Altria Group IncMOTOP PICKFeb 13, 2025Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
MO has performed well, only down around 4% in 2022 (with dividends included), and now trading at 8.9x times' Forward P/E.
In the 3Q, MO’s revenue declined 3.5% to $5.4B, missing estimates of $5.59B and EPS was $1.28, slightly missing estimates of $1.30.
The balance sheet is leveraged with net debt of $23.8B.
Total debt is around 2.9x times trailing twelve-month cash flow of $8.3B, and cash flow remained flat compared to $8.4B last year.
We would have almost no concerns on the dividend.
Overall, MO looks okay from a yield standpoint, but we would not really expect capital gains with low growth overall. We do like PM better within the sector. Unlock Premium - Try 5i Free
Altria Group, Inc. is a holding company, which engages in the manufacture and sale of cigarettes in the United States. It operates through the following segments: Smokeable Products, Oral Tobacco Products, and All Other. The Smokeable Products segment consists of cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The Oral Tobacco Products segment includes MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. The All Other segment refers to the financial results of NJOY, Helix ROW, and the IQOS System heated tobacco business. The company was founded in 1919 and is headquartered in Richmond, VA. Social media mentions are up 2400% in the past 24h.