BT Group
Market Cap
UK£16.7b
Last Updated
2021/05/08 01:19 UTC
Data Sources
Company Financials +
Executive Summary
BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, the Asia Pacific, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with adequate balance sheet.
Similar Companies
Share Price & News
How has BT Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BT.A is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: BT.A's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
2.8%
BT.A
2.3%
GB Telecom
2.1%
GB Market
1 Year Return
61.6%
BT.A
57.0%
GB Telecom
26.6%
GB Market
Return vs Industry: BT.A exceeded the UK Telecom industry which returned 58.1% over the past year.
Return vs Market: BT.A exceeded the UK Market which returned 25.5% over the past year.
Shareholder returns
| BT.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 2.3% | 2.1% |
| 30 Day | 9.3% | 8.0% | 3.6% |
| 90 Day | 36.2% | 29.1% | 9.6% |
| 1 Year | 61.6%61.6% | 57.2%57.0% | 32.1%26.6% |
| 3 Year | -9.4%-21.8% | -3.7%-16.4% | 12.8%-0.2% |
| 5 Year | -51.2%-61.5% | -46.0%-57.3% | 51.8%23.0% |
Long-Term Price Volatility Vs. Market
How volatile is BT Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
What Kind Of Shareholders Own BT Group plc (LON:BT.A)?1 year ago | Simply Wall St
Investors In BT Group plc (LON:BT.A) Should Consider This, First1 year ago | Simply Wall St
Dividend Hunters Should Consider BT Group plc (LON:BT.A), With A 7.6% YieldValuation
Is BT Group undervalued compared to its fair value and its price relative to the market?
43.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BT.A (£1.7) is trading below our estimate of fair value (£3)
Significantly Below Fair Value: BT.A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BT.A is good value based on its PE Ratio (11.1x) compared to the XE Telecom industry average (22.5x).
PE vs Market: BT.A is good value based on its PE Ratio (11.1x) compared to the UK market (25.9x).
Price to Earnings Growth Ratio
PEG Ratio: BT.A is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: BT.A is good value based on its PB Ratio (1.1x) compared to the GB Telecom industry average (4.7x).
Future Growth
How is BT Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BT.A's forecast earnings growth (4.9% per year) is above the savings rate (0.9%).
Earnings vs Market: BT.A's earnings (4.9% per year) are forecast to grow slower than the UK market (17.7% per year).
High Growth Earnings: BT.A's earnings are forecast to grow, but not significantly.
Revenue vs Market: BT.A's revenue (0.5% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: BT.A's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BT.A's Return on Equity is forecast to be low in 3 years time (12.2%).
Past Performance
How has BT Group performed over the past 5 years?
-6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BT.A has high quality earnings.
Growing Profit Margin: BT.A's current net profit margins (6.8%) are lower than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: BT.A's earnings have declined by 6.5% per year over the past 5 years.
Accelerating Growth: BT.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BT.A had negative earnings growth (-27.1%) over the past year, making it difficult to compare to the Telecom industry average (10%).
Return on Equity
High ROE: BT.A's Return on Equity (12.3%) is considered low.
Financial Health
How is BT Group's financial position?
Financial Position Analysis
Short Term Liabilities: BT.A's short term assets (£12.3B) exceed its short term liabilities (£10.8B).
Long Term Liabilities: BT.A's short term assets (£12.3B) do not cover its long term liabilities (£30.6B).
Debt to Equity History and Analysis
Debt Level: BT.A's debt to equity ratio (158.8%) is considered high.
Reducing Debt: BT.A's debt to equity ratio has reduced from 280.6% to 158.8% over the past 5 years.
Debt Coverage: BT.A's debt is well covered by operating cash flow (35.2%).
Interest Coverage: BT.A's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Dividend
What is BT Group current dividend yield, its reliability and sustainability?
4.41%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BT.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BT.A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BT.A's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BT.A's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: BT.A is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BT.A's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Philip Eric Jansen (53 yo)
2.25yrs
Tenure
UK£3,248,000
Compensation
Mr. Philip Eric Rene Jansen has been Executive Director of BT Group Plc since January 1, 2019 and has been its Chief Executive Officer since February 1, 2019. He was Executive Director at BT PLC. since Feb...
CEO Compensation Analysis
Compensation vs Market: Philip Eric's total compensation ($USD4.54M) is about average for companies of similar size in the UK market ($USD3.58M).
Compensation vs Earnings: Philip Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: BT.A's management team is considered experienced (4.1 years average tenure).
Board Members
Experienced Board: BT.A'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
BT Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: BT Group plc
- Ticker: BT.A
- Exchange: LSE
- Founded: 2001
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: UK£16.693b
- Shares outstanding: 9.84b
- Website: https://www.bt.com
Number of Employees
Location
- BT Group plc
- BT Centre
- 81 Newgate Street
- London
- Greater London
- EC1A 7AJ
- United Kingdom
Listings
Biography
BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, the Asia Pacific, and internationally. It operates through Consumer, Enterpr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/08 01:19 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.