Altria Group, Inc. is a tobacco and nicotine-products company that generates large, high-margin cash flows from mature brands and reports conservative headline leverage metrics alongside notable liquidity and profitability quirks.
The company’s core financial strengths are its high margins and cash generation: gross margin is 47.3% and operating margin is 37.6% (latest reported), with a net profit margin reported at 18.54% historically. Trailing twelve‑month operating cash flow has risen to $9.29B (from $8.38B in the 2020 TTM), and operating cash flow now exceeds the most recent trailing twelve‑month net income ($9.29B OCF vs $6.95B net income), indicating durable cash conversion. Reported leverage metrics also look comfortable on headline measures: interest coverage is approximately 9.17x and the reported net debt metric is effectively 0.00x owner earnings, with a reported debt-to-equity of -9.2958.
Important areas of concern include short‑term liquidity and equity returns. The current ratio is low at 0.3877, signaling near‑term liquidity tightness. Trailing twelve‑month Return on Equity is deeply negative at -201.2%, reflecting either capital structure effects or large non‑operating items that depressed equity (ROE reached a trough of -514.8% at 2024‑12‑31 before improving). Net income has also shown meaningful volatility: a peak of $11.26B in the 2024 TTM fell to $6.95B in the 2025 TTM, and quarterly net income ranged from roughly $2.1B to $6.34B in recent periods (most recent quarter $2.18B), while financing cash flow has been a sizeable outflow recently at -$9.69B TTM.
The foundation of business quality and long-term value creation
ALTRIA GROUP, INC.'s net income series shows pronounced quarter-to-quarter variability over the recent period. There are large year-end results recorded at 2023-12-31 $6.34B and 2025-12-31 $6.95B, while many intervening quarters in 2024 and early 2026 are notably lower, ranging roughly from $2.1B to $3.8B. A negative quarter appears at 2020-09-30 — net loss of $952.0M, indicating a material inflection point in that earlier period. The most recent net income observation is $2.18B for the quarter ended 2026-03-31.
Revenue observations in the dataset are sparser and concentrated in older periods; quarterly revenue readings from 2009–2020 typically cluster between $5.5B and $6.9B (for example, $6.36B on 2020-03-31, $6.91B on 2016-09-30). There are also larger period-end revenue entries of $17.91B–$19.49B on select dates (2013 and 2017 period-ends). The most recent reported revenue in the series is $6.36B for the quarter ended 2020-03-31.
The most recent reported net income was $2.18B (2026-03-31) and the most recent reported revenue was $6.36B (2020-03-31).
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Apr 2017 to Mar 2018, Altria Group Inc converts approximately 47¢ of every revenue dollar into gross profit (gross margin: 47.3%).The waterfall below shows how revenue flows through various expense categories.
Period Information
Report Type: Annual (10-K)
Period: Apr 2017 to Mar 2018
Analyzing long-term margin stability and competitive positioning
ALTRIA GROUP, INC.'s most recent gross and operating margins show an uptick in the latest quarter. Gross margin rose to 47.3% as of , up from 46.7% at . Operating margin moved to 37.6% at , slightly above 37.4% in the prior quarter. These two most recent points are the highest reported in the provided series.
Over the longer span, both gross and operating margins increased from the low-40s and low-30s, respectively, in 2014–2015 to the mid-to-high 40s (gross) and high 30s (operating) by late 2017–early 2018. Net profit margin is only available for at 18.5%, so no recent net margin trend is shown. The latest observed values are: Gross Margin 47.3% (), Operating Margin 37.6% (), Net Profit Margin 18.5% ().
Understanding Profit Margins
Between Apr 2017 and Mar 2018, Altria Group Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
ALTRIA GROUP, INC.’s trailing twelve-month figures show a recent divergence between reported net income and operating cash flow. Net income rose to a peak of $11.26B at the 2024-12-31 TTM, then declined to $6.95B by 2025-12-31 TTM. Over the same recent period, operating cash flow reached $9.29B at 2025-12-31 TTM, resulting in cash generation that now exceeds the most recent reported net income.
Looking further back, both metrics were closely aligned in the earlier years shown
The net income peaked at $11.26B in the 2024 TTM and then dropped to $6.95B in the 2025 TTM, while operating cash flow continued to rise to $9.29B. The most recent trailing twelve-month net income was $6.95B and operating cash flow was $9.29B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
ALTRIA GROUP, INC.'s trailing twelve-month Return on Equity has been deeply negative over the reported quarters, moving from -167.3% at 2024-03-31 to a trough of -514.8% at 2024-12-31 and then improving to -201.2% at 2025-12-31. The most recent quarters show a partial recovery from the 2024 year-end low, but ROE remains substantially below zero.
The most recent trailing twelve-month ROE was -201.2% for the period ending 2025-12-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
ALTRIA GROUP, INC.'s trailing-twelve-month operating cash flow shows a modest upward profile in the available series, rising from $8.38B (reported for the 2020 TTM) to $9.29B in the 2025 TTM, indicating the most recent operating cash generation is higher than earlier reported levels.
Investing cash flow has been consistently negative in the provided history and moved from -$467.0M (2017 TTM) to -$341.0M in the 2025 TTM, a reduction in net investing outflow versus earlier years.
Financing cash flow has shown larger swings: it was positive $4.72B in the 2018 TTM, turned negative by 2019 at -$4.71B, reached -$11.49B in the 2024 TTM, then was reported at -$7.62B in the 2025 TTM and most recently at -$9.69B for the period ending 2026-03-31.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.