Why Altria Group Inc. is a Must-Have Stock for Smart Investors
Altria Group Inc., formerly known as Philip Morris Companies, Inc., is one of the world’s largest producers and marketers of tobacco, cigarettes, and medical products for treating tobacco-related illnesses. The company is headquartered in Henrico County, Virginia, and operates globally. Altria is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, and Philip Morris Capital Corporation. It also holds significant stakes in AB InBev and Cronos Group.
Financial Performance and Ratios
In 2023, Altria Group Inc. reported an operating profit of $11.55 billion. The company’s financial ratios include: Market Cap: $94.9 billion (as of Dec 9, 2024); PE Ratio: 9.45; PS Ratio: 4.89; PB Ratio: -25.48; ROA: 21.10%; Return on Capital (ROIC): 34.28%; Debt/Equity Ratio: -7.36.
Altria Group Inc Stock Price Performance
As of December 9, 2024, Altria Group Inc.’s stock price closed at $55.86. The stock has shown a positive trend over the past year, with a market cap growth of 16.70%
Investment Insight
This company boasts a high Investment Scoreboard rating, achieved through robust cash flows, substantial returns to shareholders, conservatively managed finances, and high profitability of retained earnings. Its high dividend yield further enhances the attractiveness of its shares, making it a valuable addition to any portfolio.
Altria Group Inc Stock Forecast**
| MIN/MAX | 2024 | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|
| MIN | 85.15 | 90.15 | 95.45 | 101.06 | 107.00 |
| MAX | 125.90 | 133.30 | 141.13 | 149.42 | 158.20 |
When to buy?
Purchasing at a price of $55, according to calculations, promises substantial long-term investment returns. Additionally, a market price correction appears imminent, potentially offering an even higher return and enhanced dividend yield.
Dividend Policy
Altria Group Inc. has a strong dividend policy, with a dividend yield of 7.30% as of the latest data. The company has consistently paid dividends, reflecting its commitment to returning profits to shareholders.
Altria Group Inc. has an active stock repurchase program, which aims to reduce the number of outstanding shares and increase the value of remaining. The buyback yield is 2.61%.
Conclusion
Altria Group Inc. stands as a significant player in the tobacco industry, with a robust financial performance and solid investment potential. Despite market fluctuations, its high dividend yield and active stock repurchase program make it an attractive addition to any portfolio. Investors should consider the current stock price and potential market corrections to maximize returns.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.