British American Tobacco Stock Buy Hold or Sell Recommendation
| BTAFF Stock | USD 38.42 0.94 2.51% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding British American Tobacco is 'Strong Sell'. Macroaxis provides British American buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BTAFF positions.
Check out British American 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. Note, we conduct extensive research on individual companies such as British and provide practical buy, sell, or hold advice based on investors' constraints. British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.
British |
Execute British American 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 American's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
British American Trading Alerts and Improvement Suggestions
| British American Tobacco has accumulated 38.35 B in total debt with debt to equity ratio (D/E) of 0.61, which is about average as compared to similar companies. British American Tobacco has a current ratio of 0.86, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist British American until it has trouble settling it off, either with new capital or with free cash flow. So, British American'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 American's use of debt, we should always consider it together with cash and equity. |
British American Returns Distribution Density
The distribution of British American's historical returns is an attempt to chart the uncertainty of British American's future price movements. The chart of the probability distribution of British American 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 American returns is essential to provide solid investment advice for British American.
| Mean Return | 0.15 | Value At Risk | -4.19 | Potential Upside | 5.06 | Standard Deviation | 2.60 |
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 American 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 American 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 American 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 American's price will be affected by overall pink sheet 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 pink sheet'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 Jones | 0.06 | |
β | Beta against Dow Jones | 0.60 | |
σ | Overall volatility | 2.64 | |
Ir | Information ratio | 0 |
British American Volatility Alert
British American Tobacco currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure British American's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact British American's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.British American Fundamentals Vs Peers
Comparing British American'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 American's direct or indirect competition across all of the common fundamentals between British American and the related equities. This way, we can detect undervalued stocks with similar characteristics as British American or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of British American's fundamental indicators could also be used in its relative valuation, which is a method of valuing British American by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare British American to competition |
| Fundamentals | British American | Peer Average |
| Return On Equity | 0.0957 | -0.31 |
| Return On Asset | 0.0501 | -0.14 |
| Profit Margin | 0.24 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 140.04 B | 16.62 B |
| Shares Outstanding | 2.24 B | 571.82 M |
| Shares Owned By Insiders | 8.45 % | 10.09 % |
| Shares Owned By Institutions | 53.33 % | 39.21 % |
| Price To Earning | 10.44 X | 28.72 X |
| Price To Book | 1.00 X | 9.51 X |
| Price To Sales | 3.46 X | 11.42 X |
| Revenue | 27.66 B | 9.43 B |
| Gross Profit | 22.85 B | 27.38 B |
| EBITDA | 12.29 B | 3.9 B |
| Net Income | 6.67 B | 570.98 M |
| Cash And Equivalents | 4.14 B | 2.7 B |
| Cash Per Share | 1.83 X | 5.01 X |
| Total Debt | 38.35 B | 5.32 B |
| Debt To Equity | 0.60 % | 48.70 % |
| Current Ratio | 0.88 X | 2.16 X |
| Book Value Per Share | 33.80 X | 1.93 K |
| Cash Flow From Operations | 10.39 B | 971.22 M |
| Earnings Per Share | 3.52 X | 3.12 X |
| Price To Earnings To Growth | 8.74 X | 4.89 X |
| Number Of Employees | 52.08 K | 18.84 K |
| Beta | 0.37 | -0.15 |
| Market Capitalization | 84.21 B | 19.03 B |
| Total Asset | 153.55 B | 29.47 B |
| Retained Earnings | 7.09 B | 9.33 B |
| Working Capital | (1.1 B) | 1.48 B |
| Current Asset | 10.69 B | 9.34 B |
| Current Liabilities | 11.79 B | 7.9 B |
| Z Score | 1.2 | 8.72 |
British American 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 American Buy or Sell Advice
When is the right time to buy or sell British American Tobacco? Buying financial instruments such as British Pink Sheet 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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Additional Information and Resources on Investing in British Pink Sheet
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:Check out British American 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 the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.