British American Tobacco (BTI) Stock - 12% Free Cash Flow Yield - Estimated 22% IRR

Respect You, great video, great analysis!

the debt to ebitda has deteriorated because its invested into non combustibles which helps on the longer run but may require some time for consumers to notice.

Smoking is bad for you...but so is passing up such a great dividend at such a low PE! I'm in @ $30.

Thanks

Can you do bsm

I was an unexperienced stock trader and i lost over $30K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, really grateful I find one source to recover my money, at least $5k profits weekly. Thanks so much Mrs Patricia Anderson

bought today @28.85 hopefully it pays off. I am working in convenience store and ZONIC and VUSE are doing well. ZONIC is actually hard to order. I think it is on shortage and can't keep up the production. Many customers ask too.

Where do you get your numbers? I am seeing different free cash flow, etc on yahoo finance. Also one more question, how can you buy a stock at $35 and have a 2032 price target of $38 but still receive a 15% IRR? Is that because you're saying the market doesn't actually respect the value of the stock?

Cameron, would love to see you do a shot update on BTI and get your thoughts on the recent $25 billion write down. Thanks!

Nobody is vaping any more, vaping can't replace declining cigarette sales.
But stuff like ZYN can!!
I still own BAT and IMBI tho 👍 Lucky Strike🎯

Its Pounds not EUR

Superb video!!

Amazing. Would love an update on this company here soon

If management wanted to maximize returns, they would cut the dividend to zero and then pay down the debt for one year with all of the free cash flow and then buyback shares aggressively every year. If people want an 8% distribution every year, they can sell 8% of their position every year.

What happens to your numbers if interest expense increases?

Pounds not euros

The market for modern oral is set to grow 10x by 2030. Also, the modern oral is a door to deliver any other chemical such as drugs. I know well this market because I used to work on it

Lovely work and a great analysis. Thank you very much for this video.

Your conservative approach about forecasting the future is extremely good.

IRR is not the same thing as Shareholder return. A $38 share price in 10 years from now, plus the 8.5% dividend growing at 1% will not give shareholders a 22% annualized rate of return. Internal cash flow means very little for the shareholders

Thank you for the video. The education of understanding about metrics and their meaning/relation to other metrics is highly valuable to my understanding more on this investment journey.

ASSUME I BUY AT 32 AND SELL IT IN 2032 FOR 38, WITH 8% YIELD, HOW DO I GET A 22% ACTUAL RETURN AS A SHAREHOLDER?

Sir, Love your work, Please analyze the healthcare stock CIGNA

Love your channel, subscribed immediately. Could watch you for hours. We need more videos!!

Thank you for all your effort you put into these videos very informative and I seriously appreciate the work you put in thank you again

BAT has an excellent website that shows all of their debt and I think that what they show there has to be taken into account when analyzing the future cash flows. They have a giant wall of debt coming due in the next 5 years. They will be able to pay off some of it, but have to refinance most of it. The existing loans have very favorable interest rates. When they refinance, they will not get nearly as good interest rates.

Thanks

I like your professuonal introduction. It helps me a lot.

Thanks Cameron, very good video. Could you please analyse SABRE (SABR)

Why are you analyzing on EBITDA basis and ignore EBIT? Investments will have to be refinanced at some point...

Leslie's inc might be interesting right now. It's a similar play to pool Corp but its half retail half wholesale

Good job! Can you look at TU? Telus. It has also a stake int TIXT

What is the definition of “excess cash”? 😊

I thought it was similar to the “cash and cash equivalent” amount in the balance sheet.. but it is not increasing despite a big cash generation, little capex, no debt repayment, no shares buyback and a dividend which is well below the 100% mark.. 😅

Thanks for thee great effort ❤

This is good stuff, lots of cool info😊 I also own Imperial Brands.

You know something is cheap when I am looking at it. Thanks for the video and analysis.

Been following for a while now. Just want to say I love your channel. Hard to find anyone else out there doing such thorough analysis. Your perspectives are always interesting and I learn a lot every time I watch. Keep it up man.

Own it, love it

Really enjoyed this analysis. Where does exchange rate losses fit into this estimate? USD has been stronger against the £ the last couple of years.

Thank you for your great video. 👏👍

Thank you, Cameron, for making this video! I have been hoping you would review BTI. Love the channel. Keep up the great work. Any chance of doing an analysis of steel giant, Nucor (NUE)? Im confident you’ll find it meets the Trifecta standard! All the best.

Cameron with the Uber hot takes! :)

Cameron, can you do persimmon homes. It is the UK second largest house builder. It weathered the last recession really well. They have recently cut the dividend despite high cash. Would be interesting to hear your take on the industry and the stock.

Great analysis! Can you do LMT, NOC, Airbus or some other defence stock. Thank You very much!

It rests on the revenue assumption growth and management's capacity to reinvest the FCF wisely. It is cheap and could do very well.

Bought shares over the last weeks. It is undervalued and a great way to boost the dividend portfolio. BTI announced last conference they will not buy back shares but use the free cash flow to reduce debt in this high interest rate environment which is good in my opinion. Big stake in Indian Tabacco company…. Amazing opportunity

Excellent analysis. I'm curious how you would rate PM. PM has had MUCH more capital appreciation than BTI over the past 5 years.

Awesome analysis

Thanks Cameron! Is Disney next???

I sold all my Big Tech this week and bought BTI. We'll see how it goes.