BT Group plc (BT-A.L) stock analysis

In our weekly check, BT Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3.

About BT Group plc

BT Group plc is a Communication Services company (Telecommunications Services) based in the United Kingdom, listed on LSE as BT-A.L.

What our checks show for BT-A.L

Red flags

• Analysts expect revenue to shrink about 2.6% a year.
• Revenue fell 1.7% a year over the last 3 years.
• The stock has fallen as much as 80% from a peak. Would you have held through that?

Warning signs

• Net debt is 3x a year of EBITDA (debt/equity 1.81). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 3.8 times: a weak year could make the payments hard.
• The net margin fell by 0.6 points over 5 years, to 5.5%: the company keeps less of each sale as profit.
• Earnings per share fell 16.7% a year over the last 3 years.
• Net profit fell 17.3% a year over the last 3 years.
• The net margin is only 5.5%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• The gross margin is 74.1% and has risen by 8 points: pricing power is holding.
• Operating cash flow is 6.53x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.6% a year over the next years.
• Analysts expect the net margin to improve by 5.4 points from today's 5.5%.
• The price is 12.9 times earnings (P/E), reasonable for its growth.
• A large company: market value $27.58 billion.

Next earnings report: 2026-11-05

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Questions

What grade does BT Group plc (BT-A.L) have?

In our weekly check, BT Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BT-A.L stock?

This week's biggest flags for BT Group plc: Weak revenue forecast, Weak revenue growth, Deep past fall. In total 10 of 25 checks show a warning or a red flag.

What does BT Group plc do?

BT Group plc is a Communication Services company (Telecommunications Services) based in the United Kingdom, listed on LSE as BT-A.L.

When does BT Group plc report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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