How stable is Altria's gross profit margin lately?

Altria's gross profit margin has shown a general upward trend over the past five years, with some fluctuations. Here's a detailed analysis: 1. **Trend Analysis**: - The gross profit margin for Altria's most recent quarter ending on December 31, 2024, is 58.34%. - The gross profit margin has exhibited a seasonal fluctuating pattern, decreasing in the fourth quarter of 2022 to 56.77% and then increasing to 59.82% by the end of 2024. |code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |MO|MO.N|Altria Group|2020 Q1|45.1801|-9.54337323586943|169| |MO|MO.N|Altria Group|2020 Q2|48.4048|-3.2931027249061473|169| |MO|MO.N|Altria Group|2020 Q3|49.7607|-1.2590484808077014|169| |MO|MO.N|Altria Group|2020 Q4|49.7954|-1.631526649848971|169| |MO|MO.N|Altria Group|2021 Q1|54.2081|19.982248821937088|169| |MO|MO.N|Altria Group|2021 Q2|53.9932|11.545136019568307|169| |MO|MO.N|Altria Group|2021 Q3|54.0389|8.597547864077471|169| |MO|MO.N|Altria Group|2021 Q4|53.7885|8.01901380448796|169| |MO|MO.N|Altria Group|2022 Q1|57.2471|5.606173247171551|169| |MO|MO.N|Altria Group|2022 Q2|56.6064|4.839868724209714|169| 2. **Stability Assessment**: - Altria's gross profit margin has shown resilience, bouncing back from a low of 49.8% on December 31, 2020, to 58.34% by the end of 2023. - The latest twelve months gross profit margin is 69.8%, and the average gross profit margin for the fiscal years ending December 2019 to 2023 was 66.6%. - This indicates a stable and improving trend in the company's gross profit margin over the period. 3. **Recent Performance**: - Altria's recent earnings report shows a company that is actively managing costs and improving its profitability. For instance, the EBITDA margin improved to 26% in 2024, reflecting enhanced operational efficiencies. - The company's strategic focus on reducing costs and leveraging market opportunities has contributed to its robust financial performance. 4. **Market Position and Outlook**: - Despite facing challenges from the illicit tobacco market and regulatory environments, Altria has maintained a strong financial position and continues to expand its product portfolio to remain competitive. - The company's modernization initiative is expected to save $600 million over five years, suggesting a strategic approach to maintaining profitability. 5. **Dividend and Shareholder Returns**: - Altria's dividend yield remains attractive at 7.84%, which could be a sign of the company's confidence in its cash flow and profitability. - The company's stock has hit a 52-week high, indicating investor confidence and a bullish outlook for the company's financial future. In conclusion, Altria's gross profit margin has demonstrated a stable and improving trend over the past five years, with the company's strategic initiatives and market positioning contributing to its financial resilience. The recent earnings report and market performance indicators suggest that Altria is well-positioned to maintain its gross profit margin in the foreseeable future.