OTCPK:BTGO.F

Stock Analysis Report

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.

Snowflake

Fundamentals

Established dividend payer and good value.


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


Market Performance


7 Day Return

12.3%

BTGO.F

-0.7%

US Telecom

1.3%

US Market


1 Year Return

-22.3%

BTGO.F

10.4%

US Telecom

5.9%

US Market

Return vs Industry: BTGO.F underperformed the US Telecom industry which returned 10.4% over the past year.

Return vs Market: BTGO.F underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

BTGO.FIndustryMarket
7 Day12.3%-0.7%1.3%
30 Day12.3%-1.4%-1.9%
90 Day2.8%6.7%-1.8%
1 Year-22.3%-22.3%16.1%10.4%8.3%5.9%
3 Year-48.6%-48.6%19.1%1.8%45.6%36.2%
5 Year-58.6%-58.6%38.9%7.3%66.1%47.9%

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

No news available

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

Undervalued: BTGO.F ($2.42) is trading below our estimate of fair value ($5.37)

Significantly Undervalued: BTGO.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BTGO.F is good value based on its PE Ratio (9.1x) compared to the Telecom industry average (18.7x).

PE vs Market: BTGO.F is good value based on its PE Ratio (9.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BTGO.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BTGO.F is overvalued based on its PB Ratio (1.9x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is BT Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTGO.F's forecast earnings growth (6.4% per year) is above the savings rate (2.7%).

Earnings vs Market: BTGO.F's earnings (6.4% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: BTGO.F's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BTGO.F's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BTGO.F's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has BT Group performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BTGO.F's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: BTGO.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BTGO.F had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: Whilst BTGO.F's Return on Equity (20.8%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BTGO.F has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: BTGO.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BT Group's financial position?


Financial Position Analysis

Short Term Liabilities: BTGO.F's short term assets (£10.4B) exceeds its short term liabilities (£9.6B)

Long Term Liabilities: BTGO.F's short term assets (10.4B) do not cover its long term liabilities (26.5B)


Debt to Equity History and Analysis

Debt Level: BTGO.F's debt to equity ratio (164%) is considered high

Reducing Debt: BTGO.F had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BTGO.F's debt is well covered by operating cash flow (25.5%).

Interest Coverage: BTGO.F's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: BTGO.F has a high level of physical assets or inventory.

Debt Coverage by Assets: BTGO.F's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

7.81%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%1.5%markettop25%3.8%industryaverage4.9%forecastin3Years7.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BTGO.F's dividend (7.81%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: BTGO.F's dividend (7.81%) is in the top 25% of dividend payers in the US market (3.77%)

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

Growing Dividend: BTGO.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.7%), BTGO.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BTGO.F's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).


Next Steps

Management

What is the CEO of BT Group's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Philip Eric Jansen (52yo)

0.7yrs

Tenure

UK£2,100,000

Compensation

Mr. Philip Eric Rene Jansen has been Executive Director of BT Group Plc d/b/a British Telecom since January 1, 2019 and has been its Chief Executive Officer since February 1, 2019. Mr. Philip has been the  ...


CEO Compensation Analysis

Compensation vs. Market: Philip Eric has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Philip Eric's compensation with company performance.


Management Age and Tenure

3.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BTGO.F's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

58yo

Average Age

Experienced Board: BTGO.F's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£3,811,55707 Jun 19
Philip Eric Jansen
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,484,413
Max PriceUK£2.57
BuyUK£49,07214 May 19
Matthew Key
EntityIndividual
Shares18,500
Max PriceUK£2.65

Ownership Breakdown


Management Team

  • John Watson (56yo)

    Chief Technology & Information Officer

    • Tenure: 3.7yrs
  • Philip Eric Jansen (52yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£2.10m
  • Simon Lowth (57yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.93m
  • Sabine Chalmers (54yo)

    Group General Counsel

    • Tenure: 1.5yrs
  • Ralph Brenner

    Head of the Com Department - SBS Switzerland

    • Tenure: 0yrs
  • Mark Lidiard (53yo)

    Group Investor Relations Director

    • Tenure: 0yrs
  • Damien Maltarp

    Chief Financial Officer of Wholesale & Ventures

    • Tenure: 0yrs
  • Bas Burger (48yo)

    Chief Executive Officer of Global Services

    • Tenure: 2.3yrs
  • Alison Wilcox

    Human Resources Director

    • Tenure: 4.3yrs
  • Zaid Al-Qassab

    Chief Brand and Marketing Officer

    • Tenure: 3.5yrs

Board Members

  • Philip Eric Jansen (52yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£2.10m
  • Jan du Plessis (65yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: UK£365.00k
  • Mike McTighe (65yo)

    Chairman of Openreach

    • Tenure: 2.8yrs
  • Nick Rose (61yo)

    Senior Independent Director

    • Tenure: 5.6yrs
    • Compensation: UK£172.00k
  • Mike Inglis (59yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£128.00k
  • Iain Conn (56yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£124.00k
  • Isabel Hudson (59yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£160.00k
  • Simon Lowth (57yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.93m
  • Tim Höttges (57yo)

    Non-Independent Non-Executive Director

    • Tenure: 3.8yrs
  • Jasmine Whitbread (55yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£134.00k

Company Information

BT Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BT Group plc
  • Ticker: BTGO.F
  • Exchange: OTCPK
  • Founded: 2001
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: UK£19.354b
  • Listing Market Cap: UK£24.343b
  • Shares outstanding: 9.81b
  • Website: https://www.btplc.com

Number of Employees


Location

  • BT Group plc
  • BT Centre
  • 81 Newgate Street
  • London
  • Greater London
  • EC1A 7AJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTGO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1986
BTQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1986
BT.ALSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 1986
BTQXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURApr 1986
BTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 1986
BTA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNApr 1986
BT NBMV (Bolsa Mexicana de Valores)ADR EACH REP 10 ORDMXMXNApr 1986
0HKTLSE (London Stock Exchange)ADR EACH REP 10 ORDGBUSDApr 1986
BTQAMUN (Boerse Muenchen)ADR EACH REP 10 ORDDEEURApr 1986

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 in four segments: Consume ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:46
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.