BRITISH AMERICAN TOBACCO PLC (BMT.DE) Stock Fundamental Analysis
FRA:BMT - Deutsche Boerse Ag - GB0002875804 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to BMT. BMT was compared to 6 industry peers in the Tobacco industry. Both the profitability and the financial health of BMT get a neutral evaluation. Nothing too spectacular is happening here. BMT has a correct valuation and a medium growth rate. BMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BMT was profitable.
In the past year BMT had a positive cash flow from operations.
Of the past 5 years BMT 4 years were profitable.
In the past 5 years BMT always reported a positive cash flow from operatings.
1.2 Ratios
BMT has a Return On Assets of 2.58%. This is in the lower half of the industry: BMT underperforms 75.00% of its industry peers.
BMT has a Return On Equity of 6.18%. This is in the better half of the industry: BMT outperforms 75.00% of its industry peers.
The Return On Invested Capital of BMT (1.93%) is worse than 75.00% of its industry peers.
BMT had an Average Return On Invested Capital over the past 3 years of 7.14%. This is significantly below the industry average of 23.89%.
The 3 year average ROIC (7.14%) for BMT is well above the current ROIC(1.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROIC | 1.93% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)7.14%
ROIC(5y)6.75%
1.3 Margins
BMT's Profit Margin of 11.86% is in line compared to the rest of the industry. BMT outperforms 50.00% of its industry peers.
BMT's Profit Margin has declined in the last couple of years.
BMT has a Operating Margin of 10.62%. This is in the lower half of the industry: BMT underperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of BMT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 82.85%, BMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of BMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% |
OM growth 3Y-3.97%
OM growth 5Y-0.05%
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 below the Cost of Capital (WACC), so BMT is destroying value.
BMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMT has less shares outstanding
The debt/assets ratio for BMT has been reduced compared to a year ago.
2.2 Solvency
BMT has an Altman-Z score of 1.09. This is a bad value and indicates that BMT is not financially healthy and even has some risk of bankruptcy.
BMT has a Altman-Z score of 1.09. This is in the lower half of the industry: BMT underperforms 75.00% of its industry peers.
The Debt to FCF ratio of BMT is 3.88, which is a good value as it means it would take BMT, 3.88 years of fcf income to pay off all of its debts.
BMT has a Debt to FCF ratio of 3.88. This is comparable to the rest of the industry: BMT outperforms 50.00% of its industry peers.
BMT has a Debt/Equity ratio of 0.66. This is a neutral value indicating BMT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, BMT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.27
WACC7.2%
2.3 Liquidity
BMT has a Current Ratio of 0.76. This is a bad value and indicates that BMT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BMT (0.76) is better than 75.00% of its industry peers.
BMT has a Quick Ratio of 0.76. This is a bad value and indicates that BMT is not financially healthy enough and could expect problems in meeting its short term obligations.
BMT has a Quick ratio of 0.52. This is amongst the best in the industry. BMT outperforms 100.00% 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 has grown by an impressive 121.18% over the past year.
The earnings per share for BMT have been decreasing by -11.08% on average. This is quite bad
BMT shows a decrease in Revenue. In the last year, the revenue decreased by -5.19%.
The Revenue has been decreasing by -0.01% on average over the past years.
EPS 1Y (TTM)121.18%
EPS 3Y-22.48%
EPS 5Y-11.08%
EPS Q2Q%92.15%
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, BMT will show a small growth in Earnings Per Share. The EPS will grow by 6.42% on average per year.
BMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.51% yearly.
EPS Next Y1.86%
EPS Next 2Y3.93%
EPS Next 3Y3.6%
EPS Next 5Y6.42%
Revenue Next Year0.95%
Revenue Next 2Y1.83%
Revenue Next 3Y2.17%
Revenue Next 5Y2.51%
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
With a Price/Earnings ratio of 22.99, BMT is valued on the expensive side.
BMT's Price/Earnings ratio is in line with the industry average.
BMT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
BMT is valuated reasonably with a Price/Forward Earnings ratio of 8.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMT indicates a somewhat cheap valuation: BMT is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BMT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BMT.
BMT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 17.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)12.34
PEG (5Y)N/A
EPS Next 2Y3.93%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
BMT has a Yearly Dividend Yield of 7.65%, which is a nice return.
Compared to an average industry Dividend Yield of 5.83, BMT pays a better dividend. On top of this BMT pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, BMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.65% |
5.2 History
The dividend of BMT has a limited annual growth rate of 3.19%.
Dividend Growth(5Y)3.19%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
BMT pays out 169.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP169.92%
EPS Next 2Y3.93%
EPS Next 3Y3.6%
FRA:BMT (3/7/2025, 7:00:00 PM)
37.47
+0.55 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners43.92%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap82.32B
Analysts74.12
Price Target42.31 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.65% |
Yearly Dividend2.79
Dividend Growth(5Y)3.19%
DP169.92%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)2.58%
PT rev (3m)9.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 8.49 | ||
| P/S | 2.68 | ||
| P/FCF | 7.27 | ||
| P/OCF | 6.84 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.08 |
EPS(TTM)1.63
EY4.35%
EPS(NY)4.41
Fwd EY11.77%
FCF(TTM)5.15
FCFY13.75%
OCF(TTM)5.48
OCFY14.63%
SpS14
BVpS26.87
TBVpS-24.16
PEG (NY)12.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROCE | 2.74% | ||
| ROIC | 1.93% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2761.69% | ||
| OM | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% | ||
| FCFM | 36.79% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)7.14%
ROIC(5y)6.75%
ROICexc(3y)7.49%
ROICexc(5y)7.03%
ROICexgc(3y)1327.88%
ROICexgc(5y)875.55%
ROCE(3y)10.15%
ROCE(5y)9.61%
ROICexcg growth 3Y156.72%
ROICexcg growth 5Y61.51%
ROICexc growth 3Y4.11%
ROICexc growth 5Y5.02%
OM growth 3Y-3.97%
OM growth 5Y-0.05%
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 | 310.2% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.09 |
F-Score6
WACC7.2%
ROIC/WACC0.27
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)121.18%
EPS 3Y-22.48%
EPS 5Y-11.08%
EPS Q2Q%92.15%
EPS Next Y1.86%
EPS Next 2Y3.93%
EPS Next 3Y3.6%
EPS Next 5Y6.42%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.28%
Revenue Next Year0.95%
Revenue Next 2Y1.83%
Revenue Next 3Y2.17%
Revenue Next 5Y2.51%
EBIT growth 1Y-78.23%
EBIT growth 3Y-3.75%
EBIT growth 5Y-0.06%
EBIT Next Year12.06%
EBIT Next 3Y3.46%
EBIT Next 5Y4.32%
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%