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British American Tobacco PLC ADR BTI Stock Quote

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Morningstar‘s Stock Analysis BTI

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BAT Shares Remain Moderately Undervalued Despite Rally

Analyst Note

| Philip Gorham, CFA, FRM |

British American Tobacco reported first-half results that were broadly in line with our forecasts, and we are retaining our GBX 3,900 fair value estimate of the ordinary shares. After being in the doldrums since 2018, BAT and the tobacco group more broadly have outperformed the market significantly in 2022, with BAT up 23% as at the close of business on August 17, and the defensive nature of the tobacco business was clear in these results. The shares still offer modest upside, in our view, and with a current dividend yield of 6.7%, total returns could be fairly attractive in the medium term.

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Key Statistics BTI

Company Profile BTI

Business Description

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, including its Vype brand, heated tobacco, with Glo, as well as roll- your-own and smokeless tobacco products. The company holds 31% of ITC Limited, the leading Indian cigarette-maker.

Globe House, 4 Temple Place
London, WC2R 2PG, United Kingdom
T +44 2078451000
Industry Tobacco
Most Recent Earnings Dec 31, 2008
Fiscal Year End Dec 31, 2022
Employees 2,500

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