British American Tobacco p.l.c. BATS.L
Composite 55/100; the shares have moved about 28% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 41/100 — a slight mark against it.
Quality ranks 68/100 — a moderate point in its favour. Valuation ranks 60/100 — a slight point in its favour. Income ranks 59/100 — a slight point in its favour.
Momentum ranks 41/100 — a slight mark against it. Balance-sheet strength ranks 41/100 — a slight mark against it.
What the company does British American Tobacco (BATS.L) is a global tobacco and nicotine company offering vapour, heated, modern oral, combustibles, traditional oral, and roll-your-own products under brands such as Vuse, glo, Velo, Dunhill, Kent, and Camel Snus.
Key financials BATS reports strong profitability metrics: ROE 15.8%, ROA 5.3%, ROCE 13.0%, gross margin 82.7%, operating margin 34.6%, and net margin 30.3%. It trades at a forward P/E of 12.50, EV/EBITDA of 9.13, and offers a dividend yield of 5.4% with a payout ratio of 68.8%.
Stock health The stock shows mixed momentum: +12.42% over 12 months but -15.44% below its 52-week high, with an RSI(14) of 48.10. Sideravia scores it Strong Quality (68.8) and High Income (91.1), but Growth (30.6) lags peers.
Price vs fair value The stock trades at a **discount** of 47.60% to our fair-value estimate and a **discount** of 12.73% to the 12-month analyst target. - H1 2026 earnings call highlighted strong new category growth (GuruFocus.com, MarketBeat). - Peer Philip Morris expanding Zyn investment to $1.2B signals competitive pressure (InvestorsHub). - Altria’s inclusion in Trump’s portfolio may divert investor focus (Insider Monkey).
Looking forward BATS’ valuation (PEG 1.85) suggests moderate growth expectations. Focus remains on non-combustible innovation (Vuse, glo) to offset declining cigarette volumes. Debt/Equity at 0.73 and net debt/EBITDA at 2.66 remain manageable but warrant monitoring.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.