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British American Tobacco has the Profitability Rank of 7.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
British American Tobacco Profitability Rank Related Terms
CHIX:BATSL vs PM, MO, TPB: Profitability Rank Comparison
For the Tobacco subindustry, British American Tobacco's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Profitability Rank distribution charts can be found below:
* The bar in red indicates where British American Tobacco's Profitability Rank falls into.
British American Tobacco Profitability Rank Calculation
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
British American Tobacco has the Profitability Rank of 7.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
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 (CHIX:BATSL) has a Profitability Rank of 7 as of Dec. 2025. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on British American Tobacco and its competitors. This is 22% below median its historical median of 9.00. Over the past decade, British American Tobacco's Profitability Rank has ranged from 6.00 to 9.00.
Is British American Tobacco's Profitability Rank too high?
British American Tobacco's current Profitability Rank of 7 is 22% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 9.00. Overall, British American Tobacco has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's Profitability Rank compare to PM and MO?
British American Tobacco's Profitability Rank of 7 can be compared against companies in the Tobacco Products industry. Historically, British American Tobacco's own Profitability Rank has ranged from 6.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Tobacco Products company?
A good Profitability Rank depends on the Tobacco Products industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on British American Tobacco and its competitors. British American Tobacco's current Profitability Rank is 7, which is 22% below median its own 10-year median of 9.00. 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 stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco (CHIX:BATSL) is currently considered Significantly Overvalued. The stock's GF Value™ is £27.93, compared to a current price of £45.76 — trading 63.8% above its estimated fair value. The current Profitability Rank is 7, which is 22% below median its 10-year median of 9.00. British American Tobacco's overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current Profitability Rank is 7 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 (CHIX:BATSL) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued.
The current stock price of £45.76 is trading 63.8% above its estimated GF Value™ of £27.93.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for CHIX:BATSL:
Profitability Rank: 7 (22% below median its 10-year median of 9.00)
GF Value™: £27.93 vs. price of £45.76 (63.8% above fair value)
No single metric tells the full story. See the CHIX:BATSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The third-largest tobacco company by volume, British American Tobacco sold 465 billion cigarettes in 2025. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the US. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 22.9% stake in ITC limited, the largest Indian cigarette company.
70GF Score
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Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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