BT Group plc
BT Group plc Fundamental Analysis
BT Group plc (BTGOF) shows weak financial fundamentals with a PE ratio of 29.78, profit margin of 4.42%, and ROE of 5.29%. The company generates $15.0B in annual revenue with weak year-over-year growth of 0.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BTGOF's fundamental strength across five key dimensions:
Efficiency Score
WeakBTGOF struggles to generate sufficient returns from assets.
Valuation Score
WeakBTGOF trades at a premium to fair value.
Growth Score
WeakBTGOF faces weak or negative growth trends.
Financial Health Score
WeakBTGOF carries high financial risk with limited liquidity.
Profitability Score
WeakBTGOF struggles to sustain strong margins.
Key Financial Metrics
Is BTGOF Expensive or Cheap?
P/E Ratio
BTGOF trades at 29.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BTGOF's PEG of 2.33 indicates potential overvaluation.
Price to Book
The market values BT Group plc at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.62 times EBITDA. This is generally considered low.
How Well Does BTGOF Make Money?
Net Profit Margin
For every $100 in sales, BT Group plc keeps $4.42 as profit after all expenses.
Operating Margin
Core operations generate 11.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.29 in profit for every $100 of shareholder equity.
ROA
BT Group plc generates $1.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BT Group plc generates strong operating cash flow of $5.37B, reflecting robust business health.
Free Cash Flow
BT Group plc generates strong free cash flow of $1.74B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.18 in free cash annually.
FCF Yield
BTGOF converts 9.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BTGOF Stacks Against Its Sector Peers
| Metric | BTGOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.78 | 21.66 | Worse (Expensive) |
| ROE | 5.29% | 1190.00% | Weak |
| Net Margin | 4.42% | -55754.00% (disorted) | Weak |
| Debt/Equity | 1.81 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.81 | 1.59 | Weak Liquidity |
| ROA | 1.33% | -202359.00% (disorted) | Weak |
BTGOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BT Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.75%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-60.63%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
39.05%
Industry Style: Growth, Technology, Streaming
High Growth