Imperial Brands (IMBBY) AI Stock Analysis

• Market Cap: $32.31B
• Dividend Yield: 6.06%
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): 10.4
• Beta (1Y): >-0.01
• Revenue Growth: 3.50%
• EPS Growth: 32.50%
• Country: US
• Employees: 25,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.65
• Shares Outstanding: 804,079,500
• 10 Day Avg. Volume: 12,105
• 30 Day Avg. Volume: 8,249
• PEG Ratio: 0.37
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 5.78
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 6.79
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $45.00 ▲(12.36% Upside)

Imperial Brands' strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust revenue growth and profitability, coupled with a high dividend yield, make it appealing to investors. However, technical analysis indicates mixed signals, with some bearish trends that could pose short-term risks. The absence of earnings call data leaves some uncertainty about future strategic directions.

Imperial Brands Business Overview & Revenue Model

Company Description

Imperial Brands plc is a multinational tobacco company headquartered in Bristol, England. It operates primarily in the tobacco and nicotine sectors, producing a wide range of products including cigarettes, cigars, and smokeless tobacco. The company is also involved in the development of next-generation products, such as vaping devices and heated tobacco products, positioning itself within the evolving landscape of nicotine consumption. Its core brands include Winston, Davidoff, and Blu, catering to diverse consumer preferences across global markets.

How the Company Makes Money

Imperial Brands generates revenue primarily through the sale of its tobacco products, which include both traditional cigarettes and alternative nicotine delivery systems. The company benefits from a strong portfolio of established brands that command significant market share in various regions. Key revenue streams include direct sales to retailers and distributors, along with international sales, particularly in emerging markets where demand for tobacco remains robust. Additionally, Imperial Brands is investing in next-generation products, which are expected to contribute to future revenue growth as consumer preferences shift towards less harmful alternatives. Strategic partnerships with retailers and distribution networks further enhance its market presence and streamline operations, while ongoing cost management initiatives help maintain profitability in a highly regulated industry.

Imperial Brands Financial Statement Overview

Summary

Imperial Brands demonstrates strong profitability and revenue growth, with a stable balance sheet and efficient cash flow management. Despite moderate leverage, the company's financial position is solid, supporting its operations and growth.

Income Statement

Imperial Brands shows strong profitability with a consistent gross profit margin of around 20% and a net profit margin improving to 8.1% in 2024. Revenue growth is robust at 79.3% from 2023 to 2024, indicating strong sales performance. EBIT and EBITDA margins are stable, reflecting efficient operations.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.67, indicating a balanced approach to leveraging. Return on equity is solid at 48%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low at 19.6%, suggesting higher reliance on debt financing.

Cash Flow

Imperial Brands demonstrates strong cash flow management with a free cash flow growth rate of 10.8% from 2023 to 2024. The operating cash flow to net income ratio is 1.27, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is 1.25, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.45B	32.41B	18.08B	16.92B	16.56B	16.62B
Gross Profit	6.64B	6.78B	6.68B	5.65B	5.57B	5.62B
EBITDA	4.20B	4.14B	4.15B	3.52B	4.34B	3.38B
Net Income	2.58B	2.61B	2.33B	1.57B	2.83B	1.50B
Balance Sheet
Total Assets	27.86B	27.83B	29.49B	30.96B	29.09B	32.31B
Cash, Cash Equivalents and Short-Term Investments	599.00M	1.08B	1.38B	1.85B	1.29B	1.63B
Total Debt	10.89B	9.08B	9.73B	10.26B	10.07B	11.95B
Total Liabilities	22.33B	21.80B	22.85B	23.48B	23.15B	26.79B
Stockholders Equity	4.97B	5.44B	6.02B	6.86B	5.35B	4.87B
Cash Flow
Free Cash Flow	2.78B	3.27B	2.95B	2.58B	1.57B	3.16B
Operating Cash Flow	3.17B	3.31B	3.13B	2.83B	1.77B	3.61B
Investing Cash Flow	-454.00M	-348.00M	-437.00M	-163.00M	710.00M	-340.00M
Financing Cash Flow	-3.00B	-3.16B	-2.63B	-2.15B	-2.79B	-3.88B

Imperial Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMBBY, the sentiment is Positive. The current price of 40.05 is below the 20-day moving average (MA) of 40.64, below the 50-day MA of 41.52, and above the 200-day MA of 37.84, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMBBY.

Imperial Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMBBY	―	$32.31B	10.41	54.39%	6.06%	3.50%	32.50%
MO	―	$104.10B	12.23	―	6.65%	-0.18%	-10.69%
UVV	―	$1.27B	12.52	7.20%	6.33%	4.11%	-15.50%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	―	$228.47B	27.14	―	3.76%	7.72%	-12.45%
TPB	―	$1.59B	37.15	26.05%	0.33%	4.44%	-5.94%
BTI	―	$112.70B	29.03	5.97%	5.78%	0.48%	―