# BT Group (BT-A.LSE)

Canonical: https://gigainvestors.com/s/BT-A.LSE

Analysis as of: 2026-10-16T07:34:25.896Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 206.90 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 8 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- Financial history: 10 years

- Years with declining revenue: 8

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.14×

- FY2019: 0.15×

- FY2020: 0.14×

- FY2021: 0.14×

- FY2022: 0.16×

- FY2023: 0.13×

- FY2024: 0.11×

- FY2025: 0.12×

- FY2026: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.0%

- ROIC, second-lowest year: 7.5%

- Typical minus recent gross margin: -2.7 pp

- Typical gross margin (annual median): 71.0%

- Recent gross margin (lower of latest and 3-year median): 73.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 22.5%

- ROIC including acquisitions, ten-year median: 0.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 23.4%

- FY2018: 20.1%

- FY2019: 19.6%

- FY2020: 9.3%

- FY2021: 11.2%

- FY2022: 8.2%

- FY2023: 9.9%

- FY2024: 6.1%

- FY2025: 7.5%

- FY2026: 10.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 98M

- Net income, five-year total: GBP 6.2B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.5 pp

- Working capital / revenue, final three-year average: -1.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: -0.06×

- FY2023: 0.18×

- FY2024: -0.21×

- FY2025: 0.08×

- FY2026: -0.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.1% vs 7.5%

- Per-share earnings: 0.21 to 0.11 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: GBP -10B

- Cumulative retained earnings: GBP 11B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -8.0%

- Per-share value change: GBP -0.10

- Per-share value, starting three-year median: GBP 0.21

- Per-share value, ending three-year median: GBP 0.11

- Buybacks concentrated in cheaper years (correlation): -0.01

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 452M

- Cumulative net income, 10 years: GBP 15B

- ROIC, first three-year median: 20.1%

- ROIC, last three-year median: 7.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.19

- FY2018: GBP 0.21

- FY2019: GBP 0.22

- FY2020: GBP 0.18

- FY2021: GBP 0.15

- FY2022: GBP 0.13

- FY2023: GBP 0.19

- FY2024: GBP 0.09

- FY2025: GBP 0.11

- FY2026: GBP 0.11

### accounting: pass

- Sloan accruals: -11.9%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.95×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.1%

- FY2018: 3.0%

- FY2019: -4.5%

- FY2020: -8.5%

- FY2021: -8.8%

- FY2022: -9.3%

- FY2023: -9.1%

- FY2024: -9.9%

- FY2025: -11.6%

- FY2026: -11.9%

## Holders

## Price story

Up 84% since Oct 2023 · sales -3.5%

Story as of 2026-10-16T10:00:00.569Z; price observation 2026-10-15.

- 2026-07-23: BT Profit Slips 1% as Broadband Competition Intensifies ([finance.yahoo.com](https://finance.yahoo.com/technology/articles/bt-profit-slips-1-broadband-204337022.html))

### Sales · FY2025–2026

sales -3.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: GBP 24B 

- FY2018: GBP 24B 

- FY2019: GBP 23B 

- FY2020: GBP 23B 

- FY2021: GBP 21B 

- FY2022: GBP 21B 

- FY2023: GBP 21B 

- FY2024: GBP 21B 

- FY2025: GBP 20B 

- FY2026: GBP 20B 

### Gross margin · FY2026

gross margin 74.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 79.9% 

- FY2018: 80.8% 

- FY2019: 65.7% 

- FY2020: 68.6% 

- FY2021: 64.7% 

- FY2022: 66.1% 

- FY2023: 73.3% 

- FY2024: 46.7% 

- FY2025: 73.6% 

- FY2026: 74.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are GBP 19.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2026: revenue 19654000000; grossProfit 14568000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BT-A.LSE: BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Consumer, Business, International, and Openreach segments. It builds, owns, and operates fixed and mobile networks; and designs, builds, markets, sells, and supports network access, connectivity, and related products. The company also offers mobile, broadband, and landline, as well as entertainment services to individuals and households; connectivity, networking, cybersecurity, collaboration tools, cloud connectivity, and cloud services to private and public sector businesses; and managed solutions for larger businesses and public sector customers. In addition, it provides fixed and IP voice; unified communications; mobile; fixed and networking; managed services; and security, and cloud and IoT solutions. Further, the company develops, manages, and leases network infrastructure, including mobile cell and switch sites; and offers handsets, network equipment, consumer electronics, gaming and insurance. It provides its products and services under the BT, EE, Plusnet, and Openreach brands. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was founded in 1846 and is headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 46.7% to 74.1% during 2024–26; it earns 10% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2024: grossProfit / revenue = 46.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2025: grossProfit / revenue = 73.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2026: grossProfit / revenue = 74.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); 10-year return on capital observations [[2017,0.2340840019766046],[2018,0.20071997733768254],[2019,0.19569257116143837],[2020,0.09264911600891668],[2021,0.11221086629528537],[2022,0.08229279418586671],[2023,0.09883391826106645],[2024,0.06079439786000328],[2025,0.07538926864629868],[2026,0.10084345607554929]]; median 0.09983868716830788. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 126 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2017: growth capex 0; upkeep 3145000000; owner earnings 2335000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2018: growth capex 0; upkeep 852000000; owner earnings 4694000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2019: growth capex 0; upkeep 3678000000; owner earnings 1985800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2020: growth capex 0; upkeep 4105000000; owner earnings 591000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2023: growth capex 0; upkeep 5307000000; owner earnings 344200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2025: growth capex 0; upkeep 4937000000; owner earnings 85800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); Dividend observations: [[2017,1435000000],[2018,1523000000],[2019,1504000000],[2020,1520000000],[2021,2000000],[2022,228000000],[2023,751000000],[2024,759000000],[2025,788000000],[2026,807000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); FY2026: cash repurchases 126000000 GBP.

### Are managers owners

Insiders own 42.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BT-A.LSE SharesStats.PercentInsiders = 42.481 percentage points; cache date 2026-10-16.

### What could break it

Other fees payable include: – an additional fee of £27,000 per annum to the Senior Independent Non-Executive Director.

- Source: https://filings.xbrl.org/213800LRO7NS5CYQMN21/2026-03-31/ESEF/GB/0/213800LRO7NS5CYQMN21-2026-03-31/reports/213800LRO7NS5CYQMN21-2026-03-31-T01.html (filed 2026-06-11); Committee Chair’s fee Member’s fee Audit & Risk £35,000 £25,000 National Security and Investigatory Powers n/ab £8,000 Remuneration £30,000 £15,000 b Where the Chairman or Chief Executive acts as Chair of a Board Committee, no additional Committee Chair fee is payable. Other fees payable include: – an additional fee of £27,000 per annum to the Senior Independent Non-Executive Director 

### What the price says

The price is 1.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.896Z); Closing price 206.9 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 1.9543735611740056; price multiple 1.0586512430904649. FY2026 cash earnings/share -0.007537474098757995. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 375.95 per share

- 2016-11: GBX 357.10 per share

- 2016-12: GBX 366.90 per share

- 2017-01: GBX 303.85 per share

- 2017-02: GBX 327.10 per share

- 2017-03: GBX 318.20 per share

- 2017-04: GBX 304.75 per share

- 2017-05: GBX 309.55 per share

- 2017-06: GBX 294.75 per share

- 2017-07: GBX 313.50 per share

- 2017-08: GBX 292.55 per share

- 2017-09: GBX 283.90 per share

- 2017-10: GBX 260.30 per share

- 2017-11: GBX 260.80 per share

- 2017-12: GBX 271.70 per share

- 2018-01: GBX 255.45 per share

- 2018-02: GBX 239.80 per share

- 2018-03: GBX 227.50 per share

- 2018-04: GBX 249.45 per share

- 2018-05: GBX 204.90 per share

- 2018-06: GBX 217.80 per share

- 2018-07: GBX 233.50 per share

- 2018-08: GBX 217.35 per share

- 2018-09: GBX 225.30 per share

- 2018-10: GBX 240.55 per share

- 2018-11: GBX 262.00 per share

- 2018-12: GBX 238.10 per share

- 2019-01: GBX 232.40 per share

- 2019-02: GBX 214.70 per share

- 2019-03: GBX 222.95 per share

- 2019-04: GBX 229.05 per share

- 2019-05: GBX 193.76 per share

- 2019-06: GBX 196.46 per share

- 2019-07: GBX 193.18 per share

- 2019-08: GBX 165.64 per share

- 2019-09: GBX 178.58 per share

- 2019-10: GBX 204.70 per share

- 2019-11: GBX 191.56 per share

- 2019-12: GBX 192.44 per share

- 2020-01: GBX 160.92 per share

- 2020-02: GBX 141.62 per share

- 2020-03: GBX 117.90 per share

- 2020-04: GBX 116.05 per share

- 2020-05: GBX 116.25 per share

- 2020-06: GBX 114.05 per share

- 2020-07: GBX 98.58 per share

- 2020-08: GBX 104.65 per share

- 2020-09: GBX 98.38 per share

- 2020-10: GBX 101.40 per share

- 2020-11: GBX 116.80 per share

- 2020-12: GBX 132.25 per share

- 2021-01: GBX 125.60 per share

- 2021-02: GBX 123.55 per share

- 2021-03: GBX 154.80 per share

- 2021-04: GBX 164.95 per share

- 2021-05: GBX 174.85 per share

- 2021-06: GBX 194.00 per share

- 2021-07: GBX 173.60 per share

- 2021-08: GBX 169.80 per share

- 2021-09: GBX 159.80 per share

- 2021-10: GBX 138.90 per share

- 2021-11: GBX 158.60 per share

- 2021-12: GBX 169.55 per share

- 2022-01: GBX 195.55 per share

- 2022-02: GBX 186.25 per share

- 2022-03: GBX 182.20 per share

- 2022-04: GBX 177.35 per share

- 2022-05: GBX 187.25 per share

- 2022-06: GBX 186.30 per share

- 2022-07: GBX 161.80 per share

- 2022-08: GBX 150.70 per share

- 2022-09: GBX 121.35 per share

- 2022-10: GBX 129.80 per share

- 2022-11: GBX 121.40 per share

- 2022-12: GBX 112.05 per share

- 2023-01: GBX 124.65 per share

- 2023-02: GBX 139.35 per share

- 2023-03: GBX 145.80 per share

- 2023-04: GBX 158.85 per share

- 2023-05: GBX 146.85 per share

- 2023-06: GBX 122.35 per share

- 2023-07: GBX 122.00 per share

- 2023-08: GBX 115.60 per share

- 2023-09: GBX 116.70 per share

- 2023-10: GBX 112.75 per share

- 2023-11: GBX 122.90 per share

- 2023-12: GBX 123.60 per share

- 2024-01: GBX 112.20 per share

- 2024-02: GBX 104.45 per share

- 2024-03: GBX 109.65 per share

- 2024-04: GBX 102.60 per share

- 2024-05: GBX 130.60 per share

- 2024-06: GBX 140.35 per share

- 2024-07: GBX 140.85 per share

- 2024-08: GBX 139.00 per share

- 2024-09: GBX 147.90 per share

- 2024-10: GBX 138.25 per share

- 2024-11: GBX 159.30 per share

- 2024-12: GBX 144.05 per share

- 2025-01: GBX 141.90 per share

- 2025-02: GBX 159.80 per share

- 2025-03: GBX 165.85 per share

- 2025-04: GBX 173.80 per share

- 2025-05: GBX 179.45 per share

- 2025-06: GBX 193.75 per share

- 2025-07: GBX 207.10 per share

- 2025-08: GBX 216.50 per share

- 2025-09: GBX 191.15 per share

- 2025-10: GBX 185.75 per share

- 2025-11: GBX 180.95 per share

- 2025-12: GBX 184.05 per share

- 2026-01: GBX 191.35 per share

- 2026-02: GBX 216.80 per share

- 2026-03: GBX 210.50 per share

- 2026-04: GBX 216.55 per share

- 2026-05: GBX 208.80 per share

- 2026-06: GBX 190.10 per share

- 2026-07: GBX 201.30 per share

- 2026-08: GBX 205.30 per share

- 2026-09: GBX 192.00 per share

- 2026-10: GBX 198.75 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 338.06 per share, central GBX 382.49 per share, high GBX 441.63 per share

- FY2018: low GBX 369.26 per share, central GBX 415.89 per share, high GBX 477.95 per share

- FY2019: low GBX 358.36 per share, central GBX 401.61 per share, high GBX 459.19 per share

- FY2020: low GBX 307.94 per share, central GBX 341.84 per share, high GBX 386.95 per share

- FY2021: low GBX 242.71 per share, central GBX 270.27 per share, high GBX 306.97 per share

- FY2022: low GBX 90.24 per share, central GBX 98.45 per share, high GBX 109.37 per share

- FY2023: low GBX 74.13 per share, central GBX 79.41 per share, high GBX 86.43 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.