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Imperial Brands PLC (ADR) (IMBBY)
OTHER OTC:IMBBY
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Imperial Brands
(OTC:IMBBY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$48.00
▲(10.73% Upside)
Action:UpgradedDate:12/19/25
Imperial Brands scores well due to strong earnings growth and strategic advancements in NGP, supported by a solid valuation and stable financial performance. The technical analysis indicates moderate momentum, while the high leverage ratio remains a concern.
Positive Factors
NGP Growth and Expansion
The strong growth in Next Generation Products (NGP) reflects Imperial Brands' successful adaptation to changing consumer preferences, positioning the company well for future growth in reduced-risk products.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, allowing Imperial Brands to invest in growth initiatives, return capital to shareholders, and manage debt effectively.
Operational and Strategic Achievements
Strategic market share gains and operational improvements indicate strong competitive positioning and effective execution of growth strategies.
Negative Factors
High Leverage Ratio
Significant leverage poses a risk to financial stability, potentially limiting Imperial Brands' ability to invest in growth and weather economic downturns.
Challenges in U.K. and Australia
Regulatory challenges and illicit trade in key markets could pressure margins and hinder revenue growth, impacting long-term profitability.
Market Share Challenges
Declining market share in major regions suggests competitive pressures and potential difficulties in maintaining sales volumes, affecting future revenue stability.
Imperial Brands (IMBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.70B
Dividend Yield5.33%
Average Volume (3M)83.33K
Price to Earnings (P/E)13.6
Beta (1Y)-0.12
Revenue Growth6.03%
EPS Growth-13.72%
CountryUS
Employees25,600
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)2.49
Shares Outstanding788,397,100
10 Day Avg. Volume34,066
30 Day Avg. Volume83,327
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)5.42
Price to Sales (P/S)0.81
P/FCF Ratio7.00
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit5.07
Enterprise Value/Ebitda7.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.58
Revenue Forecast (FY)$13.57B
Imperial Brands Business Overview & Revenue Model
Company DescriptionImperial 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 MoneyImperial Brands generates revenue primarily through the sale of its tobacco products, including traditional cigarettes and rolling tobacco, which remain its largest revenue source. The company has also been expanding its portfolio in the reduced-risk products segment, which includes e-cigarettes and heated tobacco, aimed at attracting a broader customer base and addressing declining cigarette consumption. Key revenue streams include retail sales, bulk sales to distributors, and international markets where it maintains a strong presence. Additionally, Imperial Brands engages in strategic partnerships and acquisitions to enhance its product offerings and market reach, which contribute to its overall earnings.
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:
The Fly
The FlyImperial 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 demonstrates solid financial health with strong profitability and cash flow generation. The company faces challenges in revenue growth and has a high leverage ratio, but its efficient operations and robust cash flow provide a stable financial foundation.Income Statement
Imperial Brands shows a mixed performance in its income statement. The company has maintained a solid gross profit margin of 26.9% in the latest year, indicating efficient cost management. However, the revenue growth rate has declined by 0.875%, reflecting challenges in expanding sales. The net profit margin is stable at 8.4%, showcasing consistent profitability. The EBIT and EBITDA margins are healthy at 11.1% and 13.6% respectively, indicating strong operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.54, suggesting significant leverage, which could pose a risk if not managed carefully. Return on equity is robust at 41.6%, indicating effective use of shareholder funds to generate profits. The equity ratio stands at 16.8%, reflecting a moderate level of equity financing relative to total assets.65
Positive
Cash Flow
Cash flow analysis shows strong performance with a notable free cash flow growth rate of 34.2%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.57, indicating that the company generates ample cash relative to its net income. The free cash flow to net income ratio is 0.88, demonstrating effective conversion of earnings into cash.80
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 32.17B | 32.41B | 18.08B | 16.92B | 16.56B |
| Gross Profit | 7.00B | 6.78B | 6.68B | 5.65B | 5.57B |
| EBITDA | 4.37B | 4.14B | 4.15B | 3.52B | 4.34B |
| Net Income | 2.07B | 2.61B | 2.33B | 1.57B | 2.83B |
Balance Sheet | |||||
| Total Assets | 28.71B | 27.83B | 29.49B | 30.96B | 29.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.08B | 1.38B | 1.85B | 1.29B |
| Total Debt | 10.00B | 9.08B | 9.73B | 10.26B | 10.07B |
| Total Liabilities | 23.28B | 21.80B | 22.85B | 23.48B | 23.15B |
| Stockholders Equity | 4.82B | 5.44B | 6.02B | 6.86B | 5.35B |
Cash Flow | |||||
| Free Cash Flow | 3.73B | 3.27B | 2.95B | 2.58B | 1.57B |
| Operating Cash Flow | 4.23B | 3.31B | 3.13B | 2.83B | 1.77B |
| Investing Cash Flow | -541.83M | -348.00M | -437.00M | -163.00M | 710.00M |
| Financing Cash Flow | -3.29B | -3.16B | -2.63B | -2.15B | -2.79B |
Imperial Brands Technical Analysis
Positive
43.35
Price Trends
42.11
Positive
41.47
Positive
40.08
Positive
Market Momentum
0.65
Positive
55.98
Neutral
80.50
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 43.35 is below the 20-day moving average (MA) of 43.87, above the 50-day MA of 42.11, and above the 200-day MA of 40.08, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 80.50 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $286.15B | 25.72 | ― | 3.59% | 7.72% | -12.45% | |
74 Outperform | $34.70B | 13.63 | 39.45% | 5.33% | 6.03% | -13.72% | |
69 Neutral | $134.20B | 13.54 | 15.94% | 5.22% | 0.48% | ― | |
66 Neutral | $114.84B | 16.77 | ― | 7.02% | -0.96% | -11.42% | |
65 Neutral | $2.07B | 48.23 | 22.54% | 0.28% | 6.71% | 8.16% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $1.33B | 15.87 | 5.81% | 6.15% | 3.01% | -7.14% |
* Consumer Defensive Sector Average
IMBBY
Imperial Brands
44.07
10.06
29.57%
MO
Altria Group
68.69
15.21
28.44%
BTI
British American Tobacco
62.12
24.79
66.39%
PM
Philip Morris
183.82
30.45
19.85%
UVV
Universal
53.46
2.63
5.16%
TPB
Turning Point Brands
108.51
38.43
54.84%
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.