{"id":53174,"date":"2023-12-06T18:42:11","date_gmt":"2023-12-06T18:42:11","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/camel-parent-british-american-tobaccos-stock-sinks-to-12-year-low\/"},"modified":"2023-12-06T18:42:12","modified_gmt":"2023-12-06T18:42:12","slug":"camel-parent-british-american-tobaccos-stock-sinks-to-12-year-low","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=53174","title":{"rendered":"Camel Parent British American Tobacco\u2019s Stock Sinks To 12-Year Low"},"content":{"rendered":"<div>\n<h2 class=\"topline-heading\">Topline<\/h2>\n<p>Shares of British American Tobacco sank Wednesday to their lowest level in more than a decade after the Newport and Camel cigarette maker said it\u2019s significantly writing down the value of its U.S. business, as British American Tobacco and its publicly-traded peers continue to significantly underperform the broader market amid a decline in popularity for traditional cigarettes.<\/p>\n<h2>Key Facts<\/h2>\n<div class=\"key-facts\">\n<div class=\"key-facts-element\">\n<p>London-listed shares of British American Tobacco tanked 8% to $29, or \u00a322.92, closing at their lowest share price in pounds since January 11, according to FactSet data.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Wednesday\u2019s slip, which widened British American Tobacco stock\u2019s year-to-date loss to 28%, came after British American Tobacco announced it is taking a $31.5 billion impairment charge primarily on its U.S. cigarette business, citing an increase in popularity for vaping and macroeconomic headwinds.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Though the writedown is little more than a basic accounting update, and does not materially impact British American Tobacco\u2019s future cash generation, it\u2019s a \u201cbig number exemplifying the perils of this industry and sending some less than confident signals about the outlook for cigarettes,\u201d according to RBC Capital Markets analysts.<\/p>\n<p>  <fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad>\n <\/div>\n<\/div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Big Number<\/h2>\n<p>-2%. That\u2019s how much British American Tobacco stock has returned over the last decade including dividends, far underperforming the S&amp;P 500\u2019s 205% return.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Surprising Fact<\/h2>\n<p>Philip Morris International and Altria Group, the only U.S.-based tobacco companies with a larger market capitalization than British American Tobacco, have also endured market struggles. Philip Morris\u2019 year-to-date and 10-year returns are -5% and 77%, respectively, while Altria\u2019s are -2% and 101%.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key Background<\/h2>\n<p>The poor returns for tobacco stocks come as the industry grapples with a rise in the popularity of non-combustible nicotine products and increased U.S. regulatory scrutiny tied to the severely adverse health effects associated with smoking. British American Tobacco\u2019s Newport and Camel cigarettes captured a combined 22% market share in the U.S. as of 2017, according to government data, trailing only Altria\u2019s Marlboro brand in popularity. British American Tobacco purchased Reynolds American in 2017 for $49 billion, and its Wednesday markdown announcement presumably nods to the poor return on the acquisition.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\"><\/h2>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/12\/06\/smoked-out-camel-parent-british-american-tobaccos-stock-sinks-to-12-year-low\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topline Shares of British American Tobacco sank Wednesday to their lowest level in more than a decade after the Newport and Camel cigarette maker said it\u2019s significantly writing down the value of its U.S. business, as British American Tobacco and its publicly-traded peers continue to significantly underperform the broader market amid a decline in popularity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":53175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[33],"tags":[],"class_list":{"0":"post-53174","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Camel Parent British American Tobacco\u2019s Stock Sinks To 12-Year Low | Prosfunds<\/title>\n<meta name=\"description\" content=\"Topline Shares of British American Tobacco sank Wednesday to their lowest level in more than a decade after the Newport and Camel cigarette maker said\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=53174\" 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