Altria seems is a cash generating machine. It has nearly 50% operating margins and it's revenue has held steady at roughly $25 billion over the last decade (despite the fact that the smoking rates by 2/3rds over that time). When it doesn't have massive write downs for buying cannabis / vape companies its net margins hover around 20%.
There aren't any growth prospects, but the company is returning tons of cash to shareholders. It has an 8.6% dividend yield and spends and spends another 2.3% of its market cap repurchasing shares.
It's currently trading at a PE ratio of 8.6%. At this price it seems like it's a bargain.
Am I missing something here? I understand that smoking rates have been decreasing drastically, but it hasn't impacted the company's revenue yet. Vaping is a threat, but given the regulatory crackdowns on vaping, it seems like this threat is over hyped.
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