BT Group plc (BT.A) AI Stock Analysis

• Market Cap: £17.48B
• Dividend Yield: 4.59%
• Average Volume (3M): 19.22M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.68
• Revenue Growth: -2.53%
• EPS Growth: 24.52%
• Country: UK
• Employees: 91,700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.05
• Shares Outstanding: 9,967,578,000
• 10 Day Avg. Volume: 15,844,759
• 30 Day Avg. Volume: 19,219,665
• PEG Ratio: -0.23
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 11.09
• 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: £187.50
• Price Target Upside: 5.37% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 195.00p ▲(9.58% Upside)

BT Group's overall stock score is driven by solid financial performance and positive corporate events, which are offset by technical analysis indicating weak momentum. The earnings call provided positive guidance, supporting the company's strategic initiatives. Valuation metrics suggest fair pricing with an attractive dividend yield.

Positive Factors

5G Coverage Expansion

Expanding 5G coverage enhances BT's competitive position in the telecommunications market, driving future customer acquisition and service quality.

Cost Transformation Progress

Significant cost savings improve margin sustainability and financial flexibility, supporting long-term profitability and strategic investments.

Record Fiber Build and Take-up

The expansion of fiber infrastructure strengthens BT's market position, enabling higher-speed services and increased customer satisfaction.

Negative Factors

Legacy Voice Revenue Decline

Declining legacy voice revenues highlight challenges in transitioning to new revenue streams, potentially impacting overall revenue stability.

Consumer ARPU Pressure

Pressure on average revenue per user (ARPU) indicates competitive challenges, potentially affecting profitability and revenue growth.

International Revenue and EBITDA Decline

Declines in international revenue and EBITDA suggest difficulties in global operations, impacting overall growth and diversification efforts.

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 generates revenue through several key streams. The primary source of income comes from its retail operations, which include services for residential customers such as broadband, landline, and mobile services. Additionally, the company earns significant revenue from its business services segment, which offers communication solutions, cloud services, and cybersecurity to corporate clients. BT also has a wholesale division that sells network access and services to other telecommunications companies, contributing to its earnings. The company has formed strategic partnerships with various tech firms to enhance its service offerings, particularly in digital and cloud services, which further solidifies its revenue base. Factors such as the growing demand for high-speed internet, increased mobile usage, and the expansion of digital services are also pivotal in driving BT's financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.36B	20.36B	20.68B	20.80B	20.85B	21.33B
Gross Profit	9.54B	14.99B	15.17B	9.71B	13.78B	13.80B
EBITDA	7.36B	7.27B	7.47B	6.46B	7.23B	6.88B
Net Income	1.05B	1.05B	1.91B	855.00M	1.27B	1.47B
Balance Sheet
Total Assets	50.98B	50.98B	52.75B	51.74B	49.77B	50.88B
Cash, Cash Equivalents and Short-Term Investments	2.81B	2.81B	3.94B	2.31B	3.46B	4.65B
Total Debt	23.33B	23.33B	23.88B	23.48B	21.95B	22.84B
Total Liabilities	38.07B	38.07B	38.24B	39.22B	34.48B	39.20B
Stockholders Equity	12.91B	12.91B	14.51B	12.52B	15.30B	11.68B
Cash Flow
Free Cash Flow	2.05B	2.05B	1.42B	984.00M	1.30B	1.06B
Operating Cash Flow	6.99B	6.99B	6.72B	5.95B	5.91B	5.96B
Investing Cash Flow	-5.01B	-5.01B	-6.40B	-3.54B	-3.56B	-3.24B
Financing Cash Flow	-2.11B	-2.11B	-636.00M	-2.43B	-2.56B	-3.22B

BT Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 177.95 is below the 20-day moving average (MA) of 178.05, below the 50-day MA of 182.12, and below the 200-day MA of 180.81, indicating a bearish trend. The MACD of -1.30 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 56.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	£10.78B	28.95	21.04%	1.64%	14.13%	―
GAMA	73 Outperform	£892.22M	13.76	18.64%	1.39%	11.95%	20.69%
BT.A	69 Neutral	£17.48B	18.13	7.56%	4.59%	-2.53%	24.52%
HTWS	68 Neutral	£1.67B	25.59	―	―	4.95%	―
VOD	63 Neutral	£20.68B	-6.14	-7.57%	3.86%	16.15%	-279.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

BT Group plc Corporate Events

BT Group Announces Termination of Share Transaction by Bharti Televentures

BT Group plc announced that Bharti Televentures UK Limited, closely associated with non-executive director Sunil Bharti Mittal, has terminated a cash-settled forward transaction involving 429,947 ordinary shares of BT Group. This transaction, completed on November 27, 2025, was conducted outside a trading venue and reflects an adjustment in the financial dealings of a key stakeholder, potentially impacting the company’s shareholding structure and market perception.

BT Group Announces Total Voting Rights for November 2025

BT Group plc announced that as of 28 November 2025, its capital consisted of 9,968,127,681 ordinary shares with voting rights, with 549,614 held as treasury shares. This results in a total of 9,967,578,067 voting rights, which shareholders can use as a denominator for calculating their interests under the FCA’s Disclosure Guidance and Transparency Rules.

BT Group’s Executive Share Transaction Highlights Strategic Leadership Changes

BT Group plc announced a transaction involving Tom Meakin, the Group Chief Strategy and Change Officer, who vested and sold 275,806 ordinary shares under the BT Group Restricted Share Plan at a price of £1.76 per share. This transaction is part of the company’s ongoing management of executive share plans and reflects the strategic changes within the company’s leadership structure, potentially impacting stakeholder perceptions and market dynamics.

BT Group Achieves Record Growth in Fibre and 5G Expansion

BT Group plc reported its half-year results, highlighting significant progress in its strategic transformation and infrastructure expansion. The company has achieved record growth in full fibre broadband and 5G coverage, with Openreach now reaching over 20 million premises. Despite a competitive market and challenges in its international and legacy businesses, BT is on track with its financial outlook, supported by cost savings and increased dividends. The company’s focus on the UK market and modernization efforts are helping to mitigate declines in other areas, with improved customer experience and stabilizing business performance.

BT Group Announces Total Voting Rights for October 2025

BT Group plc announced that as of 31 October 2025, its capital consisted of 9,968,127,681 ordinary shares with voting rights, with 555,311 held as treasury shares. This results in a total of 9,967,572,370 voting rights, a figure important for shareholders to determine their notification requirements under the FCA’s rules.

BT Group Announces Total Voting Rights for September 2025

BT Group plc announced that as of 30 September 2025, its capital consisted of 9,968,127,681 ordinary shares with voting rights, with 585,803 held as treasury shares. This results in a total of 9,967,541,878 voting rights, a figure crucial for shareholders to determine their notification requirements under FCA’s rules.

BT Group Announces Strategic Share Transaction with Bharti Televentures

BT Group plc announced a transaction involving Bharti Televentures UK Limited, a company closely associated with Sunil Bharti Mittal, a non-independent non-executive director of BT Group. The transaction involved the novation of existing cash-settled derivatives transactions related to BT Group’s ordinary shares and a pledge of these shares to secure obligations to a new counterparty. Despite these changes, Bharti Televentures’ overall interest in BT Group’s shares remains unchanged. This transaction reflects strategic financial management and may have implications for the company’s financial stability and stakeholder interests.

BT Group Executives Reinvest Dividends in Company Shares

BT Group plc announced that key executives, including Bas Burger, Sabine Chalmers, and Alison Wilcox, have reinvested dividends into additional shares of the company. This move reflects confidence in the company’s future prospects and aligns the interests of management with those of shareholders, potentially impacting the company’s market perception positively.

BT Group Welcomes New Board Members from Bharti Enterprises

BT Group plc has announced the appointment of Sunil Bharti Mittal and Gopal Vittal to its Board as non-independent non-executive directors, representing Bharti Televentures UK Limited. This move is part of a relationship agreement with Bharti Global, which allows Bharti to nominate board members based on its shareholding in BT Group. The appointments are expected to bring significant telecom industry experience and global perspectives to BT Group, potentially enhancing its market strategy and growth opportunities.

BT Group Executives Reinvest Dividends in Company Shares

BT Group plc announced transactions involving the reinvestment of dividends into further shares under the BT Group Employee Share Investment Plan. Sabine Chalmers, Group General Counsel, and Howard Watson, Chief Security and Networks Officer, both engaged in these transactions, reflecting ongoing investment in the company’s stock by its senior management. This move underscores the confidence of BT Group’s leadership in the company’s future performance and aligns with strategic efforts to enhance shareholder value.