British Stock Buy Hold or Sell Recommendation

BTI
 Stock
  

USD 35.50  0.48  1.33%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding British American Tobacco is 'Hold'. Macroaxis provides British Amer buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BTI positions. The advice algorithm takes into account all of British Amer's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from British Amer's buy-and-hold perspective. Continue to 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. We conduct extensive research on individual companies such as British and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards British American Tobacco.

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

Execute Advice
Sell British AmerBuy British Amer
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon British American Tobacco has a Risk Adjusted Performance of (0.22), Jensen Alpha of (0.24), Total Risk Alpha of (0.15) and Treynor Ratio of (0.50)
British Amer advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure British Amer is not overpriced, please confirm all British American Tobacco fundamentals, including its net income, short ratio, and the relationship between the price to sales and debt to equity . Given that British American Tobacco has a price to earning of 9.36 X, we suggest you to validate British American Tobacco market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

British Amer Trading Alerts and Improvement Suggestions

British Amer generated a negative expected return over the last 90 days
The company has 44.88 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. Debt can assist British Amer until it has trouble settling it off, either with new capital or with free cash flow. So, British Amer's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like British American Tobacco sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for British to invest in growth at high rates of return. When we think about British Amer's use of debt, we should always consider it together with cash and equity.
On 22nd of August 2022 British Amer paid $ 0.7404 per share dividend to its current shareholders
Latest headline from seekingalpha.com: The Market Is Wrong About British American Tobaccos 7.8 percent Yield - Seeking Alpha

British Amer current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. British analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. British analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price53.30
Target Median Price53.30
Target High Price55.00
Recommendation Mean1.00
Number Of Analyst Opinions2
Target Low Price51.61
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

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 stock 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-0.31Value At Risk-3.32
Potential Upside1.64Standard Deviation1.58
   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

Have you ever been surprised when a price of an equity instrument such as British Amer is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading British American Tobacco backward and forwards among themselves. British Amer's institutional investor refers to the entity that pools money to purchase British Amer's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Gqg Partners LlcCommon Shares34.1 M1.5 B
Orbis Allan Gray LtdCommon Shares13.7 M586.8 M
Capital International InvestorsCommon Shares9.6 M414.2 M
Bank Of America CorpCommon Shares7.9 M340.7 M
Capital World InvestorsCommon SharesM213.7 M
Morgan StanleyCommon Shares4.7 M202.5 M
Blackrock IncCommon Shares4.6 M197.9 M
Note, although British Amer's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

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 Consumer Defensive 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
-0.24
β
Beta against DOW0.63
σ
Overall volatility
1.48
Ir
Information ratio -0.12

British Amer Volatility Alert

British American Tobacco exhibits very low volatility with skewness of -1.13 and kurtosis of 2.64. However, we advise investors to further study British American Tobacco technical indicators to ensure that all market info is available and is reliable. 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 stocks 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
FundamentalsBritish AmerPeer Average
Return On Equity8.14 %(0.31) %
Return On Asset4.72 %(0.14) %
Profit Margin20.51 %(1.27) %
Operating Margin45.14 %(5.51) %
Current Valuation129.65 B16.62 B
Shares Outstanding2.29 B571.82 M
Shares Owned by Insiders0.27 %10.09 %
Shares Owned by Institutions6.83 %39.21 %
Number of Shares Shorted2.9 M4.71 M
Price to Earning9.36 X28.72 X
Price to Book1.33 X9.51 X
Price to Sales3.16 X11.42 X
Revenue26.38 B9.43 B
Gross Profit21.09 B27.38 B
EBITDA11.91 B3.9 B
Net Income5.38 B570.98 M
Cash and Equivalents4.14 B2.7 B
Cash per Share1.83 X5.01 X
Total Debt44.88 B5.32 B
Debt to Equity0.60 %48.70 %
Current Ratio0.88 X2.16 X
Book Value Per Share27.35 X1.93 K
Cash Flow from Operations10.68 B971.22 M
Short Ratio0.99 X4.00 X
Earnings Per Share3.88 X3.12 X
Number of Employees54.37 K18.84 K
Beta0.46-0.15
Market Capitalization83.23 B19.03 B
Total Asset36.24 B29.47 B
Retained Earnings38.41 B9.33 B
Working Capital(1.1 B)1.48 B
Current Asset10.69 B9.34 B
Current Liabilities11.79 B7.9 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.

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.

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Exotic
Exotic Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic theme has 40 constituents at this time.
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Continue to 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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Is British Amer's industry 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.
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 British Amer value 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.