U.S. tobacco industry leader with significant pricing power, market share, and brand equity across multiple product categories. Solid profitability and strong predictable cash flow. Experienced management team. Limited exposure to potential unfavorable menthol cigarette regulation, albeit a low probability risk. Long-term secular decline in U.S. cigarette volumes--the company's core profit category--which could accelerate if excise taxes increase meaningfully. Litigation overhang and evolving regulatory environment. Uncertain medium- to long-term impact on profitability from next generation products (NGP). Substantial free cash flow partly reflecting highly efficient operations and low capital expenditures. Low financial leverage, notwithstanding high shareholder payments. Large Anheuser-Busch InBev SA/NV equity stake provides moderate cash flow diversification and potential financial flexibility. Ongoing industry consolidation could subject Altria to large scale
