BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
NYSE:BTI - New York Stock Exchange, Inc. - US1104481072 - ADR
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. There are concerns on the financial health of BTI while its profitability can be described as average. 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.
BTI had positive earnings in 4 of the past 5 years.
BTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BTI has a Return On Assets of -11.59%. This is in the lower half of the industry: BTI underperforms 62.50% of its industry peers.
With a decent Return On Equity value of -25.57%, BTI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.93%, BTI is in line with its industry, outperforming 50.00% of the companies in the same industry.
BTI had an Average Return On Invested Capital over the past 3 years of 7.24%. This is significantly below the industry average of 65.76%.
The last Return On Invested Capital (7.93%) for BTI is above the 3 year average (7.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.59% | ||
| ROE | -25.57% | ||
| ROIC | 7.93% |
ROA(3y)-0.94%
ROA(5y)1.18%
ROE(3y)-2.78%
ROE(5y)2.16%
ROIC(3y)7.24%
ROIC(5y)6.77%
1.3 Margins
With a decent Operating Margin value of 41.79%, BTI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
BTI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.58%, BTI 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 BTI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.79% | ||
| PM (TTM) | N/A | ||
| GM | 82.58% |
OM growth 3Y4.15%
OM growth 5Y3.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.75%
GM growth 5Y0.16%
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.
Compared to 1 year ago, BTI has about the same amount of shares outstanding.
The number of shares outstanding for BTI has been reduced compared to 5 years ago.
The debt/assets ratio for BTI is higher compared to a year ago.
2.2 Solvency
BTI has an Altman-Z score of 1.40. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
BTI's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. BTI is outperformed by 62.50% of its industry peers.
BTI has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as BTI would need 3.92 years to pay back of all of its debts.
The Debt to FCF ratio of BTI (3.92) is better than 62.50% of its industry peers.
BTI has a Debt/Equity ratio of 0.61. This is a neutral value indicating BTI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, 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 | 0.61 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.17
WACC6.8%
2.3 Liquidity
BTI has a Current Ratio of 0.88. 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 0.88, BTI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.58 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Quick ratio (0.58) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for BTI have decreased by -5.77% in the last year.
BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.83% yearly.
Looking at the last year, BTI shows a decrease in Revenue. The Revenue has decreased by -7.24% in the last year.
Measured over the past years, BTI shows a small growth in Revenue. The Revenue has been growing by 2.18% on average per year.
EPS 1Y (TTM)-5.77%
EPS 3Y4.23%
EPS 5Y4.83%
EPS Q2Q%-6.77%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Sales Q2Q%-8.19%
3.2 Future
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.49% yearly.
Based on estimates for the next years, BTI will show a small growth in Revenue. The Revenue will grow by 1.17% on average per year.
EPS Next Y-3.61%
EPS Next 2Y-0.01%
EPS Next 3Y2%
EPS Next 5Y4.49%
Revenue Next Year-5.56%
Revenue Next 2Y-2.09%
Revenue Next 3Y-0.55%
Revenue Next 5Y1.17%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.14, the valuation of BTI can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BTI to the average of the S&P500 Index (28.29), we can say BTI is valued rather cheaply.
A Price/Forward Earnings ratio of 7.88 indicates a rather cheap valuation of BTI.
Based on the Price/Forward Earnings ratio, BTI is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. BTI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 87.50% of the companies listed in the same industry.
100.00% 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 | 6.45 | ||
| EV/EBITDA | 2.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y-0.01%
EPS Next 3Y2%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 8.09%, which is a nice return.
BTI's Dividend Yield is rather good when compared to the industry average which is at 4.64. BTI pays more dividend than 100.00% of the companies in the same industry.
BTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BTI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-37.45%
EPS Next 2Y-0.01%
EPS Next 3Y2%
BRITISH AMERICAN TOB-SP ADR
NYSE:BTI (1/21/2025, 8:04:01 PM)
Premarket: 36.8 +0.07 (+0.19%)36.73
+0.43 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners40.82%
Inst Owner Change-0.02%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap80.93B
Analysts76.47
Price Target42.44 (15.55%)
Short Float %0.27%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
Yearly Dividend2.26
Dividend Growth(5Y)3.59%
DP-37.45%
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)4.38%
PT rev (3m)-0.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.14 | ||
| Fwd PE | 7.88 | ||
| P/S | 2.52 | ||
| P/FCF | 6.45 | ||
| P/OCF | 6.08 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.43 |
EPS(TTM)4.51
EY12.28%
EPS(NY)4.66
Fwd EY12.69%
FCF(TTM)5.7
FCFY15.51%
OCF(TTM)6.04
OCFY16.45%
SpS14.55
BVpS30.08
TBVpS-22.56
PEG (NY)N/A
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.59% | ||
| ROE | -25.57% | ||
| ROCE | 10.8% | ||
| ROIC | 7.93% | ||
| ROICexc | 8.48% | ||
| ROICexgc | N/A | ||
| OM | 41.79% | ||
| PM (TTM) | N/A | ||
| GM | 82.58% | ||
| FCFM | 39.15% |
ROA(3y)-0.94%
ROA(5y)1.18%
ROE(3y)-2.78%
ROE(5y)2.16%
ROIC(3y)7.24%
ROIC(5y)6.77%
ROICexc(3y)7.52%
ROICexc(5y)7%
ROICexgc(3y)303.71%
ROICexgc(5y)286.41%
ROCE(3y)9.88%
ROCE(5y)9.26%
ROICexcg growth 3Y24.35%
ROICexcg growth 5Y17.77%
ROICexc growth 3Y13.31%
ROICexc growth 5Y11.31%
OM growth 3Y4.15%
OM growth 5Y3.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.75%
GM growth 5Y0.16%
F-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.92 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 2.07% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 26.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.4 |
F-Score4
WACC6.8%
ROIC/WACC1.17
Cap/Depr(3y)40.54%
Cap/Depr(5y)47.19%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.77%
EPS 3Y4.23%
EPS 5Y4.83%
EPS Q2Q%-6.77%
EPS Next Y-3.61%
EPS Next 2Y-0.01%
EPS Next 3Y2%
EPS Next 5Y4.49%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Sales Q2Q%-8.19%
Revenue Next Year-5.56%
Revenue Next 2Y-2.09%
Revenue Next 3Y-0.55%
Revenue Next 5Y1.17%
EBIT growth 1Y-19.07%
EBIT growth 3Y6.14%
EBIT growth 5Y5.49%
EBIT Next Year3.77%
EBIT Next 3Y2.86%
EBIT Next 5Y2.27%
FCF growth 1Y4.36%
FCF growth 3Y5.09%
FCF growth 5Y2.31%
OCF growth 1Y3.07%
OCF growth 3Y4.23%
OCF growth 5Y1.48%