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BT.A

BT GroupLSE:BT.A Stock Report

Market Cap

UK£15.7b

7D

-0.7%

1Y

28.9%

Updated

30 Nov, 2021

Data

Company Financials +
BT.A fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends3/6

BT.A Stock Overview

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific.

BT Group Competitors

salesforce.com

NYSE:CRM

US$279.0b

Oracle

NYSE:ORCL

US$248.1b

Cisco Systems

NasdaqGS:CSCO

US$231.3b

Comcast

NasdaqGS:CMCS.A

US$228.4b

Price History & Performance

Summary of all time highs, changes and price drops for BT Group
Historical stock prices
Current Share PriceUK£1.59
52 Week HighUK£2.07
52 Week LowUK£1.17
Beta0.94
1 Month Change14.18%
3 Month Change-5.96%
1 Year Change28.89%
3 Year Change-39.21%
5 Year Change-54.96%
Change since IPO-42.84%

Recent News & Updates

Nov 11
BT Group's (LON:BT.A) Soft Earnings Don't Show The Whole Picture

BT Group's (LON:BT.A) Soft Earnings Don't Show The Whole Picture

The market for BT Group plc's ( LON:BT.A ) shares didn't move much after it posted weak earnings recently. We think...

Nov 10
There Are Reasons To Feel Uneasy About BT Group's (LON:BT.A) Returns On Capital

There Are Reasons To Feel Uneasy About BT Group's (LON:BT.A) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Oct 11
What Does BT Group plc's (LON:BT.A) Share Price Indicate?

What Does BT Group plc's (LON:BT.A) Share Price Indicate?

BT Group plc ( LON:BT.A ) received a lot of attention from a substantial price movement on the LSE over the last few...

Shareholder Returns

BT.AGB TelecomGB Market
7D-0.7%-0.8%-2.6%
1Y28.9%24.9%10.9%

Return vs Industry: BT.A underperformed the UK Telecom industry which returned 32.7% over the past year.

Return vs Market: BT.A exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is BT.A's price volatile compared to industry and market?
BT.A volatility
BT.A Average Weekly Movement5.6%
Telecom Industry Average Movement4.5%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: BT.A is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BT.A's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200199,700Philip Eric Jansenhttps://www.bt.com

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers landline, mobile, broadband, and TV services under the BT, EE, and Plusnet brands.

BT Group Fundamentals Summary

How do BT Group's earnings and revenue compare to its market cap?
BT.A fundamental statistics
Market CapUK£15.72b
Earnings (TTM)UK£1.05b
Revenue (TTM)UK£21.05b

15.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BT.A income statement (TTM)
RevenueUK£21.05b
Cost of RevenueUK£12.64b
Gross ProfitUK£8.40b
ExpensesUK£7.36b
EarningsUK£1.05b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)0.11
Gross Margin39.93%
Net Profit Margin4.97%
Debt/Equity Ratio139.6%

How did BT.A perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

22%

Payout Ratio

Does BT.A pay a reliable dividends?

See BT.A dividend history and benchmarks
When do you need to buy BT.A by to receive an upcoming dividend?
BT Group dividend dates
Ex Dividend DateDec 30 2021
Dividend Pay DateFeb 07 2022
Days until Ex dividend28 days
Days until Dividend pay date67 days

Does BT.A pay a reliable dividends?

See BT.A dividend history and benchmarks

Valuation

Is BT Group 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: BT.A (£1.59) is trading below our estimate of fair value (£4.08)

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 (15x) compared to the European Telecom industry average (20.9x).

PE vs Market: BT.A is good value based on its PE Ratio (15x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BT.A is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: BT.A is good value based on its PB Ratio (1.3x) compared to the GB Telecom industry average (2.9x).


Future Growth

How is BT Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BT.A's forecast earnings growth (5% per year) is above the savings rate (0.9%).

Earnings vs Market: BT.A's earnings (5% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: BT.A's revenue (0.9% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: BT.A's revenue (0.9% 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%).


Past Performance

How has BT Group performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BT.A has a large one-off loss of £495.0M impacting its September 30 2021 financial results.

Growing Profit Margin: BT.A's current net profit margins (5%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: BT.A's earnings have declined by 9.4% 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 (-31.2%) over the past year, making it difficult to compare to the Telecom industry average (16.2%).


Return on Equity

High ROE: BT.A's Return on Equity (8.7%) is considered low.


Financial Health

How is BT Group's financial position?


Financial Position Analysis

Short Term Liabilities: BT.A's short term assets (£9.8B) exceed its short term liabilities (£9.4B).

Long Term Liabilities: BT.A's short term assets (£9.8B) do not cover its long term liabilities (£30.1B).


Debt to Equity History and Analysis

Debt Level: BT.A's net debt to equity ratio (105.9%) is considered high.

Reducing Debt: BT.A's debt to equity ratio has reduced from 212.6% to 139.6% over the past 5 years.

Debt Coverage: BT.A's debt is well covered by operating cash flow (33.5%).

Interest Coverage: BT.A's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is BT Group current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateDec 30 2021Dividend Pay DateFeb 07 202239 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BT.A's dividend (2.91%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: BT.A's dividend (2.91%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: BT.A's dividend payments have been volatile in the past 10 years.

Growing Dividend: BT.A's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), BT.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BT.A's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Philip Eric Jansen (54 yo)

2.67yrs

Tenure

UK£2,628,000

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 ($USD3.48M) is about average for companies of similar size in the UK market ($USD3.65M).

Compensation vs Earnings: Philip Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BT.A's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: BT.A'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.


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 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£15.717b
  • Shares outstanding: 9.91b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:33
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.