What Should You know About Altria (MO) Before Investing?

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.