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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 : 8/10

vs
industry
vs
history
Cash to Debt 0.24
RAI's Cash to Debt is ranked higher than
81% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 0.21 vs. RAI: 0.24 )
RAI' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.24

Equity to Asset 0.33
RAI's Equity to Asset is ranked higher than
85% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 0.20 vs. RAI: 0.33 )
RAI' s 10-Year Equity to Asset Range
Min: 0.31   Max: 0.55
Current: 0.33

0.31
0.55
Interest Coverage 12.09
RAI's Interest Coverage is ranked higher than
81% of the 42 Companies
in the Global Tobacco industry.

( Industry Median: 11.94 vs. RAI: 12.09 )
RAI' s 10-Year Interest Coverage Range
Min: 2.86   Max: 12.91
Current: 12.09

2.86
12.91
F-Score: 4
Z-Score: 3.00
M-Score: -2.37
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 (%) 34.55
RAI's Operating margin (%) is ranked higher than
87% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 28.64 vs. RAI: 34.55 )
RAI' s 10-Year Operating margin (%) Range
Min: -72.93   Max: 38.03
Current: 34.55

-72.93
38.03
Net-margin (%) 19.27
RAI's Net-margin (%) is ranked higher than
85% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 19.29 vs. RAI: 19.27 )
RAI' s 10-Year Net-margin (%) Range
Min: -65.43   Max: 30.96
Current: 19.27

-65.43
30.96
ROE (%) 32.09
RAI's ROE (%) is ranked higher than
82% of the 34 Companies
in the Global Tobacco industry.

( Industry Median: 32.09 vs. RAI: 32.09 )
RAI' s 10-Year ROE (%) Range
Min: -70.52   Max: 32.96
Current: 32.09

-70.52
32.96
ROA (%) 10.29
RAI's ROA (%) is ranked higher than
81% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 12.42 vs. RAI: 10.29 )
RAI' s 10-Year ROA (%) Range
Min: -28.33   Max: 13.91
Current: 10.29

-28.33
13.91
ROC (Joel Greenblatt) (%) 257.06
RAI's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 124.91 vs. RAI: 257.06 )
RAI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -418.87   Max: 296.73
Current: 257.06

-418.87
296.73
Revenue Growth (%) 1.00
RAI's Revenue Growth (%) is ranked higher than
76% of the 45 Companies
in the Global Tobacco industry.

( Industry Median: 2.40 vs. RAI: 1.00 )
RAI' s 10-Year Revenue Growth (%) Range
Min: -6.2   Max: 6.6
Current: 1

-6.2
6.6
EBITDA Growth (%) 8.60
RAI's EBITDA Growth (%) is ranked higher than
87% of the 45 Companies
in the Global Tobacco industry.

( Industry Median: 6.20 vs. RAI: 8.60 )
RAI' s 10-Year EBITDA Growth (%) Range
Min: -29.3   Max: 90.5
Current: 8.6

-29.3
90.5
EPS Growth (%) 11.40
RAI's EPS Growth (%) is ranked higher than
89% of the 47 Companies
in the Global Tobacco industry.

( Industry Median: 6.90 vs. RAI: 11.40 )
RAI' s 10-Year EPS Growth (%) Range
Min: -5.3   Max: 37.1
Current: 11.4

-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 2013

RAI Guru Trades in Q3 2013

Steven Cohen 5,885 sh (New)
Joel Greenblatt 242,448 sh (+65.14%)
Jim Simons 1,994,400 sh (+16.6%)
James Barrow 2,418,402 sh (+4.61%)
Manning & Napier Advisors, Inc 36,083 sh (+1.97%)
David Winters 2,125,184 sh (unchged)
Wintergreen Fund 1,673,242 sh (unchged)
Murray Stahl 12,264 sh (-1.6%)
Jeremy Grantham 397,869 sh (-12.39%)
» More
Q4 2013

RAI Guru Trades in Q4 2013

David Dreman 2,600 sh (New)
Paul Tudor Jones 18,482 sh (New)
Steven Cohen 86,759 sh (+1374.24%)
Joel Greenblatt 462,395 sh (+90.72%)
James Barrow 2,484,193 sh (+2.72%)
David Winters 2,135,791 sh (+0.5%)
Wintergreen Fund 1,673,242 sh (unchged)
Murray Stahl 12,214 sh (-0.41%)
Jeremy Grantham 364,089 sh (-8.49%)
Manning & Napier Advisors, Inc 22,797 sh (-36.82%)
Jim Simons 1,158,500 sh (-41.91%)
» More
Q1 2014

RAI Guru Trades in Q1 2014

Eric Mindich 450,000 sh (New)
Louis Moore Bacon 8,440 sh (New)
Paul Tudor Jones 91,947 sh (+397.49%)
Jeremy Grantham 696,506 sh (+91.3%)
James Barrow 3,065,393 sh (+23.4%)
Steven Cohen 103,160 sh (+18.9%)
Jim Simons 1,297,040 sh (+11.96%)
Manning & Napier Advisors, Inc 23,223 sh (+1.87%)
David Dreman 2,600 sh (unchged)
Murray Stahl 12,214 sh (unchged)
Wintergreen Fund 1,673,242 sh (unchged)
David Winters 2,113,817 sh (-1.03%)
Joel Greenblatt 167,017 sh (-63.88%)
» More
Q2 2014

RAI Guru Trades in Q2 2014

Bruce Berkowitz 44,300 sh (New)
Louis Moore Bacon 59,000 sh (+599.05%)
Manning & Napier Advisors, Inc 57,770 sh (+148.76%)
Jeremy Grantham 1,592,206 sh (+128.6%)
James Barrow 3,443,568 sh (+12.34%)
David Dreman 2,600 sh (unchged)
Wintergreen Fund 1,673,242 sh (unchged)
Louis Moore Bacon 105,000 sh (unchged)
David Winters 2,100,778 sh (-0.62%)
Murray Stahl 12,014 sh (-1.64%)
Jim Simons 967,100 sh (-25.44%)
Paul Tudor Jones 39,348 sh (-57.21%)
Eric Mindich 167,420 sh (-62.8%)
Joel Greenblatt 22,280 sh (-86.66%)
» More
» Details

Insider Trades

Latest Guru Trades with RAI

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Reduce -86.66%0.11%$53.25 - $62.55 $ 62.9110%22280
Bruce Berkowitz 2014-06-30 New Buy0.03%$53.25 - $62.55 $ 62.9110%44300
Joel Greenblatt 2014-03-31 Reduce -63.88%0.35%$46.96 - $56.31 $ 62.9125%167017
David Winters 2014-03-31 Reduce -1.03%0.12%$46.96 - $56.31 $ 62.9125%2113817
James Barrow 2014-03-31 Add 23.4%0.04%$46.96 - $56.31 $ 62.9125%3065393
Joel Greenblatt 2013-12-31 Add 90.72%0.26%$48.6 - $52.52 $ 62.9125%462395
David Dreman 2013-12-31 New Buy0.01%$48.6 - $52.52 $ 62.9125%2600
Joel Greenblatt 2013-09-30 Add 65.14%0.15%$47.39 - $52.8 $ 62.9127%242448
David Winters 2013-06-30 Add 3.95%0.43%$44.2 - $49.71 $ 62.9133%2125184
David Winters 2013-03-31 Add 39.26%2.82%$41.43 - $44.93 $ 62.9145%2044484
Joel Greenblatt 2013-03-31 Reduce -23.84%0.1%$41.43 - $44.93 $ 62.9145%135459
Ray Dalio 2013-03-31 Sold Out 0.0043%$41.43 - $44.93 $ 62.9145%0
Joel Greenblatt 2012-12-31 Add 96.44%0.21%$39.98 - $44.27 $ 62.9149%177851
Joel Greenblatt 2012-09-30 Add 162.14%0.16%$43.2 - $46.64 $ 62.9138%90535
Ray Dalio 2012-09-30 New Buy0.01%$43.2 - $46.64 $ 62.9138%11616
Joel Greenblatt 2012-06-30 Reduce -58.43%0.18%$39.57 - $44.42 $ 62.9152%34537
Joel Greenblatt 2012-03-31 Add 701.59%0.26%$39.23 - $42.42 $ 62.9164%83077
Joel Greenblatt 2011-12-31 Reduce -73.09%0.17%$37.4 - $41.76 $ 62.9158%10364
David Winters 2011-09-30 Add 21.18%1.9%$32.47 - $38.51 $ 62.9172%1483580
Joel Greenblatt 2011-09-30 Reduce -31.85%0.09%$32.47 - $38.51 $ 62.9172%38507
Ken Fisher 2011-09-30 Sold Out 0.0008%$32.47 - $38.51 $ 62.9172%0
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 20.90
RAI's P/E(ttm) is ranked higher than
84% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 19.30 vs. RAI: 20.90 )
RAI' s 10-Year P/E(ttm) Range
Min: 7.39   Max: 21.07
Current: 20.9

7.39
21.07
P/B 6.69
RAI's P/B is ranked higher than
86% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 10.12 vs. RAI: 6.69 )
RAI' s 10-Year P/B Range
Min: 1.24   Max: 6.79
Current: 6.69

1.24
6.79
P/S 4.03
RAI's P/S is ranked higher than
80% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 3.95 vs. RAI: 4.03 )
RAI' s 10-Year P/S Range
Min: 0.89   Max: 4.09
Current: 4.03

0.89
4.09
PFCF 22.15
RAI's PFCF is ranked higher than
82% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 19.70 vs. RAI: 22.15 )
RAI' s 10-Year PFCF Range
Min: 6.08   Max: 42.22
Current: 22.15

6.08
42.22
EV-to-EBIT 13.00
RAI's EV-to-EBIT is ranked higher than
86% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 13.23 vs. RAI: 13.00 )
RAI' s 10-Year EV-to-EBIT Range
Min: -1.9   Max: 26.2
Current: 13

-1.9
26.2
PEG 1.98
RAI's PEG is ranked higher than
88% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 2.58 vs. RAI: 1.98 )
RAI' s 10-Year PEG Range
Min: 0.76   Max: 21.78
Current: 1.98

0.76
21.78
Shiller P/E 25.31
RAI's Shiller P/E is ranked higher than
78% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 22.34 vs. RAI: 25.31 )
RAI' s 10-Year Shiller P/E Range
Min: 11.68   Max: 42.8
Current: 25.31

11.68
42.8
Current Ratio 1.05
RAI's Current Ratio is ranked higher than
75% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 1.13 vs. RAI: 1.05 )
RAI' s 10-Year Current Ratio Range
Min: 0.74   Max: 3.57
Current: 1.05

0.74
3.57
Quick Ratio 0.71
RAI's Quick Ratio is ranked higher than
83% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 0.65 vs. RAI: 0.71 )
RAI' s 10-Year Quick Ratio Range
Min: 0.55   Max: 3.31
Current: 0.71

0.55
3.31

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.20
RAI's Dividend Yield is ranked higher than
67% of the 45 Companies
in the Global Tobacco industry.

( Industry Median: 4.10 vs. RAI: 4.20 )
RAI' s 10-Year Dividend Yield Range
Min: 3.7   Max: 10.57
Current: 4.2

3.7
10.57
Dividend Payout 0.89
RAI's Dividend Payout is ranked higher than
67% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 0.76 vs. RAI: 0.89 )
RAI' s 10-Year Dividend Payout Range
Min: 0.05   Max: 28.33
Current: 0.89

0.05
28.33
Dividend growth (3y) 10.50
RAI's Dividend growth (3y) is ranked higher than
82% of the 45 Companies
in the Global Tobacco industry.

( Industry Median: 12.70 vs. RAI: 10.50 )
RAI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 33.9
Current: 10.5

0
33.9
Yield on cost (5-Year) 6.79
RAI's Yield on cost (5-Year) is ranked higher than
53% of the 45 Companies
in the Global Tobacco industry.

( Industry Median: 6.96 vs. RAI: 6.79 )
RAI' s 10-Year Yield on cost (5-Year) Range
Min: 5.99   Max: 17.1
Current: 6.79

5.99
17.1
Share Buyback Rate 2.20
RAI's Share Buyback Rate is ranked higher than
90% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 1.50 vs. RAI: 2.20 )
RAI' s 10-Year Share Buyback Rate Range
Min: 6.3   Max: -20.8
Current: 2.2

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.93
RAI's Price/DCF (Projected) is ranked higher than
82% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 1.69 vs. RAI: 1.93 )
RAI' s 10-Year Price/DCF (Projected) Range
Min: 0.66   Max: 1.91
Current: 1.93

0.66
1.91
Price/Median PS Value 1.93
RAI's Price/Median PS Value is ranked higher than
69% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 1.09 vs. RAI: 1.93 )
RAI' s 10-Year Price/Median PS Value Range
Min: 0.18   Max: 1.88
Current: 1.93

0.18
1.88
Price/Peter Lynch Fair Value 2.78
RAI's Price/Peter Lynch Fair Value is ranked higher than
86% of the 49 Companies
in the Global Tobacco industry.

( Industry Median: 2.12 vs. RAI: 2.78 )
RAI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.78   Max: 3.61
Current: 2.78

0.78
3.61
Earnings Yield (Greenblatt) 7.70
RAI's Earnings Yield (Greenblatt) is ranked higher than
85% of the 48 Companies
in the Global Tobacco industry.

( Industry Median: 7.60 vs. RAI: 7.70 )
RAI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.8   Max: 17.1
Current: 7.7

3.8
17.1
Forward Rate of Return (Yacktman) 10.52
RAI's Forward Rate of Return (Yacktman) is ranked higher than
77% of the 44 Companies
in the Global Tobacco industry.

( Industry Median: 13.27 vs. RAI: 10.52 )
RAI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.4   Max: 2017.8
Current: 10.52

0.4
2017.8

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 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.
» More Articles for RAI

Headlines

Articles On GuruFocus.com
Philip Morris Plans to Expand in Emerging Markets Oct 19 2014 
Stock Picks For The E-Cigarette Surge Sep 09 2014 
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Income Investors May Find Lorillard's Dividend Yield Very Attractive Aug 22 2014 
Tobacco Giant Lorillard Declares Dividend Aug 18 2014 
Altria Is a Dividend-Paying Machine Jul 28 2014 
This Tobacco Stock Looks Attractive Enough Jul 23 2014 
GuruFocus Names Five Dividend Growers Jul 21 2014 
Lorillard is a Bad Deal for Reynolds American Investors Jul 15 2014 
Lorillard is Smoking up Higher Jul 09 2014 

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