Altria Group Intrinsic Value Calculation – At 2023 Investor Day, Altria Reveals Smoke-Free Products as Key to Future Growth.
March 27, 2023
Trending News ☀️
At its 2023 Investor Day, Altria Group ($NYSE:MO) revealed a strategy for future growth that focuses on smoke-free products. The event was a great opportunity to showcase the company’s innovative ideas and products and to discuss their long-term potential. Products such as its iQOS, an alternative to smoking, have gained traction in recent years and Altria has invested heavily in building a portfolio of smoke-free products. At the Investor Day, investors were given an insight into the company’s plans for growth and heard about the innovations already underway. The company is focused on developing smoke-free products that are attractive to customers who are looking for alternatives to smoking.
At the Investor Day, industry experts discussed the potential of these products and the investment opportunities they offer. Altria’s commitment to innovation and its focus on smoke-free products has investors enthusiastic about its future prospects. Altria Group has always been at the forefront of innovation in the tobacco industry and its recent Investor Day was a great opportunity for the company to showcase its progress in developing smoke-free products. With an attractive portfolio of innovative products, Altria Group looks set to continue its trend of successful growth in the years ahead.
Market Price
Media sentiment has been largely positive in response; on Friday, ALTRIA GROUP stock opened at $43.6 and closed at $44.0, up by 1.2% from its previous closing price of 43.5. This represents investors’ faith in Altria’s strategy to transition to a more smoke-free future, which includes expanding its offerings of alternative products such as e-cigarettes and heated tobacco. It appears that Altria is well-positioned to succeed in this new era of smoke-free products, as investors remain optimistic about the company’s prospects. 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 Calculation
At GoodWhale, we have conducted an analysis of ALTRIA GROUP‘s fundamentals. Our proprietary Valuation Line has calculated the intrinsic value of ALTRIA GROUP share to be around $46.3. Currently, ALTRIA GROUP stock is traded at $44.0, indicating a fair price that is undervalued by 5.0%. This presents a good 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, Inc. is an American multinational company investing in tobacco, alcohol, and cannabis products. At their 2023 Investor Day, the company revealed their plans to focus on smoke-free products as a key part of their future growth strategy. So far, media sentiment has been mostly positive regarding this announcement as investors are optimistic about the potential benefits of diversifying the company’s product portfolio.
Altria’s strategy includes investing in research and development of new smoke-free products, expanding their current offering of smokeless products, and leveraging existing partnerships to drive growth. The company is confident that this strategy will help them continue to create value for shareholders while also increasing their appeal to a broader customer base.
