BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR - Currency: USD
BTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
BTI had positive earnings in the past year.
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
With a Return On Assets value of 3.46%, BTI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BTI's Return On Equity of 8.28% is amongst the best of the industry. BTI outperforms 87.50% of its industry peers.
BTI's Return On Invested Capital of 2.47% is in line compared to the rest of the industry. BTI outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BTI 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
BTI has a better Profit Margin (15.89%) than 62.50% of its industry peers.
BTI's Profit Margin has declined in the last couple of years.
BTI's Operating Margin of 10.62% is fine compared to the rest of the industry. BTI outperforms 62.50% of its industry peers.
BTI's Operating Margin has been stable in the last couple of years.
BTI has a better Gross Margin (82.85%) than 100.00% of its industry peers.
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.
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
Based on the Altman-Z score of 1.17, we must say that BTI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.17, BTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 better Debt to FCF ratio (3.88) 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.
Looking at the Debt to Equity ratio, with a value of 0.66, BTI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.31
WACC7.93%
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 62.50% of its industry peers.
A Quick Ratio of 0.52 indicates that BTI may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, BTI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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%.
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
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.86% yearly.
The Revenue is expected to grow by 1.14% on average over the next years.
EPS Next Y-1.18%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
EPS Next 5Y1.86%
Revenue Next Year-0.31%
Revenue Next 2Y1.29%
Revenue Next 3Y1.94%
Revenue Next 5Y1.14%
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 stable.
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
Based on the Price/Earnings ratio of 9.71, the valuation of BTI can be described as reasonable.
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.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.82 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.
BTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued a bit cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
The decent profitability rating of BTI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.25
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 6.98%, which is a nice return.
BTI's Dividend Yield is rather good when compared to the industry average which is at 3.86. 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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
126.87% of the earnings are spent on dividend by BTI. This is not a sustainable payout ratio.
BTI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP126.87%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
48.38
+1.02 (+2.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners53.42%
Inst Owner Change11.64%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap105.96B
Analysts78.89
Price Target49.61 (2.54%)
Short Float %0.41%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend3.24
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)3.74%
PT rev (3m)8.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.41%
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 | 9.71 | ||
| Fwd PE | 9.82 | ||
| P/S | 3 | ||
| P/FCF | 8.15 | ||
| P/OCF | 7.66 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.51 |
EPS(TTM)4.98
EY10.29%
EPS(NY)4.92
Fwd EY10.18%
FCF(TTM)5.93
FCFY12.26%
OCF(TTM)6.31
OCFY13.05%
SpS16.13
BVpS30.95
TBVpS-27.83
PEG (NY)N/A
PEG (5Y)4.25
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 | 1.17 |
F-Score6
WACC7.93%
ROIC/WACC0.31
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 5Y1.86%
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 5Y1.14%
EBIT growth 1Y-78.23%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year6.23%
EBIT Next 3Y4.5%
EBIT Next 5Y4.16%
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%