BTI British American Tobacco p.l.c. - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
BTI Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Defensive
Tobacco
Current Price
Live
$59.16
Analyst Target
$59.5
+0.6%
Upside
52W High
$59.29
52W Low
$37.31
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$128.41B
P/E
31.47
ROE
6.3%
Profit margin
12.1%
Debt/Equity
0.75
Dividend yield
5.3%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
BTI's deterministic health score is stable with a Piotroski F-Score of 6/9, indicating moderate financial strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $34.30 at $59.16, reflecting a rich valuation despite declining revenue and a concerning 168.95% dividend payout ratio. Strong operating margins and a high dividend yield provide support, but deteriorating growth and weak technicals (10/100) offset these advantages. Analysts recommend a buy with a near-current target price, suggesting limited upside.
Key Strengths
High dividend yield of 5.30% offers attractive income potential
Exceptional operating margin of 42.04% and gross margin of 82.86% reflect strong pricing power
Piotroski F-Score of 6 indicates stable financial health
Debt/Equity ratio of 0.75 is below sector average of 1.76, signaling conservative leverage
Analyst recommendation is buy with a target price of $59.50, close to current levels
Key Risks
Dividend payout ratio of 168.95% is unsustainable long-term
Revenue growth is negative YoY at -2.20%, indicating top-line contraction
Current ratio of 0.87 and quick ratio of 0.53 suggest short-term liquidity pressure
Technical trend score of 10/100 indicates strong bearish momentum
Stock trades at a premium P/E of 31.47 vs. sector average of 28.85 despite declining fundamentals
AI Fair Value Estimate
Based on comprehensive analysis
$38.5
-34.9% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
53
Moderate
42
48
64
60
50
AI Verdict
Neutral with upside risk if dividend sustainability improves
Key drivers: High yield and strong margins support valuation, Unsustainable payout ratio and weak technicals limit upside, Stable Piotroski score offsets weak liquidity ratios
Confidence
75%
Value
42/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 12.14 suggests lower expected earnings multiple
Watchpoints
- Current P/E of 31.47 is high relative to sector and growth profile
- Price significantly above Graham Number ($34.30)
Future
48/100
Ref Growth rates
Positives
- Earnings growth YoY at 1.60% and Q/Q at 0.40% show modest expansion
- Year-over-Year EPS Growth of +24.4% indicates recent acceleration
Watchpoints
- Revenue growth is negative at -2.20% YoY
- No PEG ratio available due to unreliable growth expectations
Past
64/100
Ref Historical trends
Positives
- Historical earnings surprises average +22.89% over last 4 quarters
- Long track record of consistent or beat estimates in 20 of 25 quarters
Watchpoints
- Some older quarters show negative surprises and declining trends
Health
60/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 6/9 indicates stable financial condition
- Debt/Equity of 0.75 is below sector average
Watchpoints
- Current and quick ratios below 1.0 signal short-term liquidity risk
- No Altman Z-Score available for distress analysis
Dividend
50/100
Ref Yield, Payout
Positives
- High dividend yield of 5.30% is attractive in current market
- Dividend rate of $3.14 is stable
Watchpoints
- Payout ratio of 168.95% exceeds earnings, raising sustainability concerns
- Dividend strength score of 40/100 indicates weakness
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$59.16
Analyst Target
$59.5
Upside/Downside
+0.6%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BTI and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BTI
British American Tobacco p.l.c.
Primary
|
+131.6% | +96.1% | +69.8% | +16.4% | +4.7% | +1.6% |
|
BUD
Anheuser-Busch InBev SA/NV
Peer
|
+15.0% | +23.0% | +47.5% | -0.5% | +9.5% | +1.9% |
|
MDLZ
Mondelez International, Inc.
Peer
|
+13.6% | -7.4% | +1.8% | -16.6% | +7.3% | +3.9% |
|
MNST
Monster Beverage Corporation
Peer
|
+70.6% | +45.3% | +27.4% | +13.4% | +3.9% | +2.3% |
|
CL
Colgate-Palmolive Company
Peer
|
+2.2% | +11.3% | -12.6% | -13.4% | +1.2% | -0.9% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
31.47
Forward P/E
12.14
PEG Ratio
N/A
P/B Ratio
2.13
P/S Ratio
5.02
EV/Revenue
6.27
EV/EBITDA
13.09
Market Cap
$128.41B
Profitability
Profit margins and return metrics
Profit Margin
12.06%
Operating Margin
42.04%
Gross Margin
82.86%
ROE
6.27%
ROA
5.59%
Growth
Revenue and earnings growth rates
Revenue Growth
-2.2%
Earnings Growth
+1.6%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+0.4%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.75
Moderate
Current Ratio
0.87
Weak
Quick Ratio
0.53
Poor
Cash/Share
$2.23
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-12
$N/A
2006-10-26
$0.51
+61.0% surprise
2006-07-27
$0.5
+8.7% surprise
2006-05-03
$0.41
-1.0% surprise
Consumer Defensive Sector Comparison
Comparing BTI against 48 companies in the Consumer Defensive sector
(2 bullish, 27 neutral, 19 bearish)
P/E Ratio
31.47
This Stock
vs
33.4
Sector Avg
-5.8%
(Discount)
Return on Equity (ROE)
6.27%
This Stock
vs
4.7%
Sector Avg
+33.4%
(Excellent)
Profit Margin
12.06%
This Stock
vs
-1.11%
Sector Avg
-1187.0%
(Weaker)
Debt to Equity
0.75
This Stock
vs
1.71
Sector Avg
-56.3%
(Less Debt)
Revenue Growth
-2.2%
This Stock
vs
8.8%
Sector Avg
-125.0%
(Slower)
Current Ratio
0.87
This Stock
vs
1.98
Sector Avg
-56.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BTI
British American Tobacco p.l.c.
|
NEUTRAL | $128.41B | 31.47 | 6.3% | 12.1% | $59.16 | |
|
BUD
Anheuser-Busch InBev SA/NV
|
NEUTRAL | $135.98B | 23.22 | -% | 10.4% | $69.88 | |
|
MDLZ
Mondelez International, Inc.
|
NEUTRAL | $74.07B | 21.44 | 13.1% | 9.4% | $57.24 | |
|
MNST
Monster Beverage Corporation
|
BULLISH | $69.67B | 40.52 | 25.5% | 21.7% | $71.31 | |
|
CL
Colgate-Palmolive Company
|
NEUTRAL | $63.51B | 21.86 | 293.6% | 14.5% | $78.05 |
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
5 analysts
Argus Research
2025-09-08
Hold
Buy
Past News Coverage
Recent headlines mentioning BTI from our newsroom.
Newest → oldest
No matching news yet.