BT Group PLC (LON:BT.A) Share Price
Name: BT Group PLC (LON:BT.A)
Description: The current BT (LON:BT.A) share price is 123.65p (as of 01/12/2023 17:39) which is a change of 0.75 or 0.61% from the last closing price of 123.65 with 11,961,535 shares traded giving BT a market capitalisation of £12,295,428,224. The most recent daily high has been 123.95 and daily low 122.1. The BT share price 52 week high has been 165.49 and the 52 week low 109.4. Based on the most recent BT share price opening of 123.65, the current BT EPS (earnings per share) are 0.18 and the PE (price earnings ratio) is 6.7.
Summary
BT Group (LON:BT.A) shares look quite cheap right now. At present, they trade at a big discount to the market. However, cheap stocks are often cheap for a reason and in this case, we have a company with a huge amount of debt on its balance sheet. In a high-interest-rate environment, a large amount of leverage presents a big risk. It’s worth noting that there is an attractive dividend yield on offer here at the moment. However, given the company’s weak balance sheet, investors should approach the stock with caution. 20/11/23
Pros
- Low valuation
- Stock is near 10-year lows
- High dividend yield
Cons
- Large amount of debt on the balance sheet
- Minimal top-line growth
- High capital expenditures (capex)
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Outlook
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Overall
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Is BT Group (LON:BT.A) a good investment in the long term?
Over the past 12 years, BT Group shareholders had to endure a boom-bust cycle akin to a speculative dotcom stock. From a low of 80p, the stock soared 6x to a high of 480p-500p in 2015. Then, the stock collapsed 80 percent to 100p (see below). It was not the magnitude of the drop that
BT Group (LON:BT.A) slumped in 2H of 2022 but tentative buying emerged at 110p-100p As a utility company they are profitable but not highly valued by market Potentially watch to buy when BT share price drops to double-digit It is widely assumed that utility stocks are ‘boring’ and ‘safe’. Nothing could be further from the
Given the glacial pace of its business transformation, BT’s revenue growth has been hard to come by. In 2020, when the economy slowed down due to Covid-19, the utility company even had to cancel dividends (check out BT’s dividend history here). So at the moment, the market is just extrapolating BT’s current results into the