Morningstar

Imperial Brands PLC IMB

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Stock XLON Rating as of
GBX 2,182.00 +5.00 (0.23%)
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As of Delayed Price Closed

Company Report

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Imperial's Fast-Follower Strategy Weighs on Growth but Should Generate Meaningful Free Cash Flow

Kristoffer Inton

Imperial Brands is in the middle of a five-year strategic plan launched in 2021 that looked to position the firm as a fast follower in next-generation products while strengthening its share in its most important markets. This makes sense, given its relatively smaller size to peers like Philip Morris International and British American Tobacco, which leaves it less financial capacity to lead innovation. Although this means Imperial will be more exposed to cigarettes, it also implies that it can maximize its free cash flow generation and returns to shareholders.

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Price vs Fair Value

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IMB is trading within a range we consider fairly valued.
Price
GBX 2,182.00
Fair Value
GBX 3,357.00
Uncertainty
Medium
1-Star Price
GBX 1,341.00
5-Star Price
GBX 4,522.00
Economic Moat
Cjm
Capital Allocation
Syrntxjgd

Bulls Say, Bears Say

Bulls

Imperial’s strategy to focus on its strongest markets and categories stands to maximize margins and free cash flow generation.

Bears

Imperial’s international exposure creates significant currency risk since much of its debt is denominated in US dollars. A strengthening US dollar can hurt the firm's ability to service debt.

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News

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Trading Information

Previous Close Price
GBX 2,177.00
Day Range
GBX 2,170.89–2,205.00
52-Week Range
GBX 19.68–2,267.00
Bid/Ask
GBX 2,160.00 / GBX 2,293.00
Market Cap
GBX 1.84 Tril
Volume/Avg
4.3 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
8.10
Price/Sales
0.61
Dividend Yield (Trailing)
6.81%
Dividend Yield (Forward)
6.81%
Total Yield
12.83%

Company Profile

Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco), with total fiscal 2023 volume of 198 billion cigarettes sold in more than 120 countries. Its largest markets are the UK, Germany, France, and the US (where it sits as the third-largest manufacturer, following its acquisition of the Winston and Blu brands). The firm also holds a leading global position in the fine-cut tobacco and hand-rolling paper categories. It has a logistics platform in Western Europe, Altadis.
Sector
Consumer Defensive
Industry
Tobacco
Stock Style Box
Large Value
Total Number of Employees
25,200
Website
https://www.imperialbrandsplc.com

Competitors

Valuation

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Metric
IMB
MO
BTI
Price/Earnings (Normalized)
 8.1010.388.39
Price/Book Value
 4.19—1.23
Price/Sales
 0.614.412.49
Price/Cash Flow
 7.0910.037.25
Price/Earnings
IMB
MO
BTI

Financial Strength

Metric
IMB
MO
BTI
Quick Ratio
 0.270.280.57
Current Ratio
 0.640.450.88
Interest Coverage
 3.0912.32−12.34
Quick Ratio
IMB
MO
BTI

Profitability

Metric
IMB
MO
BTI
Return on Assets (Normalized)
 8.68%23.59%6.34%
Return on Equity (Normalized)
 46.93%—14.01%
Return on Invested Capital (Normalized)
 21.76%42.77%8.94%
Return on Assets
IMB
MO
BTI

Tobacco Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Philip Morris International Inc
PM
HlxhjzhfdFhhb$187.5 Bil
 Altria Group Inc
MO
NgfhQwh$87.1 Bil
 British American Tobacco PLC
BTAFF
—Rpckyf$82.2 Bil
 British American Tobacco PLC ADR
BTI
DkjyfffcrFwlgg$82.2 Bil
 Japan Tobacco Inc ADR
JAPAY
—Hdx$52.8 Bil
 Japan Tobacco Inc
JAPAF
—Wvh$52.8 Bil
 Imperial Brands PLC
IMBBF
—Hlyr$24.7 Bil
 Imperial Brands PLC ADR
IMBBY
ZdyynwhzCpkh$24.7 Bil
 PT Hanjaya Mandala Sampoerna Tbk
PHJMF
—Nwtmqz$5.9 Bil
 RLX Technology Inc ADR
RLX
—Fvd$2.6 Bil

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