BT Group plc (BT.A) is a leading telecom services business based in the UK. It opened the day at 104.5p after a previous close of 105.5p. During the day the price has varied from a low of 103.0912p to a high of 105.156p. The latest price was 103.45p (25 minute delay). BT Group is listed on the London Stock Exchange (LSE) and employs 105,300 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, BT Group's share price has had significant negative movement.
Its last market close was 107.3p, which is 31.34% down on its pre-crash value of 156.28p and 4.28% up on the lowest point reached during the March crash when the shares fell as low as 102.9p.
If you had bought £1,000 worth of BT Group shares at the start of February 2020, those shares would have been worth £721.07 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £656.91.
|52-week range||94.68p - 212.25p|
|50-day moving average||106.0056p|
|200-day moving average||114.515p|
|Wall St. target price||284.59p|
|Dividend yield||0.15p (13.48%)|
|Earnings per share (TTM)||17.1p|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|3 months (2020-06-19)||-12.74%|
|6 months (2020-03-20)||-17.95%|
Valuing BT Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of BT Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
BT Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 6x. In other words, BT Group shares trade at around 6x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, BT Group's P/E ratio is best considered in relation to those of others within the telecom services industry or those of similar companies.
BT Group's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.9073. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into BT Group's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider BT Group's PEG ratio in relation to those of similar companies.
BT Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £6.5 billion.
The EBITDA is a measure of a BT Group's overall financial performance and is widely used to measure a its profitability.
To put BT Group's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£22.5 billion|
|Operating margin TTM||15.46%|
|Gross profit TTM||£9 billion|
|Return on assets TTM||4.48%|
|Return on equity TTM||13.45%|
|Market capitalisation||£11 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like BT Group.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 24.2
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and BT Group's overall score of 24.2 (as at 08/01/2020) is pretty good – landing it in it in the 25th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like BT Group is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare BT Group's total ESG risk score against those of similar companies.
Environmental score: 6.22/100
BT Group's environmental score of 6.22 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that BT Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 12.25/100
BT Group's social score of 12.25 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that BT Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 11.24/100
BT Group's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that BT Group is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, BT Group scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that BT Group hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||24.2|
|Total ESG percentile||24.56|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||3|
Dividend payout ratio: 88.51% of net profits
Recently BT Group has paid out, on average, around 88.51% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 13.48% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), BT Group shareholders could enjoy a 13.48% return on their shares, in the form of dividend payments. In BT Group's case, that would currently equate to about 0.15p per share.
BT Group's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 24 December 2019 (the "ex-dividend date").
BT Group's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Over the last 12 months, BT Group's shares have ranged in value from as little as 94.68p up to 212.25p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while BT Group's is 0.7048. This would suggest that BT Group's shares are less volatile than average (for this exchange).
To put BT Group's beta into context you can compare it against those of similar companies.
BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, the Asia Pacific, and internationally. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers mobile, broadband, home phone, and TV services under the BT, EE and Plusnet brands. The Enterprise segment sells communications and IT services to businesses and public sector organizations; and provides network products and services to communications providers. Its services include fixed voice, mobile, fixed connectivity, and IT services. The Global segment offers connectivity, communications, and IT services to multinational corporations. Its services include voice and data network, managed, security and network, and IT infrastructure services The Openreach segment builds and sells access to the network that connects the homes and businesses. It provides wholesale ?last mile' fixed access from homes and businesses to exchanges; and installs and maintains fiber and copper communications networks. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.
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