British American Tobacco Industries p.l.c. Common Stock ADR (BTI)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable demand, honest economics, and a price that leaves room for error. British American Tobacco sells tobacco and nicotine products across the world, including combustibles, vapour, heated products, and modern oral nicotine. That global portfolio and Consumer Defensive sector give it low market sensitivity, with a FairStock-calculated beta of 0.11. But the financial picture is mixed. The FairStock-calculated ROE is 13.42%, which is respectable, yet ROCE is only 5.12%, and debt-to-equity is 0.72. The FairStock-calculated Piotroski F-Score is 1/9 and the Altman Z-Score is 1.51, both warning signs that balance sheet and operating quality are not as sturdy as I would like. The FairStock Score is 47/100, middling to weak. Valuation is not compelling on a Graham basis. At the 2026-10-13 close of $55.65, the FairStock-calculated P/E is 14.31 and P/B is 9.70. The FairStock-calculated Graham Number is $44.29, which implies a margin of safety of negative 25.65% — the price sits above that conservative estimate. The dividend yield of 5.98% is attractive for income, but I do not have reliable growth figures here: revenue and profit growth are listed as N/A. FairStock's Lynch category is none because only zero years of filed results are available and three are needed, so I cannot classify it confidently. This is a large tobacco business with leverage and weak balance-sheet signals, and the price already reflects some defensive merit. I would want better balance-sheet strength, a lower entry price, or clearer filed growth before calling it a bargain.

In plain English: British American Tobacco makes cigarettes and other nicotine products sold around the world. The business still earns money and pays a high dividend, but the latest numbers show weak financial-health signs and a lot of debt. At $55.65 on 2026-10-13, the shares look a little expensive compared with one conservative value estimate, so this is not an obvious bargain from the figures given.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer