Altria Group, Inc. (MO)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable brands, cash generation, and a price that does not require heroic assumptions. Altria sells Marlboro, Copenhagen, Skoal, on!, and NJOY ACE—mostly in the U.S. tobacco market. The brands and distribution give it pricing power, though regulation and litigation are permanent overhangs. In fiscal Q2 2026, the quarter ended 2026-06-30, Altria reported revenue of $6.1B, net income of $2.3B, and diluted EPS of $1.37. For FY2025, revenue was $23.3B, net income $6.9B, and diluted EPS $4.12, down from FY2024 revenue of $24.0B, net income of $11.3B, and diluted EPS of $6.54. That shows the core issue: cash is strong, but growth is not. Trailing free cash flow is $9.1B, a 7.6% FCF yield against the $119.5B market cap. At the 2026-10-13 close of $71.56, FairStock calculates a P/E of 15.07, EV/EBITDA of 12.00, ROCE of 29.54%, and Altman Z-score of 3.86; the stated dividend yield is 6.20%. Those are not demanding numbers for a consumer-defensive cash machine, but the Piotroski F-Score of 5/9 and the profit volatility suggest caution. FairStock's Lynch category is STALWART, reflecting steady long-term profit growth against a shrinking revenue base. I see a fair-to-attractive income asset with a margin of safety, not a bargain-basement compounder. The thesis depends on pricing power and cash returns continuing to outrun the decline in the legacy business.

In plain English: Altria sells cigarettes, cigars, smokeless tobacco and nicotine pouches, mostly in the United States. It generates a lot of cash from brands like Marlboro and Copenhagen, but its sales have slipped and profits have been uneven in recent years. At the October 13, 2026 close of $71.56, the stock looks moderate rather than clearly cheap or expensive compared with its cash flow and dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer