Pakistan Tobacco (KASE:PAKT) - Share price, News & Analysis

PAKT fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

PAKT Stock Overview

Pakistan Tobacco Company Limited manufactures and sells cigarettes and tobacco in Pakistan.

Rewards

PE ratio (13.5x) is below the Tobacco industry average (13.9x)

Earnings grew by 14.4% over the past year

Risk Analysis

Dividend of 8% is not well covered by earnings or forecast to be in the next 3 years

High level of non-cash earnings

Pakistan Tobacco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pakistan Tobacco
Historical stock prices
Current Share Price	PK₨1,000.00
52 Week High	PK₨1,450.00
52 Week Low	PK₨970.70
Beta	0.18
1 Month Change	-0.50%
3 Month Change	-3.87%
1 Year Change	-27.54%
3 Year Change	-61.44%
5 Year Change	-35.48%
Change since IPO	910.10%

Shareholder Returns

	PAKT	PK Tobacco	PK Market
7D	0%	4.3%	-0.8%
1Y	-27.5%	-16.0%	-12.1%

Return vs Industry: PAKT underperformed the PK Tobacco industry which returned -16% over the past year.

Return vs Market: PAKT underperformed the PK Market which returned -12.1% over the past year.

Price Volatility

Is PAKT's price volatile compared to industry and market?
PAKT volatility
PAKT Average Weekly Movement	4.3%
Tobacco Industry Average Movement	4.0%
Market Average Movement	5.8%
10% most volatile stocks in PK Market	9.1%
10% least volatile stocks in PK Market	3.5%

Stable Share Price: PAKT is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PAKT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1947	1,066	Syed Akbar	https://www.ptc.com.pk

Pakistan Tobacco Company Limited manufactures and sells cigarettes and tobacco in Pakistan. The company offers cigarettes under the Dunhill, Dunhill Switch, Dunhill Special, John Player Gold Leaf, Benson & Hedges (Red), Benson & Hedges (Blue), John Player, Capstan Filter, Capstan by Pall Mall, Embassy Filter, Gold Flake, and Gold Flake Soft Cup brands; and oral nicotine available in 6mg, 10mg, and 14mg pouches under the VELO brand comprising Polar Mint and Berry Frost. It exports raw tobacco and finished goods to GCC and other Middle Eastern countries.

Pakistan Tobacco Fundamentals Summary

How do Pakistan Tobacco's earnings and revenue compare to its market cap?
PAKT fundamental statistics
Market Cap	PK₨255.49b
Earnings (TTM)	PK₨18.86b
Revenue (TTM)	PK₨74.99b

13.5x

P/E Ratio

3.4x

P/S Ratio

Is PAKT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAKT income statement (TTM)
Revenue	PK₨74.99b
Cost of Revenue	PK₨36.19b
Gross Profit	PK₨38.80b
Other Expenses	PK₨19.94b
Earnings	PK₨18.86b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	73.83
Gross Margin	51.74%
Net Profit Margin	25.15%
Debt/Equity Ratio	12.8%

How did PAKT perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

108%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

13.55x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: PAKT (PKR1000) is trading above our estimate of fair value (PKR640.06)

Significantly Below Fair Value: PAKT is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: PAKT is good value based on its PE Ratio (13.5x) compared to the Asian Tobacco industry average (13.9x).

PE vs Market: PAKT is poor value based on its PE Ratio (13.5x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PAKT's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PAKT is overvalued based on its PB Ratio (14.2x) compared to the XA Tobacco industry average (1.4x).

Future Growth

How is Pakistan Tobacco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.3%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pakistan Tobacco has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Pakistan Tobacco 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

16.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAKT has a high level of non-cash earnings.

Growing Profit Margin: PAKT's current net profit margins (25.2%) are lower than last year (27.1%).

Past Earnings Growth Analysis

Earnings Trend: PAKT's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: PAKT's earnings growth over the past year (14.4%) is below its 5-year average (16.5% per year).

Earnings vs Industry: PAKT earnings growth over the past year (14.4%) exceeded the Tobacco industry 11%.

Return on Equity

High ROE: PAKT's Return on Equity (104.9%) is considered outstanding.

Financial Health

How is Pakistan Tobacco's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAKT's short term assets (PKR35.4B) exceed its short term liabilities (PKR31.9B).

Long Term Liabilities: PAKT's short term assets (PKR35.4B) exceed its long term liabilities (PKR2.5B).

Debt to Equity History and Analysis

Debt Level: PAKT has more cash than its total debt.

Reducing Debt: PAKT's debt to equity ratio has increased from 0.7% to 12.8% over the past 5 years.

Debt Coverage: PAKT's debt is well covered by operating cash flow (824.9%).

Interest Coverage: PAKT earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Pakistan Tobacco 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

8.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PAKT's dividend (8%) is higher than the bottom 25% of dividend payers in the PK market (3.71%).

High Dividend: PAKT's dividend (8%) is low compared to the top 25% of dividend payers in the PK market (10.85%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (108.4%), PAKT's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (123.5%), PAKT'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?

2.6yrs

Average management tenure

CEO

Syed Akbar

1.17yrs

Tenure

Mr. Syed Ali Akbar is the Managing Director and Chief Executive Officer at Pakistan Tobacco Company Limited since March 01, 2021. He served as the Marketing Director at Pakistan Tobacco Company Limited sin...

Leadership Team

Experienced Management: PAKT's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: PAKT's board of directors are not considered experienced ( 2.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31