British American Tobacco Stock Buy Hold or Sell Recommendation
| BTI Stock | USD 39.68 0.42 1.07% |
Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding British American Tobacco is 'Strong Buy'. The recommendation algorithm takes into account all of British Amer's available fundamental, technical, and predictive indicators you will find on this site.
Check out British Amer Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as British and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
British |
Execute British Amer Buy or Sell Advice
The British recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on British American Tobacco. Macroaxis does not own or have any residual interests in British American Tobacco or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute British Amer's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
British Amer Trading Alerts and Improvement Suggestions
| British American Tobacco has 39.73 B in debt with debt to equity (D/E) ratio of 0.61, which is OK given its current industry classification. British American Tobacco has a current ratio of 0.86, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for British to invest in growth at high rates of return. | |
| The entity reported the last year's revenue of 27.28 B. Reported Net Loss for the year was (14.19 B) with profit before taxes, overhead, and interest of 22.85 B. | |
| Latest headline from finance.yahoo.com: Should You Buy the 3 Highest-Paying Dividend Stocks in the SP 500 |
British Amer Returns Distribution Density
The distribution of British Amer's historical returns is an attempt to chart the uncertainty of British Amer's future price movements. The chart of the probability distribution of British Amer daily returns describes the distribution of returns around its average expected value. We use British American Tobacco price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of British Amer returns is essential to provide solid investment advice for British Amer.
| Mean Return | 0.24 | Value At Risk | -1.29 | Potential Upside | 1.81 | Standard Deviation | 1.04 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of British Amer historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
British Stock Institutional Investors
| Shares | Natixis Advisors, Llc. | 2024-09-30 | 2.9 M | Newport Trust Co. | 2024-09-30 | 2.8 M | Goldman Sachs Group Inc | 2024-09-30 | 2.4 M | Federated Hermes Inc | 2024-09-30 | 2.3 M | Envestnet Asset Management Inc | 2024-09-30 | 2.3 M | Pacer Advisors, Inc. | 2024-09-30 | 2.2 M | Wells Fargo & Co | 2024-09-30 | 2 M | Northern Trust Corp | 2024-09-30 | 1.8 M | Royal Bank Of Canada | 2024-09-30 | 1.7 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 33.2 M | Blackrock Inc | 2024-09-30 | 15.6 M |
British Amer Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (144M) | 433M | (246M) | 265M | 238.5M | 250.4M | |
| Change In Cash | 853M | (425M) | 874M | 1.2B | 1.4B | 1.4B | |
| Free Cash Flow | 9.0B | 9.0B | 9.7B | 10.3B | 11.8B | 12.4B | |
| Depreciation | 1.5B | 1.1B | 1.3B | 24B | 27.6B | 29.0B | |
| Other Non Cash Items | (1.7B) | 1.7B | 2.2B | 1.4B | 1.6B | 1.7B | |
| Capital Expenditures | 755M | 745M | 656M | 460M | 529M | 614.3M | |
| Net Income | 10.0B | 7.0B | 6.8B | (14.2B) | (16.3B) | (15.5B) | |
| End Period Cash Flow | 2.9B | 2.5B | 3.3B | 4.5B | 5.2B | 5.5B | |
| Dividends Paid | 4.7B | 4.9B | 4.9B | 5.1B | 5.9B | 6.2B | |
| Investments | (783M) | (361M) | (705M) | (296M) | (340.4M) | (357.4M) | |
| Net Borrowings | (1.5B) | (971M) | (4.0B) | 2M | 1.8M | 1.7M | |
| Change To Netincome | 2.0B | 2.3B | 2.0B | 3.1B | 3.6B | 3.7B |
British Amer Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to British Amer or Tobacco sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that British Amer's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a British stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.20 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 1.03 | |
Ir | Information ratio | 0.14 |
British Amer Volatility Alert
British American Tobacco has low volatility with Treynor Ratio of 0.72, Maximum Drawdown of 5.6 and kurtosis of 3.83. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure British Amer's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact British Amer's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.British Amer Fundamentals Vs Peers
Comparing British Amer's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze British Amer's direct or indirect competition across all of the common fundamentals between British Amer and the related equities. This way, we can detect undervalued stocks with similar characteristics as British Amer or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of British Amer's fundamental indicators could also be used in its relative valuation, which is a method of valuing British Amer by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare British Amer to competition |
| Fundamentals | British Amer | Peer Average |
| Return On Equity | -0.21 | -0.31 |
| Return On Asset | 0.0516 | -0.14 |
| Profit Margin | (0.53) % | (1.27) % |
| Operating Margin | 0.35 % | (5.51) % |
| Current Valuation | 128.53 B | 16.62 B |
| Shares Outstanding | 2.21 B | 571.82 M |
| Shares Owned By Insiders | 0.27 % | 10.09 % |
| Shares Owned By Institutions | 8.32 % | 39.21 % |
| Number Of Shares Shorted | 6.44 M | 4.71 M |
| Price To Earning | 10.41 X | 28.72 X |
| Price To Book | 1.28 X | 9.51 X |
| Price To Sales | 3.34 X | 11.42 X |
| Revenue | 27.28 B | 9.43 B |
| Gross Profit | 22.85 B | 27.38 B |
| EBITDA | 13.28 B | 3.9 B |
| Net Income | (14.19 B) | 570.98 M |
| Cash And Equivalents | 3.45 B | 2.7 B |
| Cash Per Share | 1.83 X | 5.01 X |
| Total Debt | 39.73 B | 5.32 B |
| Debt To Equity | 0.60 % | 48.70 % |
| Current Ratio | 0.88 X | 2.16 X |
| Book Value Per Share | 23.58 X | 1.93 K |
| Cash Flow From Operations | 10.71 B | 971.22 M |
| Short Ratio | 1.41 X | 4.00 X |
| Earnings Per Share | (7.93) X | 3.12 X |
| Price To Earnings To Growth | 3.15 X | 4.89 X |
| Target Price | 36.56 | |
| Number Of Employees | 46.73 K | 18.84 K |
| Beta | 0.29 | -0.15 |
| Market Capitalization | 78.26 B | 19.03 B |
| Total Asset | 118.72 B | 29.47 B |
| Retained Earnings | 31.63 B | 9.33 B |
| Working Capital | (1.49 B) | 1.48 B |
British Amer Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as British . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 26416.81 | |||
| Daily Balance Of Power | 1.076923 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 39.58 | |||
| Day Typical Price | 39.61 | |||
| Price Action Indicator | 0.31 | |||
| Period Momentum Indicator | 0.42 |
About British Amer Buy or Sell Advice
When is the right time to buy or sell British American Tobacco? Buying financial instruments such as British Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having British Amer in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out British Amer Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Tobacco space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of British Amer. If investors know British will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about British Amer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.138 | Dividend Share 2.332 | Earnings Share (7.93) | Revenue Per Share | Quarterly Revenue Growth (0.08) |
The market value of British American Tobacco is measured differently than its book value, which is the value of British that is recorded on the company's balance sheet. Investors also form their own opinion of British Amer's value that differs from its market value or its book value, called intrinsic value, which is British Amer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because British Amer's market value can be influenced by many factors that don't directly affect British Amer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between British Amer's value and its price as these two are different measures arrived at by different means. Investors typically determine if British Amer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British Amer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.