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BATS

British American TobaccoLSE:BATS Stock Report

Market Cap

UK£57.9b

7D

-0.8%

1Y

-4.8%

Updated

01 Dec, 2021

Data

Company Financials +
BATS fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance1/6
Financial Health2/6
Dividends5/6

BATS Stock Overview

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

British American Tobacco Competitors

Imperial Brands

LSE:IMB

UK£14.5b

Philip Morris International

NYSE:PM

US$133.8b

ITC

NSEI:ITC

₹2.7t

KT&G

KOSE:A033780

₩10.3t

Price History & Performance

Summary of all time highs, changes and price drops for British American Tobacco
Historical stock prices
Current Share PriceUK£25.62
52 Week HighUK£29.62
52 Week LowUK£24.78
Beta0.72
1 Month Change0.35%
3 Month Change-5.79%
1 Year Change-4.78%
3 Year Change-6.07%
5 Year Change-41.15%
Change since IPO513.53%

Recent News & Updates

Oct 14
British American Tobacco (LON:BATS) Has A Somewhat Strained Balance Sheet

British American Tobacco (LON:BATS) Has A Somewhat Strained Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 26
British American Tobacco (LON:BATS) Is Paying Out A Larger Dividend Than Last Year

British American Tobacco (LON:BATS) Is Paying Out A Larger Dividend Than Last Year

British American Tobacco p.l.c. ( LON:BATS ) has announced that it will be increasing its dividend on the 11th of...

Shareholder Returns

BATSGB TobaccoGB Market
7D-0.8%-2.6%-2.6%
1Y-4.8%-1.4%10.9%

Return vs Industry: BATS underperformed the UK Tobacco industry which returned -1.4% over the past year.

Return vs Market: BATS underperformed the UK Market which returned 10.9% over the past year.

Price Volatility

Is BATS's price volatile compared to industry and market?
BATS volatility
BATS Average Weekly Movement2.4%
Tobacco Industry Average Movement2.5%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

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.

About the Company

FoundedEmployeesCEOWebsite
190256,689Jack Marie Henry Bowleshttps://www.bat.com

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 traditional oral products, such as Swedish-style snus and American moist snuff. The company distributes its products to retail outlets.

British American Tobacco Fundamentals Summary

How do British American Tobacco's earnings and revenue compare to its market cap?
BATS fundamental statistics
Market CapUK£57.90b
Earnings (TTM)UK£6.19b
Revenue (TTM)UK£25.68b

9.5x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BATS income statement (TTM)
RevenueUK£25.68b
Cost of RevenueUK£4.57b
Gross ProfitUK£21.11b
ExpensesUK£14.91b
EarningsUK£6.19b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 11, 2022

Earnings per share (EPS)2.71
Gross Margin82.19%
Net Profit Margin24.12%
Debt/Equity Ratio70.6%

How did BATS perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

78%

Payout Ratio

Does BATS pay a reliable dividends?

See BATS dividend history and benchmarks
When do you need to buy BATS by to receive an upcoming dividend?
British American Tobacco dividend dates
Ex Dividend DateDec 23 2021
Dividend Pay DateFeb 09 2022
Days until Ex dividend21 days
Days until Dividend pay date69 days

Does BATS pay a reliable dividends?

See BATS dividend history and benchmarks

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 (£25.62) is trading below our estimate of fair value (£70.52)

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 (9.5x) compared to the European Tobacco industry average (9.9x).

PE vs Market: BATS is good value based on its PE Ratio (9.5x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BATS is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BATS is good value based on its PB Ratio (0.9x) 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 17 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BATS's forecast earnings growth (9.6% per year) is above the savings rate (0.9%).

Earnings vs Market: BATS's earnings (9.6% per year) are forecast to grow slower than the UK market (12.5% per year).

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

Revenue vs Market: BATS's revenue (4.1% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: BATS's revenue (4.1% 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 net debt to equity ratio (65.2%) is considered high.

Reducing Debt: BATS's debt to equity ratio has reduced from 328.1% to 70.6% over the past 5 years.

Debt Coverage: BATS's debt is not well covered by operating cash flow (19.2%).

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?

8.42%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 02 2021Ex Dividend DateDec 23 2021Dividend Pay DateFeb 09 202248 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BATS's dividend (8.42%) is higher than the bottom 25% of dividend payers in the UK market (1.38%).

High Dividend: BATS's dividend (8.42%) is in the top 25% of dividend payers in the UK market (4.17%)


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 (64.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jack Marie Henry Bowles (57 yo)

2.58yrs

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 ($USD6.75M) is above average for companies of similar size in the UK market ($USD3.56M).

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 (2.8 years average tenure).


Board Members

Experienced Board: BATS's board of directors are not considered experienced ( 2.5 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 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£57.901b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 21:53
End of Day Share Price2021/12/01 00:00
Earnings2021/06/30
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.