Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, oral tobacco products, and wine in the United States. More Details
Established dividend payer and slightly overvalued.
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 +/- 4% a week.
Volatility Over Time: MO's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MO underperformed the US Tobacco industry which returned 37.5% over the past year.
Return vs Market: MO underperformed the US Market which returned 51.8% over the past year.
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
3 days ago | Simply Wall StAre Dividend Investors Getting More Than They Bargained For With Altria Group, Inc.'s (NYSE:MO) Dividend?
1 month ago | Simply Wall StWhy You Should Care About Altria Group's (NYSE:MO) Strong Returns On Capital
1 month ago | Simply Wall StCould The Altria Group, Inc. (NYSE:MO) Ownership Structure Tell Us Something Useful?
Is Altria Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MO ($49.49) is trading below our estimate of fair value ($92.97)
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 (21.2x) compared to the XX Tobacco industry average (15.6x).
PE vs Market: MO is poor value based on its PE Ratio (21.2x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: MO is poor value based on its PEG Ratio (5.8x)
Price to Book Ratio
PB vs Industry: MO is overvalued based on its PB Ratio (31.5x) compared to the US Tobacco industry average (10.4x).
How is Altria Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MO's forecast earnings growth (3.7% per year) is above the savings rate (2%).
Earnings vs Market: MO's earnings (3.7% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: MO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MO's revenue (1.4% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: MO's revenue (1.4% 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 (244.7%).
How has Altria Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MO has a large one-off loss of $3.5B impacting its March 31 2021 financial results.
Growing Profit Margin: MO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MO's earnings have declined by 29.9% per year over the past 5 years.
Accelerating Growth: MO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tobacco industry (2.6%).
Return on Equity
High ROE: Whilst MO's Return on Equity (142.5%) is outstanding, this metric is skewed due to their high level of debt.
How is Altria Group's financial position?
Financial Position Analysis
Short Term Liabilities: MO's short term assets ($8.0B) do not cover its short term liabilities ($10.0B).
Long Term Liabilities: MO's short term assets ($8.0B) do not cover its long term liabilities ($35.7B).
Debt to Equity History and Analysis
Debt Level: MO's debt to equity ratio (977.9%) is considered high.
Reducing Debt: MO's debt to equity ratio has increased from 460.7% to 977.9% over the past 5 years.
Debt Coverage: MO's debt is well covered by operating cash flow (28%).
Interest Coverage: MO's interest payments on its debt are well covered by EBIT (9.1x coverage).
What is Altria Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MO's dividend (6.95%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MO's dividend (6.95%) is in the top 25% of dividend payers in the US market (3.42%)
Stability and Growth of Payments
Stable Dividend: MO's dividends per share have been stable in the past 10 years.
Growing Dividend: MO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (146.7%), MO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MO's dividends in 3 years are forecast to be covered by earnings (76.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Billy Gifford (50 yo)
Mr. William F. Gifford, Jr., Billy, serves as Chief Executive Officer at Altria Group, Inc. since April 16, 2020 and serves as its Director since 2020. He served as Chief Financial Officer of Altria Group,...
CEO Compensation Analysis
Compensation vs Market: Billy's total compensation ($USD12.24M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Billy's compensation has been consistent with company performance over the past year.
Experienced Management: MO's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: MO's board of directors are considered experienced (9.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Altria Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Altria Group, Inc.
- Ticker: MO
- Exchange: NYSE
- Founded: 1822
- Industry: Tobacco
- Sector: Food, Beverage & Tobacco
- Market Cap: US$89.478b
- Shares outstanding: 1.85b
- Website: https://www.altria.com
Number of Employees
- Altria Group, Inc.
- 6601 West Broad Street
- United States
Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, oral tobacco products, and wine in the United States. It offers cigarettes primarily under the Marlboro brand; cigars princi...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 04:00|
|End of Day Share Price||2021/05/06 00:00|
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.