BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BTI - US1104481072 - ADR
60.34 USD
+1.35 (+2.29%)
60.29 USD
-0.05 (-0.08%)
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. 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 has a worse Return On Assets (2.80%) than 62.50% of its industry peers.
- Looking at the Return On Equity, with a value of 6.59%, BTI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- The Return On Invested Capital of BTI (3.41%) 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 14.25%.
- 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 of 12.06%. This is comparable to the rest of the industry: BTI outperforms 50.00% 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.
- 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 83.38%, 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 | 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.
- The number of shares outstanding for BTI has been reduced compared to 5 years ago.
- BTI has a better debt/assets ratio than last year.
2.2 Solvency
- BTI has an Altman-Z score of 1.45. 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 1.45 is fine compared to the rest of the industry. BTI outperforms 62.50% of its industry peers.
- BTI has a debt to FCF ratio of 4.06. This is a neutral value as BTI would need 4.06 years to pay back of all of its debts.
- BTI's Debt to FCF ratio of 4.06 is fine compared to the rest of the industry. BTI outperforms 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's Debt to Equity ratio of 0.68 is fine compared to the rest of the industry. BTI outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.42
WACC8.2%
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 is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
- BTI has a worse Quick ratio (0.55) 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%.
- BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.28% yearly.
- The Revenue has decreased by -2.24% in the past year.
- BTI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.01% yearly.
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 4.71% on average over the next years.
- Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 2.08% on average per year.
EPS Next Y-5.04%
EPS Next 2Y0.46%
EPS Next 3Y2.73%
EPS Next 5Y4.71%
Revenue Next Year-1.7%
Revenue Next 2Y0.71%
Revenue Next 3Y1.65%
Revenue Next 5Y2.08%
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
- BTI is valuated correctly with a Price/Earnings ratio of 12.17.
- 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.
- When comparing the Price/Earnings ratio of BTI to the average of the S&P500 Index (28.87), we can say BTI is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.82 indicates a reasonable valuation of BTI.
- Based on the Price/Forward Earnings ratio, BTI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, BTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.82 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.33
EPS Next 2Y0.46%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.57%, BTI is a good candidate for dividend investing.
- BTI's Dividend Yield is a higher than the industry average which is at 3.36.
- Compared to an average S&P500 Dividend Yield of 1.82, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.57% |
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
- 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 2Y0.46%
EPS Next 3Y2.73%
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.
What is the valuation status of BRITISH AMERICAN TOB-SP ADR (BTI) stock?
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.
What is the valuation of BRITISH AMERICAN TOB-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BRITISH AMERICAN TOB-SP ADR (BTI) is 12.17 and the Price/Book (PB) ratio is 2.03.
What is the earnings growth outlook for BRITISH AMERICAN TOB-SP ADR?
The Earnings per Share (EPS) of BRITISH AMERICAN TOB-SP ADR (BTI) is expected to decline by -5.04% in the next year.