About Altria Group, Inc.
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.
Altria Group, Inc. (MO) is a Consumer Defensive company in the Tobacco industry with a market capitalisation of $115.2B. The stock trades at 14.52x trailing earnings and yields 6.44%.
- Sector
- Consumer Defensive
- Industry
- Tobacco
- Market cap
- $115.2B
- P/E ratio
- 14.52
- Forward P/E
- 11.76
- EPS (TTM)
- $4.75
- Revenue (TTM)
- $20.4B
- Free cash flow
- $9B
- Profit margin
- 39.0%
- Dividend yield
- 6.44%
- Beta
- 0.49
- Shares outstanding
- 1.7B
Financial health: Fair5/10
5 strengths, 5 concerns. Weakest points: current ratio, return on equity, earnings growth and 2 more.
- Debt to equity: -7.34 (Strong, benchmark < 0.5) — Debt of -7.34x equity is conservative against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 2.3y (Strong, benchmark < 4 years) — Net debt of $21.2B is 2.3x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 0.65 (Concern, benchmark > 1.5) — Short-term assets cover only 0.65x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: -198.4% (Concern, benchmark > 15%) — Earns -198.4% on shareholder equity, well short of the > 15% mark.
- Gross margin: 87.0% (Strong, benchmark > 40%) — Keeps 87.0% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 39.0% (Strong, benchmark > 10%) — Turns 39.0% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $9.1B (Strong, benchmark positive) — Generated $9.1B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 1.2% (Watch, benchmark > 10%) — Revenue changed 1.2% year on year, short of the > 10% mark.
- Earnings growth: -2.7% (Concern, benchmark > 10%) — Earnings changed -2.7% year on year, well short of the > 10% mark.
- PEG ratio: 2.64 (Concern, benchmark < 1) — At 2.64, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 89.3% (Concern, benchmark < 60%) — Pays out 89.3% of earnings as dividends — above the level usually considered sustainable.