Altria Group Inc
Exchange: NYSESector: Consumer DefensiveIndustry: Tobacco
Altria Group, Inc. is a holding company. At December 31, 2012, Altria Group, Inc.'s direct and indirect wholly owned subsidiaries included Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes and certain smokeless products in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and is a wholly owned subsidiary of PM USA; and UST LLC (UST), which through its direct and indirect wholly owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless products and wine. Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary of Altria Group, Inc., maintains a portfolio of leveraged and direct finance leases. In addition, Altria Group, Inc. held approximately 26.9% of the economic and voting interest of SABMiller plc (SABMiller).
Did you know?
Free cash flow has been growing at 3.0% annually.
Current Price
$65.76
+0.43%GoodMoat Value
$92.64
40.9% undervaluedProfile
Valuation (TTM)
Market Cap$110.39B
P/E15.89
EV$129.32B
P/B—
Shares Out1.68B
P/Sales4.74
Revenue$23.28B
EV/EBITDA12.26
Altria Group Inc (MO) Stock Analysis
GoodMoat Analysis
Altria Group is a dominant tobacco company with a durable moat built on regulatory barriers and brand power, but it faces secular decline. Its valuation appears favourable, with a high free cash flow yield and a significant margin of safety relative to its estimated intrinsic value.
Read full analysis
Altria Group Inc is a leading producer and marketer of tobacco products in the United States, primarily through its iconic Marlboro brand. Applying the GoodMoat framework, the company demonstrates a strong competitive moat, likely scoring high on criteria such as Regulatory Barriers (dominant position in a heavily licensed industry), Brand & Culture (Marlboro's deep market penetration), and Pricing Power (consistent ability to raise prices). This aligns with its high profitability, evidenced by a 42.5% operating margin and a 29.8% profit margin. However, the business faces significant secular headwinds, with revenue declining 0.5% year-over-year, which introduces a major growth challenge. According to the Decision Framework, the company likely passes the Moat & Quality Gate, qualifying it for valuation analysis. The valuation appears favourable, with the stock trading at a P/E of 15.4x and offering a high free cash flow yield of 8.5%. The provided GoodMoat Target price of $92.64 implies a margin of safety of approximately 45% from the current price of $63.78, which falls into the 'Deeply Undervalued' band (>40%) per the framework's valuation assessment. For a value investor, this combination of a durable, cash-generative moat and a significant price discount warrants further investigation, though the long-term industry decline is a critical factor to weigh. Analysis based on data as of 2024-05-15.
Market Cap$110.39B
Current Price$65.76
P/E Ratio15.89
Forward P/E—
PEG Ratio-0.25
EPS$4.12
Book Value$-2.09
P/B Ratio—
MO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 3.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 21.2B
Revenue
25.1B
FY19
26.2B
FY20
26.0B
FY21
25.1B
FY22
24.5B
FY23
24.0B
FY24
23.3B
FY25
Net Income
—
FY19
4.5B
FY20
2.5B
FY21
5.8B
FY22
8.1B
FY23
11.3B
FY24
6.9B
FY25
MO 52-Week Range
$51.90
$68.56
50-Day MA: $64.94200-Day MA: $60.53
Did you know?
Free cash flow has been growing at 3.0% annually.
Altria Group Inc (MO) Financial Summary
Altria Group Inc (MO) is a Consumer Defensive company in the Tobacco industry, listed on NYSE. The stock currently trades at $65.76 with a market capitalization of $110.39B.
Key valuation metrics include a P/E ratio of 15.89, and EPS of $4.12. The company reports a profit margin of 29.8%.
MO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $110.39B |
| P/E Ratio | 15.89 |
| EPS | $4.12 |
| P/S Ratio | 4.74 |
| EV/EBITDA | 12.26 |
| Dividend Yield | 6.30% |
| Profit Margin | 29.8% |
MO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $25.11B | $-1.29B |
| FY20 | $26.15B | $4.47B |
| FY21 | $26.01B | $2.48B |
| FY22 | $25.10B | $5.76B |
| FY23 | $24.48B | $8.13B |
| FY24 | $24.02B | $11.26B |
| FY25 | $23.28B | $6.95B |
Altria Group Inc (MO) Valuation
Based on GoodMoat's DCF model, Altria Group Inc has a fair value estimate of $92.64. At the current price of $65.76, the stock appears 29.0% undervalued relative to our intrinsic value estimate.
MO Quality Indicators
Altria Group Inc maintains a profit margin of 29.8% and an operating margin of 42.5%. The current ratio is 0.65.
About Altria Group Inc
Altria Group, Inc. is a holding company. At December 31, 2012, Altria Group, Inc.'s direct and indirect wholly owned subsidiaries included Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes and certain smokeless products in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and is a wholly owned subsidiary of PM USA; and UST LLC (UST), which through its direct and indirect wholly owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless products and wine. Philip Morris Capital Corporation (PMCC), another wholly owned subsidiary of Altria Group, Inc., maintains a portfolio of leveraged and direct finance leases. In addition, Altria Group, Inc. held approximately 26.9% of the economic and voting interest of SABMiller plc (SABMiller).
MO Free Cash Flow
Altria Group Inc generated $9.07B in trailing twelve-month free cash flow, representing an FCF yield of 8.22%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
MO Shares Outstanding
Altria Group Inc has 1.68 billion shares outstanding at a share price of $65.76, giving it a market capitalization of $110.39B.
MO Recent Insider Trades
Recent insider transactions at Altria Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Whitaker Charles N. (SVP, Chief HR Off. & CCO) | SELL | 27,908 | $1.89M |