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49.37 (1y: +20%)
Market Cap 27.1 B P/E(ttm) 18.40
Enterprise Value 29.41 B P/B 5.20
RAI- NYSE (USA)
Reynolds American Inc
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$49.37
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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 : 6/10

vs
industry		 vs
history
Cash to Debt 0.491
RAI's Cash to Debt is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 0.29 vs. RAI: 0.491 )
RAI' s 10-Year Cash to Debt Range
Min: 0.49   Max: 1.55
Current: 0.49
0.49
1.55
Equity to Asset -0.315
RAI's Equity to Asset is ranked lower than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: -0.19 vs. RAI: -0.315 )
RAI' s 10-Year Equity to Asset Range
Min: -0.32   Max: -0.11
Current: -0.32
-0.32
-0.11
Interest Coverage 9.8
RAI's Interest Coverage is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 13.05 vs. RAI: 9.8 )
RAI' s 10-Year Interest Coverage Range
Min: 6   Max: 71
Current: 9.8
6
71
F-Score: 6
Z-Score: 2.23
M-Score: -2.28
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 : 8/10

vs
industry		 vs
history
Operating margin (%) 26.70
RAI's Operating margin (%) is ranked higher than
67% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 29.80 vs. RAI: 26.70 )
RAI' s 10-Year Operating margin (%) Range
Min: -72.9   Max: 28.3
Current: 26.7
-72.9
28.3
Net-margin (%) 15.3
RAI's Net-margin (%) is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 18.40 vs. RAI: 15.3 )
RAI' s 10-Year Net-margin (%) Range
Min: -65.4   Max: 31
Current: 15.3
-65.4
31
ROE (%) 24.2
RAI's ROE (%) is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 21.60 vs. RAI: 24.2 )
RAI' s 10-Year ROE (%) Range
Min: -112.7   Max: 33.2
Current: 24.2
-112.7
33.2
ROA (%) 7.7
RAI's ROA (%) is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 9.80 vs. RAI: 7.7 )
RAI' s 10-Year ROA (%) Range
Min: -35.6   Max: 16.3
Current: 7.7
-35.6
16.3
Revenue Growth (%) 0.3
RAI's Revenue Growth (%) is ranked lower than
67% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 1.50 vs. RAI: 0.3 )
RAI' s 10-Year Revenue Growth (%) Range
Min: -9.7   Max: 1.9
Current: 0.3
-9.7
1.9
EBITDA Growth (%) 5.8
RAI's EBITDA Growth (%) is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 4.70 vs. RAI: 5.8 )
RAI' s 10-Year EBITDA Growth (%) Range
Min: -10.2   Max: 15.4
Current: 5.8
-10.2
15.4
EPS Growth (%) 7.9
RAI's EPS Growth (%) is ranked lower than
58% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 5.65 vs. RAI: 7.9 )
RAI' s 10-Year EPS Growth (%) Range
Min: -5.3   Max: 9.5
Current: 7.9
-5.3
9.5
» RAI's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

RAI Guru Trades in Q2 2012

Louis Moore Bacon 4,534 sh (New)
Jim Simons 1,354,200 sh (+702.25%)
Meridian Funds 12,150 sh (unchged)
David Winters 1,483,580 sh (unchged)
Tom Russo 177 sh (unchged)
Wintergreen Fund 1,127,414 sh (unchged)
Steven Cohen Sold Out
Murray Stahl 13,064 sh (-0.77%)
James Barrow 2,667,335 sh (-3.78%)
Jeremy Grantham 636,501 sh (-5.72%)
Joel Greenblatt 34,537 sh (-58.43%)
» More
Q3 2012

RAI Guru Trades in Q3 2012

Ray Dalio 11,616 sh (New)
Steven Cohen 9,457 sh (New)
Louis Moore Bacon 23,148 sh (+410.54%)
Joel Greenblatt 90,535 sh (+162.14%)
Jim Simons 2,073,200 sh (+53.09%)
Murray Stahl 13,064 sh (unchged)
Wintergreen Fund 1,127,414 sh (unchged)
Meridian Funds 12,150 sh (unchged)
James Barrow 2,647,255 sh (-0.75%)
David Winters 1,468,114 sh (-1.04%)
Jeremy Grantham 623,001 sh (-2.12%)
Tom Russo 100 sh (-43.5%)
» More
Q4 2012

RAI Guru Trades in Q4 2012

Steven Cohen 352,334 sh (+3625.64%)
Joel Greenblatt 177,851 sh (+96.44%)
Meridian Funds 12,150 sh (unchged)
Jeremy Grantham 488,493 sh (unchged)
David Winters 1,468,114 sh (unchged)
Wintergreen Fund 1,127,414 sh (unchged)
Louis Moore Bacon Sold Out
Murray Stahl 12,864 sh (-1.53%)
Ray Dalio 10,316 sh (-11.19%)
James Barrow 2,333,835 sh (-11.84%)
Jim Simons 1,279,400 sh (-38.29%)
» More
Q1 2013

RAI Guru Trades in Q1 2013

David Winters 2,044,484 sh (+39.26%)
Jim Simons 1,411,500 sh (+10.33%)
Meridian Funds 12,150 sh (unchged)
Steven Cohen Sold Out
Ray Dalio Sold Out
Jeremy Grantham 486,307 sh (-0.45%)
Murray Stahl 12,664 sh (-1.55%)
James Barrow 2,261,700 sh (-3.09%)
Joel Greenblatt 135,459 sh (-23.84%)
» More
» Details

Insider Trades

Latest Guru Trades with RAI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Reduce -23.84%0.1%$41.43 - $44.93 $ 49.3714%135459
Ray Dalio 2013-03-31 Sold Out $41.43 - $44.93 $ 49.3714%0
Joel Greenblatt 2012-12-31 Add 96.44%0.21%$39.98 - $44.27 $ 49.3717%177851
Joel Greenblatt 2012-09-30 Add 162.14%0.16%$43.2 - $46.64 $ 49.379%90535
Ray Dalio 2012-09-30 New Buy0.01%$43.2 - $46.64 $ 49.379%11616
Joel Greenblatt 2012-06-30 Reduce -58.43%0.18%$39.57 - $44.42 $ 49.3719%34537
Joel Greenblatt 2012-03-31 Add 701.59%0.26%$39.23 - $42.42 $ 49.3729%83077
Joel Greenblatt 2011-12-31 Reduce -73.09%0.17%$37.4 - $41.76 $ 49.3724%10364
Joel Greenblatt 2011-09-30 Reduce -31.85%0.09%$32.47 - $38.51 $ 49.3735%38507
Joel Greenblatt 2011-06-30 Add 29.4%0.07%$35.71 - $39.78 $ 49.3731%56506
Joel Greenblatt 2011-03-31 Reduce -64.21%0.84%$31.8 - $35.97 $ 49.3748%43667
Joel Greenblatt 2010-12-31 New Buy1.3%$29.245 - $33.4 $ 49.3755%121995
Meridian Funds 2010-12-31 Reduce -50%0.02%$29.245 - $33.4 $ 49.3755%15410
David Dreman 2010-12-31 Sold Out 0.01%$29.245 - $33.4 $ 49.3755%0
Meridian Funds 2010-09-30 Add 87.81%0.01%$13.11 - $14.98 $ 49.37247%7705
David Dreman 2010-03-31 New Buy0.01%$25.75 - $27.37 $ 49.3785%7706
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Reynolds American Inc

High-Yielding Tobacco Stocks Becoming Riskier Than Investors May Think
August 7, 2012
- High-Yielding Tobacco Stocks Becoming Riskier Than Investors May Think
Tobacco stocks have been on a tear for several years. In the shorter term, stocks of companies in the industry have increased 14.3% on average so far in 2012. At the same time, the 10-year Treasury yield fell to record lows at the end of July and is at 1.59% on Tuesday, sending investors looking for higher yielding equities, such as tobacco stocks. The average dividend yield for the top five market cap tobacco stocks is 4.42% significantly higher than Treasuries and the average yield of the S&P, which is near 2.61%. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 18.40
RAI's P/E(ttm) is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 16.40 vs. RAI: 18.40 )
RAI' s 10-Year P/E(ttm) Range
Min: 0.78   Max: 79.33
Current: 18.4
0.78
79.33
P/B 5.20
RAI's P/B is ranked higher than
58% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 3.55 vs. RAI: 5.20 )
RAI' s 10-Year P/B Range
Min: 0.25   Max: 5.37
Current: 5.2
0.25
5.37
P/S 3.36
RAI's P/S is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 3.33 vs. RAI: 3.36 )
RAI' s 10-Year P/S Range
Min: 0.35   Max: 3.4
Current: 3.36
0.35
3.4
PFCF 19.60
RAI's PFCF is ranked higher than
50% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 18.09 vs. RAI: 19.60 )
RAI' s 10-Year PFCF Range
Min: 6.06   Max: 171.48
Current: 19.6
6.06
171.48
EV-to-EBIT 10.9
RAI's EV-to-EBIT is ranked lower than
92% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 11.95 vs. RAI: 10.9 )
RAI' s 10-Year EV-to-EBIT Range
Min: 2.3   Max: 26.2
Current: 10.9
2.3
26.2
PEG 3.8
RAI's PEG is ranked lower than
100% of the Companies
in the Global Tobacco industry.

( Industry Median: vs. RAI: 3.8 )
RAI' s 10-Year PEG Range
Min: 0.85   Max: 6.43
Current: 3.8
0.85
6.43
Shiller P/E 21.3
RAI's Shiller P/E is ranked higher than
83% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 10.70 vs. RAI: 21.3 )
RAI' s 10-Year Shiller P/E Range
Min: 11.32   Max: 36.55
Current: 21.3
11.32
36.55

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 4.78
RAI's Dividend Yield is ranked higher than
83% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 3.70 vs. RAI: 4.78 )
RAI' s 10-Year Dividend Yield Range
Min: 3.7   Max: 13.85
Current: 4.78
3.7
13.85
Dividend Payout 0.8781
RAI's Dividend Payout is ranked lower than
58% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 0.71 vs. RAI: 0.8781 )
RAI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.05
Current: 0.88
0.07
1.05
Dividend growth (3y) 7.8
RAI's Dividend growth (3y) is ranked higher than
58% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 9.80 vs. RAI: 7.8 )
RAI' s 10-Year Dividend growth (3y) Range
Min: 3.1   Max: 24.5
Current: 7.8
3.1
24.5
Yield on cost (5-Year) 7.35
RAI's Yield on cost (5-Year) is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 3.70 vs. RAI: 7.35 )
RAI' s 10-Year Yield on cost (5-Year) Range
Min: 5.67   Max: 21.21
Current: 7.35
5.67
21.21
Share Buyback Rate 0.7
RAI's Share Buyback Rate is ranked lower than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 0.35 vs. RAI: 0.7 )
RAI' s 10-Year Share Buyback Rate Range
Min: 4.8   Max: -15.2
Current: 0.7

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 43.7
RAI's Price/Net Current Asset Value is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 22.40 vs. RAI: 43.7 )
RAI' s 10-Year Price/Net Current Asset Value Range
Min: 8.7   Max: 38.4
Current: 43.7
8.7
38.4
Price/DCF (Projected) 1.5
RAI's Price/DCF (Projected) is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 1.50 vs. RAI: 1.5 )
RAI' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 1.6
Current: 1.5
0.8
1.6
Price/Median PS Value 2.1
RAI's Price/Median PS Value is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 1.20 vs. RAI: 2.1 )
RAI' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.8
Current: 2.1
0.4
1.8
Price/Peter Lynch Fair Value 2.8
RAI's Price/Peter Lynch Fair Value is ranked lower than
100% of the Companies
in the Global Tobacco industry.

( Industry Median: vs. RAI: 2.8 )
RAI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2.6   Max: 3.5
Current: 2.8
2.6
3.5
Earnings Yield (Greenblatt) 9.20
RAI's Earnings Yield (Greenblatt) is ranked lower than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 9.50 vs. RAI: 9.20 )
RAI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.8   Max: 42.6
Current: 9.2
3.8
42.6
Forward Rate of Return (Yacktman) 9.95
RAI's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 12 Companies
in the Global Tobacco industry.

( Industry Median: 3.31 vs. RAI: 9.95 )
RAI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.3   Max: 1718.8
Current: 9.95
0.3
1718.8

Business Description

Reynolds American, Inc. was incorporated in the state of North Carolina on January 5, 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. The American Snuff segment consists of the primary operations of American Snuff Co. and, prior to its sale, Lane, Limited, referred to as Lane. RJR Tobacco is the second largest cigarette manufacturer in the United States. RJR Tobacco's brands include many of the best-selling cigarettes in the United States: CAMEL, PALL MALL, WINSTON, KOOL, DORAL and SALEM. Those brands, and its other brands, including MISTY and CAPRI, are manufactured in a variety of styles and marketed in the United States. 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. 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. American Snuff, is the second largest smokeless tobacco products manufacturer in the United States. The American Snuff segment consists of the primary operations of American Snuff Co. and, prior to its sale, Lane. American Snuff's primary products include its largest selling moist snuff brands, GRIZZLY, in the price-value category, and KODIAK, in the premium category. American Snuff's largest competitor is U.S. Smokeless Tobacco Company LLC, referred to as USSTC, which had approximately 55.8% and 55.7% of the U.S. moist snuff market share in 2011 and 2010, respectively. Santa Fe manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. Santa Fe managed RJR Tobacco's super premium cigarette brands, DUNHILL and STATE EXPRESS 555. Santa Fe competes primarily in the U.S. cigarette market, which features several large competitors such as Philip Morris USA, Inc., Lorillard Tobacco Company, Liggett Group and Commonwealth Brands, Inc., and to a much lesser extent, many smaller manufacturers of deep-discount brands. The Company and its subsidiaries are subject to federal, state and local environmental laws and regulations concerning the discharge, storage, handling and disposal of hazardous or toxic substances.
Company Website
SEC Reports
Industry: Tobacco
Compare:BTI, MO, PM, ITYBY, LO
Traded in other countries:RQ4.Germany
» More Articles for RAI

Headlines

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High-Yield S&P 500 List | 6 Buy Recommendations Dec 24 2012 
Reynolds American Inc: Fundamental Stock Research Analysis Dec 17 2012 
Reynolds American: Healthy Capital Return Policy Through Dividends and Repurchases Nov 27 2012 
23 High-Yield Stocks from the S&P 500 in Comparison Nov 17 2012 
Divided Stock Idea of the Week: Philip Morris International (PM) Nov 11 2012 

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