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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.24
RAI's Cash to Debt is ranked lower than
63% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 0.52 vs. RAI: 0.24 )
Ranked among companies with meaningful Cash to Debt only.
RAI' s 10-Year Cash to Debt Range
Min: 0  Med: 0.62 Max: N/A
Current: 0.24
Equity to Asset 0.34
RAI's Equity to Asset is ranked higher than
50% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 0.34 vs. RAI: 0.34 )
Ranked among companies with meaningful Equity to Asset only.
RAI' s 10-Year Equity to Asset Range
Min: 0.29  Med: 0.40 Max: 0.55
Current: 0.34
0.29
0.55
Interest Coverage 8.85
RAI's Interest Coverage is ranked lower than
74% of the 23 Companies
in the Global Tobacco industry.

( Industry Median: 52.52 vs. RAI: 8.85 )
Ranked among companies with meaningful Interest Coverage only.
RAI' s 10-Year Interest Coverage Range
Min: 2.86  Med: 7.31 Max: 12.91
Current: 8.85
2.86
12.91
F-Score: 6
Z-Score: 1.57
M-Score: -1.88
WACC vs ROIC
9.34%
23.31%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 69.75
RAI's Operating margin (%) is ranked higher than
97% of the 39 Companies
in the Global Tobacco industry.

( Industry Median: 13.03 vs. RAI: 69.75 )
Ranked among companies with meaningful Operating margin (%) only.
RAI' s 10-Year Operating margin (%) Range
Min: -72.93  Med: 21.29 Max: 38.03
Current: 69.75
-72.93
38.03
Net-margin (%) 33.19
RAI's Net-margin (%) is ranked higher than
92% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 9.11 vs. RAI: 33.19 )
Ranked among companies with meaningful Net-margin (%) only.
RAI' s 10-Year Net-margin (%) Range
Min: -65.43  Med: 14.22 Max: 30.96
Current: 33.19
-65.43
30.96
ROE (%) 39.35
RAI's ROE (%) is ranked higher than
67% of the 30 Companies
in the Global Tobacco industry.

( Industry Median: 22.35 vs. RAI: 39.35 )
Ranked among companies with meaningful ROE (%) only.
RAI' s 10-Year ROE (%) Range
Min: -70.52  Med: 17.92 Max: 32.96
Current: 39.35
-70.52
32.96
ROA (%) 12.61
RAI's ROA (%) is ranked higher than
57% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 9.34 vs. RAI: 12.61 )
Ranked among companies with meaningful ROA (%) only.
RAI' s 10-Year ROA (%) Range
Min: -28.33  Med: 7.24 Max: 13.91
Current: 12.61
-28.33
13.91
ROC (Joel Greenblatt) (%) 508.06
RAI's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 39 Companies
in the Global Tobacco industry.

( Industry Median: 62.93 vs. RAI: 508.06 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RAI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -415.16  Med: 202.10 Max: 541.85
Current: 508.06
-415.16
541.85
Revenue Growth (3Y)(%) 2.80
RAI's Revenue Growth (3Y)(%) is ranked lower than
71% of the 31 Companies
in the Global Tobacco industry.

( Industry Median: 6.20 vs. RAI: 2.80 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RAI' s 10-Year Revenue Growth (3Y)(%) Range
Min: -6.2  Med: 0.25 Max: 6.6
Current: 2.8
-6.2
6.6
EBITDA Growth (3Y)(%) 4.50
RAI's EBITDA Growth (3Y)(%) is ranked lower than
52% of the 25 Companies
in the Global Tobacco industry.

( Industry Median: 6.40 vs. RAI: 4.50 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RAI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -29.3  Med: 3.15 Max: 90.5
Current: 4.5
-29.3
90.5
EPS Growth (3Y)(%) 4.00
RAI's EPS Growth (3Y)(%) is ranked higher than
50% of the 24 Companies
in the Global Tobacco industry.

( Industry Median: 4.00 vs. RAI: 4.00 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RAI' s 10-Year EPS Growth (3Y)(%) Range
Min: -5.3  Med: 10.90 Max: 37.1
Current: 4
-5.3
37.1
» RAI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

RAI Guru Trades in Q3 2014

Joel Greenblatt 289,640 sh (+1200.00%)
Paul Tudor Jones 58,386 sh (+48.38%)
Jeremy Grantham 1,669,304 sh (+4.84%)
James Barrow 3,477,668 sh (+0.99%)
David Winters 2,100,778 sh (unchged)
David Dreman 2,600 sh (unchged)
Wintergreen Fund 1,673,242 sh (unchged)
Bruce Berkowitz Sold Out
Eric Mindich Sold Out
Manning & Napier Advisors, Inc 57,421 sh (-0.60%)
Murray Stahl 11,714 sh (-2.50%)
Jim Simons 911,402 sh (-5.76%)
Louis Moore Bacon 40,000 sh (-32.20%)
» More
Q4 2014

RAI Guru Trades in Q4 2014

James Barrow 3,490,668 sh (+0.37%)
Wintergreen Fund 1,673,242 sh (unchged)
David Dreman 2,600 sh (unchged)
David Winters 2,100,778 sh (unchged)
Louis Moore Bacon Sold Out
Murray Stahl 11,514 sh (-1.71%)
Manning & Napier Advisors, Inc 54,842 sh (-4.49%)
Jim Simons 692,302 sh (-24.04%)
Jeremy Grantham 1,082,451 sh (-35.16%)
Joel Greenblatt 100,184 sh (-65.41%)
Paul Tudor Jones 3,800 sh (-93.49%)
» More
Q1 2015

RAI Guru Trades in Q1 2015

Paul Tudor Jones 5,500 sh (+44.74%)
James Barrow 3,559,161 sh (+1.96%)
Paul Tudor Jones 145,000 sh (unchged)
David Dreman 2,600 sh (unchged)
First Eagle Investment 20 sh (unchged)
Manning & Napier Advisors, Inc 54,007 sh (-1.52%)
Jeremy Grantham 1,040,861 sh (-3.84%)
Joel Greenblatt 86,543 sh (-13.62%)
David Winters 1,607,838 sh (-23.46%)
Wintergreen Fund 1,183,331 sh (-29.28%)
Murray Stahl 7,700 sh (-33.12%)
Jim Simons 75,200 sh (-89.14%)
» More
Q2 2015

RAI Guru Trades in Q2 2015

Pioneer Investments 2,428,187 sh (New)
Lee Ainslie 1,055 sh (New)
George Soros 85,835 sh (New)
Caxton Associates 63,000 sh (New)
Louis Moore Bacon 66,613 sh (New)
Paul Tudor Jones 48,900 sh (+789.09%)
James Barrow 5,320,183 sh (+49.48%)
David Dreman 3,260 sh (+25.38%)
Jeremy Grantham 1,089,891 sh (+4.71%)
Paul Tudor Jones 145,000 sh (unchged)
Jim Simons Sold Out
Joel Greenblatt 83,132 sh (-3.94%)
David Winters 1,467,964 sh (-8.70%)
Wintergreen Fund 1,053,343 sh (-10.98%)
Murray Stahl 5,800 sh (-24.68%)
Manning & Napier Advisors, Inc 5,430 sh (-89.95%)
» More
» Details

Insider Trades

Latest Guru Trades with RAI

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Top Ranked Articles about Reynolds American Inc

Weekly 52-Week Highs Highlight: MTB, RAI, KR, C
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Wintergreen Fund (Trades, Portfolio) takes a global approach when seeking companies to invest in. The firm looks for the most attractive prices on the market while also doing extensive research on the company and its management. The firm looks at qualities such as a company's market value in relation to book value, cash flow, as well as earnings. Read more...
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Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.10
RAI's P/E(ttm) is ranked higher than
67% of the 27 Companies
in the Global Tobacco industry.

( Industry Median: 17.50 vs. RAI: 16.10 )
Ranked among companies with meaningful P/E(ttm) only.
RAI' s 10-Year P/E(ttm) Range
Min: 7.39  Med: 15.73 Max: 27.62
Current: 16.1
7.39
27.62
Forward P/E 18.38
RAI's Forward P/E is ranked lower than
53% of the 15 Companies
in the Global Tobacco industry.

( Industry Median: 18.08 vs. RAI: 18.38 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 16.10
RAI's PE(NRI) is ranked higher than
65% of the 26 Companies
in the Global Tobacco industry.

( Industry Median: 17.50 vs. RAI: 16.10 )
Ranked among companies with meaningful PE(NRI) only.
RAI' s 10-Year PE(NRI) Range
Min: 7.36  Med: 15.50 Max: 27.9
Current: 16.1
7.36
27.9
P/B 2.46
RAI's P/B is ranked higher than
61% of the 28 Companies
in the Global Tobacco industry.

( Industry Median: 4.48 vs. RAI: 2.46 )
Ranked among companies with meaningful P/B only.
RAI' s 10-Year P/B Range
Min: 1.24  Med: 2.65 Max: 9.13
Current: 2.46
1.24
9.13
P/S 5.20
RAI's P/S is ranked lower than
75% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 2.14 vs. RAI: 5.20 )
Ranked among companies with meaningful P/S only.
RAI' s 10-Year P/S Range
Min: 1.08  Med: 2.20 Max: 5.29
Current: 5.2
1.08
5.29
PFCF 26.30
RAI's PFCF is ranked lower than
90% of the 21 Companies
in the Global Tobacco industry.

( Industry Median: 17.94 vs. RAI: 26.30 )
Ranked among companies with meaningful PFCF only.
RAI' s 10-Year PFCF Range
Min: 6.08  Med: 17.40 Max: 42.22
Current: 26.3
6.08
42.22
POCF 24.33
RAI's POCF is ranked lower than
88% of the 24 Companies
in the Global Tobacco industry.

( Industry Median: 25.27 vs. RAI: 24.33 )
Ranked among companies with meaningful POCF only.
RAI' s 10-Year POCF Range
Min: 5.78  Med: 15.46 Max: 28.36
Current: 24.33
5.78
28.36
EV-to-EBIT 12.00
RAI's EV-to-EBIT is ranked higher than
57% of the 30 Companies
in the Global Tobacco industry.

( Industry Median: 12.73 vs. RAI: 12.00 )
Ranked among companies with meaningful EV-to-EBIT only.
RAI' s 10-Year EV-to-EBIT Range
Min: 5.8  Med: 10.10 Max: 26.2
Current: 12
5.8
26.2
PEG 1.96
RAI's PEG is ranked higher than
72% of the 18 Companies
in the Global Tobacco industry.

( Industry Median: 2.15 vs. RAI: 1.96 )
Ranked among companies with meaningful PEG only.
RAI' s 10-Year PEG Range
Min: 0.76  Med: 4.14 Max: 21.78
Current: 1.96
0.76
21.78
Shiller P/E 28.03
RAI's Shiller P/E is ranked lower than
87% of the 15 Companies
in the Global Tobacco industry.

( Industry Median: 17.66 vs. RAI: 28.03 )
Ranked among companies with meaningful Shiller P/E only.
RAI' s 10-Year Shiller P/E Range
Min: 11.74  Med: 19.55 Max: 41.96
Current: 28.03
11.74
41.96
Current Ratio 1.16
RAI's Current Ratio is ranked lower than
51% of the 37 Companies
in the Global Tobacco industry.

( Industry Median: 1.23 vs. RAI: 1.16 )
Ranked among companies with meaningful Current Ratio only.
RAI' s 10-Year Current Ratio Range
Min: 0.74  Med: 1.19 Max: 3.57
Current: 1.16
0.74
3.57
Quick Ratio 0.90
RAI's Quick Ratio is ranked higher than
65% of the 37 Companies
in the Global Tobacco industry.

( Industry Median: 0.56 vs. RAI: 0.90 )
Ranked among companies with meaningful Quick Ratio only.
RAI' s 10-Year Quick Ratio Range
Min: 0.55  Med: 0.92 Max: 3.31
Current: 0.9
0.55
3.31
Days Inventory 113.74
RAI's Days Inventory is ranked higher than
53% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 131.38 vs. RAI: 113.74 )
Ranked among companies with meaningful Days Inventory only.
RAI' s 10-Year Days Inventory Range
Min: 61.24  Med: 85.44 Max: 108.29
Current: 113.74
61.24
108.29
Days Sales Outstanding 5.99
RAI's Days Sales Outstanding is ranked higher than
74% of the 34 Companies
in the Global Tobacco industry.

( Industry Median: 15.22 vs. RAI: 5.99 )
Ranked among companies with meaningful Days Sales Outstanding only.
RAI' s 10-Year Days Sales Outstanding Range
Min: 3.7  Med: 5.64 Max: 10.32
Current: 5.99
3.7
10.32

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.17
RAI's Dividend Yield is ranked lower than
78% of the 50 Companies
in the Global Tobacco industry.

( Industry Median: 3.90 vs. RAI: 3.17 )
Ranked among companies with meaningful Dividend Yield only.
RAI' s 10-Year Dividend Yield Range
Min: 3.11  Med: 5.02 Max: 10.57
Current: 3.17
3.11
10.57
Dividend Payout 0.50
RAI's Dividend Payout is ranked higher than
58% of the 31 Companies
in the Global Tobacco industry.

( Industry Median: 1.07 vs. RAI: 0.50 )
Ranked among companies with meaningful Dividend Payout only.
RAI' s 10-Year Dividend Payout Range
Min: 0.05  Med: 0.75 Max: 28.33
Current: 0.5
0.05
28.33
Dividend growth (3y) 7.60
RAI's Dividend growth (3y) is ranked lower than
55% of the 22 Companies
in the Global Tobacco industry.

( Industry Median: 8.20 vs. RAI: 7.60 )
Ranked among companies with meaningful Dividend growth (3y) only.
RAI' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 8.00 Max: 33.9
Current: 7.6
0
33.9
Yield on cost (5-Year) 4.99
RAI's Yield on cost (5-Year) is ranked lower than
82% of the 50 Companies
in the Global Tobacco industry.

( Industry Median: 7.12 vs. RAI: 4.99 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
RAI' s 10-Year Yield on cost (5-Year) Range
Min: 4.9  Med: 7.90 Max: 16.64
Current: 4.99
4.9
16.64
Share Buyback Rate 3.00
RAI's Share Buyback Rate is ranked higher than
80% of the 20 Companies
in the Global Tobacco industry.

( Industry Median: 0.20 vs. RAI: 3.00 )
Ranked among companies with meaningful Share Buyback Rate only.
RAI' s 10-Year Share Buyback Rate Range
Min: 6.3  Med: 0.35 Max: -20.8
Current: 3

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.70
RAI's Price/Projected FCF is ranked higher than
57% of the 14 Companies
in the Global Tobacco industry.

( Industry Median: 1.82 vs. RAI: 1.70 )
Ranked among companies with meaningful Price/Projected FCF only.
RAI' s 10-Year Price/Projected FCF Range
Min: 0.66  Med: 1.44 Max: 2.28
Current: 1.7
0.66
2.28
Price/DCF (Earnings Based) 1.41
RAI's Price/DCF (Earnings Based) is ranked lower than
60% of the 5 Companies
in the Global Tobacco industry.

( Industry Median: 1.28 vs. RAI: 1.41 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 2.36
RAI's Price/Median PS Value is ranked lower than
97% of the 37 Companies
in the Global Tobacco industry.

( Industry Median: 0.93 vs. RAI: 2.36 )
Ranked among companies with meaningful Price/Median PS Value only.
RAI' s 10-Year Price/Median PS Value Range
Min: 0.17  Med: 0.83 Max: 2.08
Current: 2.36
0.17
2.08
Price/Peter Lynch Fair Value 1.55
RAI's Price/Peter Lynch Fair Value is ranked higher than
67% of the 9 Companies
in the Global Tobacco industry.

( Industry Median: 1.61 vs. RAI: 1.55 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
RAI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.78  Med: 2.52 Max: 4.14
Current: 1.55
0.78
4.14
Earnings Yield (Greenblatt) (%) 8.30
RAI's Earnings Yield (Greenblatt) (%) is ranked higher than
67% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 7.50 vs. RAI: 8.30 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RAI' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 3.8  Med: 9.90 Max: 17.1
Current: 8.3
3.8
17.1
Forward Rate of Return (Yacktman) (%) 13.30
RAI's Forward Rate of Return (Yacktman) (%) is ranked higher than
62% of the 16 Companies
in the Global Tobacco industry.

( Industry Median: 10.55 vs. RAI: 13.30 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
RAI' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 3.2  Med: 7.10 Max: 27.8
Current: 13.3
3.2
27.8

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 10,759 12,786 13,329
EPS($) 4.04 4.61 5.02
EPS without NRI($) 4.04 4.61 5.02

Business Description

Industry: Tobacco Products » Tobacco
Compare:BTI, MO, PM, ITYBY, LO » details
Traded in other countries:RQ4.Germany,
Reynolds American Inc was incorporated in the state of North Carolina on January 2, 2004. The Company, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States. The Company's reportable operating segments are RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. American Snuff offers adult tobacco consumers a range of differentiated smokeless tobacco products, primarily moist snuff. RJR Tobacco's brands include many of the selling cigarettes in the United States: CAMEL, PALL MALL, WINSTON, KOOL, DORAL and SALEM, MISTY and CAPRI. RJR Tobacco offers two types of modern smoke-free tobacco, CAMEL Snus and CAMEL Dissolvables. CAMEL Snus is pasteurized tobacco in a small pouch that provides convenient tobacco consumption. American Snuff's products include GRIZZLY, in the price-value category, and KODIAK, in the premium category. Santa Fe manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. RJR Tobacco also manages the cigarette brands, DUNHILL and STATE EXPRESS 555. McLane Company, Inc. is the customer of RJR Tobacco, American Snuff and Santa. RJR Tobacco's primary competitors include Philip Morris USA Inc., Lorillard Tobacco Company, Liggett Group and Commonwealth Brands, Inc., as well as manufacturers of deep-discount brands.
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