MMarketMath

MO

Slow growerQuality: Medium (50/100)1 red flag

Altria · Consumer Staples · Tobacco

$68.47

52w 54.70 – 77.06

20y monthly, adjusted

Mkt cap

$114.3B

P/E

15.9

P/FCF

12.2

FCF yield

8.2%

ROE

-198.4%

Shldr yield

7.2%

div 6.3% + bb 0.9%

What today's price assumes

At $114.3B, the market is pricing in 0.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 4.9% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $83 · $89 · $110 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 6.8× across 15 years, MO would trade near $38/share (25th–75th percentile: $35–$48); it trades at 12.3× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

−2.5%

Rev 5y

−2.3%

Rev 10y

−0.9%

EPS 5y

+11.4%

EPS 10y

+4.4%

FCF 5y

+2.2%

FCF 10y

+4.9%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $18.7B
2008: $19.4B
2009: $23.6B
2010: $24.4B
2011: $23.8B
2012: $24.6B
2013: $24.5B
2014: $24.5B
2015: $25.4B
2016: $25.7B
2017: $25.6B
2018: $25.4B
2019: $25.1B
2020: $26.2B
2021: $26.0B
2022: $25.1B
2023: $24.5B
2024: $24.0B
2025: $23.3B
$0$10.0B$20.0B
07
11
15
19
23

Net income

2007: $9.8B
2008: $4.9B
2009: $3.2B
2010: $3.9B
2011: $3.4B
2012: $4.2B
2013: $4.5B
2014: $5.1B
2015: $5.2B
2016: $14.2B
2017: $10.2B
2018: $7.0B
2019: −$1.3B
2020: $4.5B
2021: $2.5B
2022: $5.8B
2023: $8.1B
2024: $11.3B
2025: $6.9B
$0$5.0B$10.0B
07
11
15
19
23

Free cash flow

2007: $9.9B
2008: $4.6B
2009: $3.2B
2010: $2.6B
2011: $3.5B
2012: $3.8B
2013: $4.2B
2014: $4.5B
2015: $5.6B
2016: $3.6B
2017: $4.7B
2018: $8.2B
2019: $7.6B
2020: $8.2B
2021: $8.2B
2022: $8.1B
2023: $9.1B
2024: $8.6B
2025: $9.1B
$0$2.5B$5.0B$7.5B
07
11
15
19
23

Diluted shares (lower is better)

2008: 2.1B
2009: 2.1B
2010: 2.1B
2011: 2.1B
2012: 2.0B
2016: 2.0B
2017: 1.9B
2018: 1.9B
2019: 1.9B
2020: 1.9B
2021: 1.8B
2022: 1.8B
2023: 1.8B
2024: 1.7B
2025: 1.7B
01.0B2.0B
07
11
15
19
23

Margins

0%20%40%60%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $6.7B
2008: $5.6B
2009: $2.7B
2010: $3.0B
2011: $4.5B
2012: $4.5B
2013: $4.2B
2014: $4.8B
2015: $4.7B
2016: $5.5B
2017: $7.7B
2018: $7.1B
2019: $6.9B
2020: $6.3B
2021: $8.1B
2022: $8.4B
2023: $7.8B
2024: $10.2B
2025: $8.0B
$0$5.0B$10.0B
07
11
15
19
23

Cash vs long-term debt

$0$10.0B$20.0B$30.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $6.5B
Q3'23: $6.3B
Q4'23: $6.0B
Q1'24: $5.6B
Q2'24: $6.2B
Q3'24: $6.3B
Q4'24: $6.0B
Q1'25: $5.3B
Q2'25: $6.1B
Q3'25: $6.1B
Q4'25: $5.8B
Q1'26: $5.4B
Q2'26: $6.1B
$0$2.0B$4.0B$6.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.1B
Q3'23: $2.2B
Q4'23: $2.1B
Q1'24: $2.1B
Q2'24: $3.8B
Q3'24: $2.3B
Q4'24: $3.0B
Q1'25: $1.1B
Q2'25: $2.4B
Q3'25: $2.4B
Q4'25: $1.1B
Q1'26: $2.2B
Q2'26: $2.3B
$0$1.0B$2.0B$3.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$6.1B+0.1%$2.3B−3.4%1.37$719.0M
Q1'26$5.4B+3.2%$2.2B+102.7%1.30$2.3B
Q4'25 *$5.8B−2.1%$1.1B−63.2%0.67$3.3B
Q3'25$6.1B−3.0%$2.4B+3.6%1.41$3.1B
Q2'25$6.1B−1.7%$2.4B−37.5%1.41$205.0M
Q1'25$5.3B−5.7%$1.1B−49.4%0.63$2.7B
Q4'24 *$6.0B−0.0%$3.0B+47.5%1.78$3.3B
Q3'24$6.3B−0.4%$2.3B+5.9%1.34$2.6B
Q2'24$6.2B−4.6%$3.8B+79.6%2.21−$75.0M
Q1'24$5.6B−2.5%$2.1B+19.1%1.21$2.9B
Q4'23 *$6.0B−2.2%$2.1B−23.4%1.16$3.2B
Q3'23$6.3B−4.1%$2.2B+867.0%1.22$3.0B
Q2'23$6.5B−0.5%$2.1B+137.6%1.19$124.0M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue−2.5%−2.3%−0.9%−0.3%
Operating cash flow+4.0%+2.1%+4.7%+8.4%
Free cash flow+4.1%+2.2%+4.9%+8.7%
EPS (diluted)+8.9%+11.4%+4.4%+5.4%
Equity−43.1%−0.3%−5.9%
LT debt−1.3%−2.9%+6.5%+4.7%
Diluted shares−2.3%−2.0%−1.4%−1.4%
Stock price+24.8%+14.9%+7.4%+13.1%

$100, 3 years ago

$195vs $176 in SPY

24.8% vs 20.7%/yr

$100, 5 years ago

$201vs $181 in SPY

14.9% vs 12.6%/yr

$100, 10 years ago

$205vs $412 in SPY

7.4% vs 15.2%/yr

$100, 15 years ago

$632vs $813 in SPY

13.1% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$53.60

$51.0B created / $951.0M retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

45.0%

OCF ÷ (equity + debt)

OCF / EV yield

7.2%

MC vs 10× OCF

1.19

≤1 = priced under 10× OCF

Debt / FCF

2.7y

SBC / FCF

Owner earnings

$9.1B

OCF − capex − SBC

OE yield

8.2%

Share count 5y

−1.2%

per year; negative = buybacks

Capital intensity

7.3%

net PP&E ÷ revenue

Sales efficiency

new PP&E per $1 new revenue, 5y

Checklist

20 of 26 checks pass · 77%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/7

  • Revenue growth

    -2.3% · 5y CAGR ≥ 5%

    fail
  • EPS growth

    11.4% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    2.2% · 5y CAGR ≥ 5%

    fail
  • Revenue rises consistently

    1 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    9 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    2.1% vs -2.3% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

6/7

  • Net margin

    29.8% · ≥ 8%

    pass
  • Operating margin

    42.5% · ≥ 10%

    pass
  • Gross margin stable or rising

    62.5% vs 56.8% · no drop > 2 pts over 3y

    pass
  • Return on equity

    -198.4% · ≥ 12%

    fail
  • Cash ROIC

    45.0% · ≥ 12%

    pass
  • FCF margin

    39.0% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $9.3B vs NI $6.9B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/5

  • Debt payable from cash flow

    2.7y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    19% · cash ≥ 50% of LT debt

    fail
  • Leverage

    -6.89 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    −$3.5B · equity > 0 and grew over ~5y

    fail
  • Interest burden

    12% · interest ≤ 15% of operating income

    pass

Capital Allocation

3/3

  • Share count flat or shrinking

    -1.2% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    · SBC ≤ 15% of FCF

    na
  • Distributions funded by FCF

    88% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    9 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

4/4

  • FCF yield

    8.2% · ≥ 3%

    pass
  • Earnings multiple

    15.9 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    0.9% vs 4.9% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    7.2% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Revenue declining

Latest fiscal-year revenue fell more than 3% versus the prior year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202523,27914,5429,8996,9474.129,2902169,0746,9601,0004,47424,140-3,5021,683
202424,01814,36711,24111,2646.548,7531428,6116,8453,4003,12723,399-2,2381,718
202324,48314,28411,5478,1304.579,2871969,0916,7791,0003,68625,112-3,5401,777
202225,09614,24611,9195,7643.198,2562058,0516,5991,8254,03025,124-3,9731,804
202126,01313,99211,5602,4751.348,4051698,2366,4461,6754,54426,939-1,6061,845
202026,15313,02310,8734,4672.408,3852318,1546,29004,94527,9712,8391,859
201925,11012,71110,326-1,293-0.707,8372467,5916,0698452,11727,0426,2221,869
201825,36412,2549,1156,9633.688,3912388,1535,4151,6731,33311,89814,7871,888
201725,57611,9639,59310,2225.314,9011994,7024,8072,9171,25313,03015,3771,921
201625,74411,5728,76114,2397.283,8261893,6374,5121,0304,56913,88112,7701,952
201525,43411,1148,3615,2412.675,8432295,6144,1795542,36912,8432,880
201424,52210,1607,6205,0702.564,6631634,5003,8929393,32113,6933,014
201324,46610,4578,0844,5352.264,3751314,2443,6126343,17513,9924,119
201224,6189,5637,2534,1802.063,9031243,7793,4001,0822,90012,4193,1682,024
201123,8008,9396,0683,3901.643,6131053,5083,2221,3273,27013,0893,6802,064
201024,3639,1886,2283,9051.872,7671682,5992,95802,31412,1945,1922,079
200923,5568,8345,4623,2061.543,4432733,1702,69301,87111,1854,0692,071
200819,3567,6874,8824,9302.364,8812414,6404,4281,1667,9166,8392,8282,084
200718,6647,3854,3739,7864.6210,3163869,9306,65204,84219,320

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.