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 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. Both the profitability and the financial health of BTI get a neutral evaluation. Nothing too spectacular is happening here. BTI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BTI had positive earnings in the past year.
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
The Return On Assets of BTI (2.58%) is worse than 62.50% of its industry peers.
BTI has a better Return On Equity (6.18%) than 75.00% of its industry peers.
The Return On Invested Capital of BTI (2.47%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BTI is significantly below the industry average of 16.80%.
The last Return On Invested Capital (2.47%) for BTI is well below the 3 year average (9.11%), which needs to be investigated, but indicates that BTI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.18% | ||
| ROIC | 2.47% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.11%
ROIC(5y)8.62%
1.3 Margins
BTI has a better Profit Margin (11.86%) than 62.50% of its industry peers.
BTI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.62%, BTI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BTI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 82.85%, 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTI is creating some value.
BTI has less shares outstanding than it did 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BTI has been reduced compared to a year ago.
2.2 Solvency
BTI has an Altman-Z score of 1.10. This is a bad value and indicates that BTI is not financially healthy and even has some risk of bankruptcy.
BTI has a Altman-Z score of 1.10. This is in the lower half of the industry: BTI underperforms 62.50% of its industry peers.
BTI has a debt to FCF ratio of 3.88. This is a good value and a sign of high solvency as BTI would need 3.88 years to pay back of all of its debts.
BTI has a better Debt to FCF ratio (3.88) than 87.50% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that BTI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.66, BTI is doing good in 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 | 1.1 |
ROIC/WACC0.33
WACC7.53%
2.3 Liquidity
BTI has a Current Ratio of 0.76. This is a bad value and indicates that BTI is not financially healthy enough and could expect problems in meeting its short term obligations.
BTI has a worse Current ratio (0.76) than 75.00% of its industry peers.
BTI has a Quick Ratio of 0.76. This is a bad value and indicates that BTI is not financially healthy enough and could expect problems in meeting 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.49%.
BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.28% 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)-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
BTI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
The Revenue is expected to grow by 0.53% on average over the next years.
EPS Next Y-1.18%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
EPS Next 5Y4.34%
Revenue Next Year-0.23%
Revenue Next 2Y1.33%
Revenue Next 3Y1.94%
Revenue Next 5Y0.53%
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 accelerating.
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
Based on the Price/Earnings ratio of 8.82, the valuation of BTI can be described as reasonable.
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.
Compared to an average S&P500 Price/Earnings ratio of 28.98, BTI is valued rather cheaply.
A Price/Forward Earnings ratio of 8.92 indicates a reasonable valuation of BTI.
BTI's Price/Forward Earnings ratio is rather cheap when compared to the industry. BTI is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. BTI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
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 | 7.41 | ||
| EV/EBITDA | 17.16 |
4.3 Compensation for Growth
The decent profitability rating of BTI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.86
EPS Next 2Y2.41%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.56%, BTI is a good candidate for dividend investing.
BTI's Dividend Yield is rather good when compared to the industry average which is at 4.04. 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 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
5.2 History
The dividend of BTI has a limited annual growth rate of 3.19%.
BTI has paid a dividend for at least 10 years, which is a reliable track record.
BTI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.19%
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.
The dividend of BTI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP169.92%
EPS Next 2Y2.41%
EPS Next 3Y3.5%
42.86
+0.47 (+1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners43.92%
Inst Owner Change0.1%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap94.03B
Analysts74.12
Price Target47.82 (11.57%)
Short Float %0.55%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
Yearly Dividend3.14
Dividend Growth(5Y)3.19%
DP169.92%
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)8.71%
PT rev (3m)12.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-5.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.92 | ||
| P/S | 2.73 | ||
| P/FCF | 7.41 | ||
| P/OCF | 6.96 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.16 |
EPS(TTM)4.86
EY11.34%
EPS(NY)4.8
Fwd EY11.21%
FCF(TTM)5.79
FCFY13.5%
OCF(TTM)6.16
OCFY14.36%
SpS15.73
BVpS30.19
TBVpS-27.14
PEG (NY)N/A
PEG (5Y)3.86
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)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.11%
ROIC(5y)8.62%
ROICexc(3y)9.57%
ROICexc(5y)8.98%
ROICexgc(3y)1695.87%
ROICexgc(5y)1118.19%
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 | 1.1 |
F-Score6
WACC7.53%
ROIC/WACC0.33
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 5Y4.34%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.28%
Revenue Next Year-0.23%
Revenue Next 2Y1.33%
Revenue Next 3Y1.94%
Revenue Next 5Y0.53%
EBIT growth 1Y-78.23%
EBIT growth 3Y-3.75%
EBIT growth 5Y-0.06%
EBIT Next Year6.73%
EBIT Next 3Y4.79%
EBIT Next 5Y3.6%
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%