BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - US1104481072 - ADR
56.89 USD
+0.68 (+1.21%)
56.89 USD
0 (0%)
Overall BTI gets a fundamental rating of 5 out of 10. We evaluated BTI against 8 industry peers in the Tobacco industry. BTI has an average financial health and profitability rating. BTI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BTI was profitable.
In the past year BTI had a positive cash flow from operations.
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 better Return On Equity (6.59%) than 87.50% of its industry peers.
BTI has a Return On Invested Capital (3.41%) which is comparable to the rest of the industry.
BTI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is significantly below the industry average of 14.45%.
The 3 year average ROIC (9.25%) for BTI is well above the current ROIC(3.41%). The reason for the recent decline needs to be investigated.
| 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 of 12.06%. This is in the better half of the industry: BTI outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of BTI has declined.
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 Gross Margin of 83.38%. This is amongst the best in the industry. BTI outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTI is creating some value.
The number of shares outstanding for BTI has been reduced compared to 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BTI has an improved debt to assets ratio.
2.2 Solvency
BTI has an Altman-Z score of 1.40. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.40, BTI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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 62.50% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that BTI is somewhat dependend on debt financing.
BTI has a better Debt to Equity ratio (0.68) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.42
WACC8.08%
2.3 Liquidity
BTI has a Current 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.
Looking at the Current ratio, with a value of 0.87, BTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, BTI is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for BTI have decreased by -2.23% in the last year.
The Earnings Per Share has been growing slightly by 2.28% on average over the past years.
Looking at the last year, BTI shows a decrease in Revenue. The Revenue has decreased by -2.24% in the last 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
The Earnings Per Share is expected to grow by 4.01% on average over the next years.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.96% yearly.
EPS Next Y-4.52%
EPS Next 2Y1.09%
EPS Next 3Y2.96%
EPS Next 5Y4.01%
Revenue Next Year-1.97%
Revenue Next 2Y0.51%
Revenue Next 3Y1.6%
Revenue Next 5Y0.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.73 indicates a reasonable valuation of BTI.
BTI's Price/Earnings ratio is rather cheap when compared to the industry. BTI is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, BTI is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.26, the valuation of BTI can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than BTI, based on the Price/Forward Earnings ratio.
BTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA is on the same level as the industry average.
87.50% of the companies in the same industry are more expensive than BTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | 19.32 |
4.3 Compensation for Growth
The decent profitability rating of BTI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.14
EPS Next 2Y1.09%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.47%, BTI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.61, BTI pays a bit more dividend than its industry peers.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
5.2 History
The dividend of BTI has a limited annual growth rate of 3.19%.
BTI has paid a dividend for at least 10 years, which is 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
168.94% of the earnings are spent on dividend by BTI. 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 2Y1.09%
EPS Next 3Y2.96%
56.89
+0.68 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners53.42%
Inst Owner Change24.15%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap124.27B
Analysts77.89
Price Target57.99 (1.93%)
Short Float %0.4%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
Yearly Dividend3.18
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)13%
PT rev (3m)21.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-3.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 11.26 | ||
| P/S | 3.59 | ||
| P/FCF | 10.61 | ||
| P/OCF | 9.92 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.32 |
EPS(TTM)4.85
EY8.53%
EPS(NY)5.05
Fwd EY8.88%
FCF(TTM)5.36
FCFY9.42%
OCF(TTM)5.74
OCFY10.08%
SpS15.84
BVpS29.01
TBVpS-24.35
PEG (NY)N/A
PEG (5Y)5.14
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%
ROICexcg growth 3Y160.63%
ROICexcg 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 | 1.4 |
F-Score7
WACC8.08%
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-4.52%
EPS Next 2Y1.09%
EPS Next 3Y2.96%
EPS Next 5Y4.01%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
Revenue Next Year-1.97%
Revenue Next 2Y0.51%
Revenue Next 3Y1.6%
Revenue Next 5Y0.96%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year6.23%
EBIT Next 3Y4.5%
EBIT Next 5Y4.51%
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%