| | | MO also does something strange with much of their income; for some reason quite little is trickling down to the bottom line.
Both MO and BTI are able to regularly transport 75 % of their Operating Income to Net Income.
MO, however, only managed to keep ~20 % of their 2021 Op. Income; ~40% of their 2020 OI; and negative 10% of their 2019 OI.
All the while, their OI was about the same size as that of both PM and BTI.
Looking at their Statement of Earnings, it seems that these losses stem from some equity investments/securities...
This leads to their P/E being drastically higher than PM's and BTI's, and their Net Income to be drastically smaller than it should be.
With above strangeness, I'm even less inclined to pay a high P/E for MO than I normally would be, and am mainly sticking with the two other ones (PM & BTI). I have filled my cup with more of these two safe haven stocks recently.
As Spekulatius pointed out, now that both PM and BTI will have nicotine pouch operations, they are both likely well set up to keep prospering in the coming decade(s).
I do believe that smoking may well turn down quite drastically wherever nicotine pouches are encouraged and smoking discouraged.
I.e., in Sweden and Norway – only two countries where nicotine pouches/'snus' is truly widespread – smoking is clearly lower.
In Denmark, however, where you're still allowed to smoke inside in bars (we Swedes can't even smoke on outside seating cafés/restaurants/bars...), smoking hasn't declined notably.
(As a comparison, only 2-4% of 16-24 year olds in Norway smoke, while 20-24% use snus.) |
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