British American Tobacco Industries p.l.c. logged a 2.7% change during today's afternoon session, and is now trading at a price of $59.01 per share.
British American Tobacco Industries p.l.c. returned gains of 58.3% last year, with its stock price reaching a high of $59.15 and a low of $34.17. Over the same period, the stock outperformed the S&P 500 index by 44.3%. More recently, the company's 50-day average price was $51.7. British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the Americas, Europe, the Asia-Pacific, the Middle East, Africa, and the United States. Based in London, United Kingdom, the Large-Cap Health Care company has 48,989 full time employees. British American Tobacco Industries p.l.c. has offered a 4.2% dividend yield over the last 12 months.
Generally Positive Cash Flows but a Highly Leveraged Balance Sheet:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $25,877 | $25,776 | $25,684 | $27,655 | $27,283 | $25,867 |
| Operating Margins | 35% | 39% | 40% | 38% | -57% | 11% |
| Net Margins | 23% | 25% | 27% | 25% | -52% | 12% |
| Net Income (M) | $5,849 | $6,564 | $6,974 | $6,846 | -$14,189 | $3,181 |
| Net Interest Expense (M) | $1,676 | $1,605 | $1,436 | $1,602 | $1,786 | $1,704 |
| Depreciation & Amort. (M) | $1,512 | $1,450 | $1,076 | $1,305 | $28,614 | $3,101 |
| Diluted Shares (M) | 2,456,520,738 | 2,457 | 2,457 | 2,457 | 2,457 | 2,346 |
| Earnings Per Share | $2.49 | $2.79 | $2.96 | $2.92 | -$6.47 | $1.36 |
| EPS Growth | n/a | 12.05% | 6.09% | -1.35% | -321.58% | 121.02% |
| Free Cash Flow (M) | $8,996 | $9,786 | $9,717 | $10,394 | $10,714 | $10,125 |
| Total Debt (M) | $37,804 | $39,927 | $35,666 | $38,726 | $35,406 | $32,638 |
| Net Debt / EBITDA | 3.35 | 3.22 | 2.91 | 2.98 | 2.39 | 4.68 |
| Current Ratio | 0.71 | 0.88 | 0.85 | 0.86 | 0.91 | 0.76 |
British American Tobacco Industries p.l.c.'s financial statements include several red flags such as weak operating margins with a negative growth trend, declining EPS growth, and not enough current assets to cover current liabilities because its current ratio is 0.76. Additionally, the firm has a highly leveraged balance sheet. On the other hand, the company has generally positive cash flows working in its favor.
British American Tobacco Industries p.l.c.'s Valuation Is in Line With Its Sector Averages:
British American Tobacco Industries p.l.c. has a trailing twelve month P/E ratio of 27.4, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $4.7, the company has a forward P/E ratio of 11.0. The 9.5% compound average growth rate of British American Tobacco Industries p.l.c.'s historical and projected earnings per share yields a PEG ratio of 2.88. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing British American Tobacco Industries p.l.c. in terms of its equity because its P/B ratio is 2.86 while the sector average is 3.19. The company's shares are currently trading 131.0% below their Graham number.
British American Tobacco Industries p.l.c. Has an Average Rating of Hold:
The 4 analysts following British American Tobacco Industries p.l.c. have set target prices ranging from $40.0 to $69.0 per share, for an average of $55.5 with a hold rating. The company is trading 6.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.
British American Tobacco Industries p.l.c. has a very low short interest because 0.5% of the company's shares are sold short. Institutions own 13.0% of the company's shares, and the insider ownership rate stands at 5.28%, suggesting a large amount of insider shareholders. The largest shareholder is Capital International Investors, whose 3% stake in the company is worth $3,668,437,802.
