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⚠️ Not investment advice. Past performance does not guarantee future results.
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BT Group BT-A.L

United Kingdom Communication Services
6.1/10
AI Analyst score
1.96 GBP
Last price at analysis date · analyst target 2.24 (+14.4%)
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🟡 HOLD — Hold; valuation is not expensive, but the lack of revenue growth and competitive pressure justify waiting for a clear improvement in the business or a better entry point.

BT Group is the UK's leading telecommunications company, offering broadband, fixed-line and mobile telephony, and network and IT solutions for business and government customers. BT Group shows acceptable financial health (score 6.8) with high leverage (ND/EBITDA 3.16), but its revenue growth is negative (-3.9%) and the net dividend yield is minimal (0.04%), limiting its appeal. Valuation (P/E 17.83, EV/EBITDA 6.12) is not demanding, but competitive pressure in broadband and regulatory risk in the UK are headwinds.

Financial health
6.8
Quality / Moat
4.5
Valuation
7.3
Growth
5.3
Dividend
3.3
Momentum
6.1
Risk & Context
8.5

Detailed metrics

Market and fundamental data as of the analysis date.

💵 Valuation
P/E17.83
Fwd P/E10.39
EV/EBITDA6.12
P/B1.54
P/S0.98
PEG1.31
Market cap19.33 B GBP
Enterprise value39.99 B GBP
🏰 Quality and moat
ROIC (approx.)8.9%
Gross margin47.15%
FCF conversion18%
Operating margin15.93%
📈 Profitability and margins
ROE8.46%
ROA3.96%
Net margin5.48%
FCF1.20 B GBP
FCF yield6.21%
🏦 Solvency and liquidity
Total debt22.72 B GBP
Net debt20.62 B GBP
Cash2.10 B GBP
EBITDA6.53 B GBP
Net debt / EBITDA3.16
D/E180.83
Current ratio0.85
Quick ratio0.62
🚀 Growth
Revenue growth-3.90%
Earnings growth40.00%
EPS (TTM)0.11 GBP
EPS (Fwd)0.19 GBP
💰 Dividend and risk
Dividend yield0.04%
Payout76.0%
Beta0.43
Analyst consensusHold (17)
Target price2.24 GBP
52-week range1.73 GBP – 2.42 GBP
⚠️ Main risk: Intensifying competition in UK broadband, which is already eroding profit, combined with high leverage (ND/EBITDA 3.16) that limits financial flexibility.
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Full AI report

Generated automatically from the metrics, the macro context and the company's news.

BT Group is the UK's leading telecommunications company, offering broadband, fixed-line and mobile telephony, and network and IT solutions for business and government customers. BT Group shows acceptable financial health (score 6.8) with high leverage (ND/EBITDA 3.16), but its revenue growth is negative (-3.9%) and the net dividend yield is minimal (0.04%), limiting its appeal. Valuation (P/E 17.83, EV/EBITDA 6.12) is not demanding, but competitive pressure in broadband and regulatory risk in the UK are headwinds.

Score by category

CategoryScore
Financial health6.8
Quality / Moat4.5
Valuation7.3
Growth5.3
Dividend3.3
Momentum6.1
Risk & Context8.5

OVERALL SCORE: 6.1/10

Context and risks

Moderate regulatory risk in the UK due to broadband price reviews and Ofcom pressure. Intensifying broadband competition is a business model risk already reflected in the profit decline.

News considered in the analysis

  • BT Profit Slips 1% as Broadband Competition Intensifies — La caída del beneficio refleja la presión competitiva en banda ancha, un riesgo conocido para BT, pero la magnitud es moderada y parte ya está en el precio.
  • Should BT–Verizon Global Enterprise Joint Venture Reshape Cash Flow Expectations for Verizon Communications (VZ) Investors? — La JV con Verizon para servicios empresariales globales podría mejorar la posición competitiva de BT en un segmento clave, aunque el impacto en flujos es incierto y aún no está claro.
  • Is Verizon Communications (VZ) Below Fair Value As The BT Joint Venture Raises Fresh Questions? — Análisis de valoración de Verizon, sin información nueva sobre BT.
  • Is Verizon Communications Inc. (VZ) Stock Positioned for Growth After $4B International Enterprise Partnership? — Noticia centrada en Verizon, sin impacto directo en BT.
  • FTSE 100 today: Stocks drop as Hormuz tanker hit, Aramco cuts Europe supply — Contexto de mercado general; sin impacto material en BT, cuyo negocio no depende del crudo ni de rutas marítimas.

Verdict: Hold; valuation is not expensive, but the lack of revenue growth and competitive pressure justify waiting for a clear improvement in the business or a better entry point.

Main risk: Intensifying competition in UK broadband, which is already eroding profit, combined with high leverage (ND/EBITDA 3.16) that limits financial flexibility.

Other Communication Services companies

Neighbours in the sector ranking, to compare without going back to the index.

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Automatically generated analysis from fundamental, market and news data. Not personalised financial advice — a research tool, not an individual recommendation. Past performance does not guarantee future results. Last update of this analysis: 2026-09-28. Legal notice, privacy & cookies.