BRITISH AMERICAN TOB-SP ADR (BTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BTI - US1104481072 - ADR
56.77 USD
+0.32 (+0.57%)
56.83 USD
+0.06 (+0.11%)
We assign a fundamental rating of 5 out of 10 to BTI. BTI was compared to 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 correctly, but it does not seem to be growing.
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.
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 (2.80%) is worse than 62.50% of its industry peers.
BTI has a Return On Equity of 6.59%. This is in the better half of the industry: BTI outperforms 75.00% of its industry peers.
BTI has a Return On Invested Capital of 3.41%. This is comparable to the rest of the industry: BTI outperforms 50.00% of its industry peers.
BTI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is significantly below the industry average of 14.25%.
The last Return On Invested Capital (3.41%) for BTI is well below the 3 year average (9.25%), which needs to be investigated, but indicates that BTI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.59% | ||
| ROIC | 3.41% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.25%
ROIC(5y)8.7%
1.3 Margins
BTI's Profit Margin of 12.06% is in line compared to the rest of the industry. BTI outperforms 50.00% of its industry peers.
BTI's Profit Margin has declined in the last couple of years.
BTI has a better Operating Margin (13.95%) than 62.50% of its industry peers.
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 83.38%, 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 | 13.95% | ||
| PM (TTM) | 12.06% | ||
| GM | 83.38% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BTI is creating some value.
The number of shares outstanding for BTI has been reduced compared to 1 year ago.
BTI has less shares outstanding than it did 5 years ago.
BTI has a better debt/assets ratio than last year.
2.2 Solvency
BTI has an Altman-Z score of 1.41. 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 1.41 is fine compared to the rest of the industry. BTI outperforms 62.50% of its industry peers.
BTI has a debt to FCF ratio of 4.06. This is a neutral value as BTI would need 4.06 years to pay back of all of its debts.
The Debt to FCF ratio of BTI (4.06) is better than 75.00% of its industry peers.
BTI has a Debt/Equity ratio of 0.68. This is a neutral value indicating BTI is somewhat dependend on debt financing.
The Debt to Equity ratio of BTI (0.68) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.42
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.87 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Current ratio (0.87) than 62.50% of its industry peers.
A Quick Ratio of 0.55 indicates that BTI may have some problems paying its short term obligations.
BTI has a worse Quick ratio (0.55) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
BTI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.23%.
BTI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.28% yearly.
The Revenue has decreased by -2.24% in the past year.
BTI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.01% yearly.
EPS 1Y (TTM)-2.23%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-4.31%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
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 4.75% on average per year.
BTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-4.99%
EPS Next 2Y0.8%
EPS Next 3Y2.77%
EPS Next 5Y4.75%
Revenue Next Year-1.93%
Revenue Next 2Y0.63%
Revenue Next 3Y1.53%
Revenue Next 5Y2%
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
The Price/Earnings ratio is 11.80, which indicates a very decent valuation of BTI.
87.50% of the companies in the same industry are more expensive than BTI, based on the Price/Earnings ratio.
BTI is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of BTI can be described as reasonable.
Based on the Price/Forward Earnings ratio, BTI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, BTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BTI is valued a bit cheaper than 62.50% of the companies in the same industry.
87.50% 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 | 10.66 | ||
| EV/EBITDA | 19.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.17
EPS Next 2Y0.8%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
BTI has a Yearly Dividend Yield of 5.61%, which is a nice return.
Compared to an average industry Dividend Yield of 3.45, BTI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, BTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.19%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BTI pays out 168.94% 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.
DP168.94%
EPS Next 2Y0.8%
EPS Next 3Y2.77%
56.77
+0.32 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners49.56%
Inst Owner Change3.66%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap123.50B
Revenue(TTM)25.60B
Net Income(TTM)3.09B
Analysts75.79
Price Target60.84 (7.17%)
Short Float %0.29%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend3.18
Dividend Growth(5Y)3.19%
DP168.94%
Div Incr Years3
Div Non Decr Years3
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)3.45%
PT rev (3m)-0.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 11.37 | ||
| P/S | 3.61 | ||
| P/FCF | 10.66 | ||
| P/OCF | 9.97 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.49 |
EPS(TTM)4.81
EY8.47%
EPS(NY)4.99
Fwd EY8.79%
FCF(TTM)5.32
FCFY9.38%
OCF(TTM)5.7
OCFY10.03%
SpS15.73
BVpS28.81
TBVpS-24.18
PEG (NY)N/A
PEG (5Y)5.17
Graham Number55.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 6.59% | ||
| ROCE | 3.79% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 103.1% | ||
| OM | 13.95% | ||
| PM (TTM) | 12.06% | ||
| GM | 83.38% | ||
| FCFM | 33.85% |
ROA(3y)-1.73%
ROA(5y)0.88%
ROE(3y)-4.1%
ROE(5y)1.61%
ROIC(3y)9.25%
ROIC(5y)8.7%
ROICexc(3y)9.71%
ROICexc(5y)9.07%
ROICexgc(3y)1761.14%
ROICexgc(5y)1157.35%
ROCE(3y)10.3%
ROCE(5y)9.7%
ROICexgc growth 3Y160.63%
ROICexgc 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-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 22.67% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 148.45% | ||
| Profit Quality | 280.54% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.41 |
F-Score7
WACC8.14%
ROIC/WACC0.42
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)-2.23%
EPS 3Y3.29%
EPS 5Y2.28%
EPS Q2Q%-4.31%
EPS Next Y-4.99%
EPS Next 2Y0.8%
EPS Next 3Y2.77%
EPS Next 5Y4.75%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y0.24%
Revenue growth 5Y-0.01%
Sales Q2Q%-2.2%
Revenue Next Year-1.93%
Revenue Next 2Y0.63%
Revenue Next 3Y1.53%
Revenue Next 5Y2%
EBIT growth 1Y-67.36%
EBIT growth 3Y-2.28%
EBIT growth 5Y0.85%
EBIT Next Year4.43%
EBIT Next 3Y4.25%
EBIT Next 5Y5.25%
FCF growth 1Y-11.49%
FCF growth 3Y1.99%
FCF growth 5Y3.07%
OCF growth 1Y-11.08%
OCF growth 3Y1.38%
OCF growth 5Y2.39%
BRITISH AMERICAN TOB-SP ADR / BTI FAQ
What is the fundamental rating for BTI stock?
ChartMill assigns a fundamental rating of 5 / 10 to BTI.
Can you provide the valuation status for BRITISH AMERICAN TOB-SP ADR?
ChartMill assigns a valuation rating of 6 / 10 to BRITISH AMERICAN TOB-SP ADR (BTI). This can be considered as Fairly Valued.
How profitable is BRITISH AMERICAN TOB-SP ADR (BTI) stock?
BRITISH AMERICAN TOB-SP ADR (BTI) has a profitability rating of 5 / 10.
Can you provide the financial health for BTI stock?
The financial health rating of BRITISH AMERICAN TOB-SP ADR (BTI) is 4 / 10.
What is the expected EPS growth for BRITISH AMERICAN TOB-SP ADR (BTI) stock?
The Earnings per Share (EPS) of BRITISH AMERICAN TOB-SP ADR (BTI) is expected to decline by -4.99% in the next year.