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Altria Group Inc (MO)

Undervalued
Consumer DefensiveTobaccoUnited States

Fundamental

62

Price

$67.34

Market Cap

$115.43B

Part 1 · What the company is worth

Overview

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. It offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and oral tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand. The company sells its products to distributors, as well as large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$23.46B

Trailing 12 months (through 6/30/2026)

Net Income

$7.97B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$9.07B

Total Equity

$-3.50B

Total Liabilities

$38.47B

Current Ratio

0.52

Interest Coverage

8.41

Debt/EBITDA

2.42

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$99.94

Current Price

$67.34

Margin of Safety

+32.6%

Fair Value Range

$64.96 - $134.92

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$70.00
Discounted cash flow (DCF):$185.01
Earnings multiple (P/E):$56.08
Graham growth formula:$131.08
Earnings power value (EPV):$64.89
Justified P/B:$28.58
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:$69.12
Mid-cycle earnings:$79.96
Revenue multiple:$16.64
Analyst Consensus:Buy (12B / 9H / 3S)
Last Earnings Surprise:-4.02%

Valuation Metrics

P/E Ratio

14.18

ROE

-198.4%

P/B Ratio

-

P/FCF

12.34

Gross Margin

63.0%

ROIC

33.9%

Profitability Radar

Value Creation (Economic Moat)

ROIC

33.9%

WACC

7.3%

ROIC − WACC

+26.6 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (15)

  • ROIC 33.9%
  • Gross Margin 63.0%
  • P/FCF 12.34
  • Operating Margin 46.8%
  • Positive Free Cash Flow
  • CapEx intensity
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 149.7%
  • Analyst Consensus 50% Buy
  • PEG Ratio 1.27
  • Earnings Quality (OCF/NI) 1.18
  • Share Dilution -2.1%
  • Piotroski F-Score 6/9

Failed (9)

  • EPS shows upward trend
  • EPS CAGR -0.63%
  • Price CAGR 0.20%
  • Current Ratio
  • Low reliance on intangibles
  • DCF valuation (Fairly valued)
  • Revenue Growth 5Y -2.3%
  • Earnings Surprise avg -2.0%
  • Net Margin Trend 34.0% vs 37.2%

Unavailable (4)

  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Price below Graham Number

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.18

High quality: earnings backed by cash

Share Dilution

-2.1%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Salvatore MancusoCEO & Director60
Ms. Heather A. NewmanExecutive VP & CFO48
Mr. Jody L. BegleyExecutive VP & COO52
Mr. Charles N. Whitaker J.D.Senior VP, Chief Human Resources Officer & Chief Compliance Officer58
Mr. William F. Gifford Jr.Consultant55
Mr. Daniel J. BryantVP, Senior Vice President Technology & Corporate Development and Treasurer55
Mr. Mac LivingstonVice President of Investor Relations-
Mr. Robert A. McCarter III, J.D.Executive VP & General Counsel52
Ms. Jennifer HunterSenior VP of Corporate Citizenship & Chief Sustainability Officer - Altria Client Services LLC-
Ms. Shannon LeistraPresident & CEO of NJOY, LLC, Senior VP and Chief Growth Officer-

Audit Risk

6

Board Risk

1

Compensation Risk

2

Shareholder Rights Risk

6

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-25

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-30

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-28

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for MO, sourced from Markets Gazette.

  • 3/3/2026POSITIVE
    Should You Buy Altria Group Stock for Its 6.1%-Yielding Dividend?

    Altria Group stands out as a cornerstone for income-focused investors, boasting a dividend yield of 6.1%. The most significant aspect is its multi-decade history of consistent dividend increases, a robust indicator of financial stability and commitment to shareholders. For those seeking regular cash flows and a hedge against inflation, Altria's distribution policy represents a considerable strength. This track record of dividend growth suggests prudent management and a sustained ability to generate profits over time, making the stock particularly appealing in a volatile market environment. Analysts highlight how such consistency is rare and valuable, positioning Altria as a solid option for a long-term portfolio.

  • 2/23/2026NEUTRAL
    Why I Can't Stop Buying These 3 High-Yielding Dividend Stocks

    A market analysis suggests investors should look beyond popular high-yield dividend stocks like Altria. While Altria is a favorite for income seekers, the article points to three unnamed alternatives with "stronger businesses." This framing serves as a cautionary note, implying that a stock's popularity doesn't always equate to fundamental strength. For investors, the takeaway is to avoid complacency with well-known names and conduct thorough due diligence to find superior yield opportunities, possibly with a better risk/reward profile. The mention of Altria as a less attractive benchmark could temper enthusiasm for the stock, although it is not direct negative news.

  • 2/21/2026NEGATIVE
    Altria Stock Is Interesting, but Here's What I'd Buy Instead

    The article suggests that despite Altria Group Inc.'s high 6.3% dividend yield, there are significant risks that may outweigh the benefits for investors. The author recommends alternatives, indicating a cautious outlook on the stock.

via Markets Gazette