Author Topic: MO - Altria Corp  (Read 35253 times)

manuelbean

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Re: MO - Altria Corp
« Reply #140 on: March 27, 2020, 04:56:51 AM »
Hi guys, I wonder if anyone can help me assessing the safety of this investment.


Are you guys worried about the fixed charges coverage? I see roughly: Interest=$1.3B, Maturities and other contr. obligations= $4B, Dividend=$6.4B. Total:  $11,7B

As sources of liquidity, I see unlevered CFO of around $8,2B (I'm saying there will be a decrease of 12% in shipments, like in 2009, and no price increase), Cash $2,1B, Revolving credit $3B. Total: $13.3B



Although the Interest coverage  is 7,4, this would translate to about a 1,1 All-in coverage. Although this is fine, and the company can probably defer some of those "other contractual obligations", it seems thin to me. I'm not even including the other current liabilities like settlement charges.


What do you guys think?

Thank you.