Altria Group (MO) AI Stock Analysis

• Market Cap: $99.60B
• Dividend Yield: 7.02%
• Average Volume (3M): 7.71M
• Price to Earnings (P/E): 11.3
• Beta (1Y): -0.05
• Revenue Growth: -0.96%
• EPS Growth: -11.42%
• Country: US
• Employees: 14,654
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.45
• Shares Outstanding: 1,678,671,500
• 10 Day Avg. Volume: 7,833,864
• 30 Day Avg. Volume: 7,713,588
• PEG Ratio: 0.19
• Price to Book (P/B): -40.14
• Price to Sales (P/S): 4.39
• P/FCF Ratio: 10.43
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 6.79
• Enterprise Value/Gross Profit: 9.43
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $65.60
• Price Target Upside: 10.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.43
• Revenue Forecast (FY): $20.11B

• Rating: 64 Neutral
• Price Target: $62.00 ▲(4.77% Upside)

Altria's overall stock score reflects strong earnings performance and attractive valuation, offset by technical weaknesses and financial leverage concerns. The company's strategic initiatives and high dividend yield are significant strengths, while declining cigarette volumes and market competition pose challenges.

Positive Factors

Cash Generation Ability

Strong cash generation supports Altria's ability to invest in growth initiatives and return value to shareholders through dividends and buybacks.

Strategic Initiatives

Collaborations like the one with KT&G enhance Altria's growth prospects by expanding its product offerings and market reach.

Product Diversification

The launch of on! PLUS reflects Altria's efforts to diversify its product portfolio, catering to changing consumer preferences towards smoke-free products.

Negative Factors

Declining Cigarette Volumes

Declining cigarette volumes indicate a shrinking core market, which could impact long-term revenue unless offset by growth in other segments.

Financial Leverage

High financial leverage limits Altria's flexibility and increases risk, potentially affecting its ability to finance future growth initiatives.

Intensified Competition

Increased competition in the nicotine pouch market pressures margins and could hinder Altria's efforts to grow its market share in this segment.

Altria Group Business Overview & Revenue Model

Company Description

Altria Group, Inc. is a leading American corporation specializing in the manufacture and marketing of tobacco products and related services. Headquartered in Richmond, Virginia, Altria operates primarily through segments that include smokeable products, smokeless products, and wine. The company is known for its well-established brands, including Marlboro cigarettes, and has diversified its portfolio to include products like oral tobacco and heated tobacco products, as well as investments in alternative nicotine delivery systems.

How the Company Makes Money

Altria generates revenue primarily through the sale of its tobacco products, which include cigarettes and smokeless tobacco. The company's smokeable products segment, led by Marlboro, represents a significant portion of its income, driven by both domestic sales and brand loyalty. Additionally, Altria earns revenue from its smokeless products, such as Copenhagen and Skoal, which have seen increased demand in recent years. The company has also invested in non-combustible product offerings, including e-vapor and heated tobacco products, which contribute to its revenue as consumer preferences shift. Key partnerships, such as its stake in Cronos Group, a cannabis company, and investments in innovative smoke-free alternatives, further enhance its revenue potential. Overall, Altria's earnings are influenced by regulatory factors, market trends, and its strategic focus on diversifying its product offerings.

Altria Group Financial Statement Overview

Summary

Altria Group shows strong profitability and cash flow generation, with high margins and efficient cash conversion. However, declining revenue and significant financial leverage, evidenced by negative equity and high debt levels, pose risks to financial stability.

Income Statement

Altria Group's income statement shows strong profitability with a high gross profit margin of 71.98% and a net profit margin of 43.98% for the TTM period. However, the company is experiencing a negative revenue growth rate of -0.46%, indicating a decline in sales. The EBIT and EBITDA margins remain robust at 58.56% and 59.98%, respectively, showcasing efficient cost management despite the revenue decline.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -9.71 for the TTM period. The return on equity is also negative at -3.05%, reflecting challenges in generating returns for shareholders. The equity ratio is not calculable due to negative equity, highlighting potential financial instability.

Cash Flow

Cash flow analysis indicates strong cash generation capabilities, with a free cash flow growth rate of 7.82% for the TTM period. The operating cash flow to net income ratio is 1.42, and the free cash flow to net income ratio is 0.98, suggesting efficient cash conversion and solid liquidity. These metrics demonstrate the company's ability to generate cash despite revenue challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.17B	20.44B	20.50B	20.69B	21.11B	20.84B
Gross Profit	14.52B	14.37B	14.28B	14.25B	13.99B	13.02B
EBITDA	12.10B	15.07B	12.35B	8.74B	5.26B	8.37B
Net Income	8.87B	11.26B	8.13B	5.76B	2.48B	4.47B
Balance Sheet
Total Assets	35.01B	35.18B	38.57B	36.95B	39.52B	47.41B
Cash, Cash Equivalents and Short-Term Investments	3.47B	3.13B	3.69B	4.03B	4.54B	4.95B
Total Debt	25.70B	24.93B	26.23B	26.68B	28.04B	29.47B
Total Liabilities	37.60B	37.37B	42.06B	40.88B	41.13B	44.49B
Stockholders Equity	-2.65B	-2.24B	-3.54B	-3.97B	-1.61B	2.84B
Cash Flow
Free Cash Flow	11.57B	8.61B	9.09B	8.05B	8.24B	8.15B
Operating Cash Flow	11.75B	8.75B	9.29B	8.26B	8.40B	8.38B
Investing Cash Flow	-203.00M	2.17B	-1.28B	782.00M	1.21B	-143.00M
Financing Cash Flow	-3.56B	-11.49B	-8.37B	-9.54B	-10.03B	-5.40B

Altria Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MO, the sentiment is Positive. The current price of 59.18 is above the 20-day moving average (MA) of 58.55, below the 50-day MA of 60.22, and below the 200-day MA of 59.64, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 72.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MO.

Altria Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	76 Outperform	$2.89B	27.34	4.71%	0.34%	51.49%	21.43%
UVV	70 Neutral	$1.36B	12.28	7.72%	5.91%	3.01%	-7.14%
TPB	69 Neutral	$2.11B	39.03	22.54%	0.27%	6.71%	8.16%
MO	64 Neutral	$99.60B	11.32	―	7.02%	-0.96%	-11.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	61 Neutral	$245.87B	28.61	―	3.59%	7.72%	-12.45%
BTI	59 Neutral	$124.27B	31.71	5.97%	5.21%	0.48%	―

Altria Group Corporate Events

Altria Group Announces CEO Retirement and Successor

On December 8, 2025, Altria Group announced the retirement of its CEO, William F. Gifford, Jr., effective May 14, 2026, after over 30 years of service. Salvatore Mancuso, currently the Executive Vice President and CFO, will succeed him as CEO, while Heather A. Newman will become the new CFO. This leadership transition is part of Altria’s long-term succession planning and aims to continue the company’s strategic vision of moving beyond smoking and achieving its 2028 Enterprise Goals.

Altria Expands Share Repurchase Program to $2 Billion

On October 29, 2025, Altria’s Board of Directors authorized the expansion of its share repurchase program from $1 billion to $2 billion, set to expire on December 31, 2026. The company reported its third-quarter and nine-month results for 2025, highlighting resilience in its core tobacco businesses and advancements in its smoke-free portfolio. Altria also narrowed its full-year earnings guidance for 2025, expecting adjusted diluted EPS growth of 3.5% to 5.0% from 2024. The company continues to focus on returning value to shareholders through dividends and share repurchases while pursuing long-term growth in smoke-free and non-nicotine products.

Altria Group Announces Board Member Retirement

On October 3, 2025, Altria Group announced the retirement of George Muñoz from its Board of Directors, effective after his current term ends. Muñoz, who has been with Altria since 2004, will not seek re-election at the 2026 Annual Meeting of Shareholders. His departure marks the end of over two decades of significant contributions to the company, where he held key roles such as Chair of the Compensation and Talent Development Committee. This change in leadership could impact Altria’s strategic direction as it continues to pursue its vision of a smoke-free future.