BRITISH AMERICAN TOB-SP ADR (BTI)
US1104481072 - ADR
BTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Tobacco industry. BTI has a medium profitability rating, but doesn't score so well on its financial health evaluation. BTI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BTI was profitable.
BTI had a positive operating cash flow in the past year.
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
BTI's Return On Assets of -12.10% is on the low side compared to the rest of the industry. BTI is outperformed by 70.00% of its industry peers.
BTI has a Return On Equity of -27.33%. This is in the better half of the industry: BTI outperforms 70.00% of its industry peers.
BTI has a Return On Invested Capital of 8.99%. This is comparable to the rest of the industry: BTI outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BTI is significantly below the industry average of 21.47%.
The last Return On Invested Capital (8.99%) for BTI is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.1% | ||
| ROE | -27.33% | ||
| ROIC | 8.99% |
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
With an excellent Operating Margin value of 46.24%, BTI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BTI has grown nicely.
BTI has a Gross Margin of 82.99%. This is amongst the best in the industry. BTI outperforms 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 | 46.24% | ||
| 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
BTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BTI remains at a similar level compared to 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BTI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that BTI is in the distress zone and has some risk of bankruptcy.
BTI's Altman-Z score of 1.39 is on the low side compared to the rest of the industry. BTI is outperformed by 70.00% of its industry peers.
The Debt to FCF ratio of BTI is 3.79, which is a good value as it means it would take BTI, 3.79 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.67 indicates that BTI is somewhat dependend on debt financing.
BTI has a better Debt to Equity ratio (0.67) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.37
WACC6.54%
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 has a Current ratio of 0.91. This is in the lower half of the industry: BTI underperforms 60.00% 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.
BTI's Quick ratio of 0.59 is in line compared to the rest of the industry. BTI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
BTI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.13%.
Measured over the past 5 years, BTI shows a small growth in Earnings Per Share. The EPS has been growing by 4.83% on average per year.
Looking at the last year, BTI shows a decrease in Revenue. The Revenue has decreased by -1.35% in the last year.
The Revenue has been growing slightly by 2.18% on average over the past years.
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y4.83%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Sales Q2Q%-6.38%
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 4.54% on average per year.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.20% yearly.
EPS Next Y-3.39%
EPS Next 2Y0.9%
EPS Next 3Y2.59%
EPS Next 5Y4.54%
Revenue Next Year-4.37%
Revenue Next 2Y-0.78%
Revenue Next 3Y0.62%
Revenue Next 5Y1.2%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.22, the valuation of BTI can be described as very cheap.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.47, which indicates a rather cheap valuation of BTI.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Forward Earnings ratio.
BTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 2.27 |
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)1.5
EPS Next 2Y0.9%
EPS Next 3Y2.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.14%, BTI is a good candidate for dividend investing.
BTI's Dividend Yield is rather good when compared to the industry average which is at 5.15. BTI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.14% |
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
The earnings of BTI are negative and hence is the payout ratio. BTI will probably not be able to sustain this dividend level.
BTI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-35.18%
EPS Next 2Y0.9%
EPS Next 3Y2.59%
BRITISH AMERICAN TOB-SP ADR
NYSE:BTI (7/26/2024, 7:20:19 PM)
After market: 35.2 +0.04 (+0.11%)35.16
+0.43 (+1.24%)
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 Cap77.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.14% |
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 | 7.22 | ||
| Fwd PE | 7.47 | ||
| 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)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.1% | ||
| ROE | -27.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 46.24% | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.13%
EPS 3Y4.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y1.91%
Revenue growth 5Y
Sales 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