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Relative to Consumer Staples Sector Median (N=180)
Metric
MO
Benchmark
P/E Ratio
13.6x
-59%
EV/EBITDA
12.0x
+73%
Price / Book
—
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-61.4%
$26.03Spot: $67.51
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
—
Sector: 7.7%
Dividend Analysis audit
HIGH YIELD
6.35%
Trailing Yield
$6.35
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
87%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ALTRIA GROUP, INC. (MO) receives a "Hold" rating with a composite score of 51.4/100, ranked #141 out of 4446 stocks. Key factor scores: Quality 50/100, Value 67/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
ALTRIA GROUP, INC. (MO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ALTRIA GROUP, INC. Do?
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe tobacco principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands, as well as provides on! oral nicotine pouches. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia. ALTRIA GROUP, INC. (MO) is classified as a large-cap stock in the Consumer Staples sector, specifically within the Tobacco Products industry. The company is led by CEO William F. Gifford and employs approximately 6,300 people, headquartered in Richmond, Virginia. With a market capitalization of $109.5B, MO is one of the prominent companies in the Consumer Staples sector.
ALTRIA GROUP, INC. (MO) Stock Rating — Hold (April 2026)
As of April 2026, ALTRIA GROUP, INC. receives a Hold rating with a composite score of 51.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MO ranks #141 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, ALTRIA GROUP, INC. ranks #6 of 180 stocks, placing it in the top 10% of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MO Stock Price and 52-Week Range
ALTRIA GROUP, INC. (MO) currently trades at $67.51. The stock gained $0.71 (1.1%) in the most recent trading session. The 52-week high for MO is $70.24, which means the stock is currently trading -3.9% from its annual peak. The 52-week low is $52.82, putting the stock 27.8% above its annual trough. Recent trading volume was 6.9M shares, reflecting moderate market activity.
Is MO Overvalued or Undervalued? — Valuation Analysis
ALTRIA GROUP, INC. (MO) carries a value factor score of 67/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 13.63x, compared to the Consumer Staples sector average of 33.11x — a discount of 59%. The price-to-sales ratio is 4.67x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, MO trades at 11.97x EV/EBITDA, versus 6.93x for the sector. The EV/EBIT multiple is 12.86x.
Overall, MO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ALTRIA GROUP, INC. Profitability — ROE, Margins, and Quality Score
ALTRIA GROUP, INC. (MO) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. Return on assets (ROA) comes in at 23.2% versus the sector average of 3.1%.
On a margin basis, ALTRIA GROUP, INC. reports gross margins of 62.1%, compared to 26.2% for the sector. The operating margin is 47.6% (sector: 2.9%). Net profit margin stands at 33.8%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at -2.2% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MO Debt, Balance Sheet, and Financial Health
ALTRIA GROUP, INC. has a debt-to-equity ratio of -990.0%, compared to the Consumer Staples sector average of 72.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.65x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $25.71B.
MO has a beta of 0.09, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ALTRIA GROUP, INC. is 93/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ALTRIA GROUP, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ALTRIA GROUP, INC. reported revenue of $23.69B and earnings per share (EPS) of $4.12. Net income for the quarter was $8.12B. Gross margin was 62.1%. Operating income came in at $11.40B.
In FY 2025, ALTRIA GROUP, INC. reported revenue of $23.28B and earnings per share (EPS) of $4.12. Net income for the quarter was $6.95B. Gross margin was 62.5%. Revenue grew -3.1% year-over-year compared to FY 2024. Operating income came in at $9.90B.
In Q3 2025, ALTRIA GROUP, INC. reported revenue of $6.07B and earnings per share (EPS) of $1.41. Net income for the quarter was $2.38B. Gross margin was 62.8%. Revenue grew -3.0% year-over-year compared to Q3 2024. Operating income came in at $3.23B.
In Q2 2025, ALTRIA GROUP, INC. reported revenue of $6.10B and earnings per share (EPS) of $1.41. Net income for the quarter was $2.38B. Gross margin was 63.1%. Revenue grew -1.7% year-over-year compared to Q2 2024. Operating income came in at $3.23B.
Over the past 8 quarters, ALTRIA GROUP, INC. has demonstrated a growth trajectory, with revenue expanding from $6.21B to $23.69B. Investors analyzing MO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MO Dividend Yield and Income Analysis
ALTRIA GROUP, INC. (MO) currently pays a dividend yield of 6.3%. At this yield, a $10,000 investment in MO stock would generate approximately $$635.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning MO offers above-average income for its sector. With a net margin of 33.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MO Momentum and Technical Analysis Profile
ALTRIA GROUP, INC. (MO) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MO vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing MO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MO vs S&P 500 (SPY) comparison to assess how ALTRIA GROUP, INC. stacks up against the broader market across all factor dimensions.
MO Next Earnings Date
No upcoming earnings date has been announced for ALTRIA GROUP, INC. (MO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MO? — Investment Thesis Summary
ALTRIA GROUP, INC. presents a balanced picture with arguments on both sides. The value score of 67/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 93/100) reduces downside risk.
In summary, ALTRIA GROUP, INC. (MO) earns a Hold rating with a composite score of 51.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MO stock.
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Institutional Research Dossier
ALTRIA GROUP, INC. (MO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Altria Group (MO). The company's core business of smokeable tobacco faces secular decline, necessitating a successful transition to alternative nicotine products. While Altria possesses strong pricing power and generates substantial cash flow, the uncertainty surrounding its long-term growth prospects and the regulatory landscape warrants a cautious stance.
The primary takeaway is that Altria's future hinges on its ability to navigate the evolving nicotine market and offset declining cigarette volumes with growth in alternative products like oral nicotine pouches. The high dividend yield provides downside protection, but significant upside potential is limited until the company demonstrates a clear path to sustainable growth in a reduced-risk product category.
Business Strategy & Overview
Altria Group operates primarily in the United States, focusing on the manufacture and sale of smokeable and oral tobacco products. Its flagship brand, Marlboro, dominates the cigarette market, providing a significant revenue stream. The company also markets cigars and pipe tobacco under the Black & Mild brand and moist smokeless tobacco under brands like Copenhagen and Skoal. A key component of Altria's strategy involves managing the decline of its traditional cigarette business through price increases and cost optimization.
Recognizing the long-term secular decline in cigarette consumption, Altria has been actively investing in alternative nicotine products. This includes oral nicotine pouches under the on! brand, which represent a key growth area. The company's strategy also involves strategic investments in other sectors, such as cannabis (Cronos Group) and alcohol, although the success of these ventures remains uncertain. Altria's ability to successfully diversify its revenue streams is crucial for its long-term sustainability.
Altria's distribution network is a significant asset, allowing it to efficiently reach wholesalers and large retail organizations across the United States. The company's marketing efforts are heavily regulated, requiring it to navigate complex restrictions on advertising and promotion. Despite these challenges, Altria maintains a strong brand presence and customer loyalty, particularly among Marlboro smokers.
The company's strategic positioning involves balancing the profitability of its existing cigarette business with the need to invest in and grow its alternative nicotine product portfolio. This requires careful capital allocation and a willingness to adapt to changing consumer preferences and regulatory requirements. Altria's management team faces the challenge of maximizing shareholder value while navigating a complex and evolving industry landscape.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.2%
Sector: 3.1%
-170% VS SCTR
Economic Moat Analysis
Altria possesses a Narrow economic moat, primarily derived from its brand intangible assets and pricing power within the cigarette market. The Marlboro brand commands significant customer loyalty, allowing Altria to maintain market share and implement price increases even as cigarette volumes decline. This pricing power is a key driver of the company's high profitability and cash flow generation.
The regulatory environment surrounding tobacco also contributes to Altria's moat. Stringent regulations on advertising and marketing create barriers to entry for new competitors, protecting the market share of established players like Altria. These regulations also limit the ability of smaller brands to gain traction, further solidifying Altria's position.
However, the moat is narrowing due to the secular decline in cigarette consumption and the rise of alternative nicotine products. While Altria has invested in these areas, it faces increasing competition from other tobacco companies and new entrants. The success of its alternative nicotine products is crucial for maintaining its competitive advantage in the long term.
The strength of Altria's moat is also dependent on its ability to navigate the evolving regulatory landscape. Potential restrictions on nicotine levels in cigarettes or increased taxes on tobacco products could significantly impact its profitability and market share. The company's ability to adapt to these changes will be critical for preserving its competitive advantage.
While the Marlboro brand provides a strong foundation, Altria's long-term moat is contingent on its ability to successfully transition to alternative nicotine products and maintain its pricing power in a changing market. The increasing competition and regulatory uncertainty pose significant challenges to its competitive position.
Financial Health & Profitability
Altria's financial health is characterized by strong profitability and cash flow generation, but also significant debt. The company's gross margin of 62.1% and operating margin of 47.6% are significantly higher than the consumer staples sector averages of 26.0% and 3.1%, respectively. This reflects its pricing power and efficient cost management within the cigarette market. Net margin is also very high at 33.8% versus the sector average of 1.7%.
However, Altria's revenue growth has been negative, with a -2.2% decline compared to the sector's 4.3% growth. This reflects the secular decline in cigarette consumption. The company's ability to offset this decline with growth in alternative nicotine products is crucial for its long-term financial health. Reviewing the quarterly financial history, we can see revenue generally declining from FY2023 to FY2025.
Altria carries a substantial amount of debt, with total debt of $25.71 billion. The current ratio is 0.65, indicating potential short-term liquidity challenges. The company's debt-to-equity ratio is -990.00, which is an anomaly likely due to negative equity resulting from share repurchases and dividends exceeding retained earnings. This high level of debt increases the company's financial risk and limits its flexibility to invest in growth opportunities.
Despite the debt, Altria generates significant free cash flow, which it uses to fund dividends and share repurchases. The company's dividend yield is attractive to investors, providing downside protection. However, the sustainability of the dividend depends on its ability to maintain its profitability and cash flow generation in the face of declining cigarette volumes.
Overall, Altria's financial health is a mixed bag. While it boasts strong profitability and cash flow, its negative revenue growth and high debt levels pose significant challenges. The company's ability to adapt to the changing market and manage its debt will be critical for its long-term financial sustainability.
Valuation Assessment
Altria's valuation appears attractive based on several metrics. The company's P/E ratio of 15.7x is significantly lower than the consumer staples sector average of 34.2x. Similarly, its EV/EBITDA ratio of 3.4x is well below the sector average of 7.3x. These metrics suggest that Altria is undervalued relative to its peers.
However, the low valuation reflects the market's concerns about the long-term sustainability of Altria's earnings. The secular decline in cigarette consumption and the uncertainty surrounding its alternative nicotine products weigh on investor sentiment. The market is pricing in a significant decline in future earnings.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise fair value for Altria. However, the key assumptions in a DCF model, such as revenue growth and discount rate, are highly sensitive to the company's ability to navigate the evolving nicotine market and manage its debt. Given the uncertainty surrounding these factors, a wide range of fair value estimates is possible.
While Altria's current valuation may appear cheap, it is important to consider the risks and uncertainties facing the company. The market is likely discounting the stock due to concerns about its long-term growth prospects and the potential for regulatory headwinds. A higher valuation would be justified if Altria can demonstrate a clear path to sustainable growth in alternative nicotine products.
In conclusion, Altria's valuation is attractive on a relative basis, but the market is pricing in significant risks and uncertainties. The stock is likely fairly valued given the current outlook, but upside potential is limited until the company can demonstrate a clear path to sustainable growth.
Risk & Uncertainty
Altria faces significant regulatory risk. The FDA has the authority to regulate nicotine levels in cigarettes, potentially reducing their addictiveness and impacting Altria's sales. Increased taxes on tobacco products could also negatively affect demand. Furthermore, potential bans on menthol cigarettes pose a significant threat, as menthol represents a substantial portion of the cigarette market.
Competition in the alternative nicotine product market is intensifying. Altria faces competition from other tobacco companies, as well as new entrants offering innovative products. The success of its on! oral nicotine pouches is not guaranteed, and it may struggle to gain market share in a crowded field. The company's investments in cannabis and alcohol also carry risk, as these markets are subject to regulatory uncertainty and evolving consumer preferences.
Altria's high debt levels pose a financial risk. The company's ability to service its debt depends on its ability to maintain its profitability and cash flow generation. A decline in cigarette sales or increased competition in the alternative nicotine market could strain its financial resources. The company's dividend payout ratio is also high, limiting its flexibility to invest in growth opportunities or reduce its debt.
Litigation risk remains a concern for Altria. The company faces ongoing lawsuits related to the health effects of smoking. While Altria has successfully defended itself in many cases, the potential for large settlements or adverse judgments remains a risk. The company's reputation could also be damaged by negative publicity surrounding these lawsuits.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAltria's strong pricing power in the cigarette market allows it to maintain profitability despite declining volumes, generating substantial cash flow for dividends and share repurchases.
BULL VIEWThe company's investments in alternative nicotine products, such as on! oral nicotine pouches, position it for future growth as consumer preferences shift away from traditional cigarettes.
BULL VIEWAltria's attractive dividend yield provides downside protection and makes it an appealing investment for income-seeking investors, especially in a low-interest-rate environment.
The Bear Case
BEAR VIEWThe secular decline in cigarette consumption will continue to erode Altria's revenue and earnings, making it difficult for the company to achieve sustainable growth.
BEAR VIEWRegulatory headwinds, such as potential bans on menthol cigarettes and restrictions on nicotine levels, pose a significant threat to Altria's core business.
BEAR VIEWAltria's high debt levels and declining revenue growth make its dividend unsustainable in the long term, potentially leading to a dividend cut.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MO and 4,400+ other equities.
ALTRIA GROUP, INC. exhibits a 410% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
23.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
62.1%
Sector: 26.2%
Operating Margin
Core business profitability
47.6%
Sector: 2.9%
Net Margin
Bottom-line profitability
33.8%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.38%
Yield Delta+1571%
Income Projection audit
A $10,000 investment would generate approximately $635 annually in dividends at the current trailing rate.
