Why is British American Tobacco plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 525.59% and Operating profit at 389.84% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Flat results in Jun 25
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- RAW MATERIAL COST(Y) Grown by 11.39% (YoY)
- DIVIDEND PER SHARE(HY) Lowest at GBP 6.99
3
With ROE of 6.21%, it has a expensive valuation with a 1.84 Price to Book Value
- Over the past year, while the stock has generated a return of 44.73%, its profits have fallen by -13.8%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is British American Tobacco plc for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
British American Tobacco plc
47.39%
1.02
21.96%
FTSE 100
15.94%
1.29
12.98%
Quality key factors
Factor
Value
Sales Growth (5y)
525.59%
EBIT Growth (5y)
389.84%
EBIT to Interest (avg)
6.98
Debt to EBITDA (avg)
2.22
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
0.10
Tax Ratio
32.43%
Dividend Payout Ratio
175.77%
Pledged Shares
0
Institutional Holding
0.12%
ROCE (avg)
20.92%
ROE (avg)
34.18%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
1.84
EV to EBIT
41.28
EV to EBITDA
36.82
EV to Capital Employed
1.51
EV to Sales
12.15
PEG Ratio
NA
Dividend Yield
310.63%
ROCE (Latest)
3.65%
ROE (Latest)
6.21%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
NET PROFIT(HY)
Higher at GBP 5,041.1 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.99%
OPERATING PROFIT MARGIN(Q)
Highest at 52.3 %
EPS(Q)
Highest at GBP 2.04
-4What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 11.39% (YoY
DIVIDEND PER SHARE(HY)
Lowest at GBP 6.99
NET SALES(Q)
Lowest at GBP 12,069 MM
Here's what is working for British American Tobacco plc
Net Profit
Higher at GBP 5,041.1 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (GBP MM)
Operating Profit Margin
Highest at 52.3 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at GBP 2.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Debtors Turnover Ratio
Highest at 6.99%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
At GBP 1,192 MM has Grown at 83.67%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (GBP MM)
Here's what is not working for British American Tobacco plc
Net Sales
Lowest at GBP 12,069 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Dividend per share
Lowest at GBP 6.99
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (GBP)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 11.39% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






