Altria Group (BUE:MO) Beneish M-Score : -3.52 (As of Apr. 28, 2024)

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What is Altria Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Altria Group's Beneish M-Score or its related term are showing as below:

BUE:MO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52 Med: -2.56 Max: 36.03
Current: -3.52

During the past 13 years, the highest Beneish M-Score of Altria Group was 36.03. The lowest was -3.52. And the median was -2.56.

Altria Group Beneish M-Score Historical Data

The historical data trend for Altria Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Altria Group Beneish M-Score Chart

Altria Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.06

-2.72

-3.11

34.07

-3.36

Altria Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															33.48	36.03	-2.49	-3.36	-3.52

Competitive Comparison of Altria Group's Beneish M-Score

For the Tobacco subindustry, Altria Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Altria Group's Beneish M-Score Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Altria Group's Beneish M-Score falls into.

Altria Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Altria Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.211

0.528 * 0.9906

0.404 * 1.0661

0.892 * 2.8008

0.115 * 1.1947

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0992

4.679 * -0.041113

0.327 * 1.0943

-1.80

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ARS210,625 Mil.
Revenue was 3974072.568 + 1813664.002 + 1846686.201 + 1305119.99 = ARS8,939,543 Mil.
Gross Profit was 2763400.047 + 1263139.001 + 1294465.086 + 901679.993 = ARS6,222,684 Mil.
Total Current Assets was ARS4,379,315 Mil.
Total Assets was ARS30,730,188 Mil.
Property, Plant and Equipment(Net PPE) was ARS1,368,220 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS125,797 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,197,594 Mil.
Total Current Liabilities was ARS9,212,738 Mil.
Long-Term Debt & Capital Lease Obligation was ARS21,097,885 Mil.
Net Income was 1793682.53 + 743660.001 + 757991.721 + 508079.996 = ARS3,803,414 Mil.
Non Operating Income was 268757.505 + 95665 + 20297.101 + 30480 = ARS415,200 Mil.
Cash Flow from Operations was 2423872.541 + 1164947.001 + 1033052.428 + 29760 = ARS4,651,632 Mil.

Total Receivables was ARS356,380 Mil.
Revenue was 940930.672 + 852164.926 + 751997.389 + 646653.429 = ARS3,191,746 Mil.
Gross Profit was 657643.965 + 588451.484 + 513698.142 + 441129.786 = ARS2,200,923 Mil.
Total Current Assets was ARS1,412,878 Mil.
Total Assets was ARS7,274,976 Mil.
Property, Plant and Equipment(Net PPE) was ARS314,697 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS35,197 Mil.
Selling, General, & Admin. Expense(SGA) was ARS389,002 Mil.
Total Current Liabilities was ARS1,806,792 Mil.
Long-Term Debt & Capital Lease Obligation was ARS4,750,683 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(210625.004 / 8939542.761)	/	(356380.208 / 3191746.416)
	=	0.023561	/	0.111657
	=	0.211

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(2200923.377 / 3191746.416)	/	(6222684.127 / 8939542.761)
	=	0.689567	/	0.696085
	=	0.9906

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (4379315.074 + 1368220.023) / 30730188.022)	/	(1 - (1412877.633 + 314697.157) / 7274976.469)
	=	0.812968	/	0.762532
	=	1.0661

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	8939542.761	/	3191746.416
	=	2.8008

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(35196.66 / (35196.66 + 314697.157))	/	(125796.502 / (125796.502 + 1368220.023))
	=	0.100592	/	0.0842
	=	1.1947

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(1197594.163 / 8939542.761)	/	(389002.019 / 3191746.416)
	=	0.133966	/	0.121877
	=	1.0992

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((21097885.359 + 9212737.657) / 30730188.022)	/	((4750682.511 + 1806792.342) / 7274976.469)
	=	0.986347	/	0.901374
	=	1.0943

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(3803414.248 - 415199.606	-	4651631.97)	/	30730188.022
	=	-0.041113

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Altria Group has a M-score of -1.80 suggests that the company is unlikely to be a manipulator.

Altria Group Beneish M-Score Related Terms

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Altria Group (BUE:MO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Altria Group Inc (BUE:MO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MO:USA MO:Mexico 1MO:Italy PHM7d:UK 0R31:UK PHM7:Germany MO:Chile MOOO34:Brazil ALTR:Austria

Address

6601 West Broad Street, Richmond, VA, USA, 23230

Website

https://www.altria.com

Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Horizon Innovations and Helix Innovations. It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company's Marlboro brand is the leading cigarette brand in the U.S. with a 42% annual share in 2022. Altria holds a 42% stake in cannabis manufacturer Cronos, has acquired Njoy Holdings in 2023, and recently exited its strategic investment in Juul Labs.