Altria Group (MO) AI Stock Analysis

• Market Cap: $99.06B
• Dividend Yield: 6.97%
• Average Volume (3M): 8.49M
• Price to Earnings (P/E): 11.3
• Beta (1Y): -0.04
• 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: 7,227,212
• 30 Day Avg. Volume: 8,489,517
• 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: 1.35
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $65.60
• Price Target Upside: 10.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.44
• Revenue Forecast (FY): $20.11B

• Rating: 64 Neutral
• Price Target: $62.00 ▲(4.84% Upside)

Altria's overall stock score is driven by strong financial performance and attractive valuation, despite technical indicators showing bearish momentum. The earnings call provided positive insights into strategic initiatives and financial resilience, although challenges in cigarette volumes and competition in the nicotine pouch market remain.

Positive Factors

Cash Generation Ability

Strong cash generation supports Altria's ability to invest in strategic initiatives, maintain dividend payouts, and manage debt, ensuring long-term financial health.

Strategic Initiatives

The collaboration with KT&G positions Altria to expand its market presence and diversify its product offerings, potentially driving future growth.

Product Diversification

Launching new products like on! PLUS enhances Altria's product portfolio, catering to shifting consumer preferences and reducing reliance on traditional tobacco products.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in maintaining sales momentum, which could impact long-term profitability and market competitiveness.

Cigarette Volume Decline

A decline in cigarette volumes highlights a structural shift in consumer behavior, potentially reducing revenue from Altria's core product segment.

Financial Leverage

High financial leverage and negative equity can limit Altria's financial flexibility, increasing risk and potentially impacting future investment capabilities.

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 demonstrates robust operational efficiency and strong cash flow generation, with a high gross profit margin of 71.63% and a solid EBIT margin of 54.56%. However, challenges include declining revenue, a significant drop in net profit margin to 43.39%, and high leverage reflected in negative stockholders' equity.

Income Statement

Altria Group's income statement shows a stable but declining revenue trend with a slight decrease from the previous year. The gross profit margin stands at a strong 71.63% for TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the net profit margin has decreased significantly from 55.08% in 2024 to 43.39% in the TTM, reflecting potential challenges in maintaining profitability. The EBIT margin remains robust at 54.56%, demonstrating solid operational efficiency.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity of -3,256 million USD as of TTM, indicative of high leverage and potential risk. The debt-to-equity ratio is not applicable due to negative equity, but the high level of debt poses a risk of financial instability. The equity ratio is negative, emphasizing the need for capital restructuring to enhance financial health.

Cash Flow

Cash flow analysis highlights a strong free cash flow growth rate of 24.63% in the TTM, driven by effective capital expenditure management. The operating cash flow to net income ratio is 1.24, suggesting strong cash generation capabilities relative to net earnings. The free cash flow to net income ratio is 1.22, reinforcing the company's ability to generate cash. However, significant financing cash outflows may affect future liquidity.

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: Neutral
• Last Price: 59.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MO, the sentiment is Neutral. The current price of 59.14 is above the 20-day moving average (MA) of 58.05, below the 50-day MA of 61.88, and below the 200-day MA of 59.26, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$3.06B	28.95	4.71%	0.31%	51.49%	21.43%
UVV	68 Neutral	$1.31B	11.89	7.72%	6.26%	3.01%	-7.14%
TPB	67 Neutral	$1.91B	35.27	22.54%	0.29%	6.71%	8.16%
MO	64 Neutral	$99.06B	11.26	―	6.97%	-0.96%	-11.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	62 Neutral	$245.14B	28.52	―	3.54%	7.72%	-12.45%
BTI	59 Neutral	$127.28B	32.47	5.97%	5.13%	0.48%	―

Altria Group Corporate Events

Altria’s Earnings Call Highlights Strong Performance and Strategic Moves

Altria’s recent earnings call conveyed a generally positive sentiment, underpinned by strong financial performance and strategic initiatives. The company reported increased earnings, a dividend hike, and a share repurchase program, alongside new product launches. However, challenges such as a decline in cigarette volumes and heightened competition in the nicotine pouch market were also highlighted. Positive regulatory advancements and new collaborations were key points of optimism.

Altria’s 2025 Earnings Report and Strategic Moves

Altria Group, Inc., a prominent player in the tobacco industry, is known for its diverse portfolio of tobacco products, including both combustible and smoke-free offerings, as well as its strategic investments in related sectors. The company recently released its third-quarter and nine-month financial results for 2025, highlighting a narrowed full-year earnings guidance and an expanded share repurchase program.

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.

The most recent analyst rating on (MO) stock is a Sell with a $57.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

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.

The most recent analyst rating on (MO) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.