British American Tobacco p.l.c. (BTI) AI Stock Analysis

Established in 1902 and headquartered in London, United Kingdom, British American Tobacco p.l.c. is a global leader in providing tobacco and nicotine products. The company's product portfolio includes vapour, tobacco heating, and modern oral nicotine products, alongside traditional oral products such as snus and moist snuff. These offerings are marketed under well-known brand names including Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Camel, Newport, Natural American Spirit, being Vapour, THP, and Modern Oral. British American Tobacco distributes its products worldwide through a retail network while adapting to market trends and regulatory requirements.

British American Tobacco posted annual revenue of $25.61B in FY2025, down 1.0% from $25.87B in FY2024 and $27.28B in FY2023. Five-year revenue CAGR from FY2020 to FY2025 was -0.1%. Gross margin expanded slightly to 83.5% in FY2025 from 82.1% in FY2021. Operating margin recovered to 39.0% in FY2025 following -57.7% in FY2023 and 10.6% in FY2024. Net income reached $7.76B in FY2025, up from $3.07B in FY2024 and -$14.37B in FY2023. For the latest quarter ended June 30, 2026, quarterly revenue grew 1.4% year-over-year, while quarterly earnings declined 28.6%. Trailing twelve-month net profit margin was 25.0%.

As of June 30, 2026, the company held $2.53B in cash and short-term investments against total debt of $35.06B, resulting in net debt of $32.53B. The current ratio stood at 0.84, with a debt-to-equity ratio of 0.72 and shareholders' equity of $48.38B. Operating cash flow in FY2025 was $6.34B, producing free cash flow of $5.79B. During FY2025, the company deployed $551.0M toward capital expenditures, $1.15B toward share buybacks, and $5.12B toward dividends paid. Over the past five years, the share count decreased by 5.3%.

BTI trades at a trailing P/E of 15.4x and a forward P/E of 10.7x, both below the US-listed Consumer Defensive peer group median of 18.6x trailing and 14.3x forward. Its EV/EBITDA of 10.1x also trades below the peer median of 11.7x, whereas its price-to-sales ratio of 5.0x trades above the peer group median of 0.7x. Over the past year, BTI returned 24.2%, outpacing the S&P 500's return of 16.8%. Over five years, the stock gained 141.9% compared to 83.0% for the S&P 500.

British American Tobacco pays an annualized forward dividend of $3.34 per share, translating to a dividend yield of 5.57%. The company has paid dividends for 43 consecutive years on a quarterly frequency, with a 5-year annualized dividend growth rate of 2.0%. The trailing payout ratio stands at 127.6%, and the last ex-dividend date was December 29, 2026.

Wall Street coverage includes 5 Strong Buy and 2 Buy ratings, with zero Hold, Sell, or Strong Sell recommendations. The mean price target is $70.43, representing a 17.4% upside to the last closing price of $60.00. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $4.78 and revenue of $26.16B. Over the last four quarters, the company beat EPS estimates 1 time.

This page is an AI-written research summary of British American Tobacco p.l.c. (BTI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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