British American Tobacco
Market Cap
UK£61.3b
Last Updated
2021/07/31 18:35 UTC
Data Sources
Company Financials +
Executive Summary
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has British American Tobacco's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BATS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: BATS's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-3.2%
BATS
-2.8%
GB Tobacco
0.3%
GB Market
1 Year Return
6.2%
BATS
9.1%
GB Tobacco
22.4%
GB Market
Return vs Industry: BATS underperformed the UK Tobacco industry which returned 9.1% over the past year.
Return vs Market: BATS underperformed the UK Market which returned 22.4% over the past year.
Shareholder returns
| BATS | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.2% | -2.8% | 0.3% |
| 30 Day | -5.2% | -3.5% | 0.3% |
| 90 Day | -0.06% | 0.5% | 1.5% |
| 1 Year | 14.6%6.2% | 18.0%9.1% | 27.9%22.4% |
| 3 Year | -20.7%-36.0% | -21.3%-37.4% | 12.7%-0.1% |
| 5 Year | -25.5%-44.5% | -28.3%-47.8% | 39.4%12.6% |
Long-Term Price Volatility Vs. Market
How volatile is British American Tobacco's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
British American Tobacco (LON:BATS) Is Paying Out A Larger Dividend Than Last Year3 weeks ago | Simply Wall St
Only Three Days Left To Cash In On British American Tobacco's (LON:BATS) DividendValuation
Is British American Tobacco undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BATS (£26.81) is trading below our estimate of fair value (£60.87)
Significantly Below Fair Value: BATS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BATS is good value based on its PE Ratio (9.9x) compared to the European Tobacco industry average (10x).
PE vs Market: BATS is good value based on its PE Ratio (9.9x) compared to the UK market (23.6x).
Price to Earnings Growth Ratio
PEG Ratio: BATS is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: BATS is good value based on its PB Ratio (1x) compared to the XE Tobacco industry average (1.4x).
Future Growth
How is British American Tobacco forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
7.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BATS's forecast earnings growth (7.3% per year) is above the savings rate (0.9%).
Earnings vs Market: BATS's earnings (7.3% per year) are forecast to grow slower than the UK market (14.8% per year).
High Growth Earnings: BATS's earnings are forecast to grow, but not significantly.
Revenue vs Market: BATS's revenue (3.4% per year) is forecast to grow slower than the UK market (4.7% per year).
High Growth Revenue: BATS's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BATS's Return on Equity is forecast to be low in 3 years time (12.3%).
Past Performance
How has British American Tobacco performed over the past 5 years?
-13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BATS has high quality earnings.
Growing Profit Margin: BATS's current net profit margins (24.1%) are lower than last year (24.4%).
Past Earnings Growth Analysis
Earnings Trend: BATS's earnings have declined by 13.4% per year over the past 5 years.
Accelerating Growth: BATS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BATS had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the Tobacco industry average (-2.4%).
Return on Equity
High ROE: BATS's Return on Equity (10.1%) is considered low.
Financial Health
How is British American Tobacco's financial position?
Financial Position Analysis
Short Term Liabilities: BATS's short term assets (£14.4B) do not cover its short term liabilities (£18.4B).
Long Term Liabilities: BATS's short term assets (£14.4B) do not cover its long term liabilities (£55.4B).
Debt to Equity History and Analysis
Debt Level: BATS's debt to equity ratio (70.3%) is considered high.
Reducing Debt: BATS's debt to equity ratio has reduced from 328.1% to 70.3% over the past 5 years.
Debt Coverage: BATS's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: BATS's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Dividend
What is British American Tobacco current dividend yield, its reliability and sustainability?
8.04%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BATS's dividend (8.04%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).
High Dividend: BATS's dividend (8.04%) is in the top 25% of dividend payers in the UK market (4%)
Stability and Growth of Payments
Stable Dividend: BATS's dividend payments have been volatile in the past 10 years.
Growing Dividend: BATS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (78.2%), BATS's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BATS's dividends in 3 years are forecast to be covered by earnings (60.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Jack Marie Henry Bowles (57 yo)
2.17yrs
Tenure
UK£5,067,000
Compensation
Mr. Jack Marie Henry David Bowles has been Chief Operating Officer for International Business (Excluding US) at British American Tobacco Plc since October 1, 2017 and has been its Member of the Management ...
CEO Compensation Analysis
Compensation vs Market: Jack Marie Henry's total compensation ($USD7.05M) is above average for companies of similar size in the UK market ($USD3.63M).
Compensation vs Earnings: Jack Marie Henry's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: BATS's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: BATS's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
British American Tobacco p.l.c.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: British American Tobacco p.l.c.
- Ticker: BATS
- Exchange: LSE
- Founded: 1902
- Industry: Tobacco
- Sector: Food, Beverage & Tobacco
- Market Cap: UK£61.345b
- Shares outstanding: 2.29b
- Website: https://www.bat.com
Number of Employees
Location
- British American Tobacco p.l.c.
- Globe House
- 4 Temple Place
- London
- Greater London
- WC2R 2PG
- United Kingdom
Listings
Biography
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. It offers vapour products, tobacco heating products, and modern oral products; combustible products; and tradi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 18:35 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.