British American Tobacco (Zambia) (LUS:BATZ) Financial Strength: 7 (As of . 20) — 250% Above Median

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LUS:BATZ British American Tobacco (Zambia) PLC LUS:BATZ
38 GF Score
Price ZMW12.48
! 1 Warning Sign
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What is British American Tobacco (Zambia) Financial Strength?

British American Tobacco (Zambia) LUS:BATZ -0.08% 38 Financial Strength is 7 as of . 20, which is 250% above its 10-year median of 2.00. GuruFocus rates LUS:BATZ with a GF Score™ of 38/100. The stock has 1 warning sign investors should review.

British American Tobacco (Zambia) has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

British American Tobacco (Zambia) did not have earnings to cover the interest expense. As of today, British American Tobacco (Zambia)'s Altman Z-Score is 0.00.


British American Tobacco (Zambia)  (LUS:BATZ) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

British American Tobacco (Zambia) has the Financial Strength Rank of 7.


British American Tobacco (Zambia) Financial Strength Related Terms


LUS:BATZ vs : Financial Strength Comparison

For the Tobacco subindustry, British American Tobacco (Zambia)'s Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


British American Tobacco (Zambia) Financial Strength vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco (Zambia)'s Financial Strength distribution charts can be found below:

* The bar in red indicates where British American Tobacco (Zambia)'s Financial Strength falls into.


LUS:BATZ
38GF Score
British American Tobacco (Zambia) PLC LUS:BATZ
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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British American Tobacco (Zambia) Financial Strength Calculation

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

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

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

British American Tobacco (Zambia)'s Interest Expense for the months ended in . 20 was ZMW0.00 Mil. Its Operating Income for the months ended in . 20 was ZMW0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in . 20 was ZMW0.00 Mil.

British American Tobacco (Zambia)'s Interest Coverage for the quarter that ended in . 20 is

British American Tobacco (Zambia) had no long-term debt (1).

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

British American Tobacco (Zambia)'s Debt to Revenue Ratio for the quarter that ended in . 20 is

Debt to Revenue Ratio=Total Debt (Q: . 20 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=( + ) / 0
=N/A

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

British American Tobacco (Zambia) has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
British American Tobacco (Zambia) (LUS:BATZ) has a Financial Strength of 7 as of . 20. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on British American Tobacco (Zambia) and its competitors. This is 250% above median its historical median of 2.00. Over the past decade, British American Tobacco (Zambia)'s Financial Strength has ranged from 1.00 to 7.00.
Is British American Tobacco (Zambia)'s Financial Strength too high?
British American Tobacco (Zambia)'s current Financial Strength of 7 is 250% above median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 7.00. Overall, British American Tobacco (Zambia) has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco (Zambia)'s Financial Strength compare to ?
British American Tobacco (Zambia)'s Financial Strength of 7 can be compared against companies in the Tobacco Products industry. Historically, British American Tobacco (Zambia)'s own Financial Strength has ranged from 1.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Tobacco Products company?
A good Financial Strength depends on the Tobacco Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on British American Tobacco (Zambia) and its competitors. British American Tobacco (Zambia)'s current Financial Strength is 7, which is 250% above median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco (Zambia) stock overvalued right now?
British American Tobacco (Zambia) (LUS:BATZ) has a current Financial Strength of 7. The current Financial Strength is 7, which is 250% above median its 10-year median of 2.00. British American Tobacco (Zambia)'s overall GF Score™ is 38/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For British American Tobacco (Zambia) (LUS:BATZ), the current Financial Strength is 7 as of . 20. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

British American Tobacco (Zambia) Business Description

Comparable Companies
Address Chifwema Road, Off Leopards Hill Road, Plot F10723, P.O. Box 31062, Lusaka, ZMB, 10101
British American Tobacco (Zambia) PLC is a tobacco company. It is engaged in the manufacturing, marketing, and distribution of cigarettes in Zambia. The company also has a line extension range which includes cigars, e-cigarettes, and next-generation products (NGPs) such as a vapor product called Vype, and a tobacco heating product called iFuse. It also markets a popular smokeless moist tobacco powder called Snus also known as snuff. The products of the company are marketed through brands like Dunhill, Pall Mall, Peter Stuyvesant, Lucky Strike, and others. The product segments of the company are represented as its reportable segments and include; the Low Value segment which derives maximum revenue, Premium, Aspirational Premium, and Value for Money.
38GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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