BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR - Currency: USD
Taking everything into account, BTI scores 5 out of 10 in our fundamental rating. BTI was compared to 8 industry peers in the Tobacco industry. BTI has only an average score on both its financial health and profitability. 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.
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
With a Return On Assets value of 2.58%, BTI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
BTI has a better Return On Equity (6.18%) than 75.00% of its industry peers.
BTI has a Return On Invested Capital (2.47%) which is comparable to the rest of the industry.
BTI had an Average Return On Invested Capital over the past 3 years of 9.11%. This is significantly below the industry average of 16.58%.
The 3 year average ROIC (9.11%) for BTI is well above the current ROIC(2.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROIC | 2.47% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.11%
ROIC(5y)8.62%
1.3 Margins
BTI's Profit Margin of 11.86% is fine compared to the rest of the industry. BTI outperforms 62.50% of its industry peers.
BTI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.62%, BTI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BTI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 82.85%, BTI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
BTI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% |
OM growth 3Y-3.97%
OM growth 5Y-0.05%
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
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 1.12. 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 1.12 is on the low side compared to the rest of the industry. BTI is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of BTI is 3.88, which is a good value as it means it would take BTI, 3.88 years of fcf income to pay off all of its debts.
BTI has a Debt to FCF ratio of 3.88. This is in the better half of the industry: BTI outperforms 75.00% of its industry peers.
BTI has a Debt/Equity ratio of 0.66. This is a neutral value indicating BTI is somewhat dependend on debt financing.
BTI's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. BTI outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.33
WACC7.53%
2.3 Liquidity
BTI has a Current Ratio of 0.76. 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 has a Current ratio of 0.76. This is in the lower half of the industry: BTI underperforms 75.00% of its industry peers.
BTI has a Quick Ratio of 0.76. 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 0.52 is on the low side compared to the rest of the industry. BTI is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
BTI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.49%.
The Earnings Per Share has been growing slightly by 2.28% on average over the past years.
The Revenue has decreased by -5.19% in the past year.
Measured over the past years, BTI shows a decrease in Revenue. The Revenue has been decreasing by -0.01% on average per year.
EPS 1Y (TTM)-3.49%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-0.41%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.28%
3.2 Future
Based on estimates for the next years, BTI will show a small growth in Earnings Per Share. The EPS will grow by 4.34% on average per year.
The Revenue is expected to grow by 0.53% on average over the next years.
EPS Next Y-1.18%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
EPS Next 5Y4.34%
Revenue Next Year-0.31%
Revenue Next 2Y1.29%
Revenue Next 3Y1.94%
Revenue Next 5Y0.53%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.13, the valuation of BTI can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.24, the valuation of BTI can be described as very reasonable.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.94. BTI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTI indicates a somewhat cheap valuation: BTI is cheaper than 62.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.67 | ||
| EV/EBITDA | 17.72 |
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)4
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 7.81%, which is a nice return.
BTI's Dividend Yield is rather good when compared to the industry average which is at 4.07. BTI pays more dividend than 100.00% of the companies in the same industry.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.19%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BTI pays out 169.92% 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.
DP169.92%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
44.46
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners43.92%
Inst Owner Change11.66%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap97.50B
Analysts77.78
Price Target47.82 (7.56%)
Short Float %0.42%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
Yearly Dividend3.13
Dividend Growth(5Y)3.19%
DP169.92%
Div Incr Years2
Div Non Decr Years2
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)5.29%
PT rev (3m)9.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)-6.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 9.24 | ||
| P/S | 2.82 | ||
| P/FCF | 7.67 | ||
| P/OCF | 7.21 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.72 |
EPS(TTM)4.87
EY10.95%
EPS(NY)4.81
Fwd EY10.82%
FCF(TTM)5.79
FCFY13.03%
OCF(TTM)6.17
OCFY13.87%
SpS15.75
BVpS30.23
TBVpS-27.18
PEG (NY)N/A
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROCE | 2.74% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 3527.02% | ||
| OM | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% | ||
| FCFM | 36.79% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.11%
ROIC(5y)8.62%
ROICexc(3y)9.57%
ROICexc(5y)8.98%
ROICexgc(3y)1695.87%
ROICexgc(5y)1118.19%
ROCE(3y)10.15%
ROCE(5y)9.61%
ROICexcg growth 3Y156.72%
ROICexcg growth 5Y61.51%
ROICexc growth 3Y4.11%
ROICexc growth 5Y5.02%
OM growth 3Y-3.97%
OM growth 5Y-0.05%
PM growth 3Y-23.49%
PM growth 5Y-11.66%
GM growth 3Y0.09%
GM growth 5Y-0.13%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Debt/EBITDA | 5.58 | ||
| Cap/Depr | 19.61% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 173.17% | ||
| Profit Quality | 310.2% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.12 |
F-Score6
WACC7.53%
ROIC/WACC0.33
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)-3.49%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-0.41%
EPS Next Y-1.18%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
EPS Next 5Y4.34%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.28%
Revenue Next Year-0.31%
Revenue Next 2Y1.29%
Revenue Next 3Y1.94%
Revenue Next 5Y0.53%
EBIT growth 1Y-78.23%
EBIT growth 3Y-3.75%
EBIT growth 5Y-0.06%
EBIT Next Year6.73%
EBIT Next 3Y4.79%
EBIT Next 5Y3.6%
FCF growth 1Y-9.2%
FCF growth 3Y1.99%
FCF growth 5Y3.07%
OCF growth 1Y-8.64%
OCF growth 3Y1.38%
OCF growth 5Y2.39%