BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BTI - US1104481072 - ADR
57.93 USD
-0.2 (-0.34%)
57.7504 USD
-0.18 (-0.31%)
Taking everything into account, BTI scores 4 out of 10 in our fundamental rating. BTI was compared to 8 industry peers in the Tobacco industry. BTI has only an average score on both its financial health and profitability. BTI has a valuation in line with the averages, 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.
Of the past 5 years BTI 4 years were profitable.
Each year in the past 5 years BTI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.80%, BTI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
BTI's Return On Equity of 6.59% is fine compared to the rest of the industry. BTI outperforms 75.00% of its industry peers.
BTI has a Return On Invested Capital (3.41%) which is comparable to the rest of the industry.
BTI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is below the industry average of 14.16%.
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.
The Operating Margin of BTI (13.95%) is better than 62.50% of its industry peers.
BTI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 83.38%, BTI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
BTI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BTI is still 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.
Compared to 1 year ago, BTI has an improved debt to assets ratio.
2.2 Solvency
BTI has an Altman-Z score of 1.45. 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 1.45, 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 better Debt to FCF ratio (4.06) than 75.00% of its industry peers.
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 | 1.45 |
ROIC/WACC0.42
WACC8.16%
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.
With a Current ratio value of 0.87, BTI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
BTI has a Quick ratio of 0.55. This is in the lower half of the industry: BTI underperforms 75.00% of its industry peers.
| 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%.
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 -2.24%.
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
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.75% yearly.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-5.06%
EPS Next 2Y0.68%
EPS Next 3Y2.72%
EPS Next 5Y4.75%
Revenue Next Year-1.95%
Revenue Next 2Y0.47%
Revenue Next 3Y1.48%
Revenue Next 5Y2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 12.12 indicates a correct valuation of BTI.
Based on the Price/Earnings ratio, BTI is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. BTI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.72, 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.
When comparing the Price/Forward Earnings ratio of BTI to the average of the S&P500 Index (36.22), we can say BTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 10.97 | ||
| EV/EBITDA | 20.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.31
EPS Next 2Y0.68%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 5.54%, which is a nice return.
Compared to an average industry Dividend Yield of 4.59, BTI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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
BTI pays out 168.94% of its income as dividend. 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 2Y0.68%
EPS Next 3Y2.72%
57.93
-0.2 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change3.66%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap126.03B
Revenue(TTM)25.60B
Net Income(TTM)3.09B
Analysts75.79
Price Target59.49 (2.69%)
Short Float %0.27%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend3.14
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)-0.61%
PT rev (3m)2.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.3%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.72 | ||
| P/S | 3.71 | ||
| P/FCF | 10.97 | ||
| P/OCF | 10.25 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.04 |
EPS(TTM)4.78
EY8.25%
EPS(NY)4.94
Fwd EY8.53%
FCF(TTM)5.28
FCFY9.12%
OCF(TTM)5.65
OCFY9.76%
SpS15.61
BVpS28.59
TBVpS-24
PEG (NY)N/A
PEG (5Y)5.31
Graham Number55.45
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 | 1.45 |
F-Score7
WACC8.16%
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-5.06%
EPS Next 2Y0.68%
EPS Next 3Y2.72%
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-1.95%
Revenue Next 2Y0.47%
Revenue Next 3Y1.48%
Revenue Next 5Y2%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year4.1%
EBIT Next 3Y4.31%
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 -5.06% in the next year.