Buffett Brain · Research note
Score updated 25 Sept 2026 · analysis from 17 Aug 2026
MO· Consumer Staples
Altria Group
Altria's 67.8% gross margin and 33.5% ROIC indicate a strong moat, but regulatory risks and declining revenue growth cloud the picture.
Buffett fit
Partial fit
Owner
100
Durability
63
Management
73
Price
79
Score updated 25 Sept 2026 · analysis from 17 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Staples stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Altria would mean relying on its strong cash generation, evidenced by $9.07B in , to support dividends and .
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Altria's durability is supported by its strong brand and high margins, but it faces regulatory risks and declining smoking rates.
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Management has effectively returned capital to shareholders with a 5-year share count CAGR of -2.36% and a yield of 1.48%.
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With a of 15.0 and an EV/ of 9.4, the valuation appears reasonable given the high margins.
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- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 67.8% is top-quintile in its sector.
- 2 of 50.7% reflects strong .
- 3 of 33.5% is well above the sector's top-quintile cutoff.
- 4 of $9.07B supports dividends and .
Concerns
8- 1Revenue CAGR of -1.17% over 5 years indicates declining sales.
- 2Debt/Equity ratio of -7.66 signals balance sheet concerns.
- 3Current ratio of 0.56 suggests liquidity risks.
- 4Regulatory risks could impact future profitability.
Price history
$72.99+65.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Altria generates cash by selling tobacco products under brands like Marlboro and Copenhagen. It sells primarily to wholesalers and large retail chains. The tobacco industry is known for high margins, as evidenced by Altria's 67.8% . The unit economics are strong, with high and brand loyalty offsetting declining volume.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Staples
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