Altria Group's Problems Are Only Getting Worse
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryAltria Group faces declining revenues and market share amid a shrinking cigarette market, despite management's transition efforts toward non-traditional products.MO's profitability and cash flows continue to rise due to price hikes, but core volumes and premium brands like Marlboro are under significant pressure.Legal challenges and market saturation hinder MO's e-vapor ambitions, limiting near-term upside from new product launches.I reaffirm a "Hold" rating on MO, citing its attractive valuation and robust cash generation despite structural headwinds and competitive pressures. Robert vt Hoenderdaal/iStock Editorial via Getty Images About three months ago, I decided to take a fresh look at tobacco giant Altria Group (MO). Management has succeeded, in recent years, in keeping profits and cash flows for the company rising. But this comes at a time when revenueThis article was written byDaniel Jones35.97K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You