LSE:IMB

Stock Analysis Report

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Market Cap

UK£14.7b

Last Updated

2021/07/26 21:34 UTC

Data Sources

Company Financials +

Executive Summary

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Imperial Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMB is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IMB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

IMB

0.9%

GB Tobacco

2.9%

GB Market


1 Year Return

12.9%

IMB

5.4%

GB Tobacco

19.1%

GB Market

Return vs Industry: IMB exceeded the UK Tobacco industry which returned 5.1% over the past year.

Return vs Market: IMB underperformed the UK Market which returned 18.9% over the past year.


Shareholder returns

IMBIndustryMarket
7 Day1.3%0.9%2.9%
30 Day0.4%-0.5%-0.8%
90 Day6.1%3.1%1.3%
1 Year24.0%12.9%14.0%5.4%24.5%19.1%
3 Year-27.6%-45.2%-18.2%-34.9%12.0%-0.8%
5 Year-42.2%-60.6%-25.7%-45.8%41.2%14.0%

Long-Term Price Volatility Vs. Market

How volatile is Imperial Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Imperial Brands undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMB (£15.7) is trading below our estimate of fair value (£48.94)

Significantly Below Fair Value: IMB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMB is good value based on its PE Ratio (5.3x) compared to the European Tobacco industry average (10x).

PE vs Market: IMB is good value based on its PE Ratio (5.3x) compared to the UK market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: IMB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IMB is overvalued based on its PB Ratio (3.3x) compared to the XE Tobacco industry average (1.4x).


Future Growth

How is Imperial Brands forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMB's earnings are forecast to decline over the next 3 years (-6.2% per year).

Earnings vs Market: IMB's earnings are forecast to decline over the next 3 years (-6.2% per year).

High Growth Earnings: IMB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IMB's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: IMB's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMB's Return on Equity is forecast to be high in 3 years time (34.6%)


Past Performance

How has Imperial Brands performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMB has high quality earnings.

Growing Profit Margin: IMB's current net profit margins (16.4%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: IMB's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: IMB's earnings growth over the past year (224.3%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: IMB earnings growth over the past year (224.3%) exceeded the Tobacco industry 4.4%.


Return on Equity

High ROE: Whilst IMB's Return on Equity (56.72%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Imperial Brands's financial position?


Financial Position Analysis

Short Term Liabilities: IMB's short term assets (£8.4B) do not cover its short term liabilities (£11.1B).

Long Term Liabilities: IMB's short term assets (£8.4B) do not cover its long term liabilities (£13.0B).


Debt to Equity History and Analysis

Debt Level: IMB's debt to equity ratio (218.5%) is considered high.

Reducing Debt: IMB's debt to equity ratio has reduced from 273% to 218.5% over the past 5 years.

Debt Coverage: IMB's debt is well covered by operating cash flow (34.1%).

Interest Coverage: IMB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Imperial Brands's current dividend yield, its reliability and sustainability?

8.77%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 27 2021Ex Dividend DateAug 19 2021Dividend Pay DateSep 30 202142 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: IMB's dividend (8.77%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: IMB's dividend (8.77%) is in the top 25% of dividend payers in the UK market (4.03%)


Stability and Growth of Payments

Stable Dividend: IMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: IMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47%), IMB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMB's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Stefan Bomhard (53 yo)

1

Tenure

UK£1,104,000

Compensation

Mr. Stefan Bomhard serves as the Chief Executive Officer and Director of Imperial Brands PLC since July 01, 2020. He was a Director of Inchcape plc since May 21, 2015 and served as Group Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD1.53M) is below average for companies of similar size in the UK market ($USD3.62M).

Compensation vs Earnings: Insufficient data to compare Stefan's compensation with company performance.


Leadership Team

Experienced Management: IMB's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: IMB's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Imperial Brands PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Imperial Brands PLC
  • Ticker: IMB
  • Exchange: LSE
  • Founded: 1901
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£14.717b
  • Shares outstanding: 937.67m
  • Website: https://www.imperialbrandsplc.com

Number of Employees


Location

  • Imperial Brands PLC
  • 121 Winterstoke Road
  • Bristol
  • BS3 2LL
  • United Kingdom

Listings


Biography

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products. It offers a range of cigarettes, fine cut and smokeless tobacco, papers,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/26 21:34
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.