I am not one of the attempts to invest in time, but on May 16, 2024, it was a successful day BT group (LSE: bt.a) Actions. On this day, the price of the shares increased by 17%. And along the way with a few Wigły, it has been created since then.

It was the day when BT published year -round results for the 2024 budget year. And 10,000 pounds invested in the actions of the previous day would be worth 16,370 pounds, give or take a few pounds.

The key implementation event was summarized by CEO of Allison Kirkby: “After the transfer of Peak Capex on our full implementation of broadband communications and we achieved our cost and services transformation program in the amount of 3 billion pounds a year before the schedule, we achieved the interlection point of our long -term strategy. “

Perspective

Long -term investors must see this in a broader context. Profits from last year will be satisfied with shareholders. But the price of BT shares is still over 60% inheritance since the end of 2015 before almost a decade of rot.

Will the escalate in operating prices last year translate into indefinite long -term returns? At the front of the header valuation, I think BT still has an attractive value.

We look at the forecast price ratio (P/E) of 12.5, which does not seem demanding. But P/E is a harsh remedy and does not take into account the debt. Here we look at the net debt approaching $ 20 billion, at a similar level to BT market capitalization. It suggests an effective P/E for the company itself about twice as many headlines. Hmm, maybe not so economical.

Despite this, the debt is only one of the three things that turned me off for so long.

Balanced dividend

One of them was the belief that the previous BT dividend strategy destroys the value of shareholders. As a result, it paid too much and the price of the action.

But because the dividend is reborn after the pandemic, I think it is more balanced. Forecasts show dividends growing over the next few years. And most importantly, they should be covered about 1.8 times by expected earnings.

The last thing that frightened me was the size of the BT pension funds deficit. But the company breaks it down, contributing to 0.8 billion pounds in 2024-25. Reduced the deficit to 4.1 billion GBP to March 31. And BT thinks he is on the right track to return to full financing by 2030.

Long -term

Going back from finances, one key thing worries me as a long -term investor. BT puts everything in a broadband connector (FTTP). It is technically sophisticated and high-priced. And now I think that this is probably exactly what he should focus on.

But I’m a bit worried about the ratio of eggs to the basket. The telecommunications landscape is very different today than 20 years ago. What will the next 20 years bring?

Despite this, I could put it aside and buy for the forecast of the forecast dividend profit, if not for the debt. So it’s not for me. But investors less concerned about the financing of debt may consider BT well.