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CTC.

Ceylon TobaccoCOSE:CTC.N0000 Stock Report

Last Price

LK₨873.75

Market Cap

LK₨163.7b

7D

0.4%

1Y

-21.7%

Updated

19 Jan, 2022

Data

Company Financials +
CTC.N0000 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends3/6

CTC.N0000 Stock Overview

Ceylon Tobacco Company PLC manufactures and sells cigarettes in Sri Lanka.

Price History & Performance

Summary of all time highs, changes and price drops for Ceylon Tobacco
Historical stock prices
Current Share PriceLK₨873.75
52 Week HighLK₨1,138.00
52 Week LowLK₨850.00
Beta0.17
1 Month Change-1.80%
3 Month Change-5.05%
1 Year Change-21.74%
3 Year Change-37.74%
5 Year Change7.22%
Change since IPO2,337.79%

Recent News & Updates

Shareholder Returns

CTC.N0000LK TobaccoLK Market
7D0.4%-1.8%2.6%
1Y-21.7%-19.5%69.1%

Return vs Industry: CTC.N0000 underperformed the LK Tobacco industry which returned -18.8% over the past year.

Return vs Market: CTC.N0000 underperformed the LK Market which returned 70.7% over the past year.

Price Volatility

Is CTC.N0000's price volatile compared to industry and market?
CTC.N0000 volatility
CTC.N0000 Average Weekly Movement1.1%
Tobacco Industry Average Movement3.6%
Market Average Movement7.8%
10% most volatile stocks in LK Market14.2%
10% least volatile stocks in LK Market3.7%

Stable Share Price: CTC.N0000 is less volatile than 75% of LK stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: CTC.N0000's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1906262Nedal Salemhttps://www.ceylontobaccocompany.com

Ceylon Tobacco Company PLC manufactures and sells cigarettes in Sri Lanka. It offers its products under the Dunhill, John Player Gold Leaf, John Player Navy Cut, John Player Gold, State Express 555, Shuangxi International, Benson & Hedges, Bristol, and Capstan brand names. The company also exports its products.

Ceylon Tobacco Fundamentals Summary

How do Ceylon Tobacco's earnings and revenue compare to its market cap?
CTC.N0000 fundamental statistics
Market CapLK₨163.67b
Earnings (TTM)LK₨15.25b
Revenue (TTM)LK₨31.36b

10.7x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTC.N0000 income statement (TTM)
RevenueLK₨31.36b
Cost of RevenueLK₨2.46b
Gross ProfitLK₨28.91b
ExpensesLK₨13.65b
EarningsLK₨15.25b

Dividends

9.5%

Current Dividend Yield

102%

Payout Ratio

Valuation

Is Ceylon Tobacco undervalued compared to its fair value and its price relative to the market?

31.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTC.N0000 (LKR873.75) is trading below our estimate of fair value (LKR1270.48)

Significantly Below Fair Value: CTC.N0000 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTC.N0000 is good value based on its PE Ratio (10.7x) compared to the Asian Tobacco industry average (15.5x).

PE vs Market: CTC.N0000 is good value based on its PE Ratio (10.7x) compared to the LK market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTC.N0000 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CTC.N0000 is overvalued based on its PB Ratio (23x) compared to the XA Tobacco industry average (1.9x).


Future Growth

How is Ceylon Tobacco forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTC.N0000's forecast earnings growth (8.9% per year) is above the savings rate (3.6%).

Earnings vs Market: CTC.N0000's earnings (8.9% per year) are forecast to grow slower than the LK market (17.7% per year).

High Growth Earnings: CTC.N0000's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTC.N0000's revenue (63.8% per year) is forecast to grow faster than the LK market (20% per year).

High Growth Revenue: CTC.N0000's revenue (63.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTC.N0000's Return on Equity is forecast to be very high in 3 years time (284.7%).


Past Performance

How has Ceylon Tobacco performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTC.N0000 has high quality earnings.

Growing Profit Margin: CTC.N0000's current net profit margins (48.6%) are higher than last year (46.2%).


Past Earnings Growth Analysis

Earnings Trend: CTC.N0000's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: CTC.N0000's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTC.N0000 had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Tobacco industry average (4.4%).


Return on Equity

High ROE: CTC.N0000's Return on Equity (214.4%) is considered outstanding.


Financial Health

How is Ceylon Tobacco's financial position?


Financial Position Analysis

Short Term Liabilities: CTC.N0000's short term assets (LKR24.4B) exceed its short term liabilities (LKR22.1B).

Long Term Liabilities: CTC.N0000's short term assets (LKR24.4B) exceed its long term liabilities (LKR589.0M).


Debt to Equity History and Analysis

Debt Level: CTC.N0000 is debt free.

Reducing Debt: CTC.N0000 has not had any debt for past 5 years.

Debt Coverage: CTC.N0000 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CTC.N0000 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ceylon Tobacco current dividend yield, its reliability and sustainability?

9.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTC.N0000's dividend (9.48%) is higher than the bottom 25% of dividend payers in the LK market (1.27%).

High Dividend: CTC.N0000's dividend (9.48%) is in the top 25% of dividend payers in the LK market (4.9%)


Stability and Growth of Payments

Stable Dividend: CTC.N0000's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTC.N0000's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.7%), CTC.N0000's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTC.N0000's dividends in 3 years are not forecast to be well covered by earnings (96.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average board tenure


CEO

Nedal Salem (50 yo)

2.67yrs

Tenure

Mr. Nedal Louay Salem has been a Managing Director at British American Tobacco (Malaysia) Berhad since October 13, 2021 and also serves as its Non-Independent Executive Director since September 1, 2021. He...


Board Members

Experienced Board: CTC.N0000's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ceylon Tobacco Company PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Ceylon Tobacco Company PLC
  • Ticker: CTC.N0000
  • Exchange: COSE
  • Founded: 1906
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: LK₨163.674b
  • Shares outstanding: 187.32m
  • Website: https://www.ceylontobaccocompany.com

Number of Employees


Location

  • Ceylon Tobacco Company PLC
  • No. 178, Srimath Ramanathan Mawatha
  • Colombo
  • 15
  • Sri Lanka

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 15:45
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.