BRITISH AMERICAN TOB-SP ADR (BTI)
US1104481072 - ADR
We assign a fundamental rating of 5 out of 10 to BTI. BTI was compared to 10 industry peers in the Tobacco industry. There are concerns on the financial health of BTI while its profitability can be described as average. BTI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years BTI had a positive operating cash flow.
1.2 Ratios
BTI has a worse Return On Assets (-12.10%) than 70.00% of its industry peers.
With a Return On Equity value of -27.33%, BTI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
BTI has a Return On Invested Capital (8.46%) which 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 21.15%.
The 3 year average ROIC (7.24%) for BTI is below the current ROIC(8.46%), indicating increased profibility in the last year.
| Industry Rank | Sector 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 better Gross Margin (82.99%) than 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 | 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%
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.
BTI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BTI has less shares outstanding
BTI has a worse debt/assets ratio than last year.
2.2 Solvency
BTI has an Altman-Z score of 1.30. 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 1.30. This is in the lower half of the industry: BTI underperforms 60.00% 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.
With a decent Debt to FCF ratio value of 3.79, BTI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BTI has a Debt/Equity ratio of 0.67. This is a neutral value indicating BTI is somewhat dependend on debt financing.
The Debt to Equity ratio of BTI (0.67) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.35
WACC6.27%
2.3 Liquidity
BTI has a Current Ratio of 0.91. 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 Current ratio of 0.91 is in line compared to the rest of the industry. BTI outperforms 50.00% of its industry peers.
BTI has a Quick Ratio of 0.91. 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 Quick ratio, with a value of 0.59, BTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.13% over the past year.
The Earnings Per Share has been growing slightly by 4.83% on average over the past years.
BTI shows a decrease in Revenue. In the last year, the revenue decreased by -1.35%.
Measured over the past years, BTI shows a small growth in Revenue. The Revenue has been growing by 2.18% on average per year.
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y4.83%
EPS growth Q2Q-4.88%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Revenue growth Q2Q-6.38%
3.2 Future
Based on estimates for the next years, BTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.80% on average per year.
Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y-1.6%
EPS Next 2Y2.01%
EPS Next 3Y3.35%
EPS Next 5Y11.8%
Revenue Next Year-3.17%
Revenue Next 2Y-0.05%
Revenue Next 3Y1.08%
Revenue Next 5Y2.11%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BTI is valuated cheaply with a Price/Earnings ratio of 6.30.
Compared to the rest of the industry, the Price/Earnings ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, BTI is valued rather cheaply.
The Price/Forward Earnings ratio is 6.40, which indicates a rather cheap valuation of BTI.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.4 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BTI is cheaper than 100.00% of the companies 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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.03 | ||
| EV/EBITDA | 2.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y2.01%
EPS Next 3Y3.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.27%, BTI is a good candidate for dividend investing.
BTI's Dividend Yield is rather good when compared to the industry average which is at 5.84. BTI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.27% |
5.2 History
The dividend of BTI has a limited annual growth rate of 3.59%.
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)3.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BTI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BTI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-35.18%
EPS Next 2Y2.01%
EPS Next 3Y3.35%
BRITISH AMERICAN TOB-SP ADR
NYSE:BTI (4/25/2024, 7:04:01 PM)
After market: 29.44 +0.04 (+0.14%)29.4
-0.09 (-0.31%)
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 Cap65.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.27% |
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 | 6.3 | ||
| Fwd PE | 6.4 | ||
| 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)1.3
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
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