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BAT

British American Tobacco (Malaysia) BerhadKLSE:BAT Stock Report

Market Cap

RM4.1b

7D

-0.6%

1Y

44.6%

Updated

23 Oct, 2021

Data

Company Financials +
BAT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends2/6

BAT Overview

British American Tobacco (Malaysia) Berhad, together with its subsidiaries, manufactures, imports, and sells cigarettes, pipe tobaccos, cigars, and other tobacco products primarily in Malaysia.

British American Tobacco (Malaysia) Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for British American Tobacco (Malaysia) Berhad
Historical stock prices
Current Share PriceRM14.40
52 Week HighRM9.90
52 Week LowRM16.20
Beta0.75
1 Month Change1.98%
3 Month Change-0.14%
1 Year Change44.58%
3 Year Change-54.49%
5 Year Change-70.42%
Change since IPO2.86%

Recent News & Updates

Shareholder Returns

BATMY TobaccoMY Market
7D-0.6%-2.0%-0.4%
1Y44.6%10.9%9.2%

Return vs Industry: BAT exceeded the MY Tobacco industry which returned 10.9% over the past year.

Return vs Market: BAT exceeded the MY Market which returned 9.2% over the past year.

Price Volatility

Is BAT's price volatile compared to industry and market?
BAT volatility
BAT Beta0.75
Industry Beta0.52
Market Beta1

Stable Share Price: BAT is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BAT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19122,205Nadel Salemhttps://www.batmalaysia.com

British American Tobacco (Malaysia) Berhad, together with its subsidiaries, manufactures, imports, and sells cigarettes, pipe tobaccos, cigars, and other tobacco products primarily in Malaysia. It markets its products under the Dunhill, Peter Stuyvesant, Rothmans, KYO, Pall Mall, Kent, and, Benson & Hedges brand names. The company was founded in 1912 and is headquartered in Kuala Lumpur, Malaysia.

British American Tobacco (Malaysia) Berhad Fundamentals Summary

How do British American Tobacco (Malaysia) Berhad's earnings and revenue compare to its market cap?
BAT fundamental statistics
Market CapRM4.11b
Earnings (TTM)RM271.19m
Revenue (TTM)RM1.15b

15.2x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAT income statement (TTM)
RevenueRM1.15b
Cost of RevenueRM524.80m
Gross ProfitRM626.48m
ExpensesRM355.29m
EarningsRM271.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.95
Gross Margin54.42%
Net Profit Margin23.56%
Debt/Equity Ratio178.5%

How did BAT perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

98%

Payout Ratio

Valuation

Is British American Tobacco (Malaysia) Berhad undervalued compared to its fair value and its price relative to the market?

32.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAT (MYR14.4) is trading below our estimate of fair value (MYR21.21)

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


Price To Earnings Ratio

PE vs Industry: BAT is good value based on its PE Ratio (15.2x) compared to the Asian Tobacco industry average (16.1x).

PE vs Market: BAT is good value based on its PE Ratio (15.2x) compared to the MY market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: BAT is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: BAT is overvalued based on its PB Ratio (11x) compared to the XA Tobacco industry average (2.1x).


Future Growth

How is British American Tobacco (Malaysia) Berhad forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAT's forecast earnings growth (2.7% per year) is below the savings rate (3.6%).

Earnings vs Market: BAT's earnings (2.7% per year) are forecast to grow slower than the MY market (10.9% per year).

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

Revenue vs Market: BAT's revenue (5.1% per year) is forecast to grow slower than the MY market (6.5% per year).

High Growth Revenue: BAT's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAT's Return on Equity is forecast to be very high in 3 years time (74.6%).


Past Performance

How has British American Tobacco (Malaysia) Berhad performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAT has high quality earnings.

Growing Profit Margin: BAT's current net profit margins (23.6%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: BAT's earnings have declined by 22.2% per year over the past 5 years.

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

Earnings vs Industry: BAT had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the Tobacco industry average (8.2%).


Return on Equity

High ROE: Whilst BAT's Return on Equity (72.27%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is British American Tobacco (Malaysia) Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: BAT's short term assets (MYR766.3M) do not cover its short term liabilities (MYR840.4M).

Long Term Liabilities: BAT's short term assets (MYR766.3M) exceed its long term liabilities (MYR16.1M).


Debt to Equity History and Analysis

Debt Level: BAT's debt to equity ratio (178.5%) is considered high.

Reducing Debt: BAT's debt to equity ratio has increased from 70.2% to 178.5% over the past 5 years.

Debt Coverage: BAT's debt is well covered by operating cash flow (21.2%).

Interest Coverage: BAT's interest payments on its debt are well covered by EBIT (26.2x coverage).


Balance Sheet


Dividend

What is British American Tobacco (Malaysia) Berhad current dividend yield, its reliability and sustainability?

5.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAT's dividend (5.76%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).

High Dividend: BAT's dividend (5.76%) is in the top 25% of dividend payers in the MY market (4.21%)


Stability and Growth of Payments

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

Growing Dividend: BAT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.9%), BAT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAT's dividends in 3 years are not forecast to be well covered by earnings (97.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Nadel Salem (50 yo)

0.083

Tenure

Mr. Nadel Louay Salem has been a Managing Director & Non-Independent Executive Director at British American Tobacco (Malaysia) Berhad since September 01, 2021. He is the Managing Director and CEO of Ceylon...


Leadership Team

Experienced Management: BAT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: BAT's board of directors are not considered experienced ( 1.8 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

British American Tobacco (Malaysia) Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: British American Tobacco (Malaysia) Berhad
  • Ticker: BAT
  • Exchange: KLSE
  • Founded: 1912
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: RM4.112b
  • Shares outstanding: 285.53m
  • Website: https://www.batmalaysia.com

Number of Employees


Location

  • British American Tobacco (Malaysia) Berhad
  • Guoco Tower
  • Level 19
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50490
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 11:03
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
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.