British American Tobacco presented an updated strategy at its capital markets day, but most of it was unchanged. BAT expects to drive growth from new categories while extracting robust free cash flow generation from its combustibles business.
The acquisition of Reynolds American gave BAT arguably the second-best position in the US cigarette market, a high-margin market with headroom to raise prices and optionality in the heated tobacco market.
British American Tobacco’s leadership in vaping matters leaves it exposed to the massive threat from the illicit market in that category.
|
Metric
|
BATS
|
IMBBY
|
MO
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.03 | 9.60 | 12.06 |
Price/Book Value | 1.85 | 4.73 | — |
Price/Sales | 3.38 | 0.60 | 5.49 |
Price/Cash Flow | 10.36 | 6.40 | 12.04 |
|
Metric
|
BATS
|
IMBBY
|
MO
|
|---|---|---|---|
Quick Ratio | 0.48 | 0.31 | 0.34 |
Current Ratio | 0.84 | 0.70 | 0.52 |
Interest Coverage | 6.97 | 6.31 | 9.62 |
|
Metric
|
BATS
|
IMBBY
|
MO
|
|---|---|---|---|
Return on Assets (Normalized) | 7.15% | 9.12% | 27.37% |
Return on Equity (Normalized) | 17.04% | 55.92% | — |
Return on Invested Capital (Normalized) | 10.48% | 18.11% | 46.09% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Philip Morris International Inc
PM
| LOCK|@GtxnX#? | LOCK|V&C | $293B | |||
| British American Tobacco PLC
BTAFF
| — | LOCK|<r | $114B | |||
| British American Tobacco PLC ADR
BTI
| LOCK|tDTZ$n | LOCK|<^< | $114B | |||
| Altria Group Inc
MO
| LOCK|<m | LOCK|vd# | $112B | |||
| Japan Tobacco Inc ADR
JAPAY
| — | LOCK|>y | $77B | |||
| Japan Tobacco Inc
JAPAF
| — | LOCK|$% | $77B | |||
| ITC Ltd DR
ITCTY
| — | LOCK|$F#S> | $33B | |||
| Imperial Brands PLC
IMBBF
| — | LOCK|CX$ | $24B | |||
| Imperial Brands PLC ADR
IMBBY
| LOCK|?ZvL!j | LOCK|&y | $24B | |||
| Smoore International Holdings Ltd Ordinary Shares
SMORF
| — | LOCK|QhSGr | $7B |
United States