BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR - Currency: USD
Overall BTI gets a fundamental rating of 5 out of 10. We evaluated BTI against 8 industry peers in the Tobacco industry. BTI has an average financial health and profitability rating. BTI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BTI was profitable.
In the past year BTI had a positive cash flow from operations.
Of the past 5 years BTI 4 years were profitable.
BTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BTI has a Return On Assets of 3.46%. This is comparable to the rest of the industry: BTI outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 8.28%, BTI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
BTI has a Return On Invested Capital (2.47%) which is in line with its industry peers.
BTI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is below the industry average of 14.11%.
The last Return On Invested Capital (2.47%) 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 | 3.46% | ||
| ROE | 8.28% | ||
| ROIC | 2.47% |
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
Looking at the Profit Margin, with a value of 15.89%, BTI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
BTI's Profit Margin has declined in the last couple of years.
BTI has a better Operating Margin (10.62%) than 62.50% of its industry peers.
BTI's Operating Margin has been stable in the last couple of years.
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) | 15.89% | ||
| GM | 82.85% |
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.
BTI has less shares outstanding than it did 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
BTI has a better debt/assets ratio than last year.
2.2 Solvency
BTI has an Altman-Z score of 1.18. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BTI (1.18) is comparable to the rest of the industry.
BTI has a debt to FCF ratio of 3.88. This is a good value and a sign of high solvency as BTI would need 3.88 years to pay back of all of its debts.
The Debt to FCF ratio of BTI (3.88) is better than 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 has a Debt to Equity ratio of 0.66. This is in the better half of the industry: BTI outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.32
WACC7.61%
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's Current ratio of 0.76 is on the low side compared to the rest of the industry. BTI is outperformed by 62.50% 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%.
Measured over the past 5 years, BTI shows a small growth in Earnings Per Share. The EPS has been growing by 2.28% on average per year.
BTI shows a decrease in Revenue. In the last year, the revenue decreased by -5.19%.
BTI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.01% yearly.
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
The Earnings Per Share is expected to grow by 3.37% on average over the next years.
BTI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.22% yearly.
EPS Next Y-1.18%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
EPS Next 5Y3.37%
Revenue Next Year-0.31%
Revenue Next 2Y1.29%
Revenue Next 3Y1.94%
Revenue Next 5Y-0.22%
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 9.88, which indicates a very decent valuation of BTI.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. BTI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.99, the valuation of BTI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 87.50% of the companies listed 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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
BTI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BTI is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 18.78 |
4.3 Compensation for Growth
The decent profitability rating of BTI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.33
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 6.87%, which is a nice return.
Compared to an average industry Dividend Yield of 3.82, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
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
126.87% of the earnings are spent on dividend by BTI. This is not a sustainable payout ratio.
BTI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP126.87%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
48.6
-0.18 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners43.92%
Inst Owner Change11.64%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap106.44B
Analysts78.89
Price Target48.46 (-0.29%)
Short Float %0.56%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
Yearly Dividend3.2
Dividend Growth(5Y)3.19%
DP126.87%
Div Incr Years3
Div Non Decr Years3
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)1.34%
PT rev (3m)10.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 9.99 | ||
| P/S | 3.05 | ||
| P/FCF | 8.29 | ||
| P/OCF | 7.79 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.78 |
EPS(TTM)4.92
EY10.12%
EPS(NY)4.86
Fwd EY10.01%
FCF(TTM)5.86
FCFY12.06%
OCF(TTM)6.24
OCFY12.83%
SpS15.93
BVpS30.57
TBVpS-27.49
PEG (NY)N/A
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 8.28% | ||
| ROCE | 2.74% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 3527.02% | ||
| OM | 10.62% | ||
| PM (TTM) | 15.89% | ||
| GM | 82.85% | ||
| FCFM | 36.79% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.25%
ROIC(5y)8.7%
ROICexc(3y)9.71%
ROICexc(5y)9.07%
ROICexgc(3y)1761.14%
ROICexgc(5y)1157.35%
ROCE(3y)10.3%
ROCE(5y)9.7%
ROICexcg growth 3Y160.63%
ROICexcg growth 5Y62.99%
ROICexc growth 3Y5.7%
ROICexc growth 5Y5.98%
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%
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 | 231.61% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.18 |
F-Score6
WACC7.61%
ROIC/WACC0.32
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 5Y3.37%
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 5Y-0.22%
EBIT growth 1Y-78.23%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year6.23%
EBIT Next 3Y4.5%
EBIT Next 5Y2.83%
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%