British Amer Profitability Analysis

BTI Stock  USD 31.07  0.77  2.54%   
Considering British Amer's profitability and operating efficiency indicators, British American Tobacco may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in April. Profitability indicators assess British Amer's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2000-03-31
Previous Quarter
3.9 B
Current Value
-18.3 B
Quarterly Volatility
4.1 B
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The British Amer's current Days Of Sales Outstanding is estimated to increase to 53.34, while Price To Sales Ratio is projected to decrease to 1.81. As of now, British Amer's Accumulated Other Comprehensive Income is increasing as compared to previous years. The British Amer's current Change To Netincome is estimated to increase to about 3.7 B, while Operating Income is forecasted to increase to (15 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.8299
Way Down
Pretty Stable
For British Amer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of British Amer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well British American Tobacco utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between British Amer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of British American Tobacco over time as well as its relative position and ranking within its peers.
  
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Is British Amer's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of British Amer. If investors know British will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about British Amer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.178
Dividend Share
2.309
Earnings Share
(8.28)
Revenue Per Share
2.448
Quarterly Revenue Growth
(0.06)
The market value of British American Tobacco is measured differently than its book value, which is the value of British that is recorded on the company's balance sheet. Investors also form their own opinion of British Amer's value that differs from its market value or its book value, called intrinsic value, which is British Amer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because British Amer's market value can be influenced by many factors that don't directly affect British Amer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between British Amer's value and its price as these two are different measures arrived at by different means. Investors typically determine if British Amer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British Amer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

British American Tobacco Shares Outstanding vs. Cash Flow From Operations Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining British Amer's current stock value. Our valuation model uses many indicators to compare British Amer value to that of its competitors to determine the firm's financial worth.
British American Tobacco is number one stock in cash flow from operations category among related companies. It is number one stock in shares outstanding category among related companies creating about  0.21  of Shares Outstanding per Cash Flow From Operations. The ratio of Cash Flow From Operations to Shares Outstanding for British American Tobacco is roughly  4.79 . The current Common Stock Shares Outstanding is estimated to decrease to about 2.2 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value British Amer by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for British Amer's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the British Amer's earnings, one of the primary drivers of an investment's value.

British Shares Outstanding vs. Cash Flow From Operations

Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

British Amer

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
10.71 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

British Amer

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
2.24 B
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

British Shares Outstanding Comparison

British Amer is currently under evaluation in shares outstanding category among related companies.

British Amer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in British Amer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, British Amer will eventually generate negative long term returns. The profitability progress is the general direction of British Amer's change in net profit over the period of time. It can combine multiple indicators of British Amer, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income409 M429.4 M
Operating Income-15.8 B-15 B
Income Before Tax-17.1 B-16.2 B
Total Other Income Expense Net-1.3 B-1.2 B
Net Loss-14.2 B-13.5 B
Income Tax Expense-2.9 B-2.7 B
Net Income Applicable To Common Shares7.7 B6.2 B
Net Loss-14.2 B-13.5 B
Interest Income186 M176.7 M
Non Operating Income Net Other 0.00  0.00 
Net Interest Income-1.7 B-1.8 B
Change To Netincome3.6 B3.7 B
Net Income Per E B T 0.84  0.53 

British Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on British Amer. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of British Amer position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the British Amer's important profitability drivers and their relationship over time.

British Amer Profitability Trends

British Amer profitability trend refers to the progression of profit or loss within a business. An upward trend means that British Amer's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is British Amer's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

British Amer Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between British Amer different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards British Amer in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down British Amer's future profitability.

Use British Amer in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if British Amer position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in British Amer will appreciate offsetting losses from the drop in the long position's value.

British Amer Pair Trading

British American Tobacco Pair Trading Analysis

The ability to find closely correlated positions to British Amer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British Amer when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back British Amer - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling British American Tobacco to buy it.
The correlation of British Amer is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as British Amer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for British Amer can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your British Amer position

In addition to having British Amer in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Defense Thematic Idea Now

Defense
Defense Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British Amer's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:
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You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running British Amer's price analysis, check to measure British Amer's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy British Amer is operating at the current time. Most of British Amer's value examination focuses on studying past and present price action to predict the probability of British Amer's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move British Amer's price. Additionally, you may evaluate how the addition of British Amer to your portfolios can decrease your overall portfolio volatility.
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To fully project British Amer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of British American Tobacco at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include British Amer's income statement, its balance sheet, and the statement of cash flows.
Potential British Amer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although British Amer investors may work on each financial statement separately, they are all related. The changes in British Amer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on British Amer's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.