BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BTI - US1104481072 - ADR
57.29 USD
-0.12 (-0.21%)
56.9 USD
-0.39 (-0.68%)
We assign a fundamental rating of 4 out of 10 to BTI. BTI was compared to 8 industry peers in the Tobacco industry. BTI has an average financial health and profitability rating. BTI has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
BTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BTI has a Return On Assets of 2.80%. This is in the lower half of the industry: BTI underperforms 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 3 year average ROIC (9.25%) for BTI is well above the current ROIC(3.41%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of BTI (12.06%) is comparable to the rest of the industry.
BTI's Profit Margin has declined in the last couple of years.
BTI has a better Operating Margin (13.95%) than 62.50% of its industry peers.
BTI's Operating Margin has been stable in the last couple of years.
The Gross Margin of BTI (83.38%) is better 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 | 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
BTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BTI has less shares outstanding
Compared to 5 years ago, BTI has less shares outstanding
BTI has a better debt/assets ratio than last year.
2.2 Solvency
BTI has an Altman-Z score of 1.43. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.43, BTI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
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 has a Debt to FCF ratio of 4.06. This is in the better half of the industry: BTI outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that BTI is somewhat dependend on debt financing.
BTI has a Debt to Equity ratio of 0.68. This is in the better half 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 | 1.43 |
ROIC/WACC0.42
WACC8.15%
2.3 Liquidity
A Current Ratio of 0.87 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Current ratio (0.87) than 62.50% of its industry peers.
A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, BTI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for BTI have decreased by -2.23% in the last year.
The Earnings Per Share has been growing slightly by 2.28% on average over the past years.
BTI shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
The Revenue has been decreasing by -0.01% on average over the past years.
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
Based on estimates for the next years, BTI will show a small growth in Earnings Per Share. The EPS will grow by 4.75% on average per year.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-4.99%
EPS Next 2Y0.8%
EPS Next 3Y2.77%
EPS Next 5Y4.75%
Revenue Next Year-1.93%
Revenue Next 2Y0.63%
Revenue Next 3Y1.53%
Revenue Next 5Y2%
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 reasonably with a Price/Earnings ratio of 11.94.
Based on the Price/Earnings ratio, BTI is valued a bit cheaper than 75.00% of the companies in the same industry.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.52, the valuation of BTI can be described as reasonable.
Based on the Price/Forward Earnings ratio, BTI is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, BTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BTI.
75.00% of the companies in the same industry are more expensive than BTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.8 | ||
| EV/EBITDA | 19.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.23
EPS Next 2Y0.8%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.53%, BTI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.64, BTI pays a bit more dividend than its industry peers.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.19%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
168.94% of the earnings are spent on dividend by BTI. 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 2Y0.8%
EPS Next 3Y2.77%
57.29
-0.12 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change3.67%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap124.63B
Revenue(TTM)25.60B
Net Income(TTM)3.09B
Analysts75.79
Price Target60.84 (6.2%)
Short Float %0.27%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend3.17
Dividend Growth(5Y)3.19%
DP168.94%
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)2.38%
PT rev (3m)4.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 11.52 | ||
| P/S | 3.65 | ||
| P/FCF | 10.8 | ||
| P/OCF | 10.09 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.79 |
EPS(TTM)4.8
EY8.38%
EPS(NY)4.97
Fwd EY8.68%
FCF(TTM)5.31
FCFY9.26%
OCF(TTM)5.68
OCFY9.91%
SpS15.68
BVpS28.71
TBVpS-24.1
PEG (NY)N/A
PEG (5Y)5.23
Graham Number55.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.59% | ||
| ROCE | 3.79% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 103.1% | ||
| OM | 13.95% | ||
| PM (TTM) | 12.06% | ||
| GM | 83.38% | ||
| FCFM | 33.85% |
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%
ROICexgc growth 3Y160.63%
ROICexgc 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-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 22.67% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 148.45% | ||
| Profit Quality | 280.54% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.43 |
F-Score7
WACC8.15%
ROIC/WACC0.42
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)-2.23%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-4.31%
EPS Next Y-4.99%
EPS Next 2Y0.8%
EPS Next 3Y2.77%
EPS Next 5Y4.75%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
Revenue Next Year-1.93%
Revenue Next 2Y0.63%
Revenue Next 3Y1.53%
Revenue Next 5Y2%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year4.43%
EBIT Next 3Y4.25%
EBIT Next 5Y5.25%
FCF growth 1Y-11.49%
FCF growth 3Y1.99%
FCF growth 5Y3.07%
OCF growth 1Y-11.08%
OCF growth 3Y1.38%
OCF growth 5Y2.39%
BRITISH AMERICAN TOB-SP ADR / BTI FAQ
What is the fundamental rating for BTI stock?
ChartMill assigns a fundamental rating of 4 / 10 to BTI.
Can you provide the valuation status for BRITISH AMERICAN TOB-SP ADR?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the financial health for BTI stock?
The financial health rating of BRITISH AMERICAN TOB-SP ADR (BTI) is 4 / 10.
What is the expected EPS growth for BRITISH AMERICAN TOB-SP ADR (BTI) stock?
The Earnings per Share (EPS) of BRITISH AMERICAN TOB-SP ADR (BTI) is expected to decline by -4.99% in the next year.