Altria Group (MO) AI Stock Analysis

• Market Cap: $96.14B
• Dividend Yield: 7.1%
• Average Volume (3M): 8.54M
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.05
• Revenue Growth: -0.96%
• EPS Growth: -11.42%
• Country: US
• Employees: 14,654
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.45
• Shares Outstanding: 1,678,671,500
• 10 Day Avg. Volume: 10,751,406
• 30 Day Avg. Volume: 8,543,050
• PEG Ratio: 0.19
• Price to Book (P/B): -40.14
• Price to Sales (P/S): 4.39
• P/FCF Ratio: 10.43
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $65.60
• Price Target Upside: 13.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.44
• Revenue Forecast (FY): $20.08B

• Rating: 66 Neutral
• Price Target: $67.00 ▲(15.46% Upside)

Altria's overall stock score reflects strong valuation and earnings call performance, offset by financial risks due to high leverage and bearish technical indicators. The company's strategic initiatives and high dividend yield are positive, but declining cigarette volumes and competitive pressures in the nicotine pouch market pose challenges.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation enhances Altria's ability to invest in growth opportunities and return value to shareholders, supporting long-term financial stability.

Growth in Oral Tobacco Products

Growth in oral tobacco products indicates successful diversification efforts, reducing reliance on traditional cigarettes and aligning with evolving consumer preferences.

Increased EPS Guidance

Raising EPS guidance reflects management's confidence in future performance, suggesting strong operational execution and strategic positioning.

Negative Factors

Declining Cigarette Volumes

Declining cigarette volumes highlight challenges in the core business, potentially impacting revenue and necessitating a shift towards alternative products.

High Leverage and Negative Equity

High leverage and negative equity pose financial risks, limiting flexibility and increasing vulnerability to economic downturns or regulatory changes.

Increased Competition in Nicotine Pouch Market

Increased competition in the nicotine pouch market could pressure margins and market share, challenging Altria's growth in this segment.

Altria Group Business Overview & Revenue Model

Company Description

Altria Group, Inc. is a leading American corporation primarily engaged in the manufacture and sale of tobacco products. The company operates through several segments, including smokeable products, smokeless products, and wine. Altria's core products include well-known cigarette brands such as Marlboro, as well as smokeless tobacco products like Copenhagen and Skoal. In recent years, Altria has also expanded its portfolio to include heated tobacco products and e-vapor products, reflecting a strategic shift towards reduced-risk alternatives.

How the Company Makes Money

Altria generates revenue predominantly through the sale of its tobacco products, which are subject to various federal and state taxes. The company's primary revenue stream comes from its smokeable products, particularly cigarettes, which account for a significant portion of its sales. Additionally, Altria earns revenue from its smokeless tobacco products and wines. The company's revenue model is heavily influenced by pricing strategies, including the adjustment of product prices in response to taxation and regulatory changes. Altria also engages in strategic partnerships and investments in emerging markets, particularly in reduced-risk products like IQOS, a heated tobacco product. These partnerships and investments aim to capture market share in the evolving landscape of tobacco consumption, contributing to the company's overall earnings.

Altria Group Financial Statement Overview

Summary

Altria Group demonstrates robust operational efficiency and strong cash flow generation, with a high gross profit margin of 71.63% and a solid EBIT margin of 54.56%. However, challenges include declining revenue, a significant drop in net profit margin to 43.39%, and high leverage reflected in negative stockholders' equity.

Income Statement

Altria Group's income statement shows a stable but declining revenue trend with a slight decrease from the previous year. The gross profit margin stands at a strong 71.63% for TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the net profit margin has decreased significantly from 55.08% in 2024 to 43.39% in the TTM, reflecting potential challenges in maintaining profitability. The EBIT margin remains robust at 54.56%, demonstrating solid operational efficiency.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity of -3,256 million USD as of TTM, indicative of high leverage and potential risk. The debt-to-equity ratio is not applicable due to negative equity, but the high level of debt poses a risk of financial instability. The equity ratio is negative, emphasizing the need for capital restructuring to enhance financial health.

Cash Flow

Cash flow analysis highlights a strong free cash flow growth rate of 24.63% in the TTM, driven by effective capital expenditure management. The operating cash flow to net income ratio is 1.24, suggesting strong cash generation capabilities relative to net earnings. The free cash flow to net income ratio is 1.22, reinforcing the company's ability to generate cash. However, significant financing cash outflows may affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.17B	20.44B	20.50B	20.69B	21.11B	20.84B
Gross Profit	14.52B	14.37B	14.28B	14.25B	13.99B	13.02B
EBITDA	12.10B	15.07B	12.35B	8.74B	5.26B	8.37B
Net Income	8.87B	11.26B	8.13B	5.76B	2.48B	4.47B
Balance Sheet
Total Assets	0.00	35.18B	38.57B	36.95B	39.52B	47.41B
Cash, Cash Equivalents and Short-Term Investments	0.00	3.13B	3.69B	4.03B	4.54B	4.95B
Total Debt	25.70B	24.93B	26.23B	26.68B	28.04B	29.47B
Total Liabilities	37.60B	37.37B	42.06B	40.88B	41.13B	44.49B
Stockholders Equity	-2.65B	-2.24B	-3.54B	-3.97B	-1.61B	2.84B
Cash Flow
Free Cash Flow	11.57B	8.61B	9.09B	8.05B	8.24B	8.15B
Operating Cash Flow	11.75B	8.75B	9.29B	8.26B	8.40B	8.38B
Investing Cash Flow	-203.00M	2.17B	-1.28B	782.00M	1.21B	-143.00M
Financing Cash Flow	-3.56B	-11.49B	-8.37B	-9.54B	-10.03B	-5.40B

Altria Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MO, the sentiment is Negative. The current price of 58.03 is below the 20-day moving average (MA) of 61.76, below the 50-day MA of 63.96, and below the 200-day MA of 58.65, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 31.95 is Neutral, neither overbought nor oversold. The STOCH value of 16.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MO.

Altria Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPB	67 Neutral	$1.91B	35.28	22.54%	0.29%	6.71%	8.16%
RLX	67 Neutral	$2.81B	28.10	4.56%	0.34%	61.64%	16.76%
MO	66 Neutral	$96.14B	10.93	―	7.10%	-0.96%	-11.42%
UVV	64 Neutral	$1.37B	12.37	7.72%	6.26%	3.01%	-7.14%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	62 Neutral	$233.34B	27.15	―	3.60%	7.72%	-12.45%
BTI	52 Neutral	$119.12B	30.00	5.97%	5.48%	0.48%	―

Altria Group Corporate Events

Altria’s 2025 Earnings Report and Strategic Moves

Altria Group, Inc., a prominent player in the tobacco industry, is known for its diverse portfolio of tobacco products, including both combustible and smoke-free offerings, as well as its strategic investments in related sectors. The company recently released its third-quarter and nine-month financial results for 2025, highlighting a narrowed full-year earnings guidance and an expanded share repurchase program.

Altria Expands Share Repurchase Program to $2 Billion

On October 29, 2025, Altria’s Board of Directors authorized the expansion of its share repurchase program from $1 billion to $2 billion, set to expire on December 31, 2026. The company reported its third-quarter and nine-month results for 2025, highlighting resilience in its core tobacco businesses and advancements in its smoke-free portfolio. Altria also narrowed its full-year earnings guidance for 2025, expecting adjusted diluted EPS growth of 3.5% to 5.0% from 2024. The company continues to focus on returning value to shareholders through dividends and share repurchases while pursuing long-term growth in smoke-free and non-nicotine products.

The most recent analyst rating on (MO) stock is a Sell with a $57.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

Altria Group Announces Board Member Retirement

On October 3, 2025, Altria Group announced the retirement of George Muñoz from its Board of Directors, effective after his current term ends. Muñoz, who has been with Altria since 2004, will not seek re-election at the 2026 Annual Meeting of Shareholders. His departure marks the end of over two decades of significant contributions to the company, where he held key roles such as Chair of the Compensation and Talent Development Committee. This change in leadership could impact Altria’s strategic direction as it continues to pursue its vision of a smoke-free future.

The most recent analyst rating on (MO) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

Altria Group Issues $1 Billion in Senior Notes

On August 6, 2025, Altria Group issued $1 billion in senior unsecured notes, split evenly between 4.500% Notes due 2030 and 5.250% Notes due 2035. This financial move, guaranteed by Philip Morris USA, aims to strengthen Altria’s capital structure and maintain its competitive positioning in the market.

The most recent analyst rating on (MO) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Altria Group stock, see the MO Stock Forecast page.

Altria Reports Q2 2025 Earnings Amid Challenges

Altria Group, Inc., a leading player in the tobacco industry, is engaged in the manufacture and sale of cigarettes, cigars, smokeless tobacco, and e-vapor products in the United States. The company also holds investments in Anheuser-Busch InBev and Cronos Group, diversifying its portfolio beyond traditional tobacco products.

Altria’s Earnings Call: Mixed Results and Strategic Moves

Altria’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. While the company demonstrated strong financial performance, particularly with the growth of its on! nicotine pouches and significant shareholder returns, it also faced notable challenges. These included a decline in cigarette volumes, legal setbacks with NJOY, and regulatory hurdles in the e-vapor market. Altria is actively making strategic moves to address these issues, but some challenges remain significant.