BT Group plc (BT.A) AI Stock Analysis

• Market Cap: £16.21B
• Dividend Yield: 4.88%
• Average Volume (3M): 22.11M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.84
• Revenue Growth: -0.75%
• EPS Growth: -58.92%
• Country: UK
• Employees: 91,700
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 0.08
• Shares Outstanding: 9,956,837,000
• 10 Day Avg. Volume: 22,784,988
• 30 Day Avg. Volume: 22,113,214
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.80
• Price to Cash Flow (P/CF): 2.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £185.80
• Price Target Upside: 10.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

BT Group's stock score of 66 is driven by solid technical momentum and positive corporate events, offset by financial performance challenges and valuation concerns. The company's high leverage and declining revenues pose risks, while strategic achievements and a high dividend yield provide some counterbalance. Investors should consider both the growth potential from ongoing modernization efforts and the pressures from high debt and competitive market conditions.

BT Group plc Business Overview & Revenue Model

Company Description

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers landline, mobile, broadband, and TV services under the BT, EE, and Plusnet brands. The Enterprise segment provides network solutions to communications providers; and sells communications and IT services to businesses and public sector organizations. Its services include fixed voice, mobile, fixed connectivity, and IT services. The Global segment secures and manages network and cloud infrastructure and services for multinational corporations. It also offers voice and data network services, such as managed, security and network, and IT infrastructure services. The Openreach segment provides fixed connectivity access network that connects homes, mobile phone masts, schools, shops, banks, hospitals, libraries, broadcasters, governments, and big and small businesses. This segment also offers last mile, a service over the local access network; and installs and maintains fiber and copper communications networks from exchanges to homes and businesses. BT Group has strategic partnership with Microsoft. 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.

How the Company Makes Money

BT Group plc generates revenue through multiple streams. The company's primary revenue comes from its Consumer segment, which includes broadband, mobile, and telecommunication services to residential customers. Additionally, BT's Enterprise segment provides managed network services, IT services, and fixed and mobile services to businesses. The Global segment offers communication and IT services to multinational corporations, while Openreach is responsible for managing and maintaining the UK's digital network infrastructure, earning revenue by charging telecommunication service providers for network access. Significant partnerships with technology firms and government contracts also contribute to BT's earnings, enhancing its service offerings and expanding its customer base.

BT Group plc Financial Statement Overview

Summary

BT Group faces challenges with declining revenue and profitability pressures, reflected in its income statement metrics. The balance sheet shows high leverage, which poses risks in a competitive market. Cash flow remains strong, but high capital expenditures limit free cash availability. The company needs to focus on improving profitability and reducing debt levels to enhance financial stability and shareholder returns.

Income Statement

BT Group's revenue has shown a slight decline over recent years, reflecting the competitive pressures in the telecommunications industry. The gross profit margin stands at 46.7% for 2024, which is decent but has decreased from previous years. The net profit margin for 2024 is 4.1%, indicating reduced profitability compared to previous periods due to factors like increased operational costs. EBIT and EBITDA margins are stable, yet there's a notable decline in EBITDA from 2023 to 2024, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.88 in 2024, indicating significant leverage. Stockholders' equity has decreased over the past year, while total liabilities remain substantial. The equity ratio is 24.2%, highlighting moderate reliance on equity financing. Return on equity (ROE) is low at 6.8% for 2024, reflecting challenges in generating returns for shareholders amidst debt pressures.

Cash Flow

Operating cash flow remains robust, but free cash flow has decreased significantly to 984 million in 2024 from previous years. The operating cash flow to net income ratio is high, indicating strong cash generation relative to profitability, but the free cash flow to net income ratio is low, suggesting limited cash available after capital expenditures. Overall, the cash flow situation is stable but constrained by high capital expenditures.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
20.80B	20.68B	20.85B	21.33B	22.91B
	Gross Profit
9.71B	15.17B	13.78B	13.80B	15.72B
	EBIT
2.21B	2.62B	2.88B	2.59B	3.28B
	EBITDA
6.46B	7.47B	7.23B	6.88B	7.55B
	Net Income Common Stockholders
855.00M	1.91B	1.27B	1.47B	1.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.31B	3.94B	3.46B	4.65B	6.60B
	Total Assets
51.74B	52.75B	49.77B	50.88B	53.07B
	Total Debt
23.48B	23.88B	21.95B	22.84B	25.89B
	Net Debt
23.07B	23.49B	21.17B	21.84B	24.39B
	Total Liabilities
39.22B	38.24B	34.48B	39.20B	38.30B
	Stockholders Equity
12.52B	14.51B	15.30B	11.68B	14.76B
Cash Flow		Free Cash Flow
984.00M	1.42B	1.30B	1.06B	2.17B
	Operating Cash Flow
5.95B	6.72B	5.91B	5.96B	6.27B
	Investing Cash Flow
-3.54B	-6.40B	-3.56B	-3.24B	-5.65B
	Financing Cash Flow
-2.43B	-636.00M	-2.56B	-3.22B	-807.00M

BT Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Positive. The current price of 168.2 is above the 20-day moving average (MA) of 163.31, above the 50-day MA of 158.17, and above the 200-day MA of 145.55, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BT.A.

BT Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOD	70 Outperform	£17.57B	8.69	4.36%	8.05%	-27.41%	-76.23%
BT.A	66 Neutral	£16.21B	21.16	5.85%	4.88%	-0.75%	-58.92%
Sector *	58 Neutral	$13.15B	6.73	-2.46%	3.87%	2.36%	-36.74%

BT Group plc Corporate Events

BT Group plc Sees Change in Major Holdings as Morgan Stanley’s Stake Falls Below 5%

BT Group plc has announced a change in its major holdings, as Morgan Stanley’s total applicable holding in the company has dropped below the 5% threshold. This change was triggered by Morgan Stanley’s application of the trading book exemption, resulting in a remaining applicable holding of 4.997849% as of April 11, 2025. This adjustment in holdings could have implications for BT Group’s market positioning and stakeholder interests.

Spark’s Take on GB:BT.A Stock

According to Spark, TipRanks’ AI Analyst, GB:BT.A is a Neutral.

BT Group’s stock score of 66 is driven by solid technical momentum and positive corporate events, offset by financial performance challenges and valuation concerns. The company’s high leverage and declining revenues pose risks, while strategic achievements and a high dividend yield provide some counterbalance. Investors should consider both the growth potential from ongoing modernization efforts and the pressures from high debt and competitive market conditions.

To see Spark’s full report on GB:BT.A stock, click here.

BT Group Announces Total Voting Rights for March 2025

BT Group plc announced that as of 31 March 2025, its capital comprised 9,968,127,681 ordinary shares with voting rights, with 11,290,418 held as treasury shares. This results in a total of 9,956,837,263 voting rights, which shareholders can use as a reference for determining their notification requirements under the FCA’s rules.

Morgan Stanley Reduces Stake in BT Group Below 5%

Morgan Stanley has reduced its holdings in BT Group plc, dropping below the 5% threshold of voting rights, which triggered a notification. This change in holdings led Morgan Stanley to apply the trading book exemption to its remaining applicable holding of 4.980864% as of February 28, 2025, indicating a shift in their investment strategy regarding BT Group.

BT Group Announces Total Voting Rights for February 2025

BT Group plc announced that as of 28 February 2025, its capital comprised 9,968,127,681 ordinary shares with voting rights, with 11,290,418 held as treasury shares. This brings the total number of voting rights to 9,956,837,263, a figure important for shareholders to determine their notification obligations under the FCA’s rules.

Morgan Stanley Acquires Significant Stake in BT Group

BT Group plc has announced a significant change in its shareholder structure, with Morgan Stanley acquiring a substantial portion of voting rights through various financial instruments. This acquisition, which sees Morgan Stanley holding over 5% of voting rights, could influence BT Group’s strategic decisions and impact its market positioning, reflecting the growing interest of major financial institutions in the company’s operations.

Morgan Stanley Reduces Stake in BT Group Below 5%

Morgan Stanley has reduced its holdings in BT Group PLC to below 5%, triggering a notification requirement. This change reflects an application of the trading book exemption to its remaining stake of 4.99%, as of February 13, 2025, potentially impacting BT Group’s shareholder composition and market perception.

Morgan Stanley Increases Stake in BT Group

Morgan Stanley has increased its stake in BT Group plc through a combination of direct voting rights and financial instruments, reaching a total of 5.025% of voting rights. This acquisition, primarily through equity swaps and options, suggests a strategic interest in BT’s operations, potentially impacting the company’s market positioning and signaling confidence from a significant institutional investor.

Morgan Stanley’s Stake in BT Group Drops Below 5%

BT Group plc has announced a change in the voting rights held by Morgan Stanley, with the investment bank’s total holding falling below the 5% threshold to 4.99% as of February 7, 2025. This adjustment has prompted Morgan Stanley to apply a trading book exemption to its remaining holdings, indicating a significant shift in stakeholder engagement and potentially impacting BT Group’s market positioning.

BT Executives Reinvest Dividends, Show Confidence in Company

BT Group plc announced transactions involving key executives, including CEO of Business, Bas Burger, and Group General Counsel, Sabine Chalmers. Both executives reinvested dividends into additional shares, indicating confidence in the company’s future performance. These transactions are part of the company’s compliance with the EU Market Abuse Regulation, reflecting transparency and alignment with shareholder interests.

BT Group Executives Reinvest Dividends in Shares

BT Group plc announced the reinvestment of dividends into further shares by key executives, including CEO Consumer Marc Allera, Group General Counsel Sabine Chalmers, and Chief Security and Networks Officer Howard Watson, under the BT Group Employee Share Investment Plan. This move, conducted at a price of £1.47 per share, reflects the company’s strategy to align management interests with shareholder value, potentially strengthening stakeholder confidence and impacting market perceptions positively.

BT Group plc Announces Total Voting Rights for January 2025

BT Group plc has announced that as of January 31, 2025, its capital consists of 9,968,127,681 ordinary shares with voting rights, excluding 11,290,418 shares held in treasury, resulting in a total of 9,956,837,263 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they report their interests or changes in interests in the company.

BT Group’s Modernization Drives Progress Amidst Challenging Conditions

BT Group has reported significant progress in its modernization efforts, achieving increased fibre build, customer satisfaction, and EBITDA growth despite lower revenue outside the UK and weak handset sales. Notably, Openreach achieved a record full fibre build for the fourth consecutive quarter, while the Consumer division returned to service revenue growth. The company is focused on the UK market, with a strategic sale of its data centre business in Ireland, and has appointed Jon James as the CEO of a UK-centric BT Business. BT Group remains on track with its financial outlook, projecting substantial cash flow growth by the end of the decade.