NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£64.1b

Last Updated

2021/05/07 00:42 UTC

Data Sources

Company Financials +

Executive Summary

British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. More Details


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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BATS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

BATS

4.6%

GB Tobacco

1.2%

GB Market


1 Year Return

-5.8%

BATS

-4.4%

GB Tobacco

25.5%

GB Market

Return vs Industry: BATS exceeded the UK Tobacco industry which returned -7.1% over the past year.

Return vs Market: BATS underperformed the UK Market which returned 26.4% over the past year.


Shareholder returns

BATSIndustryMarket
7 Day4.5%4.6%1.2%
30 Day1.0%1.6%3.3%
90 Day4.9%5.8%8.6%
1 Year1.4%-5.8%3.5%-4.4%31.0%25.5%
3 Year-10.5%-27.4%-12.2%-29.8%11.9%-1.0%
5 Year-12.6%-33.6%-17.4%-38.9%50.5%22.0%

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

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 (£28.03) is trading below our estimate of fair value (£58.96)

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 (10x) compared to the XE Tobacco industry average (10.5x).

PE vs Market: BATS is good value based on its PE Ratio (10x) compared to the UK market (25.8x).


Price to Earnings Growth Ratio

PEG Ratio: BATS is poor value based on its PEG Ratio (1.8x)


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?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BATS's forecast earnings growth (5.6% per year) is above the savings rate (0.9%).

Earnings vs Market: BATS's earnings (5.6% per year) are forecast to grow slower than the UK market (17.8% per year).

High Growth Earnings: BATS's earnings are forecast to grow, but not significantly.

Revenue vs Market: BATS's revenue (2.5% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: BATS's revenue (2.5% 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 (11.9%).


Past Performance

How has British American Tobacco performed over the past 5 years?

-1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BATS has high quality earnings.

Growing Profit Margin: BATS's current net profit margins (24.8%) are higher than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: BATS's earnings have declined by 1.6% per year over the past 5 years.

Accelerating Growth: BATS's earnings growth over the past year (12.1%) exceeds its 5-year average (-1.6% per year).

Earnings vs Industry: BATS earnings growth over the past year (12.1%) exceeded the Tobacco industry 2%.


Return on Equity

High ROE: BATS's Return on Equity (10.4%) is considered low.


Financial Health

How is British American Tobacco's financial position?


Financial Position Analysis

Short Term Liabilities: BATS's short term assets (£13.6B) do not cover its short term liabilities (£15.5B).

Long Term Liabilities: BATS's short term assets (£13.6B) do not cover its long term liabilities (£59.3B).


Debt to Equity History and Analysis

Debt Level: BATS's debt to equity ratio (69.1%) is considered high.

Reducing Debt: BATS's debt to equity ratio has reduced from 339.9% to 69.1% over the past 5 years.

Debt Coverage: BATS's debt is well covered by operating cash flow (22.5%).

Interest Coverage: BATS's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

What is British American Tobacco current dividend yield, its reliability and sustainability?

7.69%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 07 2021Ex Dividend DateJul 08 2021Dividend Pay DateAug 19 202142 days from Ex DividendBuy in the next 61 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BATS's dividend (7.69%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: BATS's dividend (7.69%) is in the top 25% of dividend payers in the UK market (4.06%)


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 (75.2%), 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 (64.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jack Marie Henry Bowles (56 yo)

2.08yrs

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 ($USD7.03M) is above average for companies of similar size in the UK market ($USD3.60M).

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 (2.3 years average tenure).


Board Members

Experienced Board: BATS's board of directors are not considered experienced ( 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: BATS 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£64.148b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 00:42
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.