BTIBULLISH

Gross Margin

83.4%

Higher than 100% of Consumer Defensive sector peers

Updated 1077h ago

Sector Performance

100th percentile

BTI

83.4%

Sector Median

51.6%

Sector Avg

47.7%

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Deep Analysis

British American Tobacco’s gross margin of 83.4% means that for every dollar of revenue, the company keeps 83.4 cents after paying the direct costs of making its products — a measure of core profitability.

This is far above the sector median of 51.6% for Consumer Defensive companies, placing BTI in the 100th percentile among peers. The trend data is not available: year-over-year change, quarter-over-quarter change, and the last eight quarters of direction are all marked N/A, and only the current figure of 83.4% is provided. Because the margin is at an extremely high level but no trend exists to confirm improvement or deterioration, the investment risk is reduced by the strong current performance, though the lack of historical context limits the ability to assess sustainability. This high gross margin supports the overall BULLISH verdict, as it indicates BTI has a substantial pricing advantage and cost control relative to its sector.

Frequently Asked Questions

What does the Gross Margin tell investors about BTI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BTI's Gross Margin compare to its sector?

BTI's Gross Margin of 83.4% compares to a Consumer Defensive sector median of 51.6%, placing it in the 100th percentile.

Who are BTI's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: ABEV (51.6%), KDP (52.8%), PG (49.5%), CELH (48.3%), BUD (56.6%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.