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BATS

British American Tobacco LSE:BATS Stock Report

Last Price

UK£34.31

Market Cap

UK£77.7b

7D

0.04%

1Y

22.4%

Updated

21 May, 2022

Data

Company Financials +
BATS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends5/6

BATS Stock Overview

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

British American Tobacco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for British American Tobacco
Historical stock prices
Current Share PriceUK£34.31
52 Week HighUK£35.23
52 Week LowUK£25.08
Beta0.51
1 Month Change2.57%
3 Month Change0.63%
1 Year Change22.43%
3 Year Change14.94%
5 Year Change-38.64%
Change since IPO721.68%

Recent News & Updates

May 12
British American Tobacco's (LON:BATS) Upcoming Dividend Will Be Larger Than Last Year's

British American Tobacco's (LON:BATS) Upcoming Dividend Will Be Larger Than Last Year's

British American Tobacco p.l.c. ( LON:BATS ) will increase its dividend on the 17th of August to UK£0.54. This takes...

Apr 28
British American Tobacco (LON:BATS) Is Increasing Its Dividend To UK£0.54

British American Tobacco (LON:BATS) Is Increasing Its Dividend To UK£0.54

British American Tobacco p.l.c. ( LON:BATS ) will increase its dividend on the 17th of August to UK£0.54. This makes...

Apr 05
British American Tobacco (LON:BATS) Has A Pretty Healthy Balance Sheet

British American Tobacco (LON:BATS) Has A Pretty Healthy Balance Sheet

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

Mar 23
British American Tobacco's (LON:BATS) Shareholders Will Receive A Bigger Dividend Than Last Year

British American Tobacco's (LON:BATS) Shareholders Will Receive A Bigger Dividend Than Last Year

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

Shareholder Returns

BATSGB TobaccoGB Market
7D0.04%0.8%-0.4%
1Y22.4%19.1%-4.0%

Return vs Industry: BATS exceeded the UK Tobacco industry which returned 19.1% over the past year.

Return vs Market: BATS exceeded the UK Market which returned -3.9% over the past year.

Price Volatility

Is BATS's price volatile compared to industry and market?
BATS volatility
BATS Average Weekly Movement3.6%
Tobacco Industry Average Movement4.1%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.5%
10% least volatile stocks in GB Market3.2%

Stable Share Price: BATS is less volatile than 75% 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.

About the Company

FoundedEmployeesCEOWebsite
190254,365Jack Marie Henry Bowleshttps://www.bat.com

British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. It offers vapour, tobacco heating, and modern oral nicotine products; combustible products; and traditional oral products, such as snus and moist snuff. The company offers its products under the Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Camel, Newport, Natural American Spirit, being Vapour, THP, and Modern Oral brands.

British American Tobacco Fundamentals Summary

How do British American Tobacco's earnings and revenue compare to its market cap?
BATS fundamental statistics
Market CapUK£77.67b
Earnings (TTM)UK£6.79b
Revenue (TTM)UK£25.68b

11.4x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BATS income statement (TTM)
RevenueUK£25.68b
Cost of RevenueUK£4.60b
Gross ProfitUK£21.09b
Other ExpensesUK£14.30b
EarningsUK£6.79b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)3.00
Gross Margin82.10%
Net Profit Margin26.43%
Debt/Equity Ratio58.2%

How did BATS perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

73%

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 DateJul 07 2022
Dividend Pay DateAug 17 2022
Days until Ex dividend46 days
Days until Dividend pay date87 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?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BATS (£34.31) is trading below our estimate of fair value (£112.54)

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 (11.4x) compared to the European Tobacco industry average (10.6x).

PE vs Market: BATS is good value based on its PE Ratio (11.4x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: BATS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: BATS is good value based on its PB Ratio (1.2x) compared to the XE Tobacco industry average (1.5x).


Future Growth

How is British American Tobacco forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BATS's forecast earnings growth (6.7% per year) is above the savings rate (0.9%).

Earnings vs Market: BATS's earnings (6.7% per year) are forecast to grow slower than the UK market (11.2% per year).

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

Revenue vs Market: BATS's revenue (3.5% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: BATS's revenue (3.5% 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 (13.5%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BATS has high quality earnings.

Growing Profit Margin: BATS's current net profit margins (26.4%) are higher than last year (24.8%).


Past Earnings Growth Analysis

Earnings Trend: BATS's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: BATS's earnings growth over the past year (6.1%) exceeds its 5-year average (-24.6% per year).

Earnings vs Industry: BATS earnings growth over the past year (6.1%) exceeded the Tobacco industry 2.9%.


Return on Equity

High ROE: BATS's Return on Equity (10.3%) is considered low.


Financial Health

How is British American Tobacco's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BATS's short term assets (£12.8B) do not cover its short term liabilities (£15.1B).

Long Term Liabilities: BATS's short term assets (£12.8B) do not cover its long term liabilities (£54.8B).


Debt to Equity History and Analysis

Debt Level: BATS's net debt to equity ratio (53.3%) is considered high.

Reducing Debt: BATS's debt to equity ratio has reduced from 231.9% to 58.2% over the past 5 years.

Debt Coverage: BATS's debt is well covered by operating cash flow (24.8%).

Interest Coverage: BATS's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.35%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 22 2022Ex Dividend DateJul 07 2022Dividend Pay DateAug 17 202241 days from Ex DividendBuy in the next 46 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BATS's dividend (6.35%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BATS's dividend (6.35%) is in the top 25% of dividend payers in the UK market (4.86%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72.6%), BATS's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55%), BATS's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Jack Marie Henry Bowles (57 yo)

12.58yrs

Tenure

UK£7,471,000

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 ($USD9.31M) is above average for companies of similar size in the UK market ($USD5.31M).

Compensation vs Earnings: Jack Marie Henry's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BATS's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: BATS's board of directors are considered experienced (4.1 years average tenure).


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 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
  • Implied Market Cap: UK£77.668b
  • Shares outstanding: 2.26b
  • 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 Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.