NYSE · Consumer Defensive

British American Tobacco p.l.c.

BTI · Tobacco

$58.23

▼ -0.48 (-0.82%)

Data cached · refreshes every 10 min

Mr. Market is currently offering British American Tobacco p.l.c. at $58.23.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 83.5%

Operating Margin 45.5%

Net Income Margin 30.3%

Fin. Health F

Years to Pay Off Debt 4.5 yrs

Working Capital vs Long-Term Debt -$33.2B

Working Capital -$1.8B

Valuation F

Margin of Safety 0.0%

Price-to-Book 2.63x

Cash Flow A

Free Cash Flow $5.6B

CapEx % of Net Income 9.1%

Owner Earnings $10.7B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $126.0B

Enterprise Value $159.0B

P/E (TTM) 12.34

Dividend Yield 4.17%

Exchange NYSE

Key Margins

Gross Profit 83.5%

Operating Margin 45.5%

Net Margin 30.3%

Company Info

Sector Consumer Defensive

Industry Tobacco

Employees 47797

Country United Kingdom

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering British American Tobacco p.l.c. at $58.23.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $58.23, the stock trades at a 40% premium to its Graham Number of $41.71. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About British American Tobacco p.l.c.

British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the United States, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa. The company offers vapour products; heated products, which consists of a battery-powered device and a plant-based substance consumable that is heated; modern oral products, such as nicotine pouches; combustibles, including cigarette sticks and other tobacco stick products; traditional oral products, such as snus and moist snuff; and fine cut/roll-your-own tobacco products. It sells its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, and Camel Snus brands, as well as Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, and State Express 555 brands. The company distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the United Kingdom.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	83.5% ▲	82.9%	83.0%	83.5%	N/A
Operating Margin %	45.5% ▲	41.1%	-31.3%	51.6%	N/A
Net Income %	30.3% ▲	11.9%	-52.7%	24.1%	N/A
Diluted EPS	3.49 ▲	1.36	-6.47	2.92	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$109.3B	$118.9B	$118.7B	$153.5B	N/A
Total Debt	$35.1B ↓	$37.0B	$39.7B	$43.1B	N/A
Working Capital	-$1.8B ▲	-$4.4B	-$1.5B	-$2.4B	N/A
Years to Pay Debt	4.52	12.04	-2.77	6.47	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022
Free Cash Flow	$5.6B ▼	$9.5B	$10.1B	$9.7B
Owner Earnings	$10.7B	$6.7B	$10.2B	$8.6B
CapEx % of Net Income	9.1%	19.8%	N/A	9.8%

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-448,365	-747,198	-1,314,600	-848,274
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	15,890,000	15,788,000	12,037,000	15,481,000
Total Unusual Items	-1,834,000	-7,366,000	-3,211,000	-3,189,000
Total Unusual Items Excluding Goodwill	-2,111,000	-7,405,000	-7,825,000	-3,189,000
Net Income From Continuing Operation Net Minority Interest	7,764,000	3,068,000	-14,367,000	6,666,000
Reconciled Depreciation	2,270,000	3,062,000	24,000,000	1,305,000
Reconciled Cost Of Revenue	4,226,000	4,436,000	4,641,000	4,554,000
EBITDA	14,056,000	8,422,000	8,826,000	12,292,000
EBIT	11,786,000	5,360,000	-15,174,000	10,987,000
Net Interest Income	-1,730,000	-1,588,000	-1,720,000	-1,592,000
Interest Expense	1,927,000	1,822,000	1,887,000	1,663,000
Interest Income	214,000	251,000	186,000	92,000
Normalized Income	9,703,635	9,764,802	-3,242,600	9,006,726
Net Income From Continuing And Discontinued Operation	7,764,000	3,068,000	-14,367,000	6,666,000
Total Expenses	13,951,000	15,234,000	35,816,000	13,376,000
Rent Expense Supplemental	9,000	9,000	14,000	12,000
Total Operating Income As Reported	9,997,000	2,736,000	-15,751,000	10,523,000
Diluted Average Shares	2,199,000	2,225,000	2,229,000	2,267,000
Basic Average Shares	2,187,000	2,214,000	2,229,000	2,256,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	7,677,000	3,026,000	-14,412,000	6,617,000
Net Income Common Stockholders	7,677,000	3,026,000	-14,412,000	6,617,000
Otherunder Preferred Stock Dividend	87,000	42,000	45,000	49,000
Net Income	7,764,000	3,068,000	-14,367,000	6,666,000
Net Income Including Noncontrolling Interests	7,765,000	3,181,000	-14,189,000	6,846,000
Net Income Continuous Operations	7,765,000	3,181,000	-14,189,000	6,846,000
Tax Provision	2,094,000	357,000	-2,872,000	2,478,000
Pretax Income	9,859,000	3,538,000	-17,061,000	9,324,000
Other Non Operating Income Expenses		-10,000	-9,000	-5,000	-3,000
Special Income Charges	-1,599,000	-7,291,000	-7,242,000	-3,628,000
Other Special Charges	1,030,000	7,118,000	2,378,000	3,378,000
Write Off	217,000	134,000	250,000	250,000
Restructuring And Mergern Acquisition	75,000			612,000	0
Net Non Operating Interest Income Expense	-1,730,000	-1,588,000	-1,720,000	-1,592,000
Total Other Finance Cost	17,000	17,000	19,000	21,000
Interest Expense Non Operating	1,927,000	1,822,000	1,887,000	1,663,000
Interest Income Non Operating	214,000	251,000	186,000	92,000
Operating Income	11,659,000	10,633,000	-8,533,000	14,279,000
Operating Expense	9,725,000	10,798,000	31,175,000	8,822,000
Other Operating Expenses	3,265,000	3,727,000	3,467,000	3,863,000
Depreciation And Amortization In Income Statement	2,270,000	3,062,000	24,000,000	1,305,000
Amortization	1,726,000	2,427,000	23,357,000	459,000
Depreciation Income Statement	544,000	635,000	643,000	846,000
Research And Development	133,000	174,000	181,000	138,000
Selling General And Administration	1,123,000	1,141,000	1,181,000	1,189,000
Selling And Marketing Expense	1,092,000	1,111,000	1,152,000	1,160,000
General And Administrative Expense	31,000	30,000	29,000	29,000
Rent And Landing Fees	9,000	9,000	14,000	12,000
Gross Profit	21,384,000	21,431,000	22,642,000	23,101,000
Cost Of Revenue	4,226,000	4,436,000	4,641,000	4,554,000
Total Revenue	25,610,000	25,867,000	27,283,000	27,655,000
Operating Revenue	25,610,000	25,867,000	27,283,000	27,655,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	139,121	140,380	226,486	226,921
Ordinary Shares Number	2,173,334	2,202,445	2,230,456	2,229,947
Share Issued	2,312,455	2,342,825	2,456,942	2,456,867
Net Debt	31,049,000	33,479,000	36,869,000	40,911,000
Total Debt	35,070,000	36,950,000	39,730,000	43,139,000
Tangible Book Value	-39,008,000	-44,633,000	-42,996,000	-53,707,000
Invested Capital	82,467,000	86,008,000	91,798,000	117,990,000
Working Capital	-1,840,000	-4,449,000	-1,487,000	-2,444,000
Net Tangible Assets	-39,008,000	-44,633,000	-42,996,000	-53,707,000
Capital Lease Obligations	529,000	585,000	498,000	517,000
Common Stock Equity	47,926,000	49,643,000	52,566,000	75,368,000
Total Capitalization	79,258,000	81,837,000	87,605,000	113,719,000
Total Equity Gross Minority Interest	48,145,000	49,995,000	52,934,000	75,710,000
Minority Interest	219,000	352,000	368,000	342,000
Stockholders Equity	47,926,000	49,643,000	52,566,000	75,368,000
Other Equity Interest	1,893,000	1,685,000	1,685,000	1,390,000
Fixed Assets Revaluation Reserve	179,000	179,000	179,000	179,000
Treasury Stock	4,383,000	4,408,000	7,096,000	7,116,000
Retained Earnings	27,312,000	26,018,000	31,627,000	51,197,000
Additional Paid In Capital	261,000	251,000	216,000	214,000
Capital Stock	577,000	585,000	614,000	614,000
Common Stock	577,000	585,000	614,000	614,000
Total Liabilities Net Minority Interest	61,145,000	68,904,000	65,782,000	77,836,000
Total Non Current Liabilities Net Minority Interest	46,621,000	50,161,000	50,109,000	59,983,000
Derivative Product Liabilities	124,000	268,000	206,000	502,000
Non Current Pension And Other Postretirement Benefit Plans	801,000	820,000	881,000	949,000
Tradeand Other Payables Non Current	484,000	685,000	893,000	944,000
Non Current Deferred Taxes Liabilities	10,343,000	11,679,000	12,192,000	18,428,000
Long Term Debt And Capital Lease Obligation	31,708,000	32,638,000	35,406,000	38,726,000
Long Term Capital Lease Obligation	376,000	444,000	367,000	375,000
Long Term Debt	31,332,000	32,194,000	35,039,000	38,351,000
Long Term Provisions	3,161,000	4,071,000	531,000	434,000
Current Liabilities	14,524,000	18,743,000	15,673,000	17,853,000
Current Debt And Capital Lease Obligation	3,362,000	4,312,000	4,324,000	4,413,000
Current Capital Lease Obligation	153,000	141,000	131,000	142,000
Current Debt	3,209,000	4,171,000	4,193,000	4,271,000
Current Provisions	608,000	3,044,000	468,000	1,087,000
Payables	10,457,000	11,231,000	10,692,000	11,498,000
Total Tax Payable	1,129,000	1,681,000	992,000	1,049,000
Accounts Payable	9,328,000	9,550,000	9,700,000	10,449,000
Total Assets	109,290,000	118,899,000	118,716,000	153,546,000
Total Non Current Assets	96,606,000	104,605,000	104,530,000	138,137,000
Defined Pension Benefit	880,000	937,000	956,000	1,000,000
Non Current Deferred Taxes Assets	2,032,000	2,573,000	911,000	682,000
Financial Assets	135,000	110,000	109,000	131,000
Other Investments	333,000	146,000
Investmentin Financial Assets	333,000	146,000	118,000	121,000
Available For Sale Securities	277,000	65,000	67,000	60,000
Financial Assets Designatedas Fair Value Through Profitor Loss Total	56,000	81,000	51,000	61,000
Long Term Equity Investment	1,521,000	1,902,000	1,970,000	2,020,000
Goodwill And Other Intangible Assets	86,934,000	94,276,000	95,562,000	129,075,000
Other Intangible Assets	48,017,000	53,147,000	54,471,000	81,119,000
Goodwill	38,917,000	41,129,000	41,091,000	47,956,000
Net PPE	4,483,000	4,379,000	4,583,000	4,867,000
Accumulated Depreciation	-4,793,000	-4,473,000	-4,461,000	-4,639,000
Gross PPE	9,276,000	8,852,000	9,044,000	9,506,000
Construction In Progress	650,000	601,000	654,000	767,000
Other Properties	1,834,000	1,797,000	1,793,000	1,837,000
Machinery Furniture Equipment	5,909,000	5,566,000	5,702,000	5,962,000
Buildings And Improvements	883,000	888,000	895,000	940,000
Current Assets	12,684,000	14,294,000	14,186,000	15,409,000
Hedging Assets Current	162,000	186,000	181,000	430,000
Assets Held For Sale Current	25,000	11,000	14,000	767,000
Restricted Cash	335,000	2,411,000	2,296,000	1,735,000
Inventory	4,382,000	4,616,000	4,938,000	5,671,000
Finished Goods	2,360,000	2,560,000	2,740,000	3,301,000
Raw Materials	2,022,000	2,056,000	2,198,000	2,370,000
Taxes Receivable	470,000	67,000	172,000	149,000
Accounts Receivable	3,802,000	3,604,000	3,621,000	4,367,000
Cash Cash Equivalents And Short Term Investments	3,508,000	3,399,000	2,964,000	2,290,000
Other Short Term Investments	16,000	513,000	601,000	579,000
Cash And Cash Equivalents	3,492,000	2,886,000	2,363,000	1,711,000
Cash Equivalents				330,000	280,000
Cash Financial				3,116,000	2,529,000

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	5,638,000	9,517,000	10,113,000	9,738,000
Repurchase Of Capital Stock	-1,173,000	-792,000	-110,000	-2,092,000
Repayment Of Debt	-3,932,000	-4,826,000	-6,769,000	-3,044,000
Issuance Of Debt	3,814,000	2,404,000	5,134,000	3,267,000
Capital Expenditure	-704,000	-608,000	-601,000	-656,000
End Cash Position	3,787,000	5,104,000	4,517,000	3,337,000
Other Cash Adjustment Outside Changein Cash	-208,000		368,000	-368,000
Beginning Cash Position	5,104,000	4,517,000	3,337,000	2,463,000
Effect Of Exchange Rate Changes	-76,000	-281,000	-292,000	431,000
Changes In Cash	-1,033,000	868,000	1,104,000	811,000
Financing Cash Flow	-8,762,000	-10,632,000	-9,314,000	-8,878,000
Net Other Financing Charges	-231,000	-123,000	-476,000	-112,000
Interest Paid Cff	-1,725,000	-1,796,000	-1,771,000	-1,663,000
Cash Dividends Paid	-5,238,000	-5,213,000	-5,055,000	-4,915,000
Common Stock Dividend Paid	-5,238,000	-5,213,000	-5,055,000	-4,915,000
Net Common Stock Issuance	-1,173,000	-792,000	-110,000	-2,092,000
Common Stock Payments	-1,173,000	-792,000	-110,000	-2,092,000
Net Issuance Payments Of Debt	-118,000	-2,422,000	-1,635,000	223,000
Net Long Term Debt Issuance	-118,000	-2,422,000	-1,635,000	223,000
Long Term Debt Payments	-3,932,000	-4,826,000	-6,769,000	-3,044,000
Long Term Debt Issuance	3,814,000	2,404,000	5,134,000	3,267,000
Investing Cash Flow	1,387,000	1,375,000	-296,000	-705,000
Net Other Investing Changes	1,000
Interest Received Cfi	201,000	187,000	145,000	85,000
Dividends Received Cfi	1,000	0	0
Net Investment Purchase And Sale	794,000	83,000	-43,000	-129,000
Sale Of Investment	848,000	299,000	405,000	128,000
Purchase Of Investment	-54,000	-216,000	-448,000	-257,000
Net Business Purchase And Sale	1,027,000	1,529,000	122,000	-39,000
Sale Of Business	1,056,000	1,577,000	159,000	0
Purchase Of Business	-29,000	-48,000	-37,000	-39,000
Net Intangibles Purchase And Sale	-122,000	-83,000	-114,000	-130,000
Sale Of Intangibles	31,000	39,000	27,000	3,000
Purchase Of Intangibles	-153,000	-122,000	-141,000	-133,000
Net PPE Purchase And Sale	-514,000	-341,000	-406,000	-492,000
Sale Of PPE	37,000	145,000	54,000	31,000
Purchase Of PPE	-551,000	-486,000	-460,000	-523,000
Operating Cash Flow	6,342,000	10,125,000	10,714,000	10,394,000
Taxes Refund Paid	-2,926,000	-1,854,000	-2,622,000	-2,537,000
Dividend Received Cfo	369,000	406,000	506,000	394,000
Change In Working Capital	-3,909,000	5,776,000	-469,000	103,000
Change In Payable	-286,000	-236,000	353,000	-142,000
Change In Inventory	112,000	35,000	265,000	-246,000
Change In Receivables	-295,000	-269,000	-487,000	-42,000
Other Non Cash Items	1,931,000	958,000	2,185,000	2,198,000
Deferred Tax	2,094,000	357,000	-2,872,000	2,478,000
Depreciation And Amortization	2,270,000	3,062,000	24,000,000	1,305,000
Amortization Cash Flow	1,726,000	2,427,000	23,357,000	459,000
Depreciation	544,000	635,000	643,000	846,000
Gain Loss On Investment Securities	525,000	109,000	595,000	-475,000
Net Foreign Currency Exchange Gain Loss	-373,000	-9,000	-449,000	524,000
Net Income From Continuing Operations	7,765,000	3,181,000	-14,189,000	6,846,000

These metrics estimate what British American Tobacco p.l.c. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$41.71

Margin of Safety

Market Cap ÷ Company Value

1.65

P/B Ratio

2.63

Warren's Owner Earnings

$10.7B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$25.6B

vs > $1.5B revenue

❌ Strong Financial Condition

0.87x

vs Current Ratio > 2.0x

❌ Earnings Stability

1 loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

4.17%

vs Uninterrupted dividends

❌ Earnings Growth

+19.6% EPS growth

vs > 33% EPS growth

✅ Moderate P/E Ratio

12.3x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

2.63x P/B (P/E×P/B: 32.4)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-22.40

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$59.87

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022
Capital Expenditure % of Net Income	9.1%	19.8%	N/A	9.8%
Repurchase of Capital Stock	-$1.2B	-$792M	-$110M	-$2.1B
Free Cash Flow	$5.6B ▼	$9.5B ▼	$10.1B ▲	$9.7B •
Warren's Owner Earnings	$10.7B	$6.7B	$10.2B	$8.6B

Peers & Industry

No auto-detected peers for Tobacco. You can manually compare BTI against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.10%

Low — management has little skin in the game

Return on Equity (ROE)

16.2%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

7.1%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-5.1% YoY

Debt is declining — management is deleveraging

Leadership Team

Tadeu Luiz Marroco

CEO, Member of Management Board & Executive Director

Age 59

Pay: $6,275,289

0.081% of net income

Syed Javed Iqbal

Interim CFO, Director of Digital & Information and Member of Management Board

Age 52

Johan Vandermeulen

COO & Member of Management Board

Age 57

Top Institutional Holders

Institution	% Owned	Shares
Capital International Investors	2.97%	64,389,481
FMR, LLC	1.43%	31,095,442
GQG Partners LLC	1.29%	28,062,747
Capital Research Global Investors	1.03%	22,333,402
Blackrock Inc.	0.49%	10,627,783
Capital World Investors	0.44%	9,518,567
Orbis Allan Gray Ltd	0.43%	9,300,901
Bank of America Corporation	0.33%	7,242,267

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.12

Low volatility — more stable than the market

Short Interest

0.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.73x

Conservative balance sheet — low financial risk

Current Ratio