BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR - Currency: USD
Taking everything into account, BTI scores 5 out of 10 in our fundamental rating. BTI was compared to 8 industry peers in the Tobacco industry. Both the profitability and the financial health of BTI get a neutral evaluation. Nothing too spectacular is happening here. BTI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BTI was profitable.
BTI had a positive operating cash flow in the past year.
Of the past 5 years BTI 4 years were profitable.
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 3.46%, BTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of BTI (8.28%) is better than 87.50% of its industry peers.
The Return On Invested Capital of BTI (2.47%) is comparable to the rest of the industry.
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 has a Operating Margin of 10.62%. This is in the better half of the industry: BTI outperforms 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 Gross Margin of 82.85%. This is amongst the best in the industry. BTI outperforms 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.
BTI has less shares outstanding than it did 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BTI has been reduced compared to a year ago.
2.2 Solvency
BTI has an Altman-Z score of 1.21. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.21, BTI perfoms like the industry average, 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.
Looking at the Debt to FCF ratio, with a value of 3.88, BTI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
BTI has a Debt/Equity ratio of 0.66. This is a neutral value indicating BTI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.66, BTI is doing good in 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 | 1.21 |
ROIC/WACC0.31
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.76 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Current ratio (0.76) than 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
The earnings per share for BTI have decreased by -3.49% in the last year.
BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.28% yearly.
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
Based on estimates for the next years, BTI will show a small growth in Earnings Per Share. The EPS will grow by 1.86% on average per year.
Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 1.14% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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 10.38 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 27.41, BTI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.51 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, BTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 10.51 |
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 | 8.72 | ||
| EV/EBITDA | 19.43 |
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)4.55
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 6.48%, which is a nice return.
BTI's Dividend Yield is rather good when compared to the industry average which is at 3.80. BTI pays more dividend than 87.50% of the companies in the same industry.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
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
BTI pays out 126.87% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BTI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP126.87%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
51.17
+0.35 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners53.42%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap111.99B
Analysts76.67
Price Target49.61 (-3.05%)
Short Float %0.41%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
Yearly Dividend3.19
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)2.37%
PT rev (3m)9.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.39%
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 | 10.38 | ||
| Fwd PE | 10.51 | ||
| P/S | 3.21 | ||
| P/FCF | 8.72 | ||
| P/OCF | 8.2 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.43 |
EPS(TTM)4.93
EY9.63%
EPS(NY)4.87
Fwd EY9.52%
FCF(TTM)5.87
FCFY11.47%
OCF(TTM)6.24
OCFY12.2%
SpS15.95
BVpS30.61
TBVpS-27.52
PEG (NY)N/A
PEG (5Y)4.55
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 | 1.21 |
F-Score6
WACC7.99%
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%