MO
🚬 Altria manufactures and sells tobacco products, with most sales coming from cigarettes under the Marlboro brand in the U.S.
📉 Cigarette sales are declining, but other areas of the business are growing.
✅ The company has a high net margin of 43%, a dividend yield of over 7%, and is considered a defensive stock.
⚠️ The risk is medium due to declining tobacco consumption trends in the U.S.
@Invierteygana:
“Altria is a company that manufactures and sells tobacco products for smoking and oral use in the United States. The majority of its sales come from the sale of cigarettes. Its main brand is Marlboro, although it only owns it in the United States. It also has income from the sale of cigars and other smokeless tobacco products, such as chewing tobacco and e-cigarettes. In the following table, we see that cigarette sales are falling; the price increase does not compensate for the decrease in consumption. The other two areas of the business are increasing revenue. 100% of its sales come from the United States. It also owns 10% of AB InBev, which is the largest beer manufacturer in the world. Tobacco has always been considered a defensive consumption item, since people do not stop smoking because there is a crisis. This has made Altria’s sales very stable. Profits have been growing as its margins have increased, thanks to the gradual increase in prices. We can see how its net margin is 43%, which is very good. It has low net debt, a current dividend yield of more than 7%, and has been repurchasing shares. We can say that it is trading at a reasonable P/E ratio, so it would be in price, neither cheap nor expensive. Like UPS, it is a defensive and stable company and has been increasing its dividend, but due to the declining trends in tobacco consumption in the United States, I consider the risk of the company to be medium.”
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Read more articles by the world’s top 100 analysts on Altria (MO) at the following link. MO stock.
