuates within a range of approximately 2.5 to 3.9 over the time series. Early 2020 periods show moderate ratios near 2.8 to 3.0. The ratio tends to rise towards late 2021 and early 2022, peaking near 3.86, signaling higher valuation per unit of sales during that phase. Subsequently, a mild decline occurs throughout 2022 into early 2023, dropping below 3.0, before recovering again and surpassing 3.8 by late 2024. This pattern indicates variations in market sentiment and pricing power relative to sales, with valuation peaks aligned with periods of stronger market confidence or growth expectations.

Price to Book Value (P/BV) Ratio

The data for the P/BV ratio is limited and discontinuous, with visible entries only from early 2020 to mid-2021. Within this interval, a pronounced upward trend is apparent, with the ratio increasing from 11.15 to a high of 29.61. This sharp rise suggests growing market valuations relative to the book value of equity, indicating either increasing investor optimism or asset revaluation. However, lack of subsequent data restricts further trend analysis for the periods beyond mid-2021.

The financial data exhibits notable trends across share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over multiple quarters from early 2020 through the third quarter of 2024.

Share Price

The share price experienced fluctuations throughout the observed periods. Initially, the price increased from $39.25 in March 2020 to a peak of $55.20 by March 2022. This was followed by a decline, with the price reaching a low of $39.26 in September 2023. Subsequently, the price demonstrated a recovery trend, rising to $54.46 by September 2024. The pattern indicates periods of volatility with a general upward trend toward the end of the timeline.

Earnings per Share (EPS)

EPS showed a remarkable improvement from negative values in the first two quarters of 2020 (-$0.46 and -$0.49) to consistent positive earnings starting in the third quarter of 2020 onward. EPS reached a significant high of $6.07 by September 2024. Throughout the periods, EPS displayed steady growth with minor fluctuations, especially between 2022 and 2023, where results remained robust and climbed further in 2024, suggesting improved profitability over time.

Price-to-Earnings (P/E) Ratio

The P/E ratio, calculable only from the third quarter of 2020 due to positive EPS, initially peaked at 91.35, indicating a high valuation relative to earnings during that period. The ratio then generally decreased, fluctuating between approximately 7.93 and 45.23 over subsequent quarters. The decline to single-digit P/E ratios in 2023 and 2024, culminating around 8 to 9, suggests that the market valuation became more aligned with earnings growth, reflecting possibly a stabilization in investor expectations or a correction from earlier overvaluation.

In summary, the data reflect a trajectory of improved financial performance as evidenced by growing EPS and a share price that ultimately recovers after a mid-period correction. The P/E ratio movement indicates a transition from an initially high valuation to a more moderate level consistent with stronger and more stable earnings. The overall trends point to enhanced operational profitability and market stabilization over the examined timeframe.

Share Price Trend

The share price demonstrated volatility throughout the observed periods. Starting at $39.25 in March 2020, it experienced an upward movement reaching a peak of $55.20 by March 2022. This period marked a significant recovery and growth. Subsequently, the price declined sharply to $39.26 by September 2023, indicating a period of reduction in investor confidence or market valuation. From this low, the share price regained momentum, increasing to $54.46 by September 2024, suggesting renewed market optimism or improving company performance indicators.

Operating Profit Per Share (OPPS) Behavior

The operating profit per share exhibited a steady and gradual upward trend over the entire span. Beginning at $5.61 in March 2020, it steadily increased with minor fluctuations to reach approximately $6.58 by September 2024. This consistent growth highlights stable profitability improvements at the operational level, with no periods of significant decline. The slow and steady rise suggests effective management of operating expenses or improving operational efficiencies.

Price-to-Operating Profit Ratio (P/OP) Analysis

The price-to-operating profit ratio displayed notable fluctuations throughout the timeline. Initially, it hovered around 7.0 in early 2020, then showed variability, peaking at 8.50 in March 2022, contemporaneous with the share price peak. The ratio declined significantly to a low of 6.00 by September 2023, reflecting lower share valuations relative to operating profit during this time. Towards September 2024, the ratio rose again to 8.27, indicating that share prices were increasing at a pace faster than the operating profit per share. These fluctuations in the ratio may indicate changes in investor sentiment, market expectations, or external economic factors impacting the valuation multiples applied to operational earnings.

Overall Insights

The patterns indicate that operational profitability has remained resilient and steadily improving, while the market valuation, as reflected in the share price and P/OP ratio, has been more volatile. The divergence between share price and operating profit multiples during certain periods suggests external influences or shifting investor perceptions affecting stock valuation independently of fundamental profitability growth. The recent rebound in share price accompanied by a rising P/OP ratio may imply increased market confidence or growth expectations projected onto the company’s future operating performance.

Share Price Trends

The share price experienced fluctuations across the observed quarters. From March 2020 to December 2021, it generally demonstrated an upward trend with periodic declines, peaking notably in December 2021 at 51.48 US$. Following this peak, there was a decline throughout 2022, reaching a low near 39.26 US$ in September 2023. However, from September 2023 onward, the price showed recovery signs, reaching 54.46 US$ by September 2024, which marks the highest value within the period.

Sales Per Share Patterns

Sales per share remained relatively stable over the entire period, fluctuating narrowly between approximately 13.77 US$ and 14.32 US$. Slight declines can be noticed starting from early 2023, but these are marginal and sales per share maintained a consistent range, indicating steady revenue generation on a per share basis.

Price to Sales (P/S) Ratio Developments

The P/S ratio exhibited variability aligned partly with share price trends. It increased from around 2.82 in March 2020 to a peak of 3.86 in March 2022, reflecting rising investor valuation relative to sales. Following this peak, the ratio declined to approximately 2.82 by September 2023, before reversing upward to reach 3.84 by September 2024. These movements suggest investor sentiment and valuation multiples fluctuated over time but generally trended higher toward the end of the period.

Summary Insights

The company’s share price demonstrated substantial resilience and recovery following dips, especially notable in mid-2022 and through most of 2023. Sales per share stability indicates consistent operational performance, while the P/S ratio variability suggests changing market perceptions about the company’s growth prospects or risk, potentially influenced by broader market conditions or company-specific developments. The late 2023 to 2024 period shows strengthening investor confidence as reflected in rising share price and P/S ratio.

Share Price Trend

The share price exhibited fluctuations over the analyzed periods. Beginning at $39.25 at the end of March 2020, it showed an upward trend reaching $51.48 by December 2021. This was followed by a period of volatility with a notable dip to $39.26 in September 2023 before climbing back to $54.46 by September 2024. The overall trajectory suggests recovery and growth in the latter periods despite intermittent declines.

Book Value Per Share (BVPS) Trend

The book value per share demonstrated a significant decline over the course of the periods. Initially positive at $3.52 in March 2020, it dropped sharply to negative values starting from September 2021 (-$0.69) and continued deteriorating, reaching as low as -$2.98 in March 2024 before slightly improving to -$2.05 by September 2024. This indicates a worsening in underlying net asset value per share, signaling potential balance sheet challenges.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio started at 11.15 in March 2020 and escalated sharply to reach 29.61 by March 2021. Data for subsequent periods is not available, likely due to the negative book values encountered later, as the P/BV ratio is not typically defined in such cases. The high initial ratios reflect a market valuation multiple significantly exceeding the book value, possibly indicating investor confidence or expectations exceeding net asset strength.

Insights and Summary

Despite the share price showing recovery and growth trends especially from early 2023 onwards, the book value per share declined markedly into negative territory, suggesting deterioration in the company's net assets. The divergence between share price growth and deteriorating book value may reflect market perceptions based more on future earnings potential or other intangibles rather than current net asset value. The absence of P/BV ratios in the negative book value periods supports this observation. Overall, the data implies that while market valuations have been relatively strong, underlying net worth indicators have weakened, presenting a mixed financial picture.