Last Updated: 08 Nov 2024
Executive Summary
Altria Group (MO) is a leading global tobacco company with a market capitalization of $92 billion. The company has a strong financial profile with an EBITDA of $12.2 billion and a profit margin of 50.5%. Altria's dividend yield of 7.53% is attractive to income investors. The stock is currently trading at $53.54, below its 52-week high of $55.05.
Company Overview
Altria Group is one of the world's largest producers and marketers of tobacco, cigarettes, and related products. The company's products are sold in over 180 countries. Altria's core brands include Marlboro, Newport, and Virginia Slims. The company also has a significant presence in the smokeless tobacco market with its Skoal and Copenhagen brands.
Fundamental Analysis
Altria Group has a strong financial profile. The company's revenue has grown at a steady pace in recent years. In 2023, Altria reported revenue of $20.4 billion, up 1.3% from the previous year. The company's net income was $5.9 billion, up 0.9% from 2022.
Altria's profitability metrics are also strong. The company's gross profit margin was 59.8% in 2023, up from 59.2% in 2022. The company's operating margin was 21.1% in 2023, up from 20.9% in 2022.
Altria's balance sheet is also strong. The company has $12.2 billion in cash and equivalents and $14.1 billion in long-term debt. Altria's debt-to-equity ratio is 0.68, which is below the industry average.
Technical Analysis
Altria Group's stock price has been trading in a range between $45 and $55 for the past year. The stock is currently trading at $53.54, near the top of its range. The stock's 50-day moving average is $51.45 and its 200-day moving average is $46.49.
The stock's relative strength index (RSI) is 60, which indicates that the stock is overbought. The stock's moving average convergence divergence (MACD) is also positive, which indicates that the stock is in a bullish trend.
Short Term Outlook
Altria Group's stock is expected to continue to trade in a range between $45 and $55 in the short term. The stock's technical indicators are mixed, with the RSI indicating that the stock is overbought and the MACD indicating that the stock is in a bullish trend.
Long Term Outlook
Altria Group's long-term outlook is positive. The company is a leader in the global tobacco industry and has a strong financial profile. The company's dividend yield is also attractive to income investors.
Analyst Recommendations
Analysts are mixed on Altria Group's stock. Two analysts have a strong buy rating on the stock, two analysts have a buy rating, six analysts have a hold rating, three analysts have a sell rating, and zero analysts have a strong sell rating. The average analyst target price is $53.79.
