MO – Market expectations are for Uniform ROA to decline, and management may have concerns about regulatory challenges and their strategic initiatives

• Altria Group, Inc. (MO) currently trades well below corporate and historical averages relative to Uniform earnings, with an 11.1x Uniform P/E (Fwd. V/E’).
  
• At these levels, the markets are pricing in expectations for Uniform ROA to decline to 154%, accompanied by 3% Uniform asset growth.
  
• However, analysts expect Uniform ROA to improve to 377% in 2022, accompanied by 3% Uniform asset shrinkage.
  
• If sustained going forward, these levels would imply a stock price closer to $88, representing significant potential equity upside for the firm.
  
• However, the firm’s most recent earnings call suggests management may have concerns about regulatory challenges and their strategic initiatives.