Altria Group, Inc. (MO) stock analysis

P/E above its 5-year median

Altria's P/E of 16.0 is above its own 5-year median of 13.4.

P/E below the industry

Altria's P/E of 16.0 is below the Consumer staples median of 23.3.

EV/EBITDA above its 5-year median

Altria's EV/EBITDA of 13.3 is above its 5-year median of 9.9.

P/S above the industry

Altria's price-to-sales of 5.47 is above the Consumer staples median of 0.71 (book value is negative, so we use sales).

Trading above fair value

The share price of $77.39 is above our fair value estimate of $77.37.

Margin of safety under 20%

The price is 0.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -2.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -8.5% over the last twelve months, against a 5-year average of 9.2% a year.

Growing slower than the industry

Revenue grew 0.5% over the last twelve months; the Consumer staples median is 3.7%.

Guidance raised

Altria raised its 2026 full-year adjusted diluted EPS outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 63.3% over the last twelve months, against 62.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 43.8%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 9.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 34.5% over the last twelve months, against a 5-year average of 28.5%.

Net margin above the industry

Altria's net margin of 34.5% is above the Consumer staples median of 1.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 39.2% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.58 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Altria paid dividends worth 5.5% of the share price over the last twelve months.

Yield above Treasuries

The 5.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Altria yields 5.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 87.7% of net income.

Covered by free cash flow

Dividends take 78.4% of free cash flow.