📊 MO Key Takeaways
Is Altria Group, Inc.. (MO) a Good Investment?
Altria exhibits strong operational profitability and FCF generation, but faces structural revenue decline and unsustainable financial distress marked by negative stockholders equity of -$3.2B and total liabilities exceeding assets. Deteriorating liquidity (0.62x current ratio) combined with 24.6B in long-term debt creates dependency on declining FCF to service obligations, making the current capital structure untenable.
Altria’s fundamentals show an unusually high-profit, cash-generative business, with 62.5% gross margin, 42.5% operating margin, and $9.07B of free cash flow on $23.28B of revenue. However, revenue is declining, net income growth is essentially flat, and the balance sheet is stressed by negative equity, weak current liquidity, and heavy long-term debt, which limits flexibility. The result is a durable but low-growth cash engine with meaningful capital structure risk.
Altria Group, Inc.. Key Strengths (MO)
- Exceptional net margin of 40.2% and operating margin of 54.5% demonstrate pricing power and operational efficiency
- Substantial free cash flow generation of 2.2B despite revenue decline, representing 41.1% FCF margin
- Dominant market position in cigarettes with entrenched consumer demand for core products
- Exceptional profitability with 62.5% gross margin, 42.5% operating margin, and 29.8% net margin
- Very strong cash generation, with $9.29B operating cash flow and $9.07B free cash flow supported by low capex needs
- Interest coverage of 8.6x indicates debt is currently serviceable despite a large debt load
MO Stock Risks: Altria Group, Inc.. Investment Risks
- Negative stockholders equity of -3.2B with total liabilities exceeding assets by 3.1B indicates balance sheet insolvency and financial distress
- Structural revenue decline of 3.1% YoY in secular headwind market with no growth catalysts; unsustainable long-term
- Severely constrained liquidity with current ratio of 0.62x and quick ratio of 0.48x; inadequate to cover short-term obligations
- EPS down 37% YoY signals deteriorating shareholder value despite stable net income; suggests unsustainable capital allocation
- Revenue declined 3.1% year over year, pointing to ongoing top-line pressure and limited growth quality
- Negative stockholders’ equity and $25.71B of long-term debt reflect an aggressive balance sheet and reduced financial resilience
- Weak liquidity with a 0.65x current ratio and 0.53x quick ratio leaves less cushion if operating conditions worsen
Key Metrics to Watch
- Quarterly revenue trends and volume decline rate acceleration
- Debt-to-assets ratio trajectory and covenant compliance
- Operating cash flow sustainability as revenues contract further
- Revenue and shipment/mix trends to determine whether earnings remain supported by pricing rather than volume erosion
- Free cash flow coverage of debt obligations and any change in net debt, liquidity, or interest coverage
Altria Group, Inc.. (MO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 41.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MO Profit Margin, ROE & Profitability Analysis
MO vs Market Sector: How Altria Group, Inc.. Compares
How Altria Group, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Altria Group, Inc.. Stock Overvalued? MO Valuation Analysis 2026
Based on fundamental analysis, Altria Group, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Altria Group, Inc.. Balance Sheet: MO Debt, Cash & Liquidity
MO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Altria Group, Inc..'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $4.57 reflects profitable operations.
MO Revenue Growth, EPS Growth & YoY Performance
MO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.3B | $1.1B | $0.63 |
| Q3 2025 | $6.1B | $2.3B | $1.34 |
| Q2 2025 | $6.1B | $2.4B | $1.41 |
| Q1 2025 | $5.3B | $1.1B | $0.63 |
| Q3 2024 | $6.3B | $2.2B | $1.22 |
| Q2 2024 | $6.2B | $2.1B | $1.19 |
| Q1 2024 | $5.6B | $1.8B | $1.00 |
| Q3 2023 | $6.3B | $224.0M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Altria Group, Inc.. Dividends, Buybacks & Capital Allocation
MO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Altria Group, Inc.. (CIK: 0000764180)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MO
What is the AI rating for MO?
Altria Group, Inc.. (MO) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MO's key strengths?
Claude: Exceptional net margin of 40.2% and operating margin of 54.5% demonstrate pricing power and operational efficiency. Substantial free cash flow generation of 2.2B despite revenue decline, representing 41.1% FCF margin. ChatGPT: Exceptional profitability with 62.5% gross margin, 42.5% operating margin, and 29.8% net margin. Very strong cash generation, with $9.29B operating cash flow and $9.07B free cash flow supported by low capex needs.
What are the risks of investing in MO?
Claude: Negative stockholders equity of -3.2B with total liabilities exceeding assets by 3.1B indicates balance sheet insolvency and financial distress. Structural revenue decline of 3.1% YoY in secular headwind market with no growth catalysts; unsustainable long-term. ChatGPT: Revenue declined 3.1% year over year, pointing to ongoing top-line pressure and limited growth quality. Negative stockholders’ equity and $25.71B of long-term debt reflect an aggressive balance sheet and reduced financial resilience.
What is MO's revenue and growth?
Altria Group, Inc.. reported revenue of $5.4B.
Does MO pay dividends?
Altria Group, Inc.. pays dividends, with $1,780.0M distributed to shareholders in the trailing twelve months.
Where can I find MO SEC filings?
Official SEC filings for Altria Group, Inc.. (CIK: 0000764180) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MO's EPS?
Altria Group, Inc.. has a diluted EPS of $1.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Altria Group, Inc.. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MO stock overvalued or undervalued?
Valuation metrics for MO: ROE of N/A (sector avg: 15%), net margin of 40.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is MO's AI grade for 2026?
Our dual AI analysis gives Altria Group, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MO's free cash flow?
Altria Group, Inc..'s operating cash flow is $2.3B, with capital expenditures of $93.0M. FCF margin is 41.1%.
How does MO compare to other Market stocks?
Vs Default sector averages: Net margin 40.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.62 (avg: 1.8).