Altria Group
🇺🇸 MO · NYSE/NASDAQ · US02209S1033
Consumer
USD 69.12 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
14.4
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: 69.12 ÷ 4.79 = 14.4
TTM period through: 2026-03-31
Forward P/E (estimated): 12.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 14.4
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 6.6x
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: 2026-03-31
Latest quarter (2026-03-31): 6.6x
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).
EV/EBITDA
11.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
6.13%
TTM: 6.09%
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.
Forward Yield (estimated): 6.13%
Trailing Yield (TTM, last 12 months): 6.09%
Payout Ratio (Fwd)
88.5%
TTM: 87.0%
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 (Fwd): 88.5%
Payout (TTM): 87.0%
Cash Flow Payout (TTM): 78.8%
FCF Coverage (TTM): 1.23x
Growth Streak
9 yrs
Consec. increases
Div. Growth (5Y)
4.2%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Jun 2027 | — | USD | 1.06 |
| Forecast* | Quarterly | — | 25 Mar 2027 | — | USD | 1.06 |
| Forecast* | Quarterly | — | 26 Dec 2026 | — | USD | 1.06 |
| Forecast* | Quarterly | — | 15 Sep 2026 | — | USD | 1.06 |
| Declared | Quarterly | 14 May 2026 | 15 Jun 2026 | 10 Jul 2026 | USD | 1.06 |
| Paid | Quarterly | 26 Feb 2026 | 25 Mar 2026 | 30 Apr 2026 | USD | 1.06 |
| Paid | Quarterly | 10 Dec 2025 | 26 Dec 2025 | 09 Jan 2026 | USD | 1.06 |
| Paid | Quarterly | 21 Aug 2025 | 15 Sep 2025 | 10 Oct 2025 | USD | 1.06 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
📊 What Changed From Last Analysis?
Moved from OPTIMAL to CAUTION: Reassessed to accurately reflect the strategy mismatch. The terminal secular decline in core combustible tobacco (-5.0% 5Y revenue CAGR), combined with a recent Moody's credit downgrade over litigation cash flows, presents structural risks unsuitable for conservative long-term dividend portfolios.
Summary
Altria Group is a highly profitable tobacco leader, but the structural shift away from combustible cigarettes creates long-term sustainability concerns. The combination of secular volume declines, continuous regulatory threats, and recent litigation-driven credit downgrades makes the stock unsuitable for conservative 'forever' dividend strategies. While the 6.1% yield and 14.4 P/E appear attractive, it is not recommended for new positions given the long-term execution risks, as better opportunities exist in more stable essential services.
Sector Context
Altria Group operates as a major consumer staples company primarily focused on the manufacturing and sale of combustible cigarettes and smoke-free nicotine products in the U.S. While tobacco companies historically provided reliable, recession-resistant cash flows, the industry now faces severe structural headwinds including secular volume declines, intense regulatory scrutiny, and the long-term obsolescence of its core combustible products.
📊 Strategy Analysis
- • Attractive valuation at a P/E of 14.4, sitting comfortably within the ideal 8-15x strategy range.
- • Generous 6.1% forward dividend yield is currently well-covered by robust free cash flow generation (1.23x coverage).
- • Exceptional profitability metrics, maintaining an expanding Net Margin of 34.5% and EBITDA Margin of 53.6%.
- • Net Debt/EBITDA of 1.8x indicates successful deleveraging and remains well below the 3.0x strategy threshold.
⚠ What to Watch
- • Terminal secular decline in core combustible tobacco volumes, reflected in the 5-year revenue CAGR of -5.0%.
- • Significant structural regulatory and litigation risks, including a recent Moody's credit downgrade triggered by litigation cash flow impacts.
- • Perpetual structural liabilities from the Master Settlement Agreement (MSA) act as a continuous, unavoidable drain on operating cash flows.
📊 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: 2026-06-20
Disclaimer: This information is for educational purposes only. Not financial advice.