Imperial Brands (IMBBY) AI Stock Analysis

• Market Cap: $33.94B
• Dividend Yield: 5.81%
• Average Volume (3M): 152.54K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.08
• Revenue Growth: 3.50%
• EPS Growth: 32.50%
• Country: US
• Employees: 25,600
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Tobacco
• EPS (TTM): 1.65
• Shares Outstanding: 808,506,350
• 10 Day Avg. Volume: 94,188
• 30 Day Avg. Volume: 152,537
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: 10.88
• 1Y Price Target: $43.00
• Price Target Upside: 2.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $43.00 ▲(2.28% Upside)

Imperial Brands presents a strong financial performance with robust profitability and solid cash flow management. Technical analysis suggests stability, while valuation metrics indicate the stock is attractively priced, providing a compelling investment case within the tobacco industry.

Imperial Brands Business Overview & Revenue Model

Company Description

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, Americas, Africa, Asia, and Australasia. It offers a range of cigarettes, fine cut and smokeless tobacco, papers, and cigars; and next generation product (NGP) portfolio, such as e-vapour products, oral nicotine, and heated tobacco products. The company sells its products under various brands, including Davidoff, Gauloises, JPS, West, L&B, Winston, Parker & Simpson, blu, Pluze, Zone-X, Kool, Horizon, Backwoods, Skruf, Golden Virginia, Rizla, and Dutch Masters. It also engages in the distribution of tobacco and NGP products for tobacco and NGP product manufacturers; and various non-tobacco and NGP products and services. In addition, the company is involved in the management of a golf course; distribution of pharmaceuticals, POS software, and published materials and other products; printing and publishing activities; and provision of long haul transportation, industrial parcel and express delivery, advertising, and support management services. Further, it owns the trademarks; and retails its products. The company was formerly known as Imperial Tobacco Group PLC and changed its name to Imperial Brands PLC in February 2016. Imperial Brands PLC was founded in 1901 and is based in Bristol, the United Kingdom.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	32.41B	18.08B	16.92B	16.56B	16.62B
Gross Profit	6.78B	6.68B	5.65B	5.57B	5.62B
EBITDA	4.14B	4.15B	3.52B	4.34B	3.38B
Net Income	2.61B	2.33B	1.57B	2.83B	1.50B
Balance Sheet
Total Assets	27.83B	29.49B	30.96B	29.09B	32.31B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.34B	1.85B	1.29B	1.63B
Total Debt	9.08B	9.73B	10.26B	10.07B	11.95B
Total Liabilities	21.80B	22.85B	23.48B	23.15B	26.79B
Stockholders Equity	5.44B	6.02B	6.86B	5.35B	4.87B
Cash Flow
Free Cash Flow	3.27B	2.95B	2.58B	1.57B	3.16B
Operating Cash Flow	3.31B	3.13B	2.83B	1.77B	3.61B
Investing Cash Flow	-348.00M	-437.00M	-163.00M	695.00M	-340.00M
Financing Cash Flow	-3.16B	-2.63B	-2.15B	-2.79B	-3.88B

Imperial Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 42.04 is above the 20-day moving average (MA) of 40.56, above the 50-day MA of 39.41, and above the 200-day MA of 35.38, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 80.13 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
UVV	73 Outperform	$1.37B	13.59	7.20%	5.87%	4.11%	-15.50%
IMBBY	71 Outperform	$33.94B	10.95	54.39%	5.81%	3.50%	32.50%
MO	71 Outperform	$111.63B	12.96	-503.31%	6.14%	-0.18%	-10.69%
TPB	70 Neutral	$1.78B	41.37	26.05%	0.29%	4.44%	-5.94%
PM	69 Neutral	$259.45B	31.76	-37142.11%	3.29%	7.44%	-6.72%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
BTI	62 Neutral	$124.83B	31.73	5.97%	5.26%	0.48%	―