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NYSE:BTI

British American Tobacco (BTI) Stock Price, News & Analysis

British American Tobacco logo
$37.38 +0.40 (+1.08%)
(As of 11/22/2024 ET)

About British American Tobacco Stock (NYSE:BTI)

Key Stats

Today's Range
$37.04
$37.41
50-Day Range
$34.24
$39.36
52-Week Range
$28.25
$39.54
Volume
2.75 million shs
Average Volume
4.28 million shs
Market Capitalization
$77.73 billion
P/E Ratio
7.84
Dividend Yield
8.05%
Price Target
$33.00
Consensus Rating
Moderate Buy

Company Overview

British American Tobacco p.l.c. is a multinational tobacco company headquartered in London, United Kingdom. Established in 1902, the company has a rich heritage and is one of the world's largest tobacco manufacturers. Its mission is to deliver "a better tomorrow" by offering high-quality tobacco and nicotine products to adult consumers worldwide while ensuring responsible business practices.

The company produces and sells cigarettes, cigars, smokeless tobacco and next-generation products (NGPs), including e-cigarettes and tobacco heating products. British American Tobacco's extensive portfolio of well-known brands, such as Lucky Strike, Pall Mall, Dunhill and Rothmans, caters to diverse consumer preferences.

With a global reach, British American Tobacco operates in over 180 markets and has a strong presence in developed and emerging economies. Its target market primarily comprises adult smokers and tobacco consumers who seek high-quality products and innovative alternatives.

British American Tobacco boasts a highly experienced and diverse leadership team that drives the company's strategic vision. Under the leadership of Chief Executive Officer Jack Bowles, the management team combines extensive industry expertise with a focus on innovation and sustainable growth. With over 30 years of experience in the tobacco industry, Bowles has held various senior leadership positions within British American Tobacco before assuming the role of CEO in 2019. He has played a pivotal role in shaping the company's NGP strategy and driving its transformational agenda.

British American Tobacco has delivered solid financial performance over the past few years, driven by its global presence and robust brand portfolio. The company's reported revenue has been up for the past several years, and its operating profit margin has been stable at around 40%, highlighting its ability to generate strong profitability.

Over the years, British American Tobacco has shown resilience in the face of regulatory challenges and changing market dynamics. The company has managed its debt levels effectively, maintaining a healthy balance sheet and a strong credit rating. Its price-to-earnings ratio and price-to-book ratio indicate that the company's stock appears undervalued compared to its peers. 

The factors driving the company's valuation include its global market leadership, diversified product portfolio and ability to adapt to changing consumer preferences through its NGP offerings. Recent changes in investor sentiment have been influenced by the company's continued focus on innovation, sustainable practices and its commitment to reducing the health impact of its products.

British American Tobacco's stock performance has shown resilience amid broader market fluctuations. Trading volume has remained robust, indicating sustained investor interest in the company.

Several factors have contributed to this positive market performance. Firstly, the company's ability to adapt to evolving consumer preferences by investing in NGPs has positioned it to capture a growing market segment. Successful product launches and strategic acquisitions have also boosted investor confidence in British American Tobacco's long-term prospects.

British American Tobacco operates in the tobacco industry, which continues to face significant regulatory and social challenges. The industry is subject to strict regulations regarding advertising, packaging, and health warnings aimed at reducing the harm caused by tobacco consumption. This regulatory environment has led to declining smoking rates in many developed countries.

In addition to regulatory pressures, the industry faces increasing scrutiny over the health risks associated with smoking. Growing awareness of the harmful effects of tobacco has led to a shift in consumer preferences towards reduced-risk alternatives, such as NGPs. This trend presents both opportunities and challenges for companies like British American Tobacco.

Despite these challenges, the tobacco industry remains resilient and continues to generate substantial revenue. The global tobacco market is highly competitive, with key players vying for market share. British American Tobacco competes with other major tobacco companies such as Philip Morris International and Japan Tobacco International.

In recent years, British American Tobacco has significantly invested in NGPs, leveraging its technological capabilities and scientific expertise. The company has introduced successful products like Vuse and glo, which have gained traction among consumers seeking alternative nicotine experiences. Expanding its NGP offerings presents a significant growth opportunity for British American Tobacco, particularly as the market for reduced-risk products continues to grow.

While British American Tobacco has demonstrated resilience, the company faces several risks and challenges. One of the key challenges is the increasing regulation and restrictions imposed on the tobacco industry. Stricter regulations can impact product development, marketing activities, and consumer demand. The company needs to adapt to these evolving regulatory landscapes while maintaining compliance and finding innovative ways to engage with consumers.

Changing consumer preferences and the growing popularity of reduced-risk alternatives pose another challenge. As more consumers switch to NGPs, traditional tobacco sales may decline, impacting British American Tobacco's revenue streams. The company must continue investing in research and development to stay at the forefront of NGP innovation and maintain its competitive position.

Additionally, ongoing litigation and legal challenges related to smoking-related health issues present financial and reputational risks. British American Tobacco must effectively manage these risks through robust risk management strategies, transparent communication, and responsible business practices.

British American Tobacco Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
40th Percentile Overall Score

BTI MarketRank™: 

British American Tobacco scored higher than 40% of companies evaluated by MarketBeat, and ranked 104th out of 140 stocks in the consumer staples sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    British American Tobacco has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on no buy ratings, no hold ratings, and 1 sell rating.

  • Amount of Analyst Coverage

    British American Tobacco has only been the subject of 2 research reports in the past 90 days.

  • Read more about British American Tobacco's stock forecast and price target.
  • Earnings Growth

    Earnings for British American Tobacco are expected to grow by 3.45% in the coming year, from $4.64 to $4.80 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of British American Tobacco is 7.84, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 119.30.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of British American Tobacco is 7.84, which means that it is trading at a less expensive P/E ratio than the Consumer Staples sector average P/E ratio of about 23.62.

  • Price to Book Value per Share Ratio

    British American Tobacco has a P/B Ratio of 1.39. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

  • Percentage of Shares Shorted

    0.29% of the float of British American Tobacco has been sold short.
  • Short Interest Ratio / Days to Cover

    British American Tobacco has a short interest ratio ("days to cover") of 1.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in British American Tobacco has recently increased by 28.80%, indicating that investor sentiment is decreasing significantly.
  • Dividend Leadership

    British American Tobacco is a leading dividend payer. It pays a dividend yield of 8.14%, putting its dividend yield in the top 25% of dividend-paying stocks.

  • Dividend Growth

    British American Tobacco does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of British American Tobacco is 63.10%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, British American Tobacco will have a dividend payout ratio of 62.71% next year. This indicates that British American Tobacco will be able to sustain or increase its dividend.

  • Read more about British American Tobacco's dividend.
  • Percentage of Shares Shorted

    0.29% of the float of British American Tobacco has been sold short.
  • Short Interest Ratio / Days to Cover

    British American Tobacco has a short interest ratio ("days to cover") of 1.5, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in British American Tobacco has recently increased by 28.80%, indicating that investor sentiment is decreasing significantly.
  • News Sentiment

    British American Tobacco has a news sentiment score of 0.87. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.68 average news sentiment score of Consumer Staples companies.
  • News Coverage This Week

    MarketBeat has tracked 13 news articles for British American Tobacco this week, compared to 8 articles on an average week.
  • Search Interest

    Only 20 people have searched for BTI on MarketBeat in the last 30 days. This is a decrease of -53% compared to the previous 30 days.
  • MarketBeat Follows

    Only 17 people have added British American Tobacco to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, British American Tobacco insiders have not sold or bought any company stock.

  • Percentage Held by Insiders

    Only 0.03% of the stock of British American Tobacco is held by insiders.

  • Percentage Held by Institutions

    Only 21.44% of the stock of British American Tobacco is held by institutions.

  • Read more about British American Tobacco's insider trading history.
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BTI Stock Analysis - Frequently Asked Questions

British American Tobacco's stock was trading at $29.29 on January 1st, 2024. Since then, BTI shares have increased by 27.6% and is now trading at $37.38.
View the best growth stocks for 2024 here
.

British American Tobacco's stock split on the morning of Tuesday, February 14th 2017. The 2-1 split was announced on Friday, January 13th 2017. The newly issued shares were payable to shareholders after the closing bell on Monday, February 13th 2017. An investor that had 100 shares of stock prior to the split would have 200 shares after the split.

The following companies are subsidiaries of British American Tobacco: CN Creative, Reynolds American, Winnington, Ten Motives, TDR, CHIC, Productora Tabacalera de Colombia, and others.

Top institutional investors of British American Tobacco include FMR LLC (0.32%), Natixis Advisors LLC (0.13%), State Street Corp (0.04%) and Public Employees Retirement System of Ohio (0.03%).

Shares of BTI stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that British American Tobacco investors own include Verizon Communications (VZ), Humana (HUM), American Water Works (AWK), Waste Connections (WCN), The RMR Group (RMR), AUO (AUOTY) and Voyager Therapeutics (VYGR).

Company Calendar

Ex-Dividend for 11/6 Dividend
9/27/2024
Dividend Payable
11/06/2024
Today
11/24/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Cigarettes
Sub-Industry
Tobacco Products
Previous Symbol
NYSEMKT:BTI
Employees
46,000
Year Founded
1902

Price Target and Rating

Average Stock Price Target
$33.00
High Stock Price Target
$33.00
Low Stock Price Target
$33.00
Potential Upside/Downside
-11.7%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.50
Research Coverage
2 Analysts

Profitability

Pretax Margin
N/A

Debt

Sales & Book Value

Annual Sales
$33.94 billion
Cash Flow
$18.97 per share
Book Value
$26.80 per share

Miscellaneous

Outstanding Shares
2,079,520,000
Free Float
2,078,893,000
Market Cap
$77.73 billion
Optionable
Optionable
Beta
0.53

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This page (NYSE:BTI) was last updated on 11/24/2024 by MarketBeat.com Staff
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