BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - NYSE:BTI - US1104481072 - ADR
51.16 USD
-0.46 (-0.89%)
50.99 USD
-0.17 (-0.33%)
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. BTI also has an excellent dividend rating.
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.
BTI had positive earnings in 4 of the past 5 years.
In the past 5 years BTI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.80%, BTI is doing worse than 62.50% of the companies in the same industry.
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.
BTI has a Return On Invested Capital (3.41%) 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 significantly below the industry average of 14.52%.
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
The Profit Margin of BTI (12.06%) is better than 62.50% of its industry peers.
In the last couple of years the Profit Margin of BTI has declined.
The Operating Margin of BTI (13.95%) is better 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.
BTI has a better Gross Margin (83.38%) 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
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.
Compared to 5 years ago, BTI has less shares outstanding
The debt/assets ratio for BTI has been reduced compared to a year ago.
2.2 Solvency
BTI has an Altman-Z score of 1.33. 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 1.33, BTI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of BTI is 4.06, which is a neutral value as it means it would take BTI, 4.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.06, BTI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that BTI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.68, BTI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.42
WACC8.05%
2.3 Liquidity
BTI has a Current Ratio of 0.87. 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 0.87. This is comparable to the rest of the industry: BTI outperforms 50.00% of its industry peers.
A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, BTI is doing worse than 75.00% of the companies in the same industry.
| 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.
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)-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 4.19% on average per year.
Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-5.18%
EPS Next 2Y0.71%
EPS Next 3Y2.84%
EPS Next 5Y4.19%
Revenue Next Year-2.01%
Revenue Next 2Y0.51%
Revenue Next 3Y1.64%
Revenue Next 5Y1.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.61 indicates a reasonable valuation of BTI.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.69, BTI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of BTI.
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 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA ratio is in line with the industry average.
BTI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BTI is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
BTI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.65
EPS Next 2Y0.71%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 6.29%, which is a nice return.
Compared to an average industry Dividend Yield of 3.98, BTI pays a better dividend. On top of this BTI pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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 2Y0.71%
EPS Next 3Y2.84%
51.16
-0.46 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change-0.23%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap111.50B
Analysts75.79
Price Target59.86 (17.01%)
Short Float %0.37%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
Yearly Dividend3.19
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)-2.36%
PT rev (3m)16.65%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.26 | ||
| P/S | 3.25 | ||
| P/FCF | 9.6 | ||
| P/OCF | 8.97 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.09 |
EPS(TTM)4.82
EY9.42%
EPS(NY)4.99
Fwd EY9.75%
FCF(TTM)5.33
FCFY10.42%
OCF(TTM)5.7
OCFY11.15%
SpS15.75
BVpS28.84
TBVpS-24.21
PEG (NY)N/A
PEG (5Y)4.65
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%
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-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 | 1.33 |
F-Score7
WACC8.05%
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-5.18%
EPS Next 2Y0.71%
EPS Next 3Y2.84%
EPS Next 5Y4.19%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
Revenue Next Year-2.01%
Revenue Next 2Y0.51%
Revenue Next 3Y1.64%
Revenue Next 5Y1.46%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year4.1%
EBIT Next 3Y4.31%
EBIT Next 5Y4.69%
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%