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Altria Group
(NYSE:MO)
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Rating:71Outperform
Price Target:
$81.00
â–²(26.23% Upside)
Action:Upgraded
Date:05/19/26
The score is driven by strong profitability and free-cash-flow generation, supported by constructive technical momentum and an attractive dividend/undemanding P/E. These positives are tempered mainly by elevated leverage/negative equity and a cautious earnings outlook amid volume/share pressures in oral tobacco and cigarettes plus illicit e-vapor disruption.
Positive Factors
Strong free cash flow generation
Consistent, very large FCF provides durable funding for dividends, buybacks and debt paydowns, enabling capital returns while supporting strategic investments. High cash conversion improves resilience to volume weakness and underpins financial policy over the next several quarters.
Negative Factors
Elevated leverage and negative equity
Substantial debt and negative shareholder equity constrain financial flexibility, raising refinancing and covenant risk and limiting strategic optionality. In a downturn or with adverse cash trends, elevated leverage could force tougher tradeoffs between returns, investment and deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, very large FCF provides durable funding for dividends, buybacks and debt paydowns, enabling capital returns while supporting strategic investments. High cash conversion improves resilience to volume weakness and underpins financial policy over the next several quarters.
Read all positive factors
Altria Group Key Performance Indicators (KPIs)
Any
Smokeable Products Sticks Shipped
Indicates the volume of cigarette products distributed, reflecting consumer demand trends and market penetration for Altria's smokeable segment.
Indicates the volume of cigarette products distributed, reflecting consumer demand trends and market penetration for Altria's smokeable segment.
Data provided by:
The Fly
The FlyAltria Group (MO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$119.46B
Dividend Yield7.02%
Average Volume (3M)8.06M
Price to Earnings (P/E)15.0
Beta (1Y)-0.17
Revenue Growth0.75%
EPS Growth-19.96%
CountryUS
Employees5,900
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)4.78
Shares Outstanding1,669,891,200
10 Day Avg. Volume9,073,205
30 Day Avg. Volume8,061,088
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)-27.61
Price to Sales (P/S)4.80
P/FCF Ratio10.66
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue6.25
Enterprise Value/Gross Profit9.21
Enterprise Value/Ebitda11.49
Forecast
1Y Price Target
$71.75Price Target Upside11.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.68
Revenue Forecast (FY)$20.52B
Altria Group Business Overview & Revenue Model
Company Description
Operating across the United States through its subsidiaries, Altria Group, Inc. is a prominent manufacturer and marketer of both combustible and oral tobacco items. Its portfolio features cigarettes, primarily under the iconic Marlboro brand, alon...
How the Company Makes Money
Altria makes money primarily by selling tobacco and nicotine products in the United States and, to a lesser extent, by selling wine. Its largest revenue stream is smokeable products—principally cigarettes—where it earns revenue from wholesale ship...
Altria Group Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational and financial strengths (7.3% adjusted EPS growth, strong smokeable segment margins, on! shipment growth and national rollout, ABI earnings growth, robust dividends and buybacks, and a solid balance sheet) were balanced against meaningful headwinds (notably sizable adjusted declines in Oral Tobacco volumes and retail share, cigarette volume declines, Marlboro retail share pressure and persistent illicit e-vapor market issues). Management’s reaffirmed but modest full-year guidance and emphasis on macro uncertainty underscore a cautious tone despite strong cash generation and execution in key areas.Positive Updates
Adjusted Diluted EPS Growth
Adjusted diluted EPS grew 7.3% in Q1 2026 versus Q1 2025, indicating a strong start to the year.
Negative Updates
Oral Tobacco Volume and Retail Share Declines
Total Oral Tobacco segment reported shipment volume decreased 3.1% in Q1; when adjusted for trade inventory movements, estimated volumes declined approximately 8.5%. Oral Tobacco segment retail share declined by 5.5 percentage points year-over-year.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted Diluted EPS Growth
Adjusted diluted EPS grew 7.3% in Q1 2026 versus Q1 2025, indicating a strong start to the year.
Read all positive updates
Company Guidance
Altria reaffirmed 2026 full‑year adjusted diluted EPS guidance of $5.56–$5.72 (growth of 2.5%–5.5% from a $5.42 base in 2025) and said Q1’s stronger results (adjusted diluted EPS up 7.3% year‑over‑year) make 2026 growth likely to be more balanced between the first and second halves of the year; the company noted the guidance already contemplates moderated industry growth in combustible and e‑vapor volumes and heightened macroeconomic uncertainty. Management reiterated its capital return and balance‑sheet posture (Q1 dividends ≈ $1.8B; share repurchases of 4.5M shares for $280M with ~$72M remaining under the program; >$1B of debt retired; total debt/EBITDA 1.9x). They also cited related operating metrics that underpin the outlook: smokeable adjusted OCI +6.3% with a 65.1% margin (+0.7 ppt), oral tobacco adjusted OCI >$400M with a 67.4% margin, on! portfolio shipments ~46M cans (+~18%), nicotine pouches now >58% of oral tobacco (category +9.1 share points), reported domestic cigarette volumes −2.4% (−4% adjusted shipments; industry −5% adjusted).Altria Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.82B | 20.14B | 20.44B | 20.50B | 20.69B | 21.11B |
| Gross Profit | 14.80B | 17.44B | 14.37B | 14.28B | 14.25B | 13.99B |
| EBITDA | 11.86B | 10.83B | 15.07B | 12.35B | 8.74B | 5.26B |
| Net Income | 8.05B | 6.95B | 11.26B | 8.13B | 5.76B | 2.48B |
Balance Sheet | ||||||
| Total Assets | 34.58B | 35.02B | 35.18B | 38.57B | 36.95B | 39.52B |
| Cash, Cash Equivalents and Short-Term Investments | 3.53B | 4.48B | 3.13B | 3.69B | 4.03B | 4.54B |
| Total Debt | 24.60B | 25.71B | 24.93B | 26.23B | 26.68B | 28.04B |
| Total Liabilities | 37.74B | 38.47B | 37.37B | 42.06B | 40.88B | 41.13B |
| Stockholders Equity | -3.21B | -3.50B | -2.24B | -3.54B | -3.97B | -1.61B |
Cash Flow | ||||||
| Free Cash Flow | 8.62B | 9.07B | 8.61B | 9.09B | 8.05B | 8.24B |
| Operating Cash Flow | 8.89B | 9.29B | 8.75B | 9.29B | 8.26B | 8.40B |
| Investing Cash Flow | -407.00M | -341.00M | 2.17B | -1.28B | 782.00M | 1.21B |
| Financing Cash Flow | -9.69B | -7.62B | -11.49B | -8.37B | -9.54B | -10.03B |
Altria Group Technical Analysis
Positive
64.17
Price Trends
70.06
Positive
67.46
Positive
62.90
Positive
Market Momentum
0.75
Negative
52.54
Neutral
73.14
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 64.17 is below the 20-day moving average (MA) of 70.98, below the 50-day MA of 70.06, and above the 200-day MA of 62.90, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MO.
Altria Group Risk Analysis
Altria Group disclosed 23 risk factors in its most recent earnings report. Altria Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Altria Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $276.94B | 24.99 | -105.29% | 3.59% | 8.48% | 45.92% | |
72 Outperform | $2.36B | 16.47 | 6.14% | 0.35% | 66.52% | 56.14% | |
71 Outperform | $119.46B | 14.97 | -255.35% | 7.02% | 0.75% | -19.96% | |
69 Neutral | $130.13B | 12.92 | 16.33% | 5.22% | 2.16% | 171.90% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.69B | 29.03 | 17.29% | 0.28% | 16.10% | 26.07% | |
53 Neutral | $1.30B | 40.06 | 2.24% | 6.15% | -0.77% | -65.72% |
* Consumer Defensive Sector Average
MO
Altria Group
71.54
16.13
29.11%
BTI
British American Tobacco
60.56
15.19
33.47%
PM
Philip Morris
177.69
7.93
4.67%
UVV
Universal
52.08
-2.74
-5.00%
TPB
Turning Point Brands
87.37
14.98
20.69%
RLX
RLX Technology
1.94
-0.29
-13.20%
Altria Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Altria appoints new CEO and CFO amid transition
Positive
May 18, 2026
At Altria’s May 14, 2026 annual meeting, the board completed a leadership transition by appointing Salvatore Mancuso as chief executive officer and Heather A. Newman as executive vice president and chief financial officer, and setting compen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.