British American Tobacco BTI
British American Tobacco is a British multinational consumer goods company that manufactures and sells cigarettes, roll-your-own tobacco, cigars, and next-generation products such as vapes and nicotine pouches, with a business model based on strong brands and an extensive global distribution network. British American Tobacco shows solid financial health and moat quality (scores 6.03 and 6.11), with an operating margin of 34.91% and a gross margin of 82.72%. However, growth is weak (revenue +1.40%, earnings -28.60%) and valuation, although attractive (P/E 14.49), reflects regulatory risk and declining earnings.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
British American Tobacco is a British multinational consumer goods company that manufactures and sells cigarettes, roll-your-own tobacco, cigars, and next-generation products such as vapes and nicotine pouches, with a business model based on strong brands and an extensive global distribution network. British American Tobacco shows solid financial health and moat quality (scores 6.03 and 6.11), with an operating margin of 34.91% and a gross margin of 82.72%. However, growth is weak (revenue +1.40%, earnings -28.60%) and valuation, although attractive (P/E 14.49), reflects regulatory risk and declining earnings.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.0 |
| Quality / Moat | 6.1 |
| Valuation | 6.8 |
| Growth | 2.4 |
| Dividend | 7.2 |
| Momentum | 5.8 |
| Risk & Context | 8.9 |
OVERALL SCORE: 6.4/10
Context and risks
Structural regulatory risk in the tobacco sector, with ongoing pressure on the regulation of traditional and new-generation products. The recent news about accelerating vaping approvals is a positive factor, but the risk of litigation and advertising restrictions remains material.
News considered in the analysis
- Trump administration plans to speed approvals of vapes and nicotine pouches - WSJ — Acelerar aprobaciones regulatorias para productos de nueva generación (vapeadores y bolsas de nicotina) podría impulsar el crecimiento en un segmento clave para BTI, aunque la probabilidad de materialización es incierta.
- Tobacco Stock Drops After New CEO and Guidance Cut Announcement — El anuncio de un nuevo CEO y el recorte de guidance es un evento material que ya ha impactado el precio, pero parte del efecto negativo podría no estar completamente descontado.
- 5 Dividend Stocks That Combine Income, Earnings Growth, and Wall Street Support — Listículo genérico sin información nueva específica para BTI.
- 4 Tobacco Stocks Turning Huge Cash Flow Into High-Yield Dividends — Artículo genérico sobre el sector, sin información específica que no esté ya en el precio.
- Altria Stock Trades at a Discount: Should You Buy, Sell or Hold? — Noticia sobre un competidor (Altria), sin impacto directo en BTI.
Verdict: Hold, with caution. The high dividend yield (6.00%) and attractive valuation provide support, but the guidance cut and negative growth limit upside potential.
Main risk: The main risk is regulatory, with continued pressure on traditional tobacco products and uncertainty over the approval of new-generation products, which could affect future growth and profitability.
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