|Bid||32.58 x 45500|
|Ask||32.74 x 50000|
|Day's Range||32.58 - 33.37|
|52 Week Range||27.10 - 47.35|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||1.48|
|Forward Dividend & Yield||2.38 (7.14%)|
|1y Target Est||N/A|
British American Tobacco reported better than expected first half sales on Thursday, helped by higher demand for e-cigarettes and tobacco heating products, and said revenue growth would accelerate in the second half of the year. The Lucky Strike and Dunhill cigarette maker, which is the world's No. 2 tobacco company by sales, said it was on track to deliver high single digit constant currency-adjusted earnings growth this year, even as it invests more money into its brands. It said growth came mainly from new categories that include modern oral products - small nicotine pouches applied on gums - e-cigarettes and tobacco heating devices, with their total revenue rising 27% to 531 million pounds in the first half.
Contrary to conventional wisdom, you don't need a hefty trust fund or deep pockets like mutual funds and other institutional players to start investing.
BTI's dividend yield has flared to 7% as the stock price has dipped about 30% recently -- a drag for existing shareholders but a burning opportunity for new investors.
The Morningstar U.S. Consumer Defensive Index gained 5% quarter to date through June 21, in line with the 3% uptick in the broader market (Exhibit 1). Sector performance has strengthened over the last three months - source: Morningstar Analysts As a whole, the sector isn't terribly attractive valuation-wise.
British American Tobacco said in a news release Wednesday that it expects global industry volume to be down by around 3.5 percent in 2019. Despite a guide for lower volume shipments, British American said it remains on track for constant currency revenue growth in the mid-to-upper half of its long-term guidance of 3-5 percent.
The warning highlighted the challenges dogging the tobacco industry as smokers, particularly in the United States, turn to less harmful alternatives such as e-cigarettes and vaping products. The maker of Lucky Strike and Dunhill cigarettes said it expects global industry volumes to fall around 3.5% this year, compared with its earlier estimate of a 3% drop. BAT said it would invest further in what it calls its "New Category" business and announced plans to consolidate the portfolio, which makes tobacco heating product glo and Vype e-cigarettes as well as snuff and nicotine pouches.
The maker of Lucky Strike and Dunhill cigarettes forecast global industry volumes to fall around 3.5% this year, with the U.S. expected to decline 4%-5%. Demand for cigarettes has been slowing, particularly in the United States, as smokers turn to alternatives such as e-cigarettes and vaping products, prompting companies to rapidly expand their non-cigarette products. BAT said it would invest further in what it calls its "New Category" business and announced plans to consolidate the portfolio, which makes tobacco heating product glo and Vype e-cigarettes as well as snuff and nicotine pouches.
Under FDA regulation of e-cigarettes that began in 2016, e-cigarettes, known by the agency as electronic nicotine delivery systems, or ENDS, that were already on the market had to apply for FDA approval to remain available after August 2021.
Brazil is suing Philip Morris International and British American Tobacco over the financial toll of smoking. The Brazilian attorney general's office is seeking reimbursement for costs over the past five years, as well as future costs, of treating patients with 26 tobacco-related diseases. Public health groups praised Brazil's lawsuit.
Brazil is suing the world's largest cigarette makers, British American Tobacco Plc and Philip Morris International, in a landmark case aimed at recovering the public health treatment costs of tobacco-related diseases over the last five years. The Brazilian solicitor general's office, known as the AGU, announced the lawsuit late on Tuesday against the two multinational companies and their Brazilian subsidiaries, who produce most of the cigarettes sold in the country. The suit seeks to recover the cost of treating patients for 26 illnesses related to smoking tobacco or coming into contact with cigarette smoke, the AGU said in a statement.
Altria, Juul and British American Tobacco — the largest U.S. cigarette and e-cigarette manufacturers — are supporting raising the smoking age to 21. Regulators are pressuring them to fix what they're calling an epidemic of teen vaping.
Battered by headwinds from changing consumer habits and a heavy-handed FDA, BTI is down. If the fundamentals check out, this could be a value buy for investors.