Is MO a high-quality business?

AlphaMadera's AlphaQuality grade scores Altria Group, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MO compares to a Buffett-style quality bar.

What is Altria Group, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MO based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MO a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MO - Altria Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $71.83 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 69.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

A+ 100.0

5yr Avg ROIC 34.0% 100/100
Operating Margin Trend +3.74 pp/yr 100/100

Capital Efficiency

Weight: 15%

D 38.1

5yr Avg ROE 0.0% 10/100
5yr Share-Count CAGR -2.4% 90/100

Growth Quality

Weight: 15%

C- 46.9

5yr Revenue CAGR -1.2% 18/100
5yr EPS CAGR 32.3% 100/100
Revenue-Growth Years (5) 1/5 20/100

Cash Generation

Weight: 15%

A+ 95.0

5yr FCF Margin 41.9% 100/100
5yr FCF/NI Conversion 1.58x 89/100

Balance Sheet

Weight: 20%

A- 81.0

Net Debt / EBITDA 1.96x 71/100
Interest Coverage (EBIT/Int) 8.98x 81/100
Altman Z-Score 5.01 100/100

Stability

Weight: 15%

D+ 41.3

EPS Volatility (σ/μ) 0.45 36/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 4/5 20/100

4 of 4 gurus held; 2 added; 2 trimmed.

Holders: 4
Avg Δ position: -7.6%
New buys: 0
Full exits: 0

Dalio decreased -48%
Greenblatt increased +22%
Cooperman decreased -6%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.