Altria Group Is Not A Buy. Here’s Why


  • Cigarette volumes keep declining, which is especially concerning given MO’s recent inability to offset the negative volume effect with pricing power.
  • The Company tries navigating the market with alternative product categories, and there’s some positive news regarding that.
  • However, the alternative product segments also face some headwinds (NJOY), or MO is yet to launch its first products (heated tobacco sticks).
  • The dividends are not endangered.
  • MO’s current valuation is given the state of a business doesn’t indicate a buying opportunity.

Red Graph moving down on chart as recession or financial crisis 3d animation


Investment thesis

To avoid any misunderstandings, let me start with this statement: I own a certain stake of shares in Altria Group (NYSE:MO). I don’t believe it’s a “sell” and I don’t intend to abandon my position. However, the current state

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.

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