Altria Group Intrinsic Value – By The Potential Vaping Ban
April 7, 2023
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The Altria Group ($NYSE:MO), a leading tobacco company, remains unfazed by the potential vaping regulations being considered by the U.S. government. Despite calls from public health organizations to ban flavored vaping products, Altria is confident that it can weather any regulatory action. Altria is best known for its Marlboro and Virginia Slims cigarettes, but the company has recently ventured into vaping products. Since then, the company has come under scrutiny due to the popularity of Juul’s flavored products among youth.
Despite the potential regulations, Altria remains confident in its investment and remains focused on growing its presence in the vaping industry. The company has emphasized that it is committed to helping prevent underage use of e-cigarettes and will continue to work with regulators to ensure compliance with any new legislation.
Price History
Despite the potential for a vaping ban on flavored e-cigarettes and other vape products, ALTRIA GROUP, Inc. (MO) appears to remain unfazed. This indicates that investors are still confident in the company’s ability to stay relevant and competitive in the industry, despite potential regulatory changes. This is especially impressive given the fact that other tobacco companies have seen their stock prices drop drastically due to the potential vaping regulations. ALTRIA GROUP has solidified their standing as a leader in the tobacco industry and continues to remain competitive. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Altria Group. More…
| Total Revenues | Net Income | Net Margin |
| 20.69k | 5.75k | 27.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Altria Group. More…
| Operations | Investing | Financing |
| 8.26k | 782 | -9.54k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Altria Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 36.95k | 40.88k | -2.23 |
Key Ratios Snapshot
Some of the financial key ratios for Altria Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.5% | 4.4% | 41.2% |
| FCF Margin | ROE | ROA |
| 38.9% | -129.8% | 14.4% |
Analysis – Altria Group Intrinsic Value
At GoodWhale, we have conducted an analysis of ALTRIA GROUP‘s financials. Our proprietary Valuation Line indicates that the fair value of ALTRIA GROUP share is around $46.4. As such, this presents an opportunity for investors to purchase ALTRIA GROUP stock at a discounted price. More…
Peers
The tobacco industry is fiercely competitive, with Altria Group Inc up against Swedish Match AB, Imperial Brands PLC, British American Tobacco PLC, and other companies. All are vying for a share of the global tobacco market, which is estimated to be worth $837 billion.
– Swedish Match AB ($LTS:0GO4)
Founded in 1862, Swedish Match is a leading manufacturer of tobacco products with a portfolio of well-known brands, including Red Man, Timber Wolf, and White Owl. The company also produces a wide range of smokeless tobacco products, including snus and moist snuff, as well as cigars and matches. Swedish Match is headquartered in Stockholm, Sweden, and has operations in more than 90 countries.
Swedish Match has a market capitalization of 167.51 billion as of 2022 and a return on equity of -107.57%. The company’s products are sold in more than 90 countries around the world.
– Imperial Brands PLC ($LSE:IMB)
Imperial Brands PLC is a tobacco company with a market cap of 19.07B as of 2022. The company has a Return on Equity of 50.52%. Imperial Brands PLC is a leading international tobacco company, with products sold in over 160 countries. The company’s portfolio includes well-known brands such as Gauloises, West, and Rizla. Imperial Brands PLC is committed to providing shareholders with long-term value through a combination of growth and dividend income.
– British American Tobacco PLC ($LSE:BATS)
British American Tobacco PLC is a large multinational tobacco company with operations in over 50 countries. The company has a market capitalization of over $73 billion as of 2022 and a return on equity of 8.35%. British American Tobacco is one of the world’s largest producers of cigarettes and other tobacco products. The company’s brands include Dunhill, Lucky Strike, and Pall Mall. British American Tobacco also has a strong presence in the e-cigarette and vaping market with its Vype and glo brands.
Summary
Altria Group is a leading tobacco company with a portfolio of premium brands such as Marlboro, Copenhagen and Black & Mild. The company is well-positioned in the U.S. tobacco market and has recently announced plans to enter the cannabis sector. Investors should consider Altria’s strong financial position, with a sound balance sheet, healthy cash flows and a high dividend yield. The company has a high return on equity and low debt-to-equity ratio.
Altria Group’s operations are well-managed and focused on innovation, with an impressive portfolio of brands and products. Its strategic acquisitions have helped it to solidify its domestic market position and expand globally. The company is also working to adapt its tobacco business to changing consumer preferences.
