Altria Group: Market Share Woes Continue To Undermine This Value Prospect

(14min)

Summary

  • I maintain a 'hold' rating for Altria Group due to its declining market share and the ongoing reduction in smoking rates.
  • Despite attractive valuation and growth in segments like NJOY and on!, overall market share and cigarette volume continue to decline.
  • Revenue growth is driven by higher pricing, but this isn't enough to offset the weaknesses in the company's core markets.
  • Management's effective use of cash flows and share buybacks are positive, but the shrinking market and declining market share remain concerning.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Cigarettes in ashtray, flat layout photo

prchaec

Whenever I rate a company a 'hold', it is my assertion that the stock should experience an upside or downside that is very similar to what the broader market should see over the same window of time. Nobody is perfect and there

Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.

Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.

Sign up today for your two-week free trial and get a new lease on oil & gas!

This article was written by

Daniel Jones profile picture
32.65K Followers

Daniel 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

About MO Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on MO

Related Stocks

SymbolLast Price% Chg
MO
--