Altria Group
🇺🇸 MO · NYSE/NASDAQ · US02209S1033
Consumer
USD 65.76 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
15.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 65.76 ÷ 4.14 = 15.9
TTM period through: 2025-12-31
Forward P/E (estimated): 11.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.0
Yield (Fwd)
6.45%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.35%
Net Debt/EBITDA (TTM)
2.0x
Latest quarter: 11.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 11.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
102.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 100.2%
Cash Flow Payout (TTM): 74.9%
FCF Coverage (TTM): 1.30x
EV/EBITDA
12.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Altria Group is a highly profitable consumer staples leader with an oligopoly market position and exceptional pricing power in the U.S. tobacco industry. Trading at $65.76, the stock sits below our monopoly fair value upper bound of $74.56, offering an attractive entry point for dividend investors seeking defensive income amid broader market uncertainty. The 6.35% yield is well-covered by robust free cash flow and a strong balance sheet, making it worth considering for new positions as the company progresses its smoke-free transition.
Sector Context
Altria manufactures and sells tobacco products, primarily cigarettes under the Marlboro brand, alongside a growing portfolio of oral nicotine products. Within the consumer sector, tobacco functions as an oligopoly with exceptional pricing power due to the highly inelastic demand for its products, allowing the company to maintain massive cash flows despite secular volume declines in traditional smoking.
📊 Strategy Analysis
- • Generous 6.35% dividend yield is strongly supported by free cash flow coverage of 1.30x (74.9% cash flow payout).
- • Conservative balance sheet with Net Debt/EBITDA at 1.96x, well below our 3.0x safety threshold.
- • Exceptional profitability with an EBITDA margin of 53.8%, demonstrating immense pricing power that continues to offset structural volume declines.
- • Trading at $65.76, the stock remains below our monopoly fair value upper bound of $74.56, offering a reasonable margin of safety for income investors.
⚠ What to Watch
- • Secular long-term decline in combustible tobacco volumes continues, reflected in the 5-year revenue CAGR of -5.0%.
- • Trailing P/E of 15.87 sits slightly above our ideal 8-15x strategy range following recent share price momentum.
- • Ongoing regulatory scrutiny and FDA intervention risks remain constant threats to the core business and smoke-free product rollouts.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.