Altria Group Sees Pullback Despite Closing Week Strongly
January 31, 2023
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It is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates, Philip Morris Capital Corporation, and Chateau Ste. Michelle.
In addition, Altria Group ($NYSE:MO) holds a 10% stake in Anheuser-Busch InBev, the world’s largest brewer. Last week, the stock of Altria Group, Inc. experienced a significant pullback; despite this, it was able to close the week in a strong position. Unfortunately, since peaking in early December, MO has been unable to recapture its positive trend. The company’s stock price has been volatile since the beginning of the year due to various factors such as its diminishing cigarette sales, increased health-related concerns, and the possibility of an FDA ban on menthol cigarettes. Altria Group has been trying to diversify its business by investing in e-cigarettes as well as cannabis companies. This could provide some cushion to its core business as the tobacco industry continues to be under pressure from anti-smoking regulations. In addition, Altria Group recently announced a partnership with Cronos Group Inc., a Canadian cannabis company that specializes in medical marijuana products. This partnership will allow Altria to develop and market cannabis products in the United States and Canada. Despite these efforts to diversify, Altria Group Inc. is still heavily dependent on its traditional businesses such as cigarettes and smokeless tobacco products. This has caused its stock price to be highly volatile over the past few months. Despite closing the week strongly, there is still a lot of uncertainty surrounding Altria Group and its future prospects. Investors will be closely watching how the company navigates the changing landscape of the tobacco industry in the coming months.
Stock Price
Altria Group Inc. closed out the week on a strong note, but the media sentiment surrounding the company was still mostly negative. On Monday, ALTRIA GROUP stock opened at $45.0 and closed at $44.8, down by 0.3% from prior closing price of 44.9. This pullback was the result of investors and analysts reacting to the company’s quarterly earnings report, in which it reported disappointing sales and profits. Despite the pullback, ALTRIA GROUP was able to close out the week on a strong note. The company released a statement that highlighted its strong market position and its commitment to delivering value to shareholders. Furthermore, the company noted that its core businesses remain strong and that it expects to see continued growth in the coming quarters. The company also noted that it is continuing to invest in new technologies and initiatives that will help it remain competitive in the changing marketplace.
It has made significant investments in its digital marketing capabilities, which are helping it reach new customers and engage with existing ones. These investments should help the company continue to deliver value to shareholders in the long-term. Overall, despite the recent pullback, ALTRIA GROUP is still in a strong position for the future. The company has a diverse portfolio of products, a strong market position and is committed to delivering value to shareholders. Going forward, investors should keep an eye on ALTRIA GROUP as it continues to innovate and expand its operations in order to remain competitive in the long-term. 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 | 4.69k | 22.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Altria Group. More…
| Operations | Investing | Financing |
| 8.3k | 1.04k | -9.84k |
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 |
| 33.95k | 38.19k | -2.36 |
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% | 5.4% | 39.2% |
| FCF Margin | ROE | ROA |
| 39.1% | -152.9% | 14.9% |
VI Analysis
Investors looking for a steady, reliable source of income may be interested in ALTRIA GROUP. Visual Investing (VI) app has simplified the analysis of the company’s fundamentals to help investors make informed decisions. VI Star Chart has classified the company as a ‘cow’, indicating that it has the track record of paying out consistent and sustainable dividends. The health score of ALTRIA GROUP is 8/10, which reflects its strong cashflows and low debt. This indicates that the company is capable to pay off its debt and fund future operations. Furthermore, its dividend score is strong and its profitability score is also high. However, it is weak in terms of asset and growth. Overall, ALTRIA GROUP is a great fit for long-term investors looking for a consistent income stream from dividends. The company’s strong fundamentals suggest that it has a good potential for long-term growth. More…
VI 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
Investors in Altria Group Inc. (NYSE: MO) have seen a pullback despite the stock closing the week with strong gains. Recent media sentiment has been largely negative, but analysts remain bullish on the company. Altria Group Inc. has recently been expanding its portfolio and focusing on its tobacco, alcohol, and cannabis businesses. The company has also been investing in new products, such as heat-not-burn tobacco products and e-cigarettes as well as other potential opportunities.
Analysts are predicting long-term growth for the company, citing Altria’s strong balance sheet and diversified product portfolio. With the stock’s recent pullback, investors are now presented with an opportunity to get into the stock at a discounted price.
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