BRITISH AMERICAN TOB-SP ADR (BTI)
US1104481072 - ADR
BTI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past year BTI had a positive cash flow from operations.
BTI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BTI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -11.59%, BTI is doing worse than 62.50% of the companies in the same industry.
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.
BTI has a Return On Invested Capital (7.93%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BTI 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.
In the last couple of years the Operating Margin of BTI has grown nicely.
BTI has a better Gross Margin (82.58%) than 100.00% of its industry peers.
BTI's Gross Margin has been stable in the last couple of years.
| 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
BTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BTI remains at a similar level compared to 1 year ago.
BTI has less shares outstanding than it did 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 1.39. 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 1.39 is on the low side compared to the rest of the industry. BTI is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of BTI is 3.92, which is a good value as it means it would take BTI, 3.92 years of fcf income to pay off all of its debts.
BTI has a Debt to FCF ratio of 3.92. This is in the better half of the industry: BTI outperforms 75.00% 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 | 1.39 |
ROIC/WACC1.2
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.88 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Current ratio (0.88) than 75.00% of its industry peers.
BTI has a Quick 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.
The Quick ratio of BTI (0.58) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
BTI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.77%.
The Earnings Per Share has been growing slightly by 4.83% on average over the past years.
The Revenue has decreased by -7.24% in the past year.
BTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.18% yearly.
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
Based on estimates for the next years, BTI will show a small growth in Earnings Per Share. The EPS will grow by 3.96% on average per year.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.32% yearly.
EPS Next Y-3.61%
EPS Next 2Y-0.01%
EPS Next 3Y2%
EPS Next 5Y3.96%
Revenue Next Year-5.67%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.64%
Revenue Next 5Y0.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 7.83, the valuation of BTI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BTI indicates a rather cheap valuation: BTI is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. BTI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.57, the valuation of BTI can be described as very cheap.
100.00% of the companies in the same industry are more expensive than BTI, based on the Price/Forward Earnings ratio.
BTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued cheaper than 100.00% of the companies in the same industry.
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 | 6.19 | ||
| EV/EBITDA | 2.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-0.01%
EPS Next 3Y2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.93%, BTI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.37, BTI pays a better dividend. On top of this BTI pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
5.2 History
The dividend of BTI has a limited annual growth rate of 3.59%.
BTI has paid a dividend for at least 10 years, which is 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
The earnings of BTI are negative and hence is the payout ratio. BTI will probably not be able to sustain this dividend level.
The dividend of BTI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-37.45%
EPS Next 2Y-0.01%
EPS Next 3Y2%
BRITISH AMERICAN TOB-SP ADR
NYSE:BTI (12/20/2024, 8:04:01 PM)
After market: 36.596 +0.36 (+0.98%)36.24
-0.63 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners8.32%
Inst Owner Change17.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap80.02B
Analysts76.47
Price Target40.66 (12.2%)
Short Float %0.3%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
Dividend Growth(5Y)3.59%
DP-37.45%
Div Incr Years2
Div Non Decr Years2
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)-2.21%
PT rev (3m)-4.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.57 | ||
| P/S | 2.42 | ||
| P/FCF | 6.19 | ||
| P/OCF | 5.84 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.39 |
EPS(TTM)4.63
EY12.78%
EPS(NY)4.79
Fwd EY13.21%
FCF(TTM)5.85
FCFY16.15%
OCF(TTM)6.21
OCFY17.12%
SpS14.95
BVpS30.9
TBVpS-23.18
PEG (NY)N/A
PEG (5Y)1.62
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 | 1.39 |
F-Score4
WACC6.63%
ROIC/WACC1.2
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 5Y3.96%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y1.91%
Revenue growth 5Y2.18%
Sales Q2Q%-8.19%
Revenue Next Year-5.67%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.64%
Revenue Next 5Y0.32%
EBIT growth 1Y-19.07%
EBIT growth 3Y6.14%
EBIT growth 5Y5.49%
EBIT Next Year3.77%
EBIT Next 3Y2.86%
EBIT Next 5Y1.41%
FCF growth 1Y4.36%
FCF growth 3Y5.09%
FCF growth 5Y2.31%
OCF growth 1Y3.07%
OCF growth 3Y4.23%
OCF growth 5Y1.48%