Last Updated: 15 Sep 2024
Executive Summary
British American Tobacco (BTI) is a global tobacco and nicotine products company with a market capitalization of $86.5 billion. The company has a strong financial position with an EBITDA of $12.7 billion and a dividend yield of 0.0759%. BTI has a PEG ratio of 3.149, indicating that it is undervalued relative to its growth prospects. The company's stock price is currently trading at $39.17, below its 52-week high of $39.25.
Company Overview
British American Tobacco was founded in 1902 and is headquartered in London, United Kingdom. The company operates in over 180 countries and employs over 55,000 people. BTI's portfolio of brands includes Dunhill, Kent, Lucky Strike, and Pall Mall. The company also has a growing presence in the e-cigarette market with its Vuse brand.
Fundamental Analysis
BTI's financial performance has been mixed in recent years. The company's revenue has declined slightly in recent quarters, but its EBITDA has remained stable. BTI's profit margin is negative, but its operating margin is positive. The company's return on assets and return on equity are both negative.
BTI's financial ratios are mixed. The company's price-to-sales ratio is 3.305, which is above the industry average. BTI's price-to-book ratio is 1.227, which is in line with the industry average. The company's EV/EBITDA ratio is 10.27, which is above the industry average.
Technical Analysis
BTI's stock price has been trading in a range between $26.39 and $39.25 over the past 52 weeks. The stock is currently trading near the top of its range. The 50-day moving average is $35.56 and the 200-day moving average is $31.56. The relative strength index (RSI) is 60.5, which indicates that the stock is overbought.
Short Term Outlook
BTI's stock price is likely to continue to trade in a range in the short term. The stock is overbought and could be due for a pullback. However, the stock is also supported by its strong financial position and its positive analyst recommendations.
Long Term Outlook
BTI's long-term outlook is positive. The company is a global leader in the tobacco industry and has a strong portfolio of brands. BTI is also investing in new products, such as e-cigarettes, which could drive growth in the future.
Analyst Recommendations
Analysts have a positive outlook on BTI. The consensus analyst rating is "buy" and the average analyst target price is $37.55. Two analysts have a "strong buy" rating on the stock, two analysts have a "buy" rating, and one analyst has a "hold" rating.
