NYSE:MO

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Executive Summary

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. More Details


Snowflake Analysis

Established dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

How has Altria Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MO's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

MO

-0.9%

US Tobacco

-1.0%

US Market


1 Year Return

-19.2%

MO

-18.4%

US Tobacco

19.6%

US Market

Return vs Industry: MO matched the US Tobacco industry which returned -18.4% over the past year.

Return vs Market: MO underperformed the US Market which returned 19.6% over the past year.


Shareholder returns

MOIndustryMarket
7 Day-0.9%-0.9%-1.0%
30 Day-4.2%-4.0%2.2%
90 Day4.2%5.0%11.5%
1 Year-11.7%-19.2%-10.9%-18.4%22.3%19.6%
3 Year-28.8%-42.1%-27.8%-41.1%45.3%35.7%
5 Year-6.6%-29.3%-6.0%-28.7%124.8%99.8%

Long-Term Price Volatility Vs. Market

How volatile is Altria Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Altria Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MO ($41.2) is trading below our estimate of fair value ($91.03)

Significantly Below Fair Value: MO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MO is poor value based on its PE Ratio (105.5x) compared to the XX Tobacco industry average (13.1x).

PE vs Market: MO is poor value based on its PE Ratio (105.5x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: MO is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: MO is overvalued based on its PB Ratio (24.4x) compared to the US Tobacco industry average (4.1x).


Next Steps

Future Growth

How is Altria Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MO's forecast earnings growth (34.4% per year) is above the savings rate (2%).

Earnings vs Market: MO's earnings (34.4% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MO's revenue (2.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: MO's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MO's Return on Equity is forecast to be very high in 3 years time (140.9%).


Next Steps

Past Performance

How has Altria Group performed over the past 5 years?

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MO has a large one-off loss of $7.7B impacting its September 30 2020 financial results.

Growing Profit Margin: MO's current net profit margins (3.5%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: MO's earnings have declined by 23.2% per year over the past 5 years.

Accelerating Growth: MO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MO had negative earnings growth (-58%) over the past year, making it difficult to compare to the Tobacco industry average (-4.1%).


Return on Equity

High ROE: Whilst MO's Return on Equity (21.95%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Altria Group's financial position?


Financial Position Analysis

Short Term Liabilities: MO's short term assets ($6.4B) do not cover its short term liabilities ($8.3B).

Long Term Liabilities: MO's short term assets ($6.4B) do not cover its long term liabilities ($35.1B).


Debt to Equity History and Analysis

Debt Level: MO's debt to equity ratio (894.4%) is considered high.

Reducing Debt: MO's debt to equity ratio has increased from 443.1% to 894.4% over the past 5 years.

Debt Coverage: MO's debt is well covered by operating cash flow (28.7%).

Interest Coverage: MO's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

What is Altria Group current dividend yield, its reliability and sustainability?

8.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MO's dividend (8.35%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: MO's dividend (8.35%) is in the top 25% of dividend payers in the US market (3.85%)


Stability and Growth of Payments

Stable Dividend: MO's dividends per share have been stable in the past 10 years.

Growing Dividend: MO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (865.6%), MO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MO's dividends in 3 years are forecast to be covered by earnings (79.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Billy Gifford (50 yo)

0.83

Tenure

US$9,373,759

Compensation

Mr. William F. Gifford, Jr., Billy, serves as Chief Executive Officer at Altria Group, Inc. since April 16, 2020 and serves as its Director since 2020. He served as Chief Financial Officer of Altria Group,...


CEO Compensation Analysis

Compensation vs Market: Billy's total compensation ($USD9.37M) is about average for companies of similar size in the US market ($USD10.56M).

Compensation vs Earnings: Billy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Gifford
CEO & Director0.83yrUS$9.37m0.0091%
$ 7.0m
Salvatore Mancuso
Executive VP & CFO0.75yrUS$4.37m0.0038%
$ 2.9m
Jody Begley
Executive VP & COO0.33yrUS$3.70m0.0066%
$ 5.0m
Murray Garnick
Executive VP & General Counsel3.5yrsUS$7.00m0.0026%
$ 2.0m
Charles Whitaker
Senior VPno datano data0.0051%
$ 3.9m
Mac Livingston
Vice President of Investor Relationsno datano datano data
Michael Begland
VP & Chief Inclusionno datano datano data
Paige Magness
Senior Vice President of Regulatory Affairs - Altria Client Services LLCno datano datano data
Heather Newman
Senior Vice President of Corporate Strategy1yrno data0.00029%
$ 222.0k
Kenya Blake
MD & GM of John Middleton Co.0.33yrno datano data
Jay Zapko
MD & GM of Helix Innovations LLC1yrno datano data
Bob McCarter
Senior Vice President & Associate General Counsel6yrsno datano data

0.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MO's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Gifford
CEO & Director0.83yrUS$9.37m0.0091%
$ 7.0m
Thomas Farrell
Independent Chairman of the Board0.75yrUS$320.01k0.00013%
$ 99.5k
Kathryn A. McQuade
Independent Director8.92yrsUS$345.01k0.00017%
$ 130.2k
W. Kiely
Independent Director9.25yrsUS$355.01k0.0018%
$ 1.4m
Debra Kelly-Ennis
Independent Director7.92yrsUS$314.26k0.0019%
$ 1.4m
John Casteen
Independent Director10.92yrsUS$317.26k0.0033%
$ 2.5m
Dinyar Devitre
Independent Director13yrsUS$344.81k0.0053%
$ 4.1m
George Munoz
Independent Director16.25yrsUS$355.01k0.0035%
$ 2.7m
Nabil Sakkab
Independent Director12.25yrsUS$315.01k0.0026%
$ 2.0m
Virginia Shanks
Independent Director3.67yrsUS$319.98k0.00081%
$ 620.2k
Mark Newman
Independent Director2.92yrsUS$330.01k0.00032%
$ 245.0k
Ellen Strahlman
Independent Director0.17yrno datano data

8.4yrs

Average Tenure

65yo

Average Age

Experienced Board: MO's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altria Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altria Group, Inc.
  • Ticker: MO
  • Exchange: NYSE
  • Founded: 1822
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$76.567b
  • Shares outstanding: 1.86b
  • Website: https://www.altria.com

Number of Employees


Location

  • Altria Group, Inc.
  • 6601 West Broad Street
  • Richmond
  • Virginia
  • 23230
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0R31LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
MO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
MOSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
PHM7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PHM7XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
MOSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
ALTRWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
PM-UETLX (Eurotlx)YesCommon StockITEURJan 1968
MOBASE (Buenos Aires Stock Exchange)CEDEARS EACH 4 REPR 1 ORD USD0.3333ARARSJul 2001
MOOO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.333333BRBRLMay 2019

Biography

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. It offers cigarettes primarily under the Marlboro brand; cigars principal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 00:56
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.