Altria (MO)

Consumer Staples · $115B market cap · SEC CIK 0000764180

Next reports on Oct 29, 2026, before the open, with analysts expecting $1.55 in earnings per share.

The case for MO

• Generated $9.1B of free cash flow in FY2025, 39% of revenue.
• 34% of revenue drops through to net profit.
• Free cash flow of 7.9% of its market value a year: a lot of cash for the price.
• Earns 23% a year on everything it owns (return on assets).
• Reasonably priced at 14.4× earnings.
• Gross margin of 63% absorbs cost shocks.

The case against

• A yield of 9.5% is usually the market pricing in a cut.
• Revenue was flat on the year (-0.6%).
• Revenue has shrunk 2.3% a year over five years.
• Earnings per share fell 8.3%.
• Owes more than it owns: shareholder equity is -$3.5B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
• Current liabilities exceed current assets (ratio 0.52).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.

• Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
• Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.

Key numbers

Five years of financials, as filed

Pulled from Altria's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.

Share count is down 8.8% over 4 years. Buybacks have been shrinking the pie.

What Altria says it does

of this Form 10-K ("Item 1"). 20 Table of Contents Vision and 2028 Goals As we execute on our Vision, we established our 2028 Enterprise Goals ("2028 Goals") to provide our investors with specific metrics to measure our progress. Our 2028 Goals are: ▪ Corporate ▪ Deliver a mid-single digits adjusted diluted EPS compounded annual growth rate ("CAGR") in 2028 from a $4.87 base in 2022, which has been recast as described in Non-GAAP Financial Measures below (for our progress through 2025, see Consolidated Results of Operations ); ▪ A progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028; ▪ Target a debt-to-Consolidated EBITDA ratio of approximately 2.0x (see Liquidity and Capital Resources ); ▪ Maintain our leadership position in the U.S. tobacco space; and ▪ Maintain a total adjusted OCI margin of at least 60% in each year through 2028 (see Operating…

Risk factors MO lists in its 10-K

• Operating Results by Business Segment - Business Environment
• Our inability to successfully counter the effects of illicit trade in nicotine products, including e-vapor products, could have a material adverse effect on our
• business, results of operations, cash flows or financial position
• and our ability to achieve our Vision
• Significant changes in price, availability or quality of tobacco, other raw materials or component parts could have a material adverse effect on our profitability and business
• Our operating companies could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position
• Litigation, Legislative and Regulatory Risks
• Unfavorable outcomes with respect to litigation proceedings or any governmental investigations could materially adversely affect our results of operations, cash flows or financial position and our ability to achieve our Vision
• Nicotine products are subject to substantial taxation, and any increases in nicotine product-related taxes could have a material adverse impact on sales of our operating companies’ products
• A challenge to our tax positions, an increase in the income tax rate or other changes to federal or state tax laws could materially adversely affect our earnings or cash flows
• Legal and regulatory requirements related to climate change and other environmental sustainability matters could have a material adverse impact on our business and results of operations
• Capital Markets and Financing Risks
• Disruption and uncertainty in the credit and capital markets could materially adversely affect our business
• A downgrade or potential downgrade of our credit ratings could adversely impact our borrowing costs and access to credit and capital markets, which could materially adversely affect our financial condition

Filings

Other Consumer Staples companies