ALTRIA GROUP, INC. (MO) Stock Analysis
ALTRIA GROUP, INC. (MO) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
ALTRIA GROUP, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 39.0% | Strong cash generation |
| Debt/Equity | -7.3x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 39.0% provides financial flexibility for growth and shareholder returns.
Explore ALTRIA GROUP, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: ALTRIA GROUP, INC. earns N/A ROIC
ALTRIA GROUP, INC.'s trailing-twelve-month ROIC of N/A (sector median: 6.7%), driven by NOPAT margin of 31.5% combined with asset turnover of 0.0x. Source: 10-Q filed 2025-10-30. Gross margin of 62.5% with operating margin at 42.5% reflects strong pricing power.
| Metric | MO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 6.7% |
| Gross Margin | 62.5% | Excellent | Strong pricing power |
| Operating Margin | 42.5% | Excellent | Efficient operations |
Cash Flow: ALTRIA GROUP, INC. generates $9.1B FCF at 39.0% margin, positive NaN/8 quarters
ALTRIA GROUP, INC. generated $9.1B in free cash flow (TTM), a 39.0% FCF margin, a margin that ranks Top 5% in Consumer Staples. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | MO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 39.0% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $9.1B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ALTRIA GROUP, INC. at -7.3x leverage
ALTRIA GROUP, INC.'s debt-to-equity ratio of -7.3x reflects conservative leverage. Total debt of $25.7B offset by $4.5B in cash. Source: 10-Q filed 2025-10-30.
| Metric | MO | Rating | Context |
|---|---|---|---|
| Debt to Equity | -7.3x | Excellent | Conservative capital structure |
| Net Cash Position | $-21.2B | Warning | Net debt position |
Valuation: ALTRIA GROUP, INC. trades at 14.0x earnings
ALTRIA GROUP, INC. trades at a P/E of 14.0x. Free cash flow yield of 9.4% offers attractive cash returns relative to price.
| Metric | MO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 14.0x | Adequate | Reasonable valuation |
| EV/Sales | 4.2x | Good | Growth premium priced in |
| FCF Yield | 9.4% | Excellent | Attractive cash return |
| Dividend Yield | 7.2% | Good | Meaningful income |
Capital Allocation: ALTRIA GROUP, INC. returns 8.2% shareholder yield
ALTRIA GROUP, INC.'s total shareholder yield is 8.2% (dividends 7.2% + buybacks 1.0%). Source: 10-Q filed 2025-10-30.
| Metric | MO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.2% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 1.0% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $8.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 39.0% | Top 5% | 6.8x above |
| Gross Margin | 62.5% | Top 5% | 2.1x above |
| Operating Margin | 42.5% | Top 5% | 8.0x above |
| P/E Ratio | 14.0x | N/A | - |
Financial Scorecard
| Metric | MO | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 39.0% | Excellent | Top 5% of sector (median: 5.7%) |
| Gross Margin | 62.5% | Excellent | Top 5% of sector (median: 30.2%) |
| Debt to Equity Ratio | -734.1% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 14.0x | Adequate | Attractively valued |
| Free Cash Flow Yield | 9.4% | Excellent | High cash return |
Frequently Asked Questions
Q: What is ALTRIA GROUP, INC.'s Return on Invested Capital (ROIC)?
ALTRIA GROUP, INC. (MO) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 6.7%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is ALTRIA GROUP, INC.'s Free Cash Flow Margin?
ALTRIA GROUP, INC. (MO) has a free cash flow margin of 39.0%, generating $9.1 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is ALTRIA GROUP, INC. stock overvalued or undervalued?
ALTRIA GROUP, INC. (MO) trades at a P/E ratio of 14.0x, which is above the sector median of N/A. The EV/Sales multiple is 4.2x. Free cash flow yield is 9.4%, which represents an attractive cash return to investors.
Q: Does ALTRIA GROUP, INC. pay a dividend?
ALTRIA GROUP, INC. (MO) currently pays a dividend yield of 7.2%. Including share buybacks, the total shareholder yield is 8.2%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is ALTRIA GROUP, INC.'s revenue and earnings growth?
ALTRIA GROUP, INC. (MO) declined revenue by 3.1% year-over-year. Earnings per share decreased by 37.1% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is ALTRIA GROUP, INC. buying back stock?
ALTRIA GROUP, INC. (MO) repurchased $1.0 billion of stock over the trailing twelve months. This represents a buyback yield of 1.0%.
Q: How does ALTRIA GROUP, INC. compare to competitors in Consumer Staples?
Compared to other companies in Consumer Staples, ALTRIA GROUP, INC. (MO) shows: ROIC of N/A is below the sector median of 6.7% (NaNx median). FCF margin of 39.0% exceeds the sector median of 5.7% (Top 0% of sector). Gross margin at 62.5% is 32.3 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.
Q: What warning signs should I watch for with ALTRIA GROUP, INC.?
Investors in ALTRIA GROUP, INC. (MO) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.