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MO

Altria GroupNYSE:MO Stock Report

Market Cap

US$79.0b

7D

-2.0%

1Y

6.9%

Updated

02 Dec, 2021

Data

Company Financials +
MO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health2/6
Dividends5/6

MO Stock Overview

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, oral tobacco products, and wine in the United States.

Altria Group Competitors

Philip Morris International

NYSE:PM

US$135.2b

Turning Point Brands

NYSE:TPB

US$698.5m

Healthier Choices Management

OTCPK:HCMC

US$152.9m

Charlie's Holdings

OTCPK:CHUC

US$34.8m

Price History & Performance

Summary of all time highs, changes and price drops for Altria Group
Historical stock prices
Current Share PriceUS$43.21
52 Week HighUS$52.59
52 Week LowUS$39.93
Beta0.67
1 Month Change-2.13%
3 Month Change-15.23%
1 Year Change6.90%
3 Year Change-20.57%
5 Year Change-33.89%
Change since IPO203.23%

Recent News & Updates

Nov 03

Altria Could Unlock Value With A Tracking Stock For BUD Shares

"What would John Malone do?" faced with valuable assets, a low valuation and an aversion to paying taxes. Altria is a cheap stock with substantial earnings. Low valuation and hidden assets mean substantial upside remains.

Oct 28

Altria: Investors Overreact As Volume Declines Normalized Upwards In Q3

Altria stock is currently down 4.4% after Q3 results. This means a 7.9% Dividend Yield and a 20%+ annualized return in our forecasts. Reported cigarette volumes fell 12.9% year-on-year, due to inventory moves, a reversal of COVID benefits and higher gasoline prices. We believe the U.S. cigarette market remains fundamentally stable; e-vapor volume growth has remained in 2021 year-to-date. In Oral Tobacco, Altria has stabillized its volume share at the cost of lower EBIT. This has only 13% of total EBIT and limited impact on the group. With shares at $45.35, we expect a total return of 71% (20.5% annualized) by 2024 year-end on just 4% Net Income growth. Buy.

Oct 21

Altria: Share Price May Never Recover, But I'm Still Buying

My worst ever timed investment was purchasing Altria in the middle of 2017, merely weeks before their share price plunged following the FDA proposal to lower nicotine in cigarettes. It has since felt like a continuous wave of negative headlines weighing down their share price, despite their financial performance remaining resilient and dividends growing almost 50% higher. After this near half a decade-long rollercoaster, I am starting to think that the negative headlines may never dissipate long enough to see their share price recover. Their shares are now priced for a dividend reduction, which lowers the downside risks of overpaying and provides the potential to generate alpha if these negative headlines happen to dissipate. Since this creates an as close as possible win-win scenario for investors, I believe that my very bullish rating is appropriate.

Oct 01

Altria: A Dividend King On Sale

Earnings continue to make new highs, which is not reflected in the stock price of the company. The dividend of 7.4% is very safe and should continue to grow with low-single digits. The business appears undervalued based on operating earnings, free cash flow and stock chart performance.

Sep 27

Reiterate Strong Buy On Altria Stock - Why The Fed Is No Threat To MO

Stocks came under pressure recently, I believe, due to investor angst about Fed monetary policy. Altria shares were penalized in kind, but I believe in error. Moving forward, Altria shares should benefit from a shift in Fed monetary policy, as explained herein.

Shareholder Returns

MOUS TobaccoUS Market
7D-2.0%-13.6%-3.5%
1Y6.9%4.9%19.4%

Return vs Industry: MO matched the US Tobacco industry which returned 7.4% over the past year.

Return vs Market: MO underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is MO's price volatile compared to industry and market?
MO volatility
MO Average Weekly Movement3.4%
Tobacco Industry Average Movement14.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
18227,100Billy Giffordhttps://www.altria.com

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 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.

Altria Group Fundamentals Summary

How do Altria Group's earnings and revenue compare to its market cap?
MO fundamental statistics
Market CapUS$78.97b
Earnings (TTM)US$2.77b
Revenue (TTM)US$21.08b

28.7x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MO income statement (TTM)
RevenueUS$21.08b
Cost of RevenueUS$7.24b
Gross ProfitUS$13.84b
ExpensesUS$11.08b
EarningsUS$2.77b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin65.67%
Net Profit Margin13.12%
Debt/Equity Ratio-2,294.2%

How did MO perform over the long term?

See historical performance and comparison

Dividends

8.3%

Current Dividend Yield

233%

Payout Ratio

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 ($43.21) is trading below our estimate of fair value ($112.32)

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 (28.7x) compared to the Global Tobacco industry average (13.7x).

PE vs Market: MO is poor value based on its PE Ratio (28.7x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: MO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MO has negative assets, so we can't compare its PB Ratio to the US Tobacco industry average.


Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MO's forecast earnings growth (21.2% per year) is above the savings rate (2%).

Earnings vs Market: MO's earnings (21.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: MO's revenue (1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MO's revenue (1% 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 (279.8%).


Past Performance

How has Altria Group performed over the past 5 years?

-37.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MO has a large one-off loss of $1.0B impacting its September 30 2021 financial results.

Growing Profit Margin: MO's current net profit margins (13.1%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: MO's earnings have declined by 37.7% per year over the past 5 years.

Accelerating Growth: MO's earnings growth over the past year (280.9%) exceeds its 5-year average (-37.7% per year).

Earnings vs Industry: MO earnings growth over the past year (280.9%) exceeded the Tobacco industry 13.3%.


Return on Equity

High ROE: MO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Altria Group's financial position?


Financial Position Analysis

Short Term Liabilities: MO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MO's debt is well covered by operating cash flow (29.4%).

Interest Coverage: MO's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Dividend

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

8.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MO's dividend (8.33%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: MO's dividend (8.33%) is in the top 25% of dividend payers in the US market (3.69%)


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 (233%), 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 (77.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Billy Gifford (51 yo)

1.67yrs

Tenure

US$12,238,397

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 ($USD12.24M) is about average for companies of similar size in the US market ($USD11.11M).

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


Leadership Team

Experienced Management: MO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MO's board of directors are considered experienced (6.7 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Altria Group, Inc.'s 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$78.972b
  • Shares outstanding: 1.84b
  • Website: https://www.altria.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:32
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.