Imperial Brands (IMBBY) AI Stock Analysis

• Market Cap: $29.37B
• Dividend Yield: 5.23%
• Average Volume (3M): 15.39K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.17
• Revenue Growth: 3.50%
• EPS Growth: 32.50%
• Country: US
• Employees: 25,600
• Sector: Consumer Defensive
• Sector Strength: 71
• Industry: Tobacco
• EPS (TTM): 1.65
• Shares Outstanding: 819,527,800
• 10 Day Avg. Volume: 27,655
• 30 Day Avg. Volume: 15,395
• PEG Ratio: -1.40
• Price to Book (P/B): 4.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Imperial Brands is financially solid with strong profit margins and cash flow, though it faces challenges with stagnant revenue growth and high leverage. The technical indicators suggest a short-term downtrend, but the stock's valuation appears attractive with a low P/E ratio and high dividend yield. These factors suggest a moderate potential for upside, balanced by the need for strategic initiatives to address growth and leverage concerns.

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 tobacco products, which include cigarettes, fine-cut tobacco, and cigars. The company's key revenue streams come from its extensive portfolio of globally recognized brands. Imperial Brands has a broad geographical footprint, allowing it to leverage market-specific strategies and respond to regional consumer preferences. In addition to traditional tobacco products, the company is also investing in the next generation of products, including e-cigarettes and heated tobacco products, to capture emerging market opportunities. Strategic partnerships and collaborations in various regions further support its revenue growth by expanding distribution channels and enhancing product availability. The company's earnings are also bolstered by its focus on operational efficiency and cost management, which helps maintain profitability despite evolving regulatory landscapes and market dynamics.

Imperial Brands Financial Statement Overview

Summary

Imperial Brands exhibits solid financial health with strong profit margins and cash flow. However, the company faces challenges with stagnant revenue growth and high leverage. Effective debt management and strategic growth initiatives will be crucial to maintain financial stability and enhance shareholder value in the competitive tobacco industry.

Income Statement

Imperial Brands shows a stable revenue base with slight fluctuations over the years. The gross profit margin for 2024 is approximately 20.9%, and the net profit margin is around 8.1%, both indicating reasonable profitability. EBIT and EBITDA margins are strong at 11% and 12.8% respectively. However, revenue growth has been stagnant, showing a slight decline over the years, which could be a concern for future growth.

Balance Sheet

The balance sheet demonstrates a high debt-to-equity ratio of 1.67, reflecting significant leverage. ROE is strong at 48%, indicating efficient use of equity. The equity ratio is low at 19.6%, suggesting potential risks if liabilities increase. Overall, the balance sheet is stable but relies heavily on debt financing.

Cash Flow

Imperial Brands has a robust cash flow generation with consistent free cash flow. The operating cash flow to net income ratio is approximately 1.26, highlighting strong cash conversion. Free cash flow growth is evident with a notable increase from 2023, indicating effective cash management. This strong cash flow position supports the company's ability to service debt and invest in growth opportunities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
18.18B	32.41B	32.48B	32.55B	32.79B	32.56B
	Gross Profit
6.47B	6.78B	6.68B	6.04B	6.03B	6.18B
	EBIT
3.32B	3.55B	3.40B	2.68B	3.15B	2.73B
	EBITDA
3.94B	4.14B	4.25B	4.05B	4.58B	3.62B
	Net Income Common Stockholders
2.08B	2.61B	2.33B	1.57B	2.83B	1.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
539.00M	1.08B	1.38B	1.85B	1.29B	1.63B
	Total Assets
30.56B	27.83B	29.49B	30.96B	29.09B	32.31B
	Total Debt
13.35B	9.08B	9.73B	10.26B	10.07B	11.95B
	Net Debt
12.81B	8.01B	8.38B	8.40B	8.79B	10.32B
	Total Liabilities
25.04B	21.80B	22.85B	23.48B	23.15B	26.79B
	Stockholders Equity
4.92B	5.44B	6.02B	6.86B	5.35B	4.87B
Cash Flow		Free Cash Flow
2.49B	3.27B	2.95B	3.17B	1.97B	3.88B
	Operating Cash Flow
2.90B	3.31B	3.13B	3.19B	2.17B	4.03B
	Investing Cash Flow
-348.00M	-348.00M	-427.00M	-155.00M	710.00M	-331.00M
	Financing Cash Flow
-2.30B	-3.16B	-3.05B	-2.52B	-3.21B	-4.31B

Imperial Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMBBY, the sentiment is Neutral. The current price of 35.87 is below the 20-day moving average (MA) of 39.68, below the 50-day MA of 37.77, and above the 200-day MA of 32.06, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IMBBY.

Imperial Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PM	74 Outperform	$265.29B	35.02	-37142.11%	3.14%	6.83%	-4.85%
MO	73 Outperform	$99.20B	9.86	-503.31%	6.86%	-1.03%	25.20%
UVV	70 Outperform	$1.41B	11.39	8.79%	5.67%	12.88%	-5.64%
IMBBY	68 Neutral	$29.37B	9.31	54.39%	5.23%	3.50%	32.50%
TPB	68 Neutral	$1.32B	32.26	27.53%	0.39%	3.17%	-2.23%
Sector *	64 Neutral	$8.77B	14.68	4.78%	173.90%	3.25%	2.18%
BTI	61 Neutral	$92.76B	24.41	5.87%	6.90%	-2.51%	―