Altria Group (1MO) AI Stock Analysis

Altria Group

(Milan:1MO)

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Positive Factors

Strong cash generationConsistent operating and free cash flow provides internal funding for dividends, debt obligations, and continued product investment. The close relationship between free cash flow and net income also supports earnings quality, giving Altria resilience as it manages tobacco volume declines.

Negative Factors

Declining tobacco volumesPersistent declines in core cigarette and oral-tobacco volumes create a structural challenge for revenue growth and operating leverage. Pricing can offset some volume pressure, but continued contraction raises the burden on innovation, mix management, and cost discipline to sustain earnings.

Altria Group (1MO) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 130.29B
Dividend Yield: 5.33%
Average Volume (3M): 254
Price to Earnings (P/E): 16.1
Beta (1Y): -0.02
Revenue Growth: -2.51%
EPS Growth: -11.82%
Country: Italy
Employees: 5,900
Sector: Consumer Defensive
Sector Strength: 62
Industry: Tobacco

Altria Group Business Overview & Revenue Model

Company Description

Operating across the United States through its subsidiaries, Altria Group, Inc. is a prominent manufacturer and marketer of both combustible and oral tobacco items. Its portfolio features cigarettes, primarily under the iconic Marlboro brand, alongsi...

Altria Group Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:6.25%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Altria reported adjusted EPS growth, raised full-year guidance, delivered smokeable-products income and margin growth, expanded Marlboro and total PM USA share, grew on! shipments, increased shareholder returns, and maintained a strong balance sheet. These strengths were partly offset by persistent consumer economic pressure, cigarette and oral-tobacco volume declines, lower oral-segment OCI, competitive nicotine-pouch conditions, and ongoing illicit-market and regulatory challenges in e-vapor.

Positive Updates

Adjusted EPS Growth and Raised Guidance

Adjusted diluted EPS increased 4.8% in the third quarter and 5.1% for the first 9 months. Based on strong first-9-month performance and confidence in the full-year plan, Altria raised its 2026 adjusted diluted EPS guidance to $5.66 to $5.74, representing growth of 4.5% to 6% from $5.42 in 2025, compared with its beginning-of-year guidance range of 2.5% to 5%.

Negative Updates

Persistent Consumer Economic Pressure

Management said the overall cost of goods and services has risen roughly 30% since 2021, while more recent gas-price increases have further constrained discretionary income and continued to pressure adult smokers and consumer spending.

Company Guidance

For 2026, Altria now expects adjusted diluted EPS in a range of $5.66 to $5.74, representing a growth rate of 4.5% to 6% from a base of $5.42 in 2025, versus beginning-of-year guidance of 2.5% to 5%; the guidance is inclusive of investments in on! PLUS, including the 12-milligram product and flavor line extensions. Management said expectations for the second half of the year regarding stepping up and the imbalance between quarters have not changed, expects duty drawback benefits to be “pretty balanced across Q3 and Q4,” and did not provide further guidance on the potential duty drawback benefit, noting that the PMI contract manufacturing agreement starts in 2027. The company’s progressive dividend goal remains mid-single-digit annual growth, and its debt-to-EBITDA target remains approximately 2x.

Altria Group Risk Analysis

Altria Group disclosed 23 risk factors in its most recent earnings report. Altria Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Altria Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

IT:1MO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	75Outperform	$1.97B	13.37	6.20%	6.83%	59.23%	39.66%
BTI	68Neutral	$132.23B	15.73	13.38%	5.40%	4.47%	117.22%
PM	68Neutral	$325.43B	30.48	-119.68%	2.88%	7.91%	24.06%
TPB	65Neutral	$1.35B	28.28	11.93%	0.47%	20.10%	-3.19%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
XXII	40Underperform	$1.34M	0.00	-20.47%	―	-27.44%	99.95%

* Consumer Defensive Sector Average

Performance Comparison

IT:1MO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1MO	Altria	70.00	23.80	51.53%
BTI	British American Tobacco	61.52	12.03	24.30%
PM	Philip Morris International	208.79	69.13	49.50%
XXII	22nd Century Group	0.07	-464.93	-99.99%
TPB	Turning Point Brands Inc	67.31	-25.97	-27.84%
RLX	Rlx Technology, Inc.	1.61	-0.69	-29.97%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Altria Group AI Stock Analysis