British American Tobacco Industries p.l.c. Common Stock ADR (BTI)
StalwartFairStock Score: 55/100 — STEADY
Key Financials
| Current Price | $65.09 |
| Market Cap | $123.3B |
| P/E Ratio | 13.88 |
| ROE | 15.82% |
| Dividend Yield | 5.59% |
| Sector | Consumer Defensive |
Strengths
- Generates $3.0 billion in annual free cash flow (2.4% yield on market cap)
- Solid return on equity of 15.8% above cost of capital
- Attractive 6.0% dividend yield providing steady income returns
- Established organization with 47,797 employees providing operational scale
Concerns
- Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
- Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
British American Tobacco Industries p.l.c. Common Stock ADR is a large-cap consumer defensive company valued at $123.3 billion. Revenue stands at $25.6 billion. From a quality standpoint, British shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is attractively valued at 12.1x earnings, with trades above its Graham Number with a negative 18% margin. The 6.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.
Bull Case
The market underappreciates British's consistent 16% ROE at just 12x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $3.0 billion in annual free cash flow (2.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer