BRITISH AMERICAN TOB-SP ADR (BTI)
US1104481072 - ADR
BTI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 10 industry peers in the Tobacco industry. While BTI belongs to the best of the industry regarding profitability, there are concerns on its financial health. BTI may be a bit undervalued, certainly considering the very reasonable score on growth BTI also has an excellent dividend rating.
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.
In the past 5 years BTI has always been profitable.
Each year in the past 5 years BTI had a positive operating cash flow.
1.2 Ratios
BTI's Return On Assets of 6.00% is fine compared to the rest of the industry. BTI outperforms 70.00% of its industry peers.
With an excellent Return On Equity value of 12.12%, BTI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of BTI (7.34%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BTI is significantly below the industry average of 21.62%.
The last Return On Invested Capital (7.34%) for BTI is above the 3 year average (6.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 12.12% | ||
| ROIC | 7.34% |
ROA(3y)4.65%
ROA(5y)4.42%
ROE(3y)9.73%
ROE(5y)9.47%
ROIC(3y)6.4%
ROIC(5y)6.1%
1.3 Margins
BTI has a Profit Margin of 31.06%. This is amongst the best in the industry. BTI outperforms 90.00% of its industry peers.
BTI's Profit Margin has declined in the last couple of years.
BTI's Operating Margin of 45.70% is amongst the best of the industry. BTI outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of BTI has grown nicely.
BTI has a better Gross Margin (83.54%) than 100.00% of its industry peers.
BTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.7% | ||
| PM (TTM) | 31.06% | ||
| GM | 83.54% |
OM growth 3Y3.08%
OM growth 5Y2.97%
PM growth 3Y3.02%
PM growth 5Y-33.94%
GM growth 3Y-0.09%
GM growth 5Y2.15%
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.
Compared to 5 years ago, BTI has less shares outstanding
Compared to 1 year ago, BTI has an improved debt to assets ratio.
2.2 Solvency
BTI has an Altman-Z score of 1.35. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
BTI has a worse Altman-Z score (1.35) than 60.00% of its industry peers.
The Debt to FCF ratio of BTI is 4.31, which is a neutral value as it means it would take BTI, 4.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.31, BTI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that BTI is somewhat dependend on debt financing.
BTI's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. BTI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.11
WACC6.59%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BTI may have some problems paying its short term obligations.
BTI's Current ratio of 0.93 is on the low side compared to the rest of the industry. BTI is outperformed by 70.00% of its industry peers.
BTI has a Quick Ratio of 0.93. This is a bad value and indicates that BTI is not financially healthy enough and could expect problems in meeting its short term obligations.
BTI's Quick ratio of 0.58 is on the low side compared to the rest of the industry. BTI is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.66% over the past year.
BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
Looking at the last year, BTI shows a small growth in Revenue. The Revenue has grown by 7.01% in the last year.
BTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.17% yearly.
EPS 1Y (TTM)12.66%
EPS 3Y4.68%
EPS 5Y5.48%
EPS growth Q2Q8.46%
Revenue 1Y (TTM)7.01%
Revenue growth 3Y2.24%
Revenue growth 5Y7.17%
Revenue growth Q2Q4.44%
3.2 Future
BTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y3.01%
EPS Next 2Y3.25%
EPS Next 3Y4.46%
EPS Next 5Y9.25%
Revenue Next Year0.27%
Revenue Next 2Y1%
Revenue Next 3Y2.19%
Revenue Next 5Y3.11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.90, which indicates a rather cheap 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.
BTI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.81.
BTI is valuated cheaply with a Price/Forward Earnings ratio of 5.75.
BTI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BTI is cheaper than 100.00% of the companies in the same industry.
BTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than BTI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BTI may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)1.08
EPS Next 2Y3.25%
EPS Next 3Y4.46%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 9.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.53, BTI pays a better dividend. On top of this BTI pays more dividend than 90.00% of the companies listed in the same industry.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.19% |
5.2 History
The dividend of BTI has a limited annual growth rate of 5.42%.
BTI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BTI decreased recently.
Dividend Growth(5Y)5.42%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BTI pays out 56.10% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BTI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.1%
EPS Next 2Y3.25%
EPS Next 3Y4.46%
BRITISH AMERICAN TOB-SP ADR
NYSE:BTI (12/6/2023, 11:17:07 AM)
28.745
-2.79 (-8.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap64.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.9 | ||
| Fwd PE | 5.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 12.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.7% | ||
| PM (TTM) | 31.06% | ||
| GM | 83.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.66%
EPS 3Y4.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.01%
Revenue growth 3Y2.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y