(BMT) British American Tobacco - Ratings and Ratios

British American Tobacco p.l.c is a multinational tobacco company operating globally, offering a diverse range of products including vapour, heated, and modern oral nicotine products, combustible cigarettes, and traditional oral products. The companys product portfolio is marketed under several well-known brands, such as Vuse, glo, Velo, and Camel, and is distributed to retail outlets worldwide.

From a business perspective, the companys diversification into non-combustible products is a strategic move to adapt to changing consumer preferences and regulatory environments. Key performance indicators (KPIs) to watch include revenue growth from non-combustible products, market share in key regions, and the companys ability to innovate and expand its product offerings. The companys return on equity (RoE) is currently negative, indicating potential underlying issues that need to be addressed.

Analyzing the companys valuation, the price-to-earnings (P/E) ratio is 26.04, while the forward P/E is significantly lower at 10.25, suggesting expected earnings growth. The market capitalization stands at approximately 90 billion EUR, indicating a large-cap stock with potentially lower volatility. However, the negative RoE of -24.75% raises concerns about the companys profitability and ability to generate returns for shareholders.

To further evaluate the investment potential of British American Tobacco p.l.c, it is essential to monitor the companys progress in transitioning to non-combustible products, its pricing power, and the impact of regulatory changes on its business. Additionally, investors should keep an eye on the companys dividend policy, as tobacco companies have historically been known for their attractive dividend yields.