MO Altria Group Inc

Altria Group is the largest US tobacco company, manufacturing cigarettes under the Marlboro brand and investing in smoke-free alternatives and cannabis. Sector: Consumer Staples.

Altria Group Inc (MO) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 44.49%, WACC is 6.27%, and the economic spread is 38.22%. On balance, the economic spread here is exceptional — few portfolios sustain this kind of gap between operating returns and cost of capital. Supporting metrics show ROE at N/A and ROA at 23.68%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Valuation currently screens at trailing P/E of 15.97, forward P/E of 11.71, PEG of 2.24. Trailing and forward P/E are close together, implying the market does not expect a significant change in the earnings trajectory over the near term. Growth-adjusted valuation is in a reasonable range, with the multiple broadly in line with expected earnings expansion. The aggregate current ratio of 0.65 reflects tighter near-term liquidity — a factor worth monitoring if macro conditions tighten. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

From gross to free cash flow, gross margin sits at 79.78%, operating margin at 67.97%, and free cash flow margin at 45.06%. At this level, gross margins reflect the kind of pricing power and cost insulation that characterizes category-leading businesses. The company's operating margins are well above average, pointing to businesses that manage the full cost stack with discipline. At this level, FCF margins reflect a company with genuine capital efficiency and strong cash-based earnings quality. Taken together, this margin profile points to a company with durable economics and dependable cash generation capacity.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of 0.66%, where target-based return potential appears limited without multiple expansion, while TTM revenue growth of -1.49% indicating revenue contraction that adds uncertainty to the forward earnings outlook. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.