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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$43.21|
|52 Week High||US$52.59|
|52 Week Low||US$39.93|
|1 Month Change||-2.13%|
|3 Month Change||-15.23%|
|1 Year Change||6.90%|
|3 Year Change||-20.57%|
|5 Year Change||-33.89%|
|Change since IPO||203.23%|
Recent News & Updates
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.
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.
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.
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.
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.
|MO||US Tobacco||US Market|
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.
|MO Average Weekly Movement||3.4%|
|Tobacco Industry Average Movement||14.6%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.9%|
|10% least volatile stocks in US Market||2.4%|
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
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
|MO fundamental statistics|
Is MO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MO income statement (TTM)|
|Cost of Revenue||US$7.24b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.51|
|Net Profit Margin||13.12%|
How did MO perform over the long term?See historical performance and comparison
8.3%Current Dividend Yield
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 ($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.
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 (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%).
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 $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.
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).
What is Altria Group current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Billy Gifford (51 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 ($USD11.11M).
Compensation vs Earnings: Billy's compensation has increased by more than 20% in the past year.
Experienced Management: MO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: MO's board of directors are considered experienced (6.7 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 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$78.972b
- Shares outstanding: 1.84b
- Website: https://www.altria.com
Number of Employees
- Altria Group, Inc.
- 6601 West Broad Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/02 23:32|
|End of Day Share Price||2021/12/02 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.