Imperial Brands (IMBBY) AI Stock Analysis

• Market Cap: $29.88B
• Dividend Yield: 5.26%
• Average Volume (3M): 286.87K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.36
• Revenue Growth: 5.61%
• EPS Growth: 23.39%
• Country: US
• Employees: 25,600
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Tobacco
• EPS (TTM): 3.83
• Shares Outstanding: 829,789,400
• 10 Day Avg. Volume: 180,284
• 30 Day Avg. Volume: 286,866
• PEG Ratio: 0.40
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 3.60
• 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 scores well due to its robust cash flows and solid profit margins, though it faces challenges with stagnant revenue growth and high leverage. Technically, the stock shows positive momentum, while valuation metrics suggest it may be undervalued. The lack of new information from the recent earnings call limits future guidance insights, but no negative developments were noted, maintaining overall stability.

Imperial Brands Business Overview & Revenue Model

Company Description

Imperial Brands PLC is a global consumer goods company headquartered in the United Kingdom. It primarily operates in the tobacco and logistics sectors, with a significant portfolio of tobacco brands, including cigarettes, cigars, and smokeless tobacco products. Additionally, the company is engaged in the development of next-generation products, such as vaping and heated tobacco products, aiming to provide potentially less harmful alternatives to traditional smoking. Imperial Brands also has a logistics business that offers supply chain solutions across Europe.

How the Company Makes Money

Imperial Brands makes money through the sale of tobacco products, such as cigarettes, cigars, and fine-cut tobacco, which constitute the bulk of its revenue. The company markets a variety of well-known brands, catering to diverse consumer preferences across different geographies. In addition to traditional tobacco products, Imperial Brands has invested in next-generation products, including e-cigarettes and heated tobacco products, to capture market share in the growing reduced-risk segment. Revenue from these products is an increasing focus for the company, reflecting shifting consumer trends and regulatory environments. Furthermore, Imperial Brands operates a logistics business under the name 'Logista,' which provides distribution and logistics services, contributing additional revenue streams. The company's earnings are influenced by factors such as regulatory changes, taxation, consumer behavior, and competition within the tobacco industry.

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
668.00M	1.08B	1.38B	1.85B	1.29B	1.63B
	Total Assets
28.55B	27.83B	29.49B	30.96B	29.09B	32.31B
	Total Debt
11.07B	9.08B	9.73B	10.26B	10.07B	11.95B
	Net Debt
10.40B	8.01B	8.38B	8.40B	8.79B	10.32B
	Total Liabilities
23.46B	21.80B	22.85B	23.48B	23.15B	26.79B
	Stockholders Equity
4.50B	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: Positive
• Last Price: 35.61
• 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 35.61 is above the 20-day moving average (MA) of 34.80, above the 50-day MA of 33.01, and above the 200-day MA of 28.70, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 95.00 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
IMBBY	74 Outperform	$29.88B	9.42	48.02%	5.26%	5.61%	23.39%
MO	72 Outperform	$95.18B	8.61	-503.31%	7.10%	-0.28%	43.51%
TPB	72 Outperform	$1.19B	26.80	25.57%	0.42%	-0.82%	294.02%
PM	67 Neutral	$239.37B	34.06	-37142.11%	3.44%	7.75%	-9.85%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%
UVV	62 Neutral	$1.33B	10.81	8.32%	6.00%	12.88%	-6.33%
BTI	61 Neutral	$89.50B	22.68	5.87%	7.43%	-2.51%	―