Altria Group (MO) AI Stock Analysis

• Market Cap: $108.18B
• Dividend Yield: 6.46%
• Average Volume (3M): 8.36M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.07
• Revenue Growth: -0.18%
• EPS Growth: -10.69%
• Country: US
• Employees: 14,654
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.44
• Shares Outstanding: 1,679,891,000
• 10 Day Avg. Volume: 8,045,454
• 30 Day Avg. Volume: 8,357,481
• 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: 1.13
• Enterprise Value/Revenue: 6.03
• Enterprise Value/Gross Profit: 8.42
• Enterprise Value/Ebitda: 10.19
• 1Y Price Target: $65.50
• Price Target Upside: 2.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $71.00 ▲(11.37% Upside)

Altria Group's strong valuation and cash flow generation are significant strengths, supported by robust operational efficiency. However, financial risks due to high leverage and declining cigarette volumes weigh on the overall score.

Positive Factors

Strategic Partnerships

This partnership aims to expand Altria's presence in modern oral nicotine products and optimize traditional tobacco operations, enhancing long-term growth potential.

Cash Flow Generation

Strong cash flow generation supports Altria's ability to invest in growth opportunities and return value to shareholders, ensuring financial stability.

Oral Tobacco Segment Growth

The growth in the oral tobacco segment indicates successful product diversification and adaptation to changing consumer preferences, supporting future revenue streams.

Negative Factors

Declining Cigarette Volumes

A decline in cigarette volumes highlights challenges in Altria's core business, potentially impacting revenue and profitability if not offset by growth in other segments.

High Leverage

High leverage and negative equity pose financial risks, limiting Altria's ability to navigate economic downturns and invest in growth without restructuring.

Competitive Pressure in Nicotine Pouch Market

Increased competition in the nicotine pouch market could hinder Altria's growth in this segment, affecting its strategy to diversify away from traditional tobacco products.

Altria Group Business Overview & Revenue Model

Company Description

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe tobacco principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands, as well as provides on! oral nicotine pouches. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Altria generates revenue predominantly through the sale of its tobacco products, which are subject to various federal and state taxes. The company's primary revenue stream comes from its smokeable products, particularly cigarettes, which account for a significant portion of its sales. Additionally, Altria earns revenue from its smokeless tobacco products and wines. The company's revenue model is heavily influenced by pricing strategies, including the adjustment of product prices in response to taxation and regulatory changes. Altria also engages in strategic partnerships and investments in emerging markets, particularly in reduced-risk products like IQOS, a heated tobacco product. These partnerships and investments aim to capture market share in the evolving landscape of tobacco consumption, contributing to the company's overall earnings.

Altria Group Financial Statement Overview

Summary

Altria Group demonstrates strong operational efficiency and cash flow generation, highlighted by robust margins and significant free cash flow. However, declining revenue, high leverage, and negative stockholders' equity present financial risks that could impact long-term stability.

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	20.26B	20.44B	20.50B	20.69B	21.11B	20.84B
Gross Profit	14.51B	14.37B	14.28B	14.25B	13.99B	13.02B
EBITDA	12.00B	15.07B	12.35B	8.74B	5.26B	8.37B
Net Income	8.79B	11.26B	8.13B	5.76B	2.48B	4.47B
Balance Sheet
Total Assets	32.33B	35.18B	38.57B	36.95B	39.52B	47.41B
Cash, Cash Equivalents and Short-Term Investments	1.29B	3.13B	3.69B	4.03B	4.54B	4.95B
Total Debt	24.72B	24.93B	26.23B	26.68B	28.04B	29.47B
Total Liabilities	35.54B	37.37B	42.06B	40.88B	41.13B	44.49B
Stockholders Equity	-3.26B	-2.24B	-3.54B	-3.97B	-1.61B	2.84B
Cash Flow
Free Cash Flow	10.73B	8.61B	9.09B	8.05B	8.24B	8.15B
Operating Cash Flow	10.88B	8.75B	9.29B	8.26B	8.40B	8.38B
Investing Cash Flow	-183.00M	2.17B	-1.28B	782.00M	1.21B	-143.00M
Financing Cash Flow	-10.22B	-11.49B	-8.37B	-9.54B	-10.03B	-5.40B

Altria Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 63.75 is below the 20-day moving average (MA) of 65.40, below the 50-day MA of 65.32, and above the 200-day MA of 57.91, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, 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
PM	71 Outperform	$246.03B	29.99	―	3.63%	7.44%	-6.72%
MO	68 Neutral	$108.18B	12.57	―	6.46%	-0.18%	-10.69%
RLX	67 Neutral	$2.91B	29.20	4.56%	0.34%	61.64%	16.76%
UVV	64 Neutral	$1.33B	12.97	7.20%	6.16%	4.11%	-15.50%
TPB	64 Neutral	$1.58B	36.66	26.05%	0.35%	4.44%	-5.94%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BTI	52 Neutral	$110.91B	28.57	5.97%	5.93%	0.48%	―

Altria Group Corporate Events

Altria Group Issues $1 Billion in Senior Notes

On August 6, 2025, Altria Group issued $1 billion in senior unsecured notes, split evenly between 4.500% Notes due 2030 and 5.250% Notes due 2035. This financial move, guaranteed by Philip Morris USA, aims to strengthen Altria’s capital structure and maintain its competitive positioning in the market.

The most recent analyst rating on (MO) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

Altria Group Extends $3 Billion Credit Agreement

On July 23, 2025, Altria Group, Inc. announced an extension of its $3.0 billion senior unsecured 5-year revolving credit agreement with JPMorgan Chase Bank, N.A. and Citibank, N.A., extending the expiration date from October 24, 2028, to October 24, 2029. This extension reflects Altria’s ongoing financial strategy and relationships with financial institutions, potentially impacting its liquidity management and operational flexibility.

The most recent analyst rating on (MO) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

Altria Group’s Shareholders Approve 2025 Incentive Plans

Altria Group announced the retirement of Steven D’Ambrosia as Vice President and Controller effective July 31, 2025, and the election of Katie F. Patterson to the role, effective August 1, 2025. Patterson, who has been with Altria since 2013, will receive a salary and incentives consistent with her new position. Additionally, during its 2025 Annual Meeting of Shareholders on May 15, 2025, Altria’s shareholders approved the 2025 Performance Incentive Plan and the 2025 Stock Compensation Plan for Non-Employee Directors, which are designed to provide annual and long-term incentives to eligible employees and directors.

The most recent analyst rating on (MO) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.