As I understand it, Altria and Imperial Brands have volume declines while Phillip Morris and British American have diversified into non-combustibles(vape, CBD etc) with growing organic volume. (Altria's transition isn't as fast.)
All have pricing power, very high FCF conversion and FCF to CFF(basically dividend+buyback+debt reduction).
So why do PM and BTI trade on such opposite ends relative to MO and IMB? Debt maturity? Dollar exposure? Regulations?
| Ticker | EV/FCF | Div Yld | Div+Bbk Yld |
|---|---|---|---|
| MO | 10.8 | 8.9% | 10.2% |
| IMB | 11.0 | 8.0% | 11.6% |
| PM | 22.11 | 5.3% | 5.2% |
| BTI | 7.1 | 10.0% | 10.0% |
(data from Stock Analysis as of 2024 May 03)
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