Imperial Brands (IMBBY) AI Stock Analysis

• Market Cap: $31.69B
• Dividend Yield: 5.52%
• Average Volume (3M): 7.19K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.10
• Revenue Growth: 3.50%
• EPS Growth: 32.50%
• Country: US
• Employees: 25,600
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Tobacco
• EPS (TTM): 1.65
• Shares Outstanding: 810,442,400
• 10 Day Avg. Volume: 8,109
• 30 Day Avg. Volume: 7,191
• 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: 1.42
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: 10.88
• 1Y Price Target: $41.00
• Price Target Upside: 3.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $43.00 ▲(8.53% 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 (IMBBY) is a multinational tobacco company headquartered in Bristol, United Kingdom. It operates primarily in the tobacco and next-generation product sectors, offering a wide range of products including cigarettes, fine cut tobacco, cigars, and smokeless tobacco products. The company is also investing in and expanding its portfolio of next-generation products such as e-cigarettes and heated tobacco products, aiming to meet evolving consumer preferences and regulatory landscapes.

How the Company Makes Money

Imperial Brands generates revenue primarily through the sale of tobacco products, which include a variety of brands and formats catering to different consumer preferences across multiple markets globally. The company's key revenue streams include the sale of traditional tobacco products like cigarettes and cigars, as well as next-generation products such as e-vapor and heated tobacco offerings. Imperial Brands also earns from its logistics business, which provides distribution services for tobacco and non-tobacco products in certain markets. Strategic partnerships and acquisitions further enhance its market presence and revenue potential, while the company's focus on innovation in next-generation products supports its long-term growth strategy in response to changing consumer behaviors and regulatory environments.

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: 39.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 39.62 is above the 20-day moving average (MA) of 39.20, above the 50-day MA of 39.00, and above the 200-day MA of 34.82, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.31 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
TPB	75 Outperform	$1.45B	35.46	27.53%	0.36%	3.17%	-2.23%
IMBBY	71 Outperform	$31.69B	10.16	54.39%	5.52%	3.50%	32.50%
MO	71 Outperform	$105.03B	11.97	-503.31%	6.60%	-0.18%	-10.69%
Sector *	67 Neutral	S$3.18B	15.21	13.43%	4.39%	4.41%	-17.10%
PM	67 Neutral	$253.66B	30.92	-37142.11%	3.29%	7.44%	-6.72%
UVV	63 Neutral	$1.34B	14.27	6.56%	6.02%	7.23%	-20.91%
BTI	62 Neutral	$119.89B	30.08	5.97%	5.34%	0.48%	―