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BAT

British American Tobacco (Malaysia) Berhad KLSE:BAT Stock Report

Last Price

RM11.00

Market Cap

RM3.1b

7D

-4.3%

1Y

-22.8%

Updated

25 Jun, 2022

Data

Company Financials +
BAT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends2/6

BAT Stock Overview

British American Tobacco (Malaysia) Berhad 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 PriceRM11.00
52 Week HighRM15.24
52 Week LowRM11.00
Beta0.70
1 Month Change-13.11%
3 Month Change-11.86%
1 Year Change-22.75%
3 Year Change-61.81%
5 Year Change-74.67%
Change since IPO-21.43%

Recent News & Updates

May 30
British American Tobacco (Malaysia) Berhad's (KLSE:BAT) Dividend Is Being Reduced To RM0.17

British American Tobacco (Malaysia) Berhad's (KLSE:BAT) Dividend Is Being Reduced To RM0.17

The board of British American Tobacco (Malaysia) Berhad ( KLSE:BAT ) has announced that the dividend on 24th of June...

Shareholder Returns

BATMY TobaccoMY Market
7D-4.3%2.3%-1.2%
1Y-22.8%-7.1%-8.7%

Return vs Industry: BAT underperformed the MY Tobacco industry which returned -7.1% over the past year.

Return vs Market: BAT underperformed the MY Market which returned -8.7% over the past year.

Price Volatility

Is BAT's price volatile compared to industry and market?
BAT volatility
BAT Average Weekly Movement2.7%
Tobacco Industry Average Movement4.0%
Market Average Movement5.5%
10% most volatile stocks in MY Market11.4%
10% least volatile stocks in MY Market2.9%

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

Volatility Over Time: BAT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1912400Nedal Salemhttps://www.batmalaysia.com

British American Tobacco (Malaysia) Berhad 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 CapRM3.14b
Earnings (TTM)RM274.04m
Revenue (TTM)RM1.10b

11.5x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAT income statement (TTM)
RevenueRM1.10b
Cost of RevenueRM436.87m
Gross ProfitRM661.94m
Other ExpensesRM387.90m
EarningsRM274.04m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.96
Gross Margin60.24%
Net Profit Margin24.94%
Debt/Equity Ratio205.4%

How did BAT perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

98%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BAT?

Other financial metrics that can be useful for relative valuation.

BAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA9.3x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does BAT's PE Ratio compare to its peers?

BAT PE Ratio vs Peers
The above table shows the PE ratio for BAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x

Price-To-Earnings vs Peers: BAT is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

How does BAT's PE Ratio compare vs other companies in the Tobacco Industry?

Price-To-Earnings vs Industry: BAT is good value based on its Price-To-Earnings Ratio (11.5x) compared to the Asian Tobacco industry average (12.5x)


Price to Earnings Ratio vs Fair Ratio

What is BAT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.5x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: BAT is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


Share Price vs Fair Value

What is the Fair Price of BAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BAT (MYR11) is trading below our estimate of fair value (MYR21.55)

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


Price to Earnings Growth Ratio

PEG Ratio: BAT is poor value based on its PEG Ratio (2.4x)


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Future Growth

How is British American Tobacco (Malaysia) Berhad forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAT's forecast earnings growth (4.8% per year) is above the savings rate (3.6%).

Earnings vs Market: BAT's earnings (4.8% per year) are forecast to grow slower than the MY market (9.9% per year).

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

Revenue vs Market: BAT's revenue (4.8% per year) is forecast to grow slower than the MY market (5.2% per year).

High Growth Revenue: BAT's revenue (4.8% 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%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAT has high quality earnings.

Growing Profit Margin: BAT's current net profit margins (24.9%) are higher than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: BAT's earnings have declined by 21.7% per year over the past 5 years.

Accelerating Growth: BAT's earnings growth over the past year (7.8%) exceeds its 5-year average (-21.7% per year).

Earnings vs Industry: BAT earnings growth over the past year (7.8%) underperformed the Tobacco industry 10%.


Return on Equity

High ROE: Whilst BAT's Return on Equity (76.59%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

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

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BAT's short term assets (MYR878.2M) do not cover its short term liabilities (MYR970.7M).

Long Term Liabilities: BAT's short term assets (MYR878.2M) exceed its long term liabilities (MYR13.6M).


Debt to Equity History and Analysis

Debt Level: BAT's net debt to equity ratio (187.4%) is considered high.

Reducing Debt: BAT's debt to equity ratio has increased from 91.5% to 205.4% over the past 5 years.

Debt Coverage: BAT's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: BAT's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BAT's dividend (8.91%) is higher than the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: BAT's dividend (8.91%) is in the top 25% of dividend payers in the MY market (4.91%)


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (248.7%), BAT's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure


CEO

Nedal Salem (51 yo)

0.67

Tenure

RM1,893,551

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Nedal's total compensation ($USD430.45K) is about average for companies of similar size in the MY market ($USD439.35K).

Compensation vs Earnings: Insufficient data to compare Nedal's compensation with company performance.


Leadership Team

Experienced Management: BAT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: BAT's board of directors are considered experienced (3.3 years average tenure).


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
  • Implied Market Cap: RM3.141b
  • 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 Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.