Want to see BTI full AI Analyst Report?
Top Page
British American Tobacco
(NYSE:BTI)
Select Model
Select Model
Rating:69Neutral
Price Target:
$69.00
â–²(13.19% Upside)
Action:Reiterated
Date:07/31/26
BTI’s score is driven primarily by mixed financial quality: strong profitability and durable cash generation are tempered by high leverage and a notable 2025 cash flow step-down. The earnings call was moderately positive (EPS guidance upgrade, strong Modern Oral growth, and Fit2Win savings trajectory) but balanced by regional/product headwinds and significant one-off charges. Technicals add support with price above key moving averages, while valuation is favorable given a moderate P/E and high dividend yield.
Positive Factors
Margin expansion
Sustained operating margin expansion reflects durable pricing power and cost discipline (Fit2Win). Higher margins across combustibles and improving New Categories gross profit support long‑term cash returns and resilience to volume declines, underpinning earnings durability.
Negative Factors
High leverage
Meaningful indebtedness limits strategic optionality and raises refinancing and interest‑rate sensitivity. Even with reductions since 2022, leverage constrains capital allocation, increases liquidity risk under stress, and reduces buffer for sustained investment or M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion
Sustained operating margin expansion reflects durable pricing power and cost discipline (Fit2Win). Higher margins across combustibles and improving New Categories gross profit support long‑term cash returns and resilience to volume declines, underpinning earnings durability.
Read all positive factors
British American Tobacco Key Performance Indicators (KPIs)
Any
Adjusted Profit from Operations by Geography
Shows profit performance across different regions, highlighting areas of strong operational efficiency and potential challenges due to local market conditions or regulatory environments.
Shows profit performance across different regions, highlighting areas of strong operational efficiency and potential challenges due to local market conditions or regulatory environments.
Data provided by:
The Fly
The FlyBritish American Tobacco (BTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$132.83B
Dividend Yield5.34%
Average Volume (3M)4.18M
Price to Earnings (P/E)15.7
Beta (1Y)-0.02
Revenue Growth4.47%
EPS Growth117.22%
CountryUS
Employees47,797
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)2.92
Shares Outstanding2,163,059,300
10 Day Avg. Volume4,467,017
30 Day Avg. Volume4,175,237
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.92
Price to Sales (P/S)3.59
P/FCF Ratio15.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.85
Revenue Forecast (FY)$35.19B
British American Tobacco Business Overview & Revenue Model
Company Description
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the United States, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa. The company offers vapour products; hea...
How the Company Makes Money
BTI makes money primarily by selling nicotine and tobacco products to trade customers (e.g., distributors, wholesalers, and retailers) who then sell to consumers. Its key revenue streams are: (1) Combustibles: Sales of cigarettes and other traditi...
British American Tobacco Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call presented multiple clear progress points: strong New Category growth (notably Modern Oral), solid US multi-category performance, margin expansion, improved cash generation, and a defined Fit2Win savings trajectory. These positives are balanced by material near-term challenges: declines in Heated Products and Vapour revenues in some regions, APMEA profit pressure, combustible volume declines and market-specific shocks (e.g., Brazil excise), ongoing regulatory and illicit market issues, and sizable one-off/non-cash charges. Management reiterated confidence in recovery and a pathway to return to the midterm algorithm while emphasizing targeted investments for sustainable growth.Positive Updates
Smokeless Revenue Progress and Consumer Adds
Smokeless now represents 19.8% of group revenue (up 160 basis points year-on-year). The business added 4.1 million smokeless consumers over the last 12 months, taking the total to 35 million, driven mainly by Modern Oral and the Velo brand.
Negative Updates
Heated Products Revenue Declines and Competitive Pressures
Heated product (glo) revenue declined nearly 12% overall; APMEA heated product revenue declined 13%. Performance impacted by inventory movements and heightened competitive intensity in the value segment (notably Italy, Poland).
Read all updates
Q2-2026 Updates
Positive
Negative
Smokeless Revenue Progress and Consumer Adds
Smokeless now represents 19.8% of group revenue (up 160 basis points year-on-year). The business added 4.1 million smokeless consumers over the last 12 months, taking the total to 35 million, driven mainly by Modern Oral and the Velo brand.
Read all positive updates
Company Guidance
Guidance: management expects a H2‑weighted recovery with adjusted profit from operations accelerating in H2 and full‑year adjusted EPS now expected toward the middle of the 5–8% range, while revenue and operating profit are expected at the lower end of the algorithm after absorbing c.1% transactional FX headwind; key H2 drivers are mid‑teens New Category revenue growth (after H1 New Categories +18% and Modern Oral +66%), an AME acceleration and APMEA sequential recovery, plus positive phasing of Fit2Win benefits. Financial targets include net finance cost of c.£1.65bn, an underlying tax rate of 24–25%, reaching target leverage of 2.0–2.5x by year‑end, a £1.3bn 2026 share buyback alongside the progressive dividend, and a commitment to deliver >£50bn free cash flow by 2030; Fit2Win is now expected to deliver £700m annualized savings by 2028 (£500m by 2027) with total one‑off costs ~£950m (£840m adjusting).British American Tobacco Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.87B | 25.61B | 25.87B | 27.28B | 27.66B | 25.68B |
| Gross Profit | 18.58B | 21.38B | 21.43B | 22.39B | 22.85B | 21.09B |
| EBITDA | 12.50B | 11.76B | 7.74B | 13.28B | 12.23B | 11.19B |
| Net Income | 6.47B | 7.76B | 3.07B | -14.37B | 6.67B | 6.80B |
Balance Sheet | ||||||
| Total Assets | 108.39B | 109.29B | 118.90B | 118.72B | 153.55B | 137.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.53B | 3.84B | 5.81B | 2.96B | 4.03B | 3.27B |
| Total Debt | 35.06B | 35.07B | 36.95B | 39.73B | 43.14B | 39.66B |
| Total Liabilities | 59.79B | 61.15B | 68.90B | 65.78B | 77.84B | 69.96B |
| Stockholders Equity | 48.38B | 47.93B | 49.64B | 52.57B | 75.37B | 67.10B |
Cash Flow | ||||||
| Free Cash Flow | 6.05B | 5.79B | 9.52B | 10.25B | 9.87B | 9.19B |
| Operating Cash Flow | 6.63B | 6.34B | 10.13B | 10.71B | 10.39B | 9.72B |
| Investing Cash Flow | -121.13M | 1.39B | 1.38B | -296.00M | -705.00M | -1.14B |
| Financing Cash Flow | -7.74B | -8.76B | -10.63B | -9.31B | -8.88B | -8.75B |
British American Tobacco Technical Analysis
Negative
60.96
Price Trends
60.31
Negative
59.54
Negative
57.50
Positive
Market Momentum
-0.32
Positive
44.94
Neutral
11.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTI, the sentiment is Negative. The current price of 60.96 is above the 20-day moving average (MA) of 60.66, above the 50-day MA of 60.31, and above the 200-day MA of 57.50, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 11.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTI.
British American Tobacco Risk Analysis
British American Tobacco disclosed 1 risk factors in its most recent earnings report. British American Tobacco reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
British American Tobacco Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.46B | 17.03 | 6.14% | 4.93% | 66.52% | 56.14% | |
72 Outperform | $297.41B | 27.42 | -112.19% | 3.05% | 9.12% | 32.00% | |
69 Neutral | $132.83B | 15.65 | 13.38% | 5.32% | 4.47% | 117.22% | |
63 Neutral | $114.09B | 14.41 | -265.17% | 5.81% | 1.01% | -8.27% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.45B | 24.79 | 11.93% | 0.41% | 16.10% | 26.07% | |
51 Neutral | $1.31B | 40.53 | 1.33% | 6.12% | -0.77% | -65.72% |
* Consumer Defensive Sector Average
BTI
British American Tobacco
59.33
5.23
9.67%
MO
Altria Group
68.35
8.24
13.70%
PM
Philip Morris
189.57
25.34
15.43%
UVV
Universal
50.84
1.65
3.34%
TPB
Turning Point Brands
86.86
-9.57
-9.93%
RLX
RLX Technology
2.01
-0.11
-5.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.