British American Tobacco
Market Cap
UK£74.8b
Last Updated
2020/05/29 21:08 UTC
Data Sources
Company Financials +
Executive Summary
British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and good value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.5%
BATS
0.9%
GB Tobacco
2.5%
GB Market
1 Year Return
15.6%
BATS
6.9%
GB Tobacco
-12.4%
GB Market
Return vs Industry: BATS exceeded the UK Tobacco industry which returned 5.5% over the past year.
Return vs Market: BATS exceeded the UK Market which returned -11.7% over the past year.
Shareholder returns
| BATS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 0.9% | 2.5% |
| 30 Day | 1.3% | -1.5% | 2.8% |
| 90 Day | 4.1% | 2.4% | -7.2% |
| 1 Year | 24.2%15.6% | 15.9%6.9% | -8.2%-12.4% |
| 3 Year | -32.4%-42.8% | -34.7%-45.7% | -5.9%-17.5% |
| 5 Year | 17.9%-7.3% | 4.7%-19.6% | 12.5%-12.9% |
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
3 days ago | Simply Wall St
Here's What You Should Know About British American Tobacco p.l.c.'s (LON:BATS) 6.6% Dividend Yield2 weeks ago | Simply Wall St
Should You Worry About British American Tobacco p.l.c.’s (LON:BATS) ROCE?4 weeks ago | Simply Wall St
Volatility 101: Should British American Tobacco (LON:BATS) Shares Have Dropped 40%?Valuation
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 (£31.9) is trading below our estimate of fair value (£80.31)
Significantly Below Fair Value: BATS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BATS is poor value based on its PE Ratio (12.8x) compared to the Tobacco industry average (9.1x).
PE vs Market: BATS is good value based on its PE Ratio (12.8x) compared to the UK market (14.7x).
Price to Earnings Growth Ratio
PEG Ratio: BATS is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: BATS is good value based on its PB Ratio (1.1x) compared to the XE Tobacco industry average (1.2x).
Next Steps
Future Growth
How is British American Tobacco forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BATS's forecast earnings growth (10.1% per year) is above the savings rate (1.2%).
Earnings vs Market: BATS's earnings (10.1% per year) are forecast to grow slower than the UK market (20.3% 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 (3.6% 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 (12.2%).
Next Steps
Past Performance
How has British American Tobacco performed over the past 5 years?
23.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BATS has high quality earnings.
Growing Profit Margin: BATS's current net profit margins (22%) are lower than last year (24.6%).
Past Earnings Growth Analysis
Earnings Trend: BATS's earnings have grown significantly by 23.2% 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 (-5.4%) over the past year, making it difficult to compare to the Tobacco industry average (1.4%).
Return on Equity
High ROE: BATS's Return on Equity (9.1%) is considered low.
Next Steps
Financial Health
How is British American Tobacco's financial position?
Financial Position Analysis
Short Term Liabilities: BATS's short term assets (£13.3B) do not cover its short term liabilities (£18.8B).
Long Term Liabilities: BATS's short term assets (£13.3B) do not cover its long term liabilities (£58.0B).
Debt to Equity History and Analysis
Debt Level: BATS's debt to equity ratio (69.8%) is considered high.
Reducing Debt: BATS's debt to equity ratio has reduced from 213.3% to 69.8% over the past 5 years.
Debt Coverage: BATS's debt is well covered by operating cash flow (20.1%).
Interest Coverage: BATS's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is British American Tobacco's current dividend yield, its reliability and sustainability?
6.60%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BATS's dividend (6.6%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).
High Dividend: BATS's dividend (6.6%) is in the top 25% of dividend payers in the UK market (5.73%)
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 (81.3%), 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 (65.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Jack Marie Henry Bowles (55yo)
1.08yrs
Tenure
UK£5,138,000
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 ($USD6.33M) is above average for companies of similar size in the UK market ($USD4.55M).
Compensation vs Earnings: Insufficient data to compare Jack Marie Henry's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Member of Management Board & Director | 1.08yrs | UK£5.14m | 0.0097% £7.2m | |
| Finance Director | 0.75yr | UK£1.94m | 0.0022% £1.6m | |
| Chief Marketing Officer & Member of Management Board | 8.33yrs | no data | 0.0028% £2.1m | |
| Regional Director of Europe & North Africa and Member of Management Board | 5.67yrs | no data | 0.0028% £2.1m | |
| Director of Research & Science and Member of Management Board | 8.33yrs | no data | 0.0028% £2.1m | |
| Member of Management Board and President & CEO of Reynolds American Inc. | 7.33yrs | no data | 0.0043% £3.2m | |
| Director of Operations & Member of Management Board | 7.17yrs | no data | 0.0043% £3.2m | |
| Director of Legal & External Affairs | 5.33yrs | no data | 0.0036% £2.7m | |
| Regional Director for Americas & Sub-Saharan Africa and Member of Management Board | 1.33yrs | no data | 0.0011% £800.7k | |
| Director of New Categories & Member of Management Board | 1.33yrs | no data | 0.0044% £3.3m |
5.5yrs
Average Tenure
53yo
Average Age
Experienced Management: BATS's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Member of Management Board & Director | 1.08yrs | UK£5.14m | 0.0097% £7.2m | |
| Finance Director | 0.75yr | UK£1.94m | 0.0022% £1.6m | |
| Independent Non-Executive Director | 0.67yr | UK£46.00k | 0.000090% £67.3k | |
| Independent Chairman of the Board | 10.5yrs | UK£832.00k | 0.00083% £621.1k | |
| Independent Non-Executive Director | 2.83yrs | UK£270.00k | 0.00037% £276.9k | |
| Independent Non-Executive Director | 2.83yrs | UK£197.00k | 0.0020% £1.5m | |
| Independent Non-Executive Director | 5.17yrs | UK£124.00k | no data | |
| Independent Non-Executive Director | 3.75yrs | UK£133.00k | 0.00020% £149.7k | |
| Independent Non-Executive Director | 6.33yrs | UK£181.00k | 0.00031% £232.0k | |
| Senior Independent Director | 0.083yr | UK£170.00k | 0.00014% £104.8k |
2.8yrs
Average Tenure
61yo
Average Age
Experienced Board: BATS's board of directors are not considered experienced ( 2.8 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.
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£74.832b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BTAF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 1998 |
| BATS | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Aug 1998 |
| BMT | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 1998 |
| BMT | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Aug 1998 |
| BTI | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Aug 1998 |
| BATSL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Aug 1998 |
| BTI | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Sep 1998 | |
| BMTA | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Sep 1998 |
Biography
British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide. It manufactures vapour and tobacco heating products; oral tobacco and nicotine products, such as snus, tobacco-free nicotine pouches, and moist snuff; cigars; and e-cigarettes. The company offers its products under the Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Camel, Natural American Spirit, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555, and Shuang Xi brands. The company sells its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 21:08 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.