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Altria Group

NYSE:MO
Snowflake Description

6 star dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MO
NYSE
$102B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. The last earnings update was 52 days ago. More info.


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MO Share Price and Events
7 Day Returns
-3.9%
NYSE:MO
-3%
US Tobacco
0.2%
US Market
1 Year Returns
-5%
NYSE:MO
-5.3%
US Tobacco
6.3%
US Market
MO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Altria Group (MO) -3.9% -2.4% 12.5% -5% -10.2% 39%
US Tobacco -3% -3.3% 12.2% -5.3% -9.5% 40.3%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • MO underperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
MO
Industry
5yr Volatility vs Market

MO Value

 Is Altria Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Altria Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Altria Group.

NYSE:MO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.38
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.377 (1 + (1- 21%) (25.32%))
0.633
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:MO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Altria Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 7,875.00 Analyst x2 7,325.72
2020 7,244.00 Analyst x1 6,268.70
2021 6,880.94 Est @ -5.01% 5,539.19
2022 6,695.89 Est @ -2.69% 5,014.26
2023 6,624.68 Est @ -1.06% 4,614.91
2024 6,629.61 Est @ 0.07% 4,296.21
2025 6,687.37 Est @ 0.87% 4,031.37
2026 6,782.92 Est @ 1.43% 3,803.76
2027 6,906.31 Est @ 1.82% 3,602.82
2028 7,050.82 Est @ 2.09% 3,421.65
Present value of next 10 years cash flows $47,918.60
NYSE:MO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $7,050.82 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$151,915.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $151,915.07 ÷ (1 + 7.5%)10
$73,721.99
NYSE:MO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $47,918.60 + $73,721.99
$121,640.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $121,640.59 / 1,870.39
$65.03
NYSE:MO Discount to Share Price
Calculation Result
Value per share (USD) From above. $65.03
Current discount Discount to share price of $54.37
= -1 x ($54.37 - $65.03) / $65.03
16.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Altria Group is available for.
Intrinsic value
16%
Share price is $54.37 vs Future cash flow value of $65.03
Current Discount Checks
For Altria Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Altria Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Altria Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Altria Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Altria Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.69
NYSE:MO Share Price ** NYSE (2019-04-18) in USD $54.37
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 16.05x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Altria Group.

NYSE:MO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MO Share Price ÷ EPS (both in USD)

= 54.37 ÷ 3.69

14.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altria Group is good value based on earnings compared to the Global Tobacco industry average.
  • Altria Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Altria Group's expected growth come at a high price?
Raw Data
NYSE:MO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
5.3%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 2.09x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:MO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.75x ÷ 5.3%

2.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altria Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Altria Group's assets?
Raw Data
NYSE:MO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $7.90
NYSE:MO Share Price * NYSE (2019-04-18) in USD $54.37
United States of America Tobacco Industry PB Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 3.27x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:MO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MO Share Price ÷ Book Value per Share (both in USD)

= 54.37 ÷ 7.90

6.88x

* Primary Listing of Altria Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altria Group is overvalued based on assets compared to the US Tobacco industry average.
X
Value checks
We assess Altria Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Altria Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MO Future Performance

 How is Altria Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Altria Group expected to grow at an attractive rate?
  • Altria Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Altria Group's earnings growth is positive but not above the United States of America market average.
  • Altria Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 5.3%
NYSE:MO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 1.8%
United States of America Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 21,671 8,779 9,256 3
2022-12-31 21,175 8,410 8,914 3
2021-12-31 20,326 7,988 8,573 7
2020-12-31 20,101 7,618 8,218 13
2019-12-31 19,828 7,353 7,780 14
NYSE:MO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 19,627 8,391 6,955
2018-09-30 19,555 7,344 10,665
2018-06-30 19,386 6,827 10,588
2018-03-31 19,575 5,056 10,701
2017-12-31 19,494 4,901 10,208
2017-09-30 19,513 4,435 15,507
2017-06-30 19,583 4,678 14,735
2017-03-31 19,396 3,778 14,399
2016-12-31 19,337 3,826 14,215
2016-09-30 19,333 5,250 5,202
2016-06-30 19,118 5,651 5,635
2016-03-31 19,112 6,030 5,430

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Altria Group's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
  • Altria Group's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Altria Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.05 5.42 4.67 2.00
2022-12-31 4.82 5.12 4.52 2.00
2021-12-31 4.60 4.81 4.38 2.00
2020-12-31 4.41 4.49 4.26 4.00
2019-12-31 4.14 4.21 4.08 4.00
NYSE:MO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.69
2018-09-30 5.63
2018-06-30 5.57
2018-03-31 5.60
2017-12-31 5.31
2017-09-30 8.03
2017-06-30 7.59
2017-03-31 7.39
2016-12-31 7.28
2016-09-30 2.66
2016-06-30 2.88
2016-03-31 2.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Altria Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Altria Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Altria Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MO Past Performance

  How has Altria Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Altria Group's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Altria Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Altria Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Altria Group's 1-year earnings growth is negative, it can't be compared to the Global Tobacco industry average.
Earnings and Revenue History
Altria Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Altria Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 19,627.00 6,955.00 2,342.00
2018-09-30 19,555.00 10,665.00 2,259.00
2018-06-30 19,386.00 10,588.00 2,156.00
2018-03-31 19,575.00 10,701.00 2,132.00
2017-12-31 19,494.00 10,208.00 2,042.00
2017-09-30 19,513.00 15,507.00 2,150.00
2017-06-30 19,583.00 14,735.00 2,315.00
2017-03-31 19,396.00 14,399.00 2,312.00
2016-12-31 19,337.00 14,215.00 2,302.00
2016-09-30 19,333.00 5,202.00 2,303.00
2016-06-30 19,118.00 5,635.00 2,226.00
2016-03-31 19,112.00 5,430.00 2,319.00
2015-12-31 18,854.00 5,231.00 2,353.00
2015-09-30 18,738.00 5,219.00 2,332.00
2015-06-30 18,513.00 5,088.00 2,348.00
2015-03-31 18,209.00 4,902.00 2,317.00
2014-12-31 17,945.00 5,058.00 2,267.00
2014-09-30 17,736.00 4,312.00 2,139.00
2014-06-30 17,743.00 4,310.00 2,130.00
2014-03-31 17,698.00 4,314.00 2,075.00
2013-12-31 17,663.00 4,523.00 2,075.00
2013-09-30 17,719.00 5,136.00 2,106.00
2013-06-30 17,425.00 4,399.00 1,988.00
2013-03-31 17,479.00 4,357.00 2,033.00
2012-12-31 17,500.00 4,167.00 2,095.00
2012-09-30 17,386.00 3,900.00 2,239.00
2012-06-30 17,248.00 4,413.00 2,287.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Altria Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Altria Group used its assets more efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Altria Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Altria Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Altria Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MO Health

 How is Altria Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Altria Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Altria Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Altria Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Altria Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Altria Group Company Filings, last reported 3 months ago.

NYSE:MO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 14,828.00 25,746.00 1,333.00
2018-09-30 15,534.00 13,903.00 2,393.00
2018-06-30 15,835.00 13,900.00 1,430.00
2018-03-31 15,434.00 13,897.00 2,191.00
2017-12-31 15,418.00 13,894.00 1,253.00
2017-09-30 12,206.00 13,890.00 2,582.00
2017-06-30 12,457.00 13,887.00 2,255.00
2017-03-31 12,301.00 13,884.00 5,228.00
2016-12-31 12,811.00 13,881.00 4,569.00
2016-09-30 2,983.00 13,878.00 2,298.00
2016-06-30 3,179.00 12,837.00 819.00
2016-03-31 2,785.00 12,850.00 3,815.00
2015-12-31 2,910.00 12,847.00 2,369.00
2015-09-30 2,916.00 12,921.00 1,907.00
2015-06-30 2,809.00 13,920.00 1,123.00
2015-03-31 2,562.00 13,901.00 3,674.00
2014-12-31 3,045.00 14,693.00 3,321.00
2014-09-30 4,326.00 13,993.00 2,241.00
2014-06-30 4,427.00 13,993.00 1,193.00
2014-03-31 4,147.00 13,992.00 3,620.00
2013-12-31 4,153.00 14,517.00 3,175.00
2013-09-30 4,015.00 14,876.00 4,211.00
2013-06-30 3,599.00 14,874.00 2,571.00
2013-03-31 3,605.00 13,878.00 3,775.00
2012-12-31 3,204.00 13,878.00 2,900.00
2012-09-30 3,901.00 13,878.00 2,186.00
2012-06-30 4,308.00 13,689.00 1,528.00
  • Altria Group's level of debt (173.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (349.4% vs 173.6% today).
  • Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.2x coverage).
X
Financial health checks
We assess Altria Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Altria Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.89%
Current annual income from Altria Group dividends. Estimated to be 6.49% next year.
If you bought $2,000 of Altria Group shares you are expected to receive $118 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Altria Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Altria Group's dividend is above the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.34 1.00
2022-12-31 4.10 1.00
2021-12-31 3.74 6.00
2020-12-31 3.49 10.00
2019-12-31 3.29 10.00
NYSE:MO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-28 3.200 5.757
2018-12-12 3.200 6.524
2018-08-23 3.200 5.349
2018-05-17 2.800 4.862
2018-03-01 2.800 4.663
2017-12-06 2.640 3.830
2017-08-24 2.640 4.096
2017-05-18 2.440 3.416
2017-03-01 2.440 3.356
2016-12-07 2.440 3.500
2016-08-25 2.440 3.823
2016-05-19 2.260 3.390
2016-02-25 2.260 3.617
2015-12-09 2.260 3.831
2015-08-21 2.260 4.015
2015-05-20 2.080 4.020
2015-02-25 2.080 3.998
2014-12-10 2.080 3.976
2014-08-21 2.080 4.461
2014-05-14 1.920 4.604
2014-02-26 1.920 5.072
2013-12-11 1.920 5.247
2013-08-23 1.920 5.343
2013-05-16 1.760 4.921
2013-02-27 1.760 5.018
2012-12-12 1.760 5.286
2012-08-24 1.760 5.314
2012-05-17 1.640 4.800
2012-03-01 1.640 5.269
2011-12-14 1.640 5.629
2011-08-26 1.640 6.008
2011-05-19 1.520 5.712
2011-02-24 1.520 5.822
2010-12-15 1.520 6.233
2010-08-27 1.520 6.249
2010-05-20 1.400 6.614
2010-02-24 1.400 6.714
2009-12-16 1.360 6.833
2009-08-27 1.360 7.360
2009-05-20 1.280 7.497
2009-04-20 1.280 7.594

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Altria Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Altria Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Altria Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Altria Group has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MO Management

 What is the CEO of Altria Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Howard Willard
COMPENSATION $6,129,516
AGE 55
TENURE AS CEO 0.9 years
CEO Bio

Mr. Howard A. Willard, III, BA (Hons), MBA., served as the Chief Operating Officer at Altria Group Inc., and served as its Executive Vice President and serves as its Director since 2018. He also serves as its Chairman of the Board and Chief Executive Officer at Altria Group Inc. since May 17, 2018. Mr. Willard served as the Chief Financial Officer of Altria Group Inc. from January 1, 2011 to March 1, 2015. He served as Executive Vice President of Strategy and Business Development at Altria Group Inc. He served as an Executive Vice President of Corporate Responsibility at Philip Morris USA Inc. He has held various leadership positions at Philip Morris USA Inc. in Finance, Sales, Information Services and Corporate Responsibility as well as Quality & Compliance and Youth Smoking Prevention. He joined the Altria family of companies in 1992 worked at Bain & Company and Salomon Brothers, Inc. Mr. Willard served as a Director of UST LLC. He served as a Non-Executive Director at SABMiller plc from August 1, 2009 to July 23, 2015. He serves on the boards of the YMCA of Greater Richmond and Communities in Schools of Virginia. He holds MBA from University of Chicago.

CEO Compensation
  • Howard's compensation has been consistent with company performance over the past year.
  • Howard's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Altria Group management team in years:

1.8
Average Tenure
51
Average Age
  • The average tenure for the Altria Group management team is less than 2 years, this suggests a new team.
Management Team

Howard Willard

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
55
TENURE
0.9 yrs

Billy Gifford

TITLE
Vice Chairman & CFO
COMPENSATION
$5M
AGE
48
TENURE
4.1 yrs

Murray Garnick

TITLE
Executive VP & General Counsel
COMPENSATION
$3M
AGE
58
TENURE
1.8 yrs

Charlie Whitaker

TITLE
Senior VP of Human Resources
AGE
51

Bill Marshall

TITLE
Vice President of Investor Relations

Sal Mancuso

TITLE
Senior Vice President of Finance & Procurement
AGE
52
TENURE
3.2 yrs

Jody Begley

TITLE
Senior Vice President of Tobacco Products
AGE
46
TENURE
0.8 yrs

K.C. Crosthwaite

TITLE
Senior VP & Chief Growth Officer
AGE
42
TENURE
0.8 yrs

W. Surgner

TITLE
VP, Corporate Secretary & Associate General Counsel
AGE
52

Ivan Feldman

TITLE
VP & Controller
AGE
51
TENURE
7.2 yrs
Board of Directors Tenure

Average tenure and age of the Altria Group board of directors in years:

7.7
Average Tenure
65
Average Age
  • The tenure for the Altria Group board of directors is about average.
Board of Directors

Billy Gifford

TITLE
Vice Chairman & CFO
COMPENSATION
$5M
AGE
48
TENURE
0.9 yrs

Dinyar Devitre

TITLE
Independent Director
COMPENSATION
$345K
AGE
71
TENURE
11.3 yrs

Howard Willard

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
55
TENURE
0.9 yrs

George Muñoz

TITLE
Independent Director
COMPENSATION
$328K
AGE
66
TENURE
14.5 yrs

W. Kiely

TITLE
Independent Director
COMPENSATION
$333K
AGE
71
TENURE
7.5 yrs

Kathryn A. McQuade

TITLE
Independent Director
COMPENSATION
$330K
AGE
62
TENURE
7.2 yrs

Tom Farrell

TITLE
Presiding Director
COMPENSATION
$320K
AGE
64
TENURE
7.9 yrs

Nabil Sakkab

TITLE
Independent Director
COMPENSATION
$315K
AGE
71
TENURE
10.5 yrs

John Casteen

TITLE
Independent Director
COMPENSATION
$316K
AGE
75
TENURE
9.2 yrs

Debra Kelly-Ennis

TITLE
Independent Director
COMPENSATION
$316K
AGE
61
TENURE
6.2 yrs
Who owns this company?
Recent Insider Trading
  • Altria Group insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Feb 19 Sell Ivan Feldman Individual 22. Feb 19 22. Feb 19 -6,802 $51.18 $-348,138
26. Feb 19 Buy Nabil Sakkab Individual 25. Feb 19 25. Feb 19 1,352 $52.11 $70,448
25. Feb 19 Buy Nabil Sakkab Individual 21. Feb 19 21. Feb 19 1,032 $50.42 $52,033
31. Aug 18 Sell Dinyar Devitre Individual 29. Aug 18 29. Aug 18 -3,165 $58.44 $-184,966
02. May 18 Buy Mark Newman Individual 30. Apr 18 30. Apr 18 5,345 $56.19 $300,334
X
Management checks
We assess Altria Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Altria Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MO News

Simply Wall St News

Why Income Investors Should Have Altria Group, Inc. (NYSE:MO) In Their Portfolio

Over the past 10 years, the US$105b market cap company has been growing its dividend payments, from $1.28 to $3.2. … Currently yielding 5.7%, let's take a closer look at Altria Group's dividend profile. … It has paid dividend every year without dramatically reducing payout in the past

Simply Wall St -

Altria Group, Inc. (NYSE:MO): Will The Growth Last?

After Altria Group, Inc.'s (NYSE:MO) earnings announcement in December 2018,. … with earnings expected to grow by 12% in the upcoming year … the higher past 5-year average growth rate of 22%

Simply Wall St -

Is Altria Group, Inc.'s (NYSE:MO) P/E Ratio Really That Good?

To keep it practical, we'll show how Altria Group, Inc.'s (NYSE:MO) P/E ratio could help you assess the value on offer. … Altria Group has a P/E ratio of 15.47, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Altria Group, Inc. (NYSE:MO) Will Pay US$0.80 In Dividends

Investors who want to cash in on Altria Group, Inc.'s (NYSE:MO) upcoming dividend of US$0.80 per share have only 4 days left to buy the shares before its ex-dividend date, 22 March 2019, in time for dividends payable on the 30 April 2019. … Is this future income a persuasive enough catalyst for investors to think about Altria Group as an investment today? … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come

Simply Wall St -

How Do Analysts See Altria Group, Inc. (NYSE:MO) Performing In The Next Couple Of Years?

The most recent earnings update Altria Group, Inc.'s (NYSE:MO) released in December 2018a

Simply Wall St -

Can Altria Group Inc (NYSE:MO) Maintain Its Strong Returns?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Altria Group Inc (NYSE:MO). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.69 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Need To Know: Altria Group Inc (NYSE:MO) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Altria Group Inc (NYSE:MO). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of US$53.72

Simply Wall St -

Read This Before You Buy Altria Group Inc (NYSE:MO) Because Of Its P/E Ratio

We'll look at Altria Group Inc's (NYSE:MO) P/E ratio and reflect on what it tells us about the company's share price. … Altria Group has a P/E ratio of 11.19, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why Altria Group Inc (NYSE:MO) Is A Top Dividend Stock

Altria Group Inc (NYSE:MO) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 5.2% to shareholders, making it a relatively attractive dividend stock. … View our latest analysis for Altria Group

Simply Wall St -

Why Income Investors Should Have Altria Group Inc (NYSE:MO) In Their Portfolio

Over the past 10 years Altria Group Inc (NYSE:MO) has grown its dividend payouts from $1.28 to $3.2. … With a market cap of US$119.1b, Altria Group pays out 49% of its earnings, leading to a 5.1% yield. … reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market

Simply Wall St -

MO Company Info

Description

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 principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands. The company also produces and sells varietal and blended table wines, and sparkling wines under the Chateau Ste. Michelle, Columbia Crest, and 14 Hands names; and imports and markets Antinori, Torres, and Villa Maria Estate wines, as well as Champagne Nicolas Feuillatte in the United States. In addition, it provides finance leasing services primarily in transportation, aircraft, power generation, real estate, and manufacturing industries. The company sells its tobacco products primarily to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. was founded in 1919 and is headquartered in Richmond, Virginia.

Details
Name: Altria Group, Inc.
MO
Exchange: NYSE
Founded: 1919
$101,692,954,075
1,870,387,237
Website: http://www.altria.com
Address: Altria Group, Inc.
6601 West Broad Street,
Richmond,
Virginia, 23230,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MO Common Stock New York Stock Exchange US USD 02. Jan 1968
DB PHM7 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA PHM7 Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0R31 Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX MO Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG ALTR Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE MO Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV MO * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BASE MO CEDEARS EACH 4 REPR 1 ORD USD0.3333 Buenos Aires Stock Exchange AR ARS 18. Jul 2001
Number of employees
Current staff
Staff numbers
8,300
Altria Group employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:40
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.