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 5 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BMT had positive earnings in the past year.
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's Return On Assets of 3.46% is on the low side compared to the rest of the industry. BMT is outperformed by 80.00% of its industry peers.
The Return On Equity of BMT (8.28%) is better than 80.00% of its industry peers.
BMT has a worse Return On Invested Capital (1.93%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMT is significantly below the industry average of 23.98%.
The 3 year average ROIC (7.24%) 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 | 3.46% | ||
| ROE | 8.28% | ||
| ROIC | 1.93% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)7.24%
ROIC(5y)6.81%
1.3 Margins
Looking at the Profit Margin, with a value of 15.89%, BMT is doing worse than 60.00% of the companies in the same industry.
BMT's Profit Margin has declined in the last couple of years.
BMT has a Operating Margin of 10.62%. This is amonst the worse of the industry: BMT underperforms 80.00% 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.
BMT'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
BMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BMT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BMT has been reduced compared to 5 years ago.
Compared to 1 year ago, BMT has an improved debt to assets ratio.
2.2 Solvency
BMT has an Altman-Z score of 1.14. This is a bad value and indicates that BMT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.14, BMT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
BMT has a debt to FCF ratio of 3.88. This is a good value and a sign of high solvency as BMT would need 3.88 years to pay back of all of its debts.
The Debt to FCF ratio of BMT (3.88) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that BMT is somewhat dependend on debt financing.
BMT has a better Debt to Equity ratio (0.66) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.2
WACC9.53%
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.
BMT has a better Current ratio (0.76) than 80.00% of its industry peers.
A Quick Ratio of 0.52 indicates that BMT may have some problems paying its short term obligations.
BMT's Quick ratio of 0.52 is amongst the best of 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
BMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.49%.
Measured over the past 5 years, BMT shows a small growth in Earnings Per Share. The EPS has been growing by 2.28% on average per year.
BMT shows a decrease in Revenue. In the last year, the revenue decreased by -5.19%.
Measured over the past years, BMT shows a decrease in Revenue. The Revenue has been decreasing by -0.01% on average per year.
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
The Earnings Per Share is expected to grow by 1.86% on average over the next years.
BMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.14% yearly.
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
BMT is valuated reasonably with a Price/Earnings ratio of 9.46.
Based on the Price/Earnings ratio, BMT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BMT to the average of the S&P500 Index (27.15), we can say BMT is valued rather cheaply.
A Price/Forward Earnings ratio of 9.57 indicates a reasonable valuation of BMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMT indicates a somewhat cheap valuation: BMT is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BMT to the average of the S&P500 Index (21.60), we can say BMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMT is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.14
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
BMT has a Yearly Dividend Yield of 6.98%, which is a nice return.
Compared to an average industry Dividend Yield of 6.08, 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 2.42, BMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
The dividend of BMT has a limited annual growth rate of 3.19%.
Dividend Growth(5Y)3.19%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
BMT pays out 126.87% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BMT 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%
FRA:BMT (6/27/2025, 7:00:00 PM)
40.2
-0.3 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners53.42%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap88.04B
Analysts78.89
Price Target42.93 (6.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend2.75
Dividend Growth(5Y)3.19%
DP126.87%
Div Incr Years7
Div Non Decr Years7
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)2.79%
PT rev (3m)1.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.42%
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 | 9.46 | ||
| Fwd PE | 9.57 | ||
| P/S | 2.9 | ||
| P/FCF | 7.89 | ||
| P/OCF | 7.42 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)4.25
EY10.57%
EPS(NY)4.2
Fwd EY10.45%
FCF(TTM)5.09
FCFY12.67%
OCF(TTM)5.42
OCFY13.48%
SpS13.85
BVpS26.58
TBVpS-23.89
PEG (NY)N/A
PEG (5Y)4.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 8.28% | ||
| ROCE | 2.74% | ||
| ROIC | 1.93% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2761.69% | ||
| 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)7.24%
ROIC(5y)6.81%
ROICexc(3y)7.6%
ROICexc(5y)7.1%
ROICexgc(3y)1378.99%
ROICexgc(5y)906.22%
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 | 1.14 |
F-Score6
WACC9.53%
ROIC/WACC0.2
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%