BT Group PLC BT.A

Morningstar Rating
GBX201.50 +1.50 (0.75%)
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Company Report

Openreach Remains BT's Anchor as Broadband Losses Are Reduced

BT Group is the UK's incumbent telecom operator, owning the most wide-reaching wholesale fixed-line network (Openreach) in the country. Years of regulatory discussions and tensions caused BT to severely underinvest as it sought a regulatory framework that ensured acceptable returns on capital. The approval of the Equinox plan, which sets wholesale pricing for communication providers in Openreach’s network for the next 10 years, seems satisfactory for BT and has caused fiber-to-the-home investments to soar. BT aims to cover 25 million homes with FTTH by 2027, or 90% of the country, up from less than 10% in 2019. However, network duplication is increasing in the UK as alternative networks like CityFibre or Community Fibre have taken market share, with Openreach losing 825,000 broadband lines in fiscal 2026, mainly low-speed lines.

Price vs Fair Value

BT.A is trading within a range we consider fairly valued.
Price
GBX200.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
FD!
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The regulatory environment is becoming more supportive,with the CMA approving the Vodafone and CK Hutchison merger with no remedies. BT's relationship with regulator Ofcom has improved in recent years.

Bears

BT has a significant net pension obligation. Given the size of gross obligations, small changes in accounting assumptions can have a big impact on the size of this liability.

News

Trading Information

Previous Close Price
GBX200.00
Day Range
GBX199.95204.65
52-Week Range
GBX173.00242.09
Bid/Ask
GBX180.00 / GBX220.00
Shares Outstanding
9.85B
Market Cap
GBX1.99T
Volume/Avg
11M / 16M

Key Statistics

Price/Earnings (Normalized)
15.07
Price/Sales
1.01
Dividend Yield (Trailing)
4.16%
Dividend Yield (Forward)
4.16%
Dividend Payment Schedule
Feb, Sep
Total Yield
4.80%

Company Profile

BT Group is the incumbent telecommunications operator in the UK. BT is the owner of Openreach, the largest fixed-line network in the country. Openreach operates as a separate entity due to regulatory requirements, but is still 100% owned by BT. Openreach has accelerated its fiber investments and expects to have 90% of the UK covered with FTTH by 2026. In the consumer division, BT has approximately 30% market share in broadband and mobile services. The enterprise segment serves large corporations, while the global services division provides communications consultancy services.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
77,200

Competitors

Valuation

Metric
BT.A
00001
VOD
Price/Earnings (Normalized)
15.0712.4714.71
Price/Book Value
1.570.460.69
Price/Sales
1.010.950.89
Price/Cash Flow
2.963.932.91
Price/Earnings
BT.A
00001
VOD

Financial Strength

Metric
BT.A
00001
VOD
Quick Ratio
0.621.630.86
Current Ratio
0.852.241.14
Interest Coverage
2.055.851.67
Quick Ratio
BT.A
00001
VOD

Profitability

Metric
BT.A
00001
VOD
Return on Assets (Normalized)
3.11%2.05%−1.20%
Return on Equity (Normalized)
12.36%4.17%−2.96%
Return on Invested Capital (Normalized)
6.62%3.32%0.11%
Return on Assets
BT.A
00001
VOD

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