MO

Altria Group Inc.

Consumer


Presented:05/31/2024
Price:$46.25
Cap:$79.44B
Current Price:$49.90
Cap:$85.14B

Presented

Date05/31/2024
Price$46.25
Market Cap$79.44B
Ent Value$98.16B
P/E Ratio9.69x
Book ValueN/A
Div Yield8.39%
Shares O/S1,717.63M
Ave Daily Vol13,132,086
Short Int2.04%

Current

Price$49.90
Market Cap$85.14B
Altria Group, Inc. is a holding company, which engages in the manufacture and sale of cigarettes in the United States. It operates through the following segments: Smokeable Products, Oral Tobacco Products, and All Other. The Smokeable Products segment consists of cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The Oral Tobacco Products segment includes MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. The All Other segment refers to the financial results of NJOY, Helix ROW, and the IQOS System heated tobacco business. The company was founded in 1919 and is headquartered in Richmond, VA.

Publicly traded companies mentioned herein: Altira Group Inc (MO), Anheuser-Busch Inbev SA (BUD)

Highlights

The presenter is long shares of Altria Group Inc (MO), which has a robust balance sheet, a low P/E ratio, and is a defensive staple that should benefit from any significant decline in interest rates as the stock behaves like a bond. His thesis is based on a sharp improvement in capital allocation following an important change in management, as well as a longer duration of cash flows from the core cigarette business due to current and eventual state legislation banning illegal vapes. The latter seems underappreciated and could result in future dividend streams worth significantly more than the current $45 share price.

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Idea Discussion

Commentor 1 - 2 weeks ago

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