BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - NYSE:BTI - US1104481072 - ADR
54.71 USD
+0.58 (+1.07%)
54.7 USD
-0.01 (-0.02%)
BTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. Both the profitability and the financial health of BTI get a neutral evaluation. Nothing too spectacular is happening here. BTI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BTI had positive earnings in the past year.
BTI had a positive operating cash flow in the past year.
Of the past 5 years BTI 4 years were profitable.
In the past 5 years BTI always reported a positive cash flow from operatings.
1.2 Ratios
BTI's Return On Assets of 2.80% is on the low side compared to the rest of the industry. BTI is outperformed by 62.50% of its industry peers.
BTI has a Return On Equity of 6.59%. This is in the better half of the industry: BTI outperforms 75.00% of its industry peers.
With a Return On Invested Capital value of 3.41%, BTI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BTI is below the industry average of 14.16%.
The last Return On Invested Capital (3.41%) for BTI is well below the 3 year average (9.25%), which needs to be investigated, but indicates that BTI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.59% | ||
| ROIC | 3.41% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.25%
ROIC(5y)8.7%
1.3 Margins
BTI has a Profit Margin (12.06%) which is comparable to the rest of the industry.
BTI's Profit Margin has declined in the last couple of years.
BTI has a better Operating Margin (13.95%) than 62.50% of its industry peers.
BTI's Operating Margin has been stable in the last couple of years.
BTI has a better Gross Margin (83.38%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of BTI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.95% | ||
| PM (TTM) | 12.06% | ||
| GM | 83.38% |
OM growth 3Y-2.51%
OM growth 5Y0.86%
PM growth 3Y-23.49%
PM growth 5Y-11.66%
GM growth 3Y0.09%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BTI is still creating some value.
Compared to 1 year ago, BTI has less shares outstanding
BTI has less shares outstanding than it did 5 years ago.
BTI has a better debt/assets ratio than last year.
2.2 Solvency
BTI has an Altman-Z score of 1.39. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
BTI's Altman-Z score of 1.39 is fine compared to the rest of the industry. BTI outperforms 62.50% of its industry peers.
The Debt to FCF ratio of BTI is 4.06, which is a neutral value as it means it would take BTI, 4.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BTI (4.06) is better than 75.00% of its industry peers.
BTI has a Debt/Equity ratio of 0.68. This is a neutral value indicating BTI is somewhat dependend on debt financing.
BTI has a better Debt to Equity ratio (0.68) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.42
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.87 indicates that BTI may have some problems paying its short term obligations.
With a Current ratio value of 0.87, BTI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BTI has a Quick Ratio of 0.87. This is a bad value and indicates that BTI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BTI (0.55) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
BTI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.23%.
The Earnings Per Share has been growing slightly by 2.28% on average over the past years.
The Revenue has decreased by -2.24% in the past year.
The Revenue has been decreasing by -0.01% on average over the past years.
EPS 1Y (TTM)-2.23%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-4.31%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
3.2 Future
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.75% yearly.
Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y-5.06%
EPS Next 2Y0.68%
EPS Next 3Y2.72%
EPS Next 5Y4.75%
Revenue Next Year-1.95%
Revenue Next 2Y0.47%
Revenue Next 3Y1.48%
Revenue Next 5Y2.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.54 indicates a reasonable valuation of BTI.
Compared to the rest of the industry, the Price/Earnings ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 87.50% of the companies listed in the same industry.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
BTI is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
BTI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BTI is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. BTI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.44 | ||
| EV/EBITDA | 19.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.05
EPS Next 2Y0.68%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.79%, BTI is a good candidate for dividend investing.
BTI's Dividend Yield is a higher than the industry average which is at 4.60.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
The dividend of BTI has a limited annual growth rate of 3.19%.
BTI has been paying a dividend for at least 10 years, so it has a reliable track record.
BTI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.19%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BTI pays out 168.94% of its income as dividend. This is not a sustainable payout ratio.
BTI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP168.94%
EPS Next 2Y0.68%
EPS Next 3Y2.72%
54.71
+0.58 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change3.64%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap119.08B
Revenue(TTM)25.60B
Net Income(TTM)3.09B
Analysts75.79
Price Target58.82 (7.51%)
Short Float %0.23%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend3.13
Dividend Growth(5Y)3.19%
DP168.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.74%
PT rev (3m)5.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.25%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.16 | ||
| P/S | 3.53 | ||
| P/FCF | 10.44 | ||
| P/OCF | 9.76 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.11 |
EPS(TTM)4.74
EY8.66%
EPS(NY)4.9
Fwd EY8.96%
FCF(TTM)5.24
FCFY9.58%
OCF(TTM)5.61
OCFY10.25%
SpS15.49
BVpS28.36
TBVpS-23.81
PEG (NY)N/A
PEG (5Y)5.05
Graham Number54.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.59% | ||
| ROCE | 3.79% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 103.1% | ||
| OM | 13.95% | ||
| PM (TTM) | 12.06% | ||
| GM | 83.38% | ||
| FCFM | 33.85% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.25%
ROIC(5y)8.7%
ROICexc(3y)9.71%
ROICexc(5y)9.07%
ROICexgc(3y)1761.14%
ROICexgc(5y)1157.35%
ROCE(3y)10.3%
ROCE(5y)9.7%
ROICexgc growth 3Y160.63%
ROICexgc growth 5Y62.99%
ROICexc growth 3Y5.7%
ROICexc growth 5Y5.98%
OM growth 3Y-2.51%
OM growth 5Y0.86%
PM growth 3Y-23.49%
PM growth 5Y-11.66%
GM growth 3Y0.09%
GM growth 5Y-0.13%
F-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 22.67% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 148.45% | ||
| Profit Quality | 280.54% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.39 |
F-Score7
WACC8.11%
ROIC/WACC0.42
Cap/Depr(3y)23.99%
Cap/Depr(5y)39.87%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.23%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-4.31%
EPS Next Y-5.06%
EPS Next 2Y0.68%
EPS Next 3Y2.72%
EPS Next 5Y4.75%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
Revenue Next Year-1.95%
Revenue Next 2Y0.47%
Revenue Next 3Y1.48%
Revenue Next 5Y2.01%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year4.1%
EBIT Next 3Y4.31%
EBIT Next 5Y5.25%
FCF growth 1Y-11.49%
FCF growth 3Y1.99%
FCF growth 5Y3.07%
OCF growth 1Y-11.08%
OCF growth 3Y1.38%
OCF growth 5Y2.39%
BRITISH AMERICAN TOB-SP ADR / BTI FAQ
What is the fundamental rating for BTI stock?
ChartMill assigns a fundamental rating of 5 / 10 to BTI.
Can you provide the valuation status for BRITISH AMERICAN TOB-SP ADR?
ChartMill assigns a valuation rating of 6 / 10 to BRITISH AMERICAN TOB-SP ADR (BTI). This can be considered as Fairly Valued.
How profitable is BRITISH AMERICAN TOB-SP ADR (BTI) stock?
BRITISH AMERICAN TOB-SP ADR (BTI) has a profitability rating of 5 / 10.
Can you provide the financial health for BTI stock?
The financial health rating of BRITISH AMERICAN TOB-SP ADR (BTI) is 4 / 10.
What is the expected EPS growth for BRITISH AMERICAN TOB-SP ADR (BTI) stock?
The Earnings per Share (EPS) of BRITISH AMERICAN TOB-SP ADR (BTI) is expected to decline by -5.06% in the next year.