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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on MO

Breaking News: Altria Group Inc reported Q1 2026 earnings beating estimates with quarterly earnings of $1.32 per share exceeding the Zacks Consensus Estimate of $1.24 per share. Revenues rose 3.2% year-over-year driven by strong smokeable performance and pricing gains. The company's results were highlighted by a 3.2% increase in revenues. Altria's earnings call transcript and recent performance have been reviewed. Analysts at various firms have recommendations on the stock. Altria is considered one of the most reliable dividend payers.

1.c. Company Highlights

2. Altria’s Q1 2026: Strong Start, Solid Guidance

Altria Group reported a robust first‑quarter performance, with adjusted diluted EPS rising 7.3% to $1.32 versus the analyst estimate of $1.25. The company delivered a healthy revenue uptick, bolstered by a 6.3% increase in smokeable products’ adjusted OCI and a margin expansion to 65.1%. Dividend payouts reached $1.8 billion and a $280 million share buyback, underscoring the firm’s commitment to shareholder returns. Current valuation metrics sit at a P/E of 15.49 and an EV/EBITDA of 12.46, with a dividend yield of 5.63% and ROIC at 33.54%, reflecting a well‑capitalized operation with strong cash‑flow generation. <cite>“Altria delivered a strong start to the year, growing adjusted diluted EPS by 7.3%,” said CEO Billy Gifford during the earnings call.</cite>

Publication Date: May -02

📋 Highlights
  • Adjusted Diluted EPS Growth:: Increased by 7.3% in Q1 2026, driven by strong performance in smokeable and oral tobacco segments.
  • Smokeable Products Performance:: Segment adjusted OCI grew 6.3% with margins expanding to 65.1%, led by Marlboro's premium segment gains.
  • Oral Tobacco Expansion:: on! shipment volume rose 18% (46M cans), while nicotine pouches captured 58% of oral tobacco sales, up 9.1 share points.
  • 2026 Guidance:: EPS reaffirmed at $5.56–$5.72 (2.5–5.5% growth), balancing moderated labor industry growth and macroeconomic risks.
  • Balance Sheet Strength:: Paid $1.8B in dividends and repurchased $280M of shares, maintaining a debt-to-EBITDA ratio of 1.9x.

Earnings Highlights

The company’s adjusted diluted EPS of $1.32 in Q1 exceeded expectations, driven by disciplined cost management and product mix optimization. Operating income grew in line with revenue gains, while the firm maintained a stable debt‑to‑EBITDA ratio of 1.9x, indicating a solid balance sheet position.

Smokeable Segment Performance

Marlboro’s premium positioning strengthened, with adjusted OCI margins expanding to 65.1%. The segment’s revenue growth was supported by data‑driven pricing strategies and targeted promotional activities, reinforcing the brand’s resilience in a competitive market.

Oral Tobacco Growth

The oral tobacco portfolio, led by on! and Helix, saw shipment volumes rise nearly 18% to over 46 million cans. The nicotine pouch category grew 9.1 share points, now constituting more than 58% of oral tobacco sales, and on! PLUS expanded to roughly 100,000 stores, enhancing shelf presence.

Dividend and Share Repurchase

Altria distributed $1.8 billion in dividends and repurchased 4.5 million shares for $280 million, reinforcing its commitment to returning capital to shareholders while maintaining liquidity for strategic investments.

Guidance and Balance Sheet

The firm reaffirmed 2026 full‑year adjusted diluted EPS guidance of $5.56 to $5.72, reflecting a 2.5%‑5.5% growth trajectory. This range accounts for moderated labor industry growth, macroeconomic uncertainty, and the impact of double duty drawback benefits on export volumes.

Strategic Initiatives

Altria is advancing its total portfolio strategy, launching Cowboy Cut to capture price‑sensitive consumers and expanding on! PLUS shelf space. The company remains cautious yet proactive in its e‑vapor strategy, engaging regulators to balance enforcement with product authorization.

Market Outlook

Despite higher gas prices dampening consumer spending, Altria’s premium brands and oral nicotine offerings continue to gain traction. The firm’s disciplined approach to cost control, coupled with a strong dividend policy, positions it well to navigate the evolving regulatory landscape and sustain shareholder value.

3. NewsRoom

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Why Shares of Altria Group Soared in April

May -03

Source: fool.com

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Altria to Host Webcast of 2026 Annual Meeting of Shareholders

May -01

Source: businesswire.com

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Altria: Inflation Is A Double-Edged Sword, But The Dividend Train Keeps Smoking

May -01

Source: seekingalpha.com

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Why Altria Stock Popped Today

Apr -30

Source: fool.com

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Want $1,307 in Passive Income? Invest $10,000 Into These 3 Dividend Kings

Apr -30

Source: 247wallst.com

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Altria Group, Inc. (MO) Q1 2026 Earnings Call Transcript

Apr -30

Source: seekingalpha.com

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These Are the Best High-Yield Dividend Stocks of 2026

Apr -30

Source: fool.com

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Altria Q1 Earnings Beat Estimates, Revenues Rise 3.2% Y/Y

Apr -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.17%)

6. Segments

Smokeable Products

Expected Growth: 3.5%

The 3.5% growth in Smokeable Products from Altria Group, Inc. is driven by pricing power, market share gains, and a stable demand for traditional tobacco products. The segment's growth is also supported by the company's efforts to innovate and expand its product portfolio, including the launch of new products and flavors.

Oral Tobacco Products

Expected Growth: 1.0%

The oral tobacco products segment of Altria Group, Inc. is driven by steady demand for smokeless products, stable pricing, and effective cost management. The 1.0 growth rate reflects a mature market with slow but steady increases in shipment volumes and market share gains, offset by declining traditional tobacco use.

ALL other

Expected Growth: 2.0%

The fundamental drivers for Altria Group, Inc.'s growth include a 2.0% increase in revenue, driven by pricing power, reduced discounting, and increased market share. Other growth drivers include innovative products, such as IQOS, and steady performance from its core tobacco brands, including Marlboro. The company also benefits from a strong dividend yield and efficient cost management.

7. Detailed Products

Marlboro Cigarettes

Marlboro is a leading international cigarette brand with a wide range of products, including Marlboro Red, Marlboro Gold, and Marlboro Menthol.

Skoal Smokeless Tobacco

Skoal is a popular brand of smokeless tobacco products, including moist snuff and pouches.

Black & Mild Cigars

Black & Mild is a brand of machine-made cigars that are known for their smooth flavor and affordability.

Nu Mark E-Cigarettes

Nu Mark is a brand of e-cigarettes and vaping products that are designed to provide a smoking alternative.

Ste. Michelle Wine

Ste. Michelle is a leading producer of wine in the United States, with a portfolio of brands that include Columbia Crest, Chateau Ste. Michelle, and 14 Hands.

8. Altria Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The tobacco industry faces a growing threat from substitutes, particularly e-cigarettes and vaping products. However, Altria Group, Inc. has a strong presence in the market and has been adapting to the changing landscape by investing in alternative products, such as IQOS.

Bargaining Power Of Customers

The bargaining power of customers in the tobacco industry is relatively low. Tobacco products are addictive, and customers tend to be loyal to specific brands. Additionally, Altria Group, Inc. has a strong portfolio of brands, including Marlboro, which is one of the most recognized and trusted brands in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers in the tobacco industry is relatively low. Altria Group, Inc. has a large and diversified supply chain, and the company has significant negotiating power with its suppliers.

Threat Of New Entrants

The threat of new entrants in the tobacco industry is high, particularly with the rise of e-cigarettes and vaping products. New companies have entered the market, and existing companies have expanded their product offerings, increasing competition for Altria Group, Inc.

Intensity Of Rivalry

The intensity of rivalry in the tobacco industry is high, with several large players competing for market share. Altria Group, Inc. competes with other major tobacco companies, such as Reynolds American and British American Tobacco, as well as newer entrants in the e-cigarette and vaping market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 109.86%
Debt Cost 5.47%
Equity Weight -9.86%
Equity Cost 7.58%
WACC 5.26%
Leverage -1113.76%

11. Quality Control: Altria Group, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Altria

A-Score: 7.6/10

Value: 6.8

Growth: 5.8

Quality: 6.5

Yield: 10.0

Momentum: 7.0

Volatility: 9.7

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Imperial Brands

A-Score: 7.5/10

Value: 5.6

Growth: 5.0

Quality: 6.4

Yield: 9.4

Momentum: 9.0

Volatility: 9.7

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Universal

A-Score: 7.0/10

Value: 8.2

Growth: 5.9

Quality: 4.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

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Philip Morris

A-Score: 6.8/10

Value: 3.8

Growth: 4.1

Quality: 7.1

Yield: 8.0

Momentum: 8.5

Volatility: 9.0

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BAT

A-Score: 6.7/10

Value: 3.0

Growth: 3.6

Quality: 6.1

Yield: 9.4

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Scandinavian Tobacco Group

A-Score: 6.5/10

Value: 7.6

Growth: 4.0

Quality: 5.4

Yield: 10.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.03$

Current Price

73.03$

Potential

-0.00%

Expected Cash-Flows