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British American Tobacco KenyaNAI:BAT -0.17%69 Operating Margin % is 33.04% as of Dec. 2025, which is 6% above its 10-year median of 31.10. 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 48 Tobacco Products companies, British American Tobacco Kenya ranks better than 87.5% on this metric.
British American Tobacco Kenya (NAI:BAT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
British American Tobacco Kenya Operating Margin % Related Terms
British American Tobacco Kenya Operating 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 Operating Margin % Chart
NAI:BAT vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, British American Tobacco Kenya's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco Kenya's Operating Margin % distribution charts can be found below:
* The bar in red indicates where British American Tobacco Kenya's Operating Margin % falls into.
British American Tobacco Kenya Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (NAI:BAT) has a Operating Margin % of 33.04% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on British American Tobacco Kenya and its competitors. This is near median its historical median of 31.10. Over the past decade, British American Tobacco Kenya's Operating Margin % has ranged from 25.43 to 37.49. According to the industry distribution chart, British American Tobacco Kenya ranks #6 out of 48 companies in the Tobacco Products industry, placing it in the top 12.5%.
Is British American Tobacco Kenya's Operating Margin % too high?
British American Tobacco Kenya's current Operating Margin % of 33.04% is near median its 10-year median of 31.10. Over the past 10 years, this metric has ranged from a low of 25.43 to a high of 37.49. The Tobacco Products industry median Operating Margin % is 9.37. British American Tobacco Kenya's value of 33.04% is 252.8% above this industry median. Based on the distribution chart, British American Tobacco Kenya ranks #6 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco Kenya ranks #6 out of 48 companies for Operating Margin %. This places British American Tobacco Kenya in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.37. British American Tobacco Kenya's value of 33.04% is 252.8% above this benchmark. Historically, British American Tobacco Kenya's own Operating Margin % has ranged from 25.43 to 37.49 over the past decade. While the company's 10-year median is 31.10 vs. the industry median of 9.37, 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 Operating Margin % for a Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco Kenya's current Operating Margin % of 33.04% is 252.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on British American Tobacco Kenya and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco Kenya's current Operating Margin % is 33.04%, which is near median its own 10-year median of 31.10. 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 Operating Margin % is 33.04%, which is near median its 10-year median of 31.10 and 252.8% above the Tobacco Products industry median of 9.37. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For British American Tobacco Kenya (NAI:BAT), the current Operating Margin % is 33.04% 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:
Operating Margin %: 33.04% (near median its 10-year median of 31.10)
GF Value™: KES355.31 vs. price of KES579.00 (63% above fair value)
Industry Position: 252.8% above the Tobacco Products median (#6 of 48)
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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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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