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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 0.29
RAI's Cash to Debt is ranked higher than
76% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 0.29 vs. RAI: 0.29 )
RAI' s 10-Year Cash to Debt Range
Min: 0.29   Max: 1.55
Current: 0.29

0.29
1.55
Equity to Asset 0.34
RAI's Equity to Asset is ranked higher than
84% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 0.20 vs. RAI: 0.34 )
RAI' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.54
Current: 0.34

0.32
0.54
Interest Coverage 12.09
RAI's Interest Coverage is ranked higher than
82% of the 33 Companies
in the Global Tobacco industry.

( Industry Median: 10.13 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: 5
Z-Score: 2.67
M-Score: -2.24
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 (%) 38.03
RAI's Operating margin (%) is ranked higher than
95% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 25.11 vs. RAI: 38.03 )
RAI' s 10-Year Operating margin (%) Range
Min: -72.93   Max: 38.03
Current: 38.03

-72.93
38.03
Net-margin (%) 20.86
RAI's Net-margin (%) is ranked higher than
89% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 16.98 vs. RAI: 20.86 )
RAI' s 10-Year Net-margin (%) Range
Min: -65.43   Max: 30.96
Current: 20.86

-65.43
30.96
ROE (%) 33.25
RAI's ROE (%) is ranked higher than
83% of the 24 Companies
in the Global Tobacco industry.

( Industry Median: 19.02 vs. RAI: 33.25 )
RAI' s 10-Year ROE (%) Range
Min: -112.72   Max: 33.25
Current: 33.25

-112.72
33.25
ROA (%) 11.15
RAI's ROA (%) is ranked higher than
79% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 14.52 vs. RAI: 11.15 )
RAI' s 10-Year ROA (%) Range
Min: -35.61   Max: 16.3
Current: 11.15

-35.61
16.3
ROC (Joel Greenblatt) (%) 291.62
RAI's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 168.06 vs. RAI: 291.62 )
RAI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -429.64   Max: 291.62
Current: 291.62

-429.64
291.62
Revenue Growth (%) 1.00
RAI's Revenue Growth (%) is ranked higher than
75% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 1.70 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
89% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 4.20 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 (%) 11.10
RAI's EPS Growth (%) is ranked higher than
89% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 4.00 vs. RAI: 11.10 )
RAI' s 10-Year EPS Growth (%) Range
Min: -5.3   Max: 37.1
Current: 11.1

-5.3
37.1
» RAI's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

RAI Guru Trades in Q1 2013

Wintergreen Fund 1,605,073 sh (+42.37%)
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
Q2 2013

RAI Guru Trades in Q2 2013

Manning & Napier Advisors, Inc 35,387 sh (New)
Jim Simons 1,710,400 sh (+21.18%)
Joel Greenblatt 146,815 sh (+8.38%)
Wintergreen Fund 1,673,242 sh (+4.25%)
David Winters 2,125,184 sh (+3.95%)
James Barrow 2,311,800 sh (+2.22%)
Meridian Funds 12,150 sh (unchged)
Murray Stahl 12,464 sh (-1.58%)
Jeremy Grantham 454,121 sh (-6.62%)
» More
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

Paul Tudor Jones 18,482 sh (New)
David Dreman 2,600 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
» Details

Insider Trades

Latest Guru Trades with RAI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 90.72%0.26%$48.6 - $52.52 $ 54.999%462395
David Dreman 2013-12-31 New Buy0.01%$48.6 - $52.52 $ 54.999%2600
Joel Greenblatt 2013-09-30 Add 65.14%0.15%$47.39 - $52.8 $ 54.9911%242448
Joel Greenblatt 2013-03-31 Reduce -23.84%0.1%$41.43 - $44.93 $ 54.9927%135459
Ray Dalio 2013-03-31 Sold Out 0.0043%$41.43 - $44.93 $ 54.9927%0
Joel Greenblatt 2012-12-31 Add 96.44%0.21%$39.98 - $44.27 $ 54.9930%177851
Joel Greenblatt 2012-09-30 Add 162.14%0.16%$43.2 - $46.64 $ 54.9921%90535
Ray Dalio 2012-09-30 New Buy0.01%$43.2 - $46.64 $ 54.9921%11616
Joel Greenblatt 2012-06-30 Reduce -58.43%0.18%$39.57 - $44.42 $ 54.9932%34537
Joel Greenblatt 2012-03-31 Add 701.59%0.26%$39.23 - $42.42 $ 54.9943%83077
Joel Greenblatt 2011-12-31 Reduce -73.09%0.17%$37.4 - $41.76 $ 54.9938%10364
Joel Greenblatt 2011-09-30 Reduce -31.85%0.09%$32.47 - $38.51 $ 54.9950%38507
Joel Greenblatt 2011-06-30 Add 29.4%0.07%$35.71 - $39.78 $ 54.9946%56506
Joel Greenblatt 2011-03-31 Reduce -64.21%0.84%$31.8 - $35.97 $ 54.9965%43667
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 17.40
RAI's P/E(ttm) is ranked higher than
61% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 16.60 vs. RAI: 17.40 )
RAI' s 10-Year P/E(ttm) Range
Min: 7.39   Max: 20.07
Current: 17.4

7.39
20.07
P/B 5.70
RAI's P/B is ranked higher than
58% of the 24 Companies
in the Global Tobacco industry.

( Industry Median: 5.45 vs. RAI: 5.70 )
RAI' s 10-Year P/B Range
Min: 0.4   Max: 5.7
Current: 5.7

0.4
5.7
P/S 3.65
RAI's P/S is ranked lower than
55% of the 40 Companies
in the Global Tobacco industry.

( Industry Median: 3.40 vs. RAI: 3.65 )
RAI' s 10-Year P/S Range
Min: 0.49   Max: 3.7
Current: 3.65

0.49
3.7
PFCF 26.00
RAI's PFCF is ranked lower than
58% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 17.68 vs. RAI: 26.00 )
RAI' s 10-Year PFCF Range
Min: 6.08   Max: 42.22
Current: 26

6.08
42.22
EV-to-EBIT 10.80
RAI's EV-to-EBIT is ranked higher than
79% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 13.30 vs. RAI: 10.80 )
RAI' s 10-Year EV-to-EBIT Range
Min: 5.8   Max: 26.2
Current: 10.8

5.8
26.2
PEG 1.60
RAI's PEG is ranked higher than
86% of the 35 Companies
in the Global Tobacco industry.

( Industry Median: 2.45 vs. RAI: 1.60 )
RAI' s 10-Year PEG Range
Min: 0.76   Max: 21.78
Current: 1.6

0.76
21.78
Shiller P/E 23.10
RAI's Shiller P/E is ranked lower than
51% of the 35 Companies
in the Global Tobacco industry.

( Industry Median: 18.89 vs. RAI: 23.10 )
RAI' s 10-Year Shiller P/E Range
Min: 11.68   Max: 41.96
Current: 23.1

11.68
41.96

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.66
RAI's Dividend Yield is ranked higher than
87% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 4.21 vs. RAI: 4.66 )
RAI' s 10-Year Dividend Yield Range
Min: 3.7   Max: 11.99
Current: 4.66

3.7
11.99
Dividend Payout 0.79
RAI's Dividend Payout is ranked higher than
62% of the 37 Companies
in the Global Tobacco industry.

( Industry Median: 0.69 vs. RAI: 0.79 )
RAI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.05
Current: 0.79

0.07
1.05
Dividend growth (3y) 10.50
RAI's Dividend growth (3y) is ranked higher than
80% of the 35 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) 7.60
RAI's Yield on cost (5-Year) is ranked higher than
66% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 7.22 vs. RAI: 7.60 )
RAI' s 10-Year Yield on cost (5-Year) Range
Min: 5.99   Max: 19.4
Current: 7.6

5.99
19.4
Share Buyback Rate 2.20
RAI's Share Buyback Rate is ranked higher than
88% of the 33 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) 1.90
RAI's Price/DCF (Projected) is ranked lower than
63% of the 35 Companies
in the Global Tobacco industry.

( Industry Median: 1.40 vs. RAI: 1.90 )
RAI' s 10-Year Price/DCF (Projected) Range
Min: 0.81   Max: 1.69
Current: 1.9

0.81
1.69
Price/Median PS Value 1.80
RAI's Price/Median PS Value is ranked higher than
58% of the 36 Companies
in the Global Tobacco industry.

( Industry Median: 1.10 vs. RAI: 1.80 )
RAI' s 10-Year Price/Median PS Value Range
Min: 0.31   Max: 1.68
Current: 1.8

0.31
1.68
Price/Peter Lynch Fair Value 1.70
RAI's Price/Peter Lynch Fair Value is ranked higher than
75% of the 28 Companies
in the Global Tobacco industry.

( Industry Median: 1.50 vs. RAI: 1.70 )
RAI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.54   Max: 3.61
Current: 1.7

1.54
3.61
Earnings Yield (Greenblatt) 9.30
RAI's Earnings Yield (Greenblatt) is ranked higher than
82% of the 38 Companies
in the Global Tobacco industry.

( Industry Median: 7.50 vs. RAI: 9.30 )
RAI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.8   Max: 17.1
Current: 9.3

3.8
17.1
Forward Rate of Return (Yacktman) 13.81
RAI's Forward Rate of Return (Yacktman) is ranked higher than
83% of the 35 Companies
in the Global Tobacco industry.

( Industry Median: 14.04 vs. RAI: 13.81 )
RAI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.4   Max: 1719
Current: 13.81

0.4
1719

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.

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