MOCAUTIOUS

MO Gross Margin Analysis

71.3%

Higher than 89% of Consumer Defensive sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

Gross margin, the percentage of revenue left after subtracting the cost of producing goods, stands at 73.7% for Altria.

Sector Performance

89th percentile

71.3%

Sector Median

52.2%

Sector Avg

49.6%

Prior Period

73.7%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of producing goods, stands at 73.7% for Altria.

This is well above the consumer defensive sector median of 51.6%, placing the company in the 92nd percentile among its peers. The margin has been rising over the last eight quarters, with a quarter-over-quarter increase of 14.1% (year-over-year change is not available). A high and increasing gross margin suggests the company has strong pricing power and efficient production, which typically reduces investment risk. However, the overall CAUTIOUS verdict on Altria is not contradicted by this metric, as other factors such as declining tobacco volumes or regulatory pressures likely offset the positive margin signal. The strong gross margin alone does not override the cautious stance, but it does highlight a relative operational strength.

Frequently Asked Questions

What does the Gross Margin tell investors about MO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does MO's Gross Margin compare to its sector?

MO's Gross Margin of 71.3% compares to a Consumer Defensive sector median of 52.2%, placing it in the 89th percentile.

Who are MO's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: KDP (52.8%), ABEV (51.6%), CELH (48.3%), COTY (61.8%), PM (68.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.