BT Group plc (BT.A) AI Stock Analysis

• Market Cap: £19.02B
• Dividend Yield: 2.44%
• Average Volume (3M): 20.52M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.82
• Revenue Growth: -2.23%
• EPS Growth: 22.78%
• Country: UK
• Employees: 91,700
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 9,966,847,000
• 10 Day Avg. Volume: 11,220,804
• 30 Day Avg. Volume: 20,518,132
• PEG Ratio: 1.07
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £207.20
• Price Target Upside: 5.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: 2.00p ▼(-98.98%Downside)

BT Group plc's overall stock score is driven by robust financial performance and positive earnings call highlights, despite challenges in revenue growth and high leverage. Technical indicators show bullish momentum, but overbought signals may pose risks. Valuation metrics suggest fair value with moderate income potential.

BT Group plc Business Overview & Revenue Model

Company Description

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers landline, mobile, broadband, and TV services under the BT, EE, and Plusnet brands. The Enterprise segment provides network solutions to communications providers; and sells communications and IT services to businesses and public sector organizations. Its services include fixed voice, mobile, fixed connectivity, and IT services. The Global segment secures and manages network and cloud infrastructure and services for multinational corporations. It also offers voice and data network services, such as managed, security and network, and IT infrastructure services. The Openreach segment provides fixed connectivity access network that connects homes, mobile phone masts, schools, shops, banks, hospitals, libraries, broadcasters, governments, and big and small businesses. This segment also offers last mile, a service over the local access network; and installs and maintains fiber and copper communications networks from exchanges to homes and businesses. BT Group has strategic partnership with Microsoft. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.

How the Company Makes Money

BT Group makes money through a diversified revenue model primarily driven by its consumer, enterprise, and global services divisions. The company generates revenue from providing fixed-line and mobile telecommunication services, including broadband internet and landline phone services to residential and business customers. BT's enterprise division offers managed network and IT solutions, while its global services segment provides international connectivity and IT services to multinational corporations. Additionally, BT earns income from its BT Sport and BT TV offerings, which include subscription-based television services. The company also benefits from strategic partnerships and collaborations that enhance its service offerings and expand its market reach.

BT Group plc Financial Statement Overview

Summary

BT Group plc demonstrates solid operational efficiency with strong EBITDA margins, but faces challenges with declining revenue and high leverage. The balance sheet shows stability in equity ratios, while cash flow metrics highlight strong operational cash generation. Overall, the company maintains resilience despite industry pressures.

Income Statement

BT Group plc has seen a decline in total revenue over the past years. The gross profit margin improved recently, indicating effective cost management. However, the net profit margin remains modest due to increased operational expenses, and revenue growth has been negative. The EBITDA margin is strong, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting significant leverage. However, the equity ratio is stable, showing resilience in equity financing. Return on equity has fluctuated but remains positive, indicating profitability relative to shareholder investments.

Cash Flow

BT Group's operating cash flow is consistently strong, supporting its capital expenditures. Free cash flow improved significantly in the latest year, enhancing financial flexibility. The operating cash flow to net income ratio is robust, demonstrating effective cash generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.36B	20.80B	20.68B	20.85B	21.33B
Gross Profit	14.99B	9.71B	15.17B	13.78B	13.80B
EBITDA	7.27B	6.46B	7.47B	7.23B	6.88B
Net Income	1.05B	855.00M	1.91B	1.27B	1.47B
Balance Sheet
Total Assets	50.98B	51.74B	52.75B	49.77B	50.88B
Cash, Cash Equivalents and Short-Term Investments	2.81B	2.31B	3.94B	3.46B	4.65B
Total Debt	23.33B	23.48B	23.88B	21.95B	22.84B
Total Liabilities	38.07B	39.22B	38.24B	34.48B	39.20B
Stockholders Equity	12.91B	12.52B	14.51B	15.30B	11.68B
Cash Flow
Free Cash Flow	2.05B	984.00M	1.42B	1.30B	1.06B
Operating Cash Flow	6.99B	5.95B	6.72B	5.91B	5.96B
Investing Cash Flow	-5.01B	-3.54B	-6.40B	-3.56B	-3.24B
Financing Cash Flow	-2.11B	-2.43B	-636.00M	-2.56B	-3.22B

BT Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 195.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Positive. The current price of 195.5 is above the 20-day moving average (MA) of 192.51, above the 50-day MA of 180.30, and above the 200-day MA of 157.38, indicating a bullish trend. The MACD of 4.65 indicates Positive momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BT.A.

BT Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAF	73 Outperform	£6.72B	39.46	9.48%	315.89%	-1.99%	―
BT.A	71 Outperform	£19.02B	18.12	8.29%	2.44%	-2.23%	22.78%
GAMA	70 Outperform	£1.02B	14.89	19.42%	2.35%	11.06%	31.61%
VOD	70 Neutral	£19.63B	8.78	-7.22%	4.02%	-0.59%	-489.50%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
ZEG		£5.62B	―	-10.35%	―	―	―
HTWSF		$1.71B	52.36		―	―	―

BT Group plc Corporate Events

BT Group Announces Total Voting Rights for June 2025

BT Group plc has disclosed its total voting rights as of 30 June 2025, with the capital consisting of 9,968,127,681 ordinary shares, of which 1,281,273 are held as treasury shares. This results in a total of 9,966,846,408 voting rights available for shareholders, which is crucial for determining notification requirements under the FCA’s rules, potentially impacting shareholder engagement and transparency.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Executives Conduct Share Transactions to Cover Tax Obligations

BT Group plc announced the vesting and sale of shares by several key executives, including the Chief Financial Officer, Group General Counsel, Chief Security and Networks Officer, and Chief People & Culture Officer. These transactions primarily aim to cover tax obligations related to the vesting of shares under the company’s Deferred Bonus and Restricted Share Plans. The transactions were conducted in London on June 24, 2025, and involve a significant volume of shares, reflecting the company’s ongoing commitment to transparent financial practices.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Aligns Executive Incentives with Deferred Bonus Plan Awards

BT Group plc has announced the grant of awards under its Deferred Bonus Plan to several key executives, including the Chief Executive and Chief Financial Officer. This move is part of the company’s strategy to align the interests of its leadership with long-term shareholder value, potentially impacting its market positioning by reinforcing executive commitment and stability.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Publishes 2025 Annual Report and Announces Hybrid AGM

BT Group plc has released its Annual Report for 2025, which is now accessible on their website. The report includes important regulatory information such as principal risks, uncertainties, and related party transactions. The upcoming Annual General Meeting will be conducted as a hybrid event, allowing shareholders to participate either online or in person, reflecting BT’s commitment to accessibility and transparency.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Announces Total Voting Rights for May 2025

BT Group plc announced that as of 30 May 2025, its capital consisted of 9,968,127,681 ordinary shares with voting rights, with 11,290,418 held as treasury shares. This results in a total of 9,956,837,263 voting rights, which shareholders can use to determine their notification requirements under the FCA’s rules.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Enhances Employee Engagement with Share Purchase

BT Group plc announced a transaction involving the purchase of 1,101 ordinary shares by Equiniti Share Plan Trustees Limited as part of the BT Group Employee Share Investment Plan. This transaction, conducted on May 15, 2025, reflects the company’s ongoing efforts to engage employees through share investment, potentially impacting stakeholder confidence and employee involvement in the company’s growth.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

BT Group Announces Total Voting Rights for April 2025

BT Group plc announced that as of 30 April 2025, it had a total of 9,968,127,681 ordinary shares, with 9,956,837,263 shares holding voting rights. This disclosure is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they manage their investments in the company.

BT Group plc Sees Change in Major Holdings as Morgan Stanley’s Stake Falls Below 5%

BT Group plc has announced a change in its major holdings, as Morgan Stanley’s total applicable holding in the company has dropped below the 5% threshold. This change was triggered by Morgan Stanley’s application of the trading book exemption, resulting in a remaining applicable holding of 4.997849% as of April 11, 2025. This adjustment in holdings could have implications for BT Group’s market positioning and stakeholder interests.