Now trading at a price of $44.45, Altria has moved -1.2% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Altria.
Altria shares moved -16.4% over the last 52 weeks, with a high of $57.05 and a low of $40.35. During this time, the stock lagged the S&P 500 index by -8.0%. As of January 2022, the company's 50-day average price is $46.1. Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The large-cap Consumer Defensive company has 6,300 full time employees and is based in Richmond, VA. Altria has returned a 8.2% dividend yield over the last 12 months.
The Company Has a Steady Stream of Positive Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $19,796 | $20,841 | $21,111 | $20,688 |
| Revenue Growth | n/a | 5.28% | 1.3% | -2.0% |
| Gross Margins | 64.2% | 62.5% | 66.3% | 68.9% |
| Gross Margins Growth | n/a | -2.65% | 6.08% | 3.92% |
| Operating Margins | 53.0% | 52.2% | 54.8% | 57.6% |
| Operating Margins Growth | n/a | -1.51% | 4.98% | 5.11% |
| Net Margins | -6.53% | 21.43% | 11.72% | 27.86% |
| Net Margins Growth | n/a | 428.18% | -45.31% | 137.71% |
| Earnings Per Share | -$0.7 | $2.4 | $1.34 | $3.19 |
| EPS Growth | n/a | 442.86% | -44.17% | 138.06% |
| Diluted Shares (MM) | 1,858 | 1,859 | 1,845 | 1,786 |
| Free Cash Flow (MM) | $7,591 | $8,154 | $8,236 | $8,051 |
| FCF Growth | n/a | 7.42% | 1.01% | -2.25% |
| Capital Expenditures (MM) | -$246 | -$231 | -$169 | -$205 |
| Net Debt / EBITDA | 2.07 | 2.21 | 3.88 | 2.59 |
Altria Is Reasonably Priced:
Compared to the Consumer Defensive sector's average of 24.36, Altria has a trailing twelve month P/E ratio of 13.9 and, according to its EPS guidance of 5.3, an expected P/E ratio of 8.4.
Altria's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Altria Is the Subject of Mixed Market Indicators:
14 analysts are following Altria and have set target prices ranging from $37.0 to $70.0 per share. On average, they have given the company a rating of hold. At the current price of $44.45, MO is trading -10.44% away from its average analyst target price of $49.63 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 0.9% of the company's shares are tied to short positions. Institutions own 59.9% of Altria's shares, while the insider ownership rate stands at 0.1%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $7,127,968,740.
