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Let's Talk About British American Tobacco


British American Tobacco has outperformed the S&P 500 since 1980.

BTI split 2/1 of February 14, 2017.

BTI is up 20.51% in the past 52 weeks.

It is no secret that I like the tobacco stocks.  Philip Morris has been my best performing stock since 1970.

So I decided to do a little research on British American Tobacco.

The 52-week price range of BTI was 58.38 to 73.41.  It is now 67.79.

The return on equity is 62.78%.  Market cap is 151.42 billion.  Trailing P/E is 21.99.  Beta is 0.82.  The price to book is 12.03.

The adjusted closing price of BTI in 1980 was 8 cents a share.  Now it is 67.79.  So it has substantially outperformed the S&P 500 over the past 38 years.

During the financial crisis on March 1, 2009, BTI was priced at 15.86.

BTI has been growing through acquisitions.  Not long ago it acquired Reynolds American.

Of course, the tobacco stocks face some headwinds.  Several countries have restricted the way that tobacco can be packaged and advertised.

British American Tobacco is on my watch list.  I am not a shareholder at this time.  But if the price falls substantially, particularly if it falls below 55, I would consider investing in it.

Disclosure: I am/we are long PM.