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British American Tobacco KenyaNAI:BAT -0.17%69 Gross Margin % is 57.55% as of Dec. 2025, which is 36% above its 10-year median of 42.36. GuruFocus rates NAI:BAT with a GF Score™ of 69/100 and a GF Value™ of KES355.31 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 47 Tobacco Products companies, British American Tobacco Kenya ranks better than 68.09% on this metric.
British American Tobacco Kenya (NAI:BAT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
British American Tobacco Kenya had a gross margin of 57.55% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
British American Tobacco Kenya Gross Margin % Related Terms
British American Tobacco Kenya Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
British American Tobacco Kenya Gross Margin % Chart
For the Tobacco subindustry, British American Tobacco Kenya's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
British American Tobacco Kenya Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco Kenya's Gross Margin % distribution charts can be found below:
* The bar in red indicates where British American Tobacco Kenya's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
British American Tobacco Kenya (NAI:BAT) has a Gross Margin % of 57.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on British American Tobacco Kenya and its competitors. This is 36% above median its historical median of 42.36. Over the past decade, British American Tobacco Kenya's Gross Margin % has ranged from 39.30 to 48.89. According to the industry distribution chart, British American Tobacco Kenya ranks #15 out of 47 companies in the Tobacco Products industry, placing it in the top 31.9%.
Is British American Tobacco Kenya's Gross Margin % too high?
British American Tobacco Kenya's current Gross Margin % of 57.55% is 36% above median its 10-year median of 42.36. Over the past 10 years, this metric has ranged from a low of 39.30 to a high of 48.89. The Tobacco Products industry median Gross Margin % is 33.29. British American Tobacco Kenya's value of 57.55% is 72.9% above this industry median. Based on the distribution chart, British American Tobacco Kenya ranks #15 out of 47 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, British American Tobacco Kenya has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco Kenya's Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco Kenya ranks #15 out of 47 companies for Gross Margin %. This puts British American Tobacco Kenya in the upper half of its industry. The industry median Gross Margin % is 33.29. British American Tobacco Kenya's value of 57.55% is 72.9% above this benchmark. Historically, British American Tobacco Kenya's own Gross Margin % has ranged from 39.30 to 48.89 over the past decade. While the company's 10-year median is 42.36 vs. the industry median of 33.29, British American Tobacco Kenya has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco Kenya's current Gross Margin % of 57.55% is 72.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on British American Tobacco Kenya and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco Kenya's current Gross Margin % is 57.55%, which is 36% above median its own 10-year median of 42.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco Kenya stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco Kenya (NAI:BAT) is currently considered Significantly Overvalued. The stock's GF Value™ is KES355.31, compared to a current price of KES579.00 — trading 63% above its estimated fair value. The current Gross Margin % is 57.55%, which is 36% above median its 10-year median of 42.36 and 72.9% above the Tobacco Products industry median of 33.29. British American Tobacco Kenya's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For British American Tobacco Kenya (NAI:BAT), the current Gross Margin % is 57.55% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is British American Tobacco Kenya (NAI:BAT) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco Kenya stock appears to be overvalued.
The current stock price of KES579.00 is trading 63% above its estimated GF Value™ of KES355.31.
GuruFocus considers British American Tobacco Kenya to be Significantly Overvalued.
Key valuation signals for NAI:BAT:
Gross Margin %: 57.55% (36% above median its 10-year median of 42.36)
GF Value™: KES355.31 vs. price of KES579.00 (63% above fair value)
Industry Position: 72.9% above the Tobacco Products median (#15 of 47)
No single metric tells the full story. See the NAI:BAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
British American Tobacco Kenya Business Description
British American Tobacco Kenya PLC multi-category consumer goods business that operates internationally. The business activities of the company involves activities ranging from the growing of tobacco leaf to the distribution and sale of finished tobacco products and nicotine products without tobacco. The product portfolio of the company comprises a range of high-quality and creative products, including cigarettes (combustible products), cut-rug tobacco (unprocessed tobacco), and potentially reduced-risk category of tobacco-free oral nicotine products.
69GF Score
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