British American Tobacco: Lagging In Smoke-Free But Cheap Enough To Make Up For It

  • The US nicotine market is rapidly shifting to non-combustible products, with Philip Morris leading through Zyn and British American Tobacco focusing on Velo and Vuse. BTI's US business is crucial, making up half of their global operating profits, while they face challenges from illicit vape products and a sputtering start in nicotine pouches. BAT's strong cash generation and dividend yield of 7% highlight its financial health, despite near-term revenue growth challenges and regulatory risks.