BRITISH AMERICAN TOB-SP ADR (BTI)

US1104481072 - ADR

30.76  +0.26 (+0.85%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BTI. BTI was compared to 10 industry peers in the Tobacco industry. BTI has a medium profitability rating, but doesn't score so well on its financial health evaluation. BTI is valued quite cheap, but it does not seem to be growing.



6

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.
BTI had positive earnings in 4 of the past 5 years.
In the past 5 years BTI always reported a positive cash flow from operatings.

1.2 Ratios

BTI's Return On Assets of -12.10% is on the low side compared to the rest of the industry. BTI is outperformed by 70.00% of its industry peers.
The Return On Equity of BTI (-27.33%) is better than 70.00% of its industry peers.
BTI has a Return On Invested Capital (8.46%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BTI is significantly below the industry average of 21.37%.
The 3 year average ROIC (7.24%) for BTI is below the current ROIC(8.46%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -12.1%
ROE -27.33%
ROIC 8.46%
ROA(3y)-0.94%
ROA(5y)1.18%
ROE(3y)-2.78%
ROE(5y)2.16%
ROIC(3y)7.24%
ROIC(5y)6.77%

1.3 Margins

BTI has a better Operating Margin (43.51%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of BTI has grown nicely.
BTI has a Gross Margin of 82.99%. 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 RankSector Rank
OM 43.51%
PM (TTM) N/A
GM 82.99%
OM growth 3Y4.15%
OM growth 5Y3.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.75%
GM growth 5Y0.16%

3

2. Health

2.1 Basic Checks

BTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BTI has about the same amout of shares outstanding than it did 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BTI has a worse debt to assets ratio.

2.2 Solvency

BTI has an Altman-Z score of 1.31. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
BTI has a Altman-Z score of 1.31. This is in the lower half of the industry: BTI underperforms 70.00% of its industry peers.
BTI has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as BTI would need 3.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.79, BTI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that BTI is somewhat dependend on debt financing.
BTI has a better Debt to Equity ratio (0.67) than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 3.79
Altman-Z 1.31
ROIC/WACC1.32
WACC6.39%

2.3 Liquidity

A Current Ratio of 0.91 indicates that BTI may have some problems paying its short term obligations.
With a Current ratio value of 0.91, BTI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.59 indicates that BTI may have some problems paying its short term obligations.
BTI has a Quick ratio (0.59) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.59

3

3. Growth

3.1 Past

BTI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.13%.
Measured over the past 5 years, BTI shows a small growth in Earnings Per Share. The EPS has been growing by 4.83% on average per year.
BTI shows a decrease in Revenue. In the last year, the revenue decreased by -1.35%.
The Revenue has been growing slightly by 2.18% on average over the past years.
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y4.83%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Sales Q2Q%-6.38%

3.2 Future

BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.04% yearly.
EPS Next Y-2.14%
EPS Next 2Y1.84%
EPS Next 3Y3.28%
EPS Next 5Y5%
Revenue Next Year-3.31%
Revenue Next 2Y-0.05%
Revenue Next 3Y1.09%
Revenue Next 5Y1.04%

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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.41 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 is valuated cheaply when we compare the Price/Earnings ratio to 28.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.55 indicates a rather cheap valuation of BTI.
Based on the Price/Forward Earnings ratio, BTI is valued cheaper than 100.00% of the companies in the same industry.
BTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.41
Fwd PE 6.55

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BTI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.12
EV/EBITDA 2.15

4.3 Compensation for Growth

BTI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y1.84%
EPS Next 3Y3.28%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.68%, BTI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.53, BTI pays a better dividend. On top of this BTI pays more dividend than 100.00% 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 2.37.
Industry RankSector Rank
Dividend Yield 9.68%

5.2 History

The dividend of BTI has a limited annual growth rate of 3.59%.
BTI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BTI decreased in the last 3 years.
Dividend Growth(5Y)3.59%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

The earnings of BTI are negative and hence is the payout ratio. BTI will probably not be able to sustain this dividend level.
The dividend of BTI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-35.18%
EPS Next 2Y1.84%
EPS Next 3Y3.28%

BRITISH AMERICAN TOB-SP ADR

NYSE:BTI (6/12/2024, 9:58:07 AM)

30.76

+0.26 (+0.85%)

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 Cap68.37B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 9.68%
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 RankSector Rank
PE 6.41
Fwd PE 6.55
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)N/A
PEG (5Y)1.33
Profitability
Industry RankSector Rank
ROA -12.1%
ROE -27.33%
ROCE
ROIC
ROICexc
ROICexgc
OM 43.51%
PM (TTM) N/A
GM 82.99%
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 Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.91
Quick Ratio 0.59
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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
Revenue growth 5Y
Sales 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