MO
Altria Group, Inc.
Consumer Defensive · Tobacco · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The profitability factor scored at the maximum level, anchoring the composite, as FY2025 margins and return on assets were exceptional by broad industry standards.
- The growth factor scored near the floor due to simultaneous declines in revenue, net income, and diluted EPS in FY2025, which significantly weighed on the overall composite.
- The absence of any macro theme assignment and a dividend score tempered by a 100.2% payout ratio both contributed to the composite settling at 55.9/100 rather than a higher level.
Why Not Higher
- The steep year-over-year declines in net income (-38.3%) and diluted EPS (-37.0%) produced a near-floor growth score that offset the strength seen in profitability.
- A payout ratio exceeding 100% and a negative debt-to-equity ratio of -7.34 — indicating liabilities exceed equity — introduce structural concerns that the model partially discounted in the financial health and dividend factors.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from FY2024's $24,018,000,000 to FY2025's $23,279,000,000, a drop of 3.1%. Net income fell more sharply, from $11,264,000,000 in FY2024 to $6,947,000,000 in FY2025 (-38.3%), and diluted EPS contracted from $6.54 in FY2024 to $4.12 in FY2025 (-37.0%).
The model penalized Altria heavily for broad-based contraction across revenue, earnings, and per-share metrics in FY2025, resulting in a near-floor growth score.
In FY2025, Altria posted an operating margin of 42.5%, a net margin of 29.8%, and a return on assets of 19.8%.
These metrics reflect exceptional profitability relative to most industries, and the model awarded the maximum score in recognition of the company's ability to convert revenue into operating and net income at an elite level.
In FY2025, Altria reported a debt-to-equity ratio of -7.34 and total assets of $35,017,000,000.
A negative debt-to-equity ratio indicates that shareholders' equity is negative, meaning liabilities exceed assets on the equity side — an unusual capital structure that the model appears to have partially discounted while still recognizing the scale of the asset base.
Over the last four reported quarters, revenue declined sequentially from $6,102,000,000 in 2025Q2 to $6,072,000,000 in 2025Q3, $5,846,000,000 in 2025Q4, and $5,428,000,000 in 2026Q1. Net income was relatively stable in 2025Q2 ($2,378,000,000) and 2025Q3 ($2,375,000,000), dropped sharply to $1,117,000,000 in 2025Q4, then partially recovered to $2,183,000,000 in 2026Q1. Operating income followed a similar pattern: steady at $3,230,000,000 in both 2025Q2 and 2025Q3, falling to $1,651,000,000 in 2025Q4, before rebounding to $2,956,000,000 in 2026Q1.
The model reflects a mixed momentum picture — a consistent downward revenue trend offset by a partial earnings recovery in the most recent quarter, yielding a near-midpoint score.
Altria's dividends per share have risen each year from $3.68 in FY2022 to $3.84 in FY2023, $4.00 in FY2024, and $4.16 in FY2025. However, the FY2025 dividend payout ratio stands at 100.2%, meaning dividends paid exceeded net income for the period.
The model recognizes the consistent dividend growth trend but tempers the score because a payout ratio exceeding 100% raises questions about the sustainability of the dividend from current earnings alone.
Altria is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not qualify for any thematic score contribution under the current methodology; this is a neutral classification rather than a negative signal.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Altria Group posted exceptional profitability in FY2025, with an operating margin of 42.5%, a net margin of 29.8%, and a return on assets of 19.8%, reflecting elite-level earnings conversion. However, revenue declined 3.1% year-over-year and net income fell sharply from $11,264,000,000 in FY2024 to $6,947,000,000 in FY2025, dragging the growth score to near-floor levels. The dividend has grown consistently from $3.68 in FY2022 to $4.16 in FY2025, but a payout ratio of 100.2% raises sustainability questions. The composite score of 55.9/100 reflects this tension between outstanding margins and broad-based contraction in earnings and revenue.
Plain English
Altria is extremely good at turning sales into profit, but its revenue and earnings are shrinking, its dividend is now costing more than it earns in a year, and there is no exciting growth story attached to the stock right now.
Bull Case vs. Bear Case
Bull Case
- Altria's FY2025 operating margin of 42.5% and net margin of 29.8% place it among the most profitable companies by these measures, demonstrating a durable ability to generate income from each dollar of revenue.
- Dividends per share have risen every year from $3.68 in FY2022 to $4.16 in FY2025, showing a consistent commitment to returning cash to shareholders over multiple years.
- After a sharp drop in 2025Q4, operating income partially rebounded to $2,956,000,000 in 2026Q1, suggesting some earnings resilience following a difficult quarter.
Bear Case
- Revenue declined 3.1% from FY2024 to FY2025, and net income fell from $11,264,000,000 to $6,947,000,000 (-38.3%), reflecting broad-based contraction across the business.
- The FY2025 dividend payout ratio stands at 100.2%, meaning dividends paid exceeded net income for the year, raising real questions about whether the current dividend level is sustainable from earnings alone.
- Revenue has declined sequentially in each of the last four reported quarters, from $6,102,000,000 in 2025Q2 down to $5,428,000,000 in 2026Q1, pointing to a persistent top-line headwind.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in net income above the 2025Q4 trough — building on the partial rebound seen in 2026Q1 — could signal that the earnings decline was partly transitory rather than structural.
- If the payout ratio returns well below 100%, it would restore confidence in dividend sustainability and reinforce the multi-year dividend growth trend.
Bearish Triggers
- If revenue continues its sequential quarterly decline beyond 2026Q1, it would confirm a structural top-line erosion that even strong margins cannot fully offset.
- A further increase in the payout ratio above 100% would deepen concerns that the dividend is being funded by means other than current earnings, which could pressure the capital structure.
Risk Profile
Low RiskAltria's debt-to-equity ratio of -7.34 reflects a capital structure where liabilities exceed shareholders' equity, an unusual position that introduces financial health risk even alongside a large asset base of $35,017,000,000. On the momentum side, while earnings partially recovered in 2026Q1, revenue has declined in each of the last four quarters, and the sharp 2025Q4 earnings drop illustrates that results can be volatile quarter to quarter.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.