Altria Group Stock Rises Thursday Despite Underperformance Compared to Market

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Altria Group ($NYSE:MO) Inc.’s stock rose Thursday, however, it has lagged behind the rest of the market. Altria Group Inc. is a U.S.-based company that owns some of the most recognizable cigarette, cigar, and smokeless tobacco brands in the world, including Marlboro, Copenhagen, Black & Mild, and Skoal. The company also owns other businesses such as wine, beer, and spirits; financial services; agriculture; and food.

Altria Group Inc.’s stock has been generally strong over the past few years due to its diversified portfolio of businesses and steady dividend payments. Despite the stock’s underperformance compared to the market on Thursday, investors remain bullish on the company’s long-term prospects and are confident that it will continue to deliver value for shareholders.

Market Price

On Thursday, ALTRIA GROUP stock opened at $40.4 and closed at $40.3, indicating a small decrease in stock prices despite the performance of the overall market. Despite the slight decrease, ALTRIA GROUP still outperformed the market, showing more resilience than the general stock market. This is largely attributed to the company’s efforts to diversify its portfolio and its long-standing commitment to innovative products and services. ALTRIA GROUP’s focus on developing and maintaining strong brands has been a major contributing factor to its success over the years.

The company has a wide variety of products and services, ranging from cigarettes and cigars to food and beverages, all of which have contributed to its impressive stock performance. As a result, ALTRIA GROUP has been able to remain competitive in the market, even during times of market downturns. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Altria Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Altria Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Altria Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Altria Group are shown below. More…

Analysis

As GoodWhale, we have done an analysis on ALTRIA GROUP‘s fundamentals. According to our Star Chart, ALTRIA GROUP is strong in dividend and profitability, but weak in asset and growth. ALTRIA GROUP has a high health score of 8/10 with regard to its cashflows and debt, indicating it is capable of paying off debt and funding future operations. Based on the data, we conclude that ALTRIA GROUP is a ‘cow’ type of company – one that has the track record of paying out consistent and sustainable dividends. Investors who are interested in a steady stream of income and long-term capital gains may consider investing in ALTRIA GROUP. Investors who are seeking higher potential returns from growth and asset appreciation may want to look elsewhere. 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

This underperformance is primarily due to the company’s exposure to the tobacco industry, with concerns over the declining popularity of smoking and increasing public health scrutiny weighing on its share price. The company has responded by making strategic investments and acquisitions to diversify its product offerings and take advantage of growing industries such as cannabis and e-cigarettes, but so far these moves have failed to significantly improve its stock performance. Despite these challenges, Altria’s resilient balance sheet and steady cash flows make it a relatively safe stock option in a volatile market.