BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR - Currency: USD
BTI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. While BTI is still in line with the averages on profitability rating, there are concerns on its financial health. BTI is not valued too expensively and it also shows a decent growth rate.
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
BTI has a worse Return On Assets (2.58%) than 62.50% of its industry peers.
With a decent Return On Equity value of 6.18%, BTI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a Return On Invested Capital value of 2.47%, BTI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROIC | 2.47% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BTI has a Profit Margin of 11.86%. This is in the better half of the industry: BTI outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of BTI has declined.
BTI has a Operating Margin of 10.62%. This is comparable to the rest of the industry: BTI outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of BTI has declined.
With an excellent Gross Margin value of 82.85%, BTI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% |
OM growth 3Y-34.54%
OM growth 5Y-20.58%
PM growth 3Y-23.49%
PM growth 5Y-11.66%
GM growth 3Y0.3%
GM growth 5Y0%
2. Health
2.1 Basic Checks
BTI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BTI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that BTI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, BTI is doing worse than 62.50% 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 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that BTI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, BTI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.28
WACC8.86%
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 75.00% of its industry peers.
A Quick Ratio of 0.52 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Quick ratio (0.52) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
BTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.14%, which is quite impressive.
BTI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.08% 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)121.14%
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
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.42% yearly.
The Revenue is expected to grow by 2.51% on average over the next years.
EPS Next Y1.86%
EPS Next 2Y3.93%
EPS Next 3Y3.6%
EPS Next 5Y6.42%
Revenue Next Year1.36%
Revenue Next 2Y1.92%
Revenue Next 3Y2.28%
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.
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 22.01 indicates a rather expensive valuation of BTI.
Compared to the rest of the industry, the Price/Earnings ratio of BTI is on the same level as its industry peers.
BTI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
BTI is valuated reasonably with a Price/Forward Earnings ratio of 8.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 100.00% of the companies listed in the same industry.
BTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
BTI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BTI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BTI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)11.81
PEG (5Y)N/A
EPS Next 2Y3.93%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 7.80%, which is a nice return.
BTI's Dividend Yield is rather good when compared to the industry average which is at 4.31. BTI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
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.
The dividend of BTI decreased in the last 3 years.
Dividend Growth(5Y)3.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BTI pays out 169.92% 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.
DP169.92%
EPS Next 2Y3.93%
EPS Next 3Y3.6%
37.85
-0.7 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners43.92%
Inst Owner Change6.06%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap83.29B
Analysts77.65
Price Target43.68 (15.4%)
Short Float %0.28%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
Yearly Dividend2.26
Dividend Growth(5Y)3.59%
DP169.92%
Div Incr Years2
Div Non Decr Years2
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)2.92%
PT rev (3m)5.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.67%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 8.08 | ||
| P/S | 2.55 | ||
| P/FCF | 6.94 | ||
| P/OCF | 6.52 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.74 |
EPS(TTM)1.72
EY4.54%
EPS(NY)4.69
Fwd EY12.38%
FCF(TTM)5.45
FCFY14.41%
OCF(TTM)5.8
OCFY15.33%
SpS14.82
BVpS28.44
TBVpS-25.57
PEG (NY)11.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROCE | 2.74% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 3527.02% | ||
| OM | 10.62% | ||
| PM (TTM) | 11.86% | ||
| GM | 82.85% | ||
| FCFM | 36.79% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-34.54%
OM growth 5Y-20.58%
PM growth 3Y-23.49%
PM growth 5Y-11.66%
GM growth 3Y0.3%
GM growth 5Y0%
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 | 1.08 |
F-Score6
WACC8.86%
ROIC/WACC0.28
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)121.14%
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 Year1.36%
Revenue Next 2Y1.92%
Revenue Next 3Y2.28%
Revenue Next 5Y2.51%
EBIT growth 1Y-78.23%
EBIT growth 3Y-34.39%
EBIT growth 5Y-20.59%
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%