AAPL – Market expectations are for Uniform ROA to remain stable, but management may have concerns about products, growth, and their supply chain
February 11, 2022
- Altria Group (AAPL) currently trades near corporate but above historical averages relative to Uniform earnings, with a 25.6x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to remain stable at 56%, accompanied by 7% Uniform asset growth.
- However, analysts expect Uniform ROA to decline in 2022, accompanied by 4% Uniform asset shrinkage.
- If sustained going forward, these levels would imply a stock price closer to $147, representing approximately 8% equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about products, growth, and their supply chain.
