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Imperial Brands PLC (ADR) (IMBBY)
:IMBBY
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Imperial Brands
(OTC:IMBBY)
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Rating:68Neutral
Price Target:
$43.00
▲(7.37% Upside)
Imperial Brands' strong financial performance and attractive valuation are the primary drivers of its stock score. However, the technical analysis indicates a bearish trend, which tempers the overall score. The lack of earnings call data and corporate events leaves some uncertainty regarding future strategic directions.
Imperial Brands (IMBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.87B
Dividend Yield5.77%
Average Volume (3M)4.04K
Price to Earnings (P/E)12.9
Beta (1Y)-0.08
Revenue Growth6.03%
EPS Growth-12.78%
CountryUS
Employees25,600
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)2.11
Shares Outstanding801,848,700
10 Day Avg. Volume0
30 Day Avg. Volume4,035
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)3.47
Price to Sales (P/S)0.58
P/FCF Ratio5.78
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit7.01
Enterprise Value/Ebitda11.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.54
Revenue Forecast (FY)$13.49B
Imperial Brands Business Overview & Revenue Model
Company DescriptionImperial 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 MoneyImperial 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 Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Shows the profitability of different business segments, highlighting which areas are driving earnings and where there might be challenges or opportunities for growth.
Shows the profitability of different business segments, highlighting which areas are driving earnings and where there might be challenges or opportunities for growth.
Data provided by:
Main Street Data
Main Street DataImperial Brands Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
Imperial Brands demonstrated strong financial results with significant growth in revenue, earnings per share, and successful capital returns, alongside strategic advancements in NGP. However, challenges remain in maintaining market share stability and navigating regulatory and market dynamics in key regions.Q4-2025 Updates
Positive Updates
Strong Financial Performance
The fiscal year '25 saw a revenue growth of more than 4% and an improvement of more than 9% in earnings per share. The company maintained share in priority markets, achieved double-digit revenue growth in NGP, and experienced strong cash flow.
Successful Share Buyback Program
Imperial Brands repurchased over 5% of its share capital during the year, bringing the total repurchase to 15.8% since the program began in 2022. The company plans to increase the FY '26 share buyback to GBP 1.45 billion.
NGP Growth and Expansion
NGP recorded double-digit revenue growth with share increases in all categories. The company saw significant growth in the modern oral segment with Zone in the U.S. and Skruf in the Nordics. There was also progress in heated tobacco with the new Pulze 3.0 device.
Operational and Strategic Achievements
Imperial Brands achieved a 48 basis points improvement in aggregate market share over five years, with NGP revenue up 73% and EPS up by 1/3. The company has returned GBP 10 billion in capital returns since 2021.
Negative Updates
Challenges in U.K. and Australia
Both markets face rising excise rates, leading to growing illicit trades. These trends are expected to continue into fiscal year '26.
Financial Adjustments and Impairment Charges
The company disclosed impairment charges related to ceasing production at the Langenhagen factory and initial costs of a wider transformation program. These costs align with the guidance given at the Capital Markets Day.
Market Share Challenges
In Spain, there was a strategic decision to monetize share gains. In the U.S. and Germany, the scanner data indicated slightly negative volume share performance, raising concerns about balancing share stability versus value delivery.
Company Guidance
During the call to discuss Imperial Brands' fiscal year 2025 results, key performance metrics were highlighted, showcasing a year of robust growth. The company reported a revenue increase of over 4% and an improvement of more than 9% in earnings per share. They maintained market share in priority markets while achieving strong pricing in combustibles. Notably, the NGP segment experienced double-digit revenue growth, with a 73% rise in NGP revenue over the past five years. The company also posted a strong cash flow, supporting increases in both dividends and share buybacks. Looking forward, Imperial Brands plans capital returns exceeding GBP 2.7 billion in fiscal year 2026, and they expect group adjusted operating profit to grow between 3% to 5%. The ongoing transformation, combined with a strategic focus on consumer intimacy and technology investments, aims to deliver sustainable shareholder value.Imperial Brands Financial Statement Overview
Summary
Imperial Brands presents a strong financial position with robust revenue growth and profitability. The balance sheet is stable, though slightly leveraged, while cash flow metrics indicate efficient cash management. Overall, the company is well-positioned financially, with strengths in profitability and cash flow generation.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.85
Very Positive
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.70
Positive
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.78
Positive
| 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
Positive
40.05
Price Trends
41.34
Positive
40.70
Positive
38.65
Positive
Market Momentum
0.42
Negative
63.35
Neutral
95.03
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 41.20, below the 50-day MA of 41.34, and above the 200-day MA of 38.65, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 95.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMBBY.
Imperial Brands Risk Analysis
Imperial Brands disclosed 12 risk factors in its most recent earnings report. Imperial Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Imperial Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $33.87B | 12.95 | 39.46% | 5.77% | 6.03% | -12.78% | |
68 Neutral | $1.31B | 11.94 | 7.72% | 6.26% | 3.01% | -7.14% | |
67 Neutral | $1.94B | 35.74 | 22.54% | 0.29% | 6.71% | 8.16% | |
64 Neutral | $98.39B | 11.24 | ― | 7.08% | -0.96% | -11.42% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $242.23B | 28.23 | ― | 3.55% | 7.72% | -12.45% | |
52 Neutral | $118.42B | 30.36 | 5.97% | 5.46% | 0.48% | ― |
* Consumer Defensive Sector Average
IMBBY
Imperial Brands
42.69
13.10
44.27%
MO
Altria Group
58.18
5.96
11.41%
BTI
British American Tobacco
54.75
20.27
58.79%
PM
Philip Morris
155.65
29.17
23.06%
UVV
Universal
52.51
0.14
0.27%
TPB
Turning Point Brands
97.93
36.35
59.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.