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Imperial Brands

LSE:IMB
Snowflake Description

Good value with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IMB
LSE
£20B
Market Cap
  1. Home
  2. GB
  3. Food, Beverage & Tobacco
Company description

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products. The last earnings update was 14 days ago. More info.


Add to Portfolio Compare Print
  • Imperial Brands has significant price volatility in the past 3 months.
IMB Share Price and Events
7 Day Returns
-1.4%
LSE:IMB
2.6%
Global Tobacco
1%
GB Market
1 Year Returns
-25.5%
LSE:IMB
-10%
Global Tobacco
-6.3%
GB Market
IMB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Imperial Brands (IMB) -1.4% -15.7% -19.3% -25.5% -44.3% -21.1%
Global Tobacco 2.6% -3.5% 3.3% -10% -18% 6%
GB Market 1% -1.8% 1.5% -6.3% 14.4% 2%
1 Year Return vs Industry and Market
  • IMB underperformed the Tobacco industry which returned -10% over the past year.
  • IMB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
IMB
Industry
5yr Volatility vs Market

Value

 Is Imperial Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Imperial Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Imperial Brands.

LSE:IMB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:IMB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.339 (1 + (1- 19%) (67.02%))
0.68
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:IMB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Imperial Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:IMB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 2,560.38 Analyst x8 2,403.05
2020 2,756.12 Analyst x9 2,427.81
2021 2,804.22 Analyst x7 2,318.40
2022 2,827.00 Analyst x1 2,193.62
2023 2,853.43 Est @ 0.93% 2,078.07
2024 2,882.60 Est @ 1.02% 1,970.32
2025 2,913.84 Est @ 1.08% 1,869.29
2026 2,946.67 Est @ 1.13% 1,774.20
2027 2,980.76 Est @ 1.16% 1,684.44
2028 3,015.87 Est @ 1.18% 1,599.56
Present value of next 10 years cash flows £20,318.77
LSE:IMB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £3,015.87 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£57,384.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £57,384.90 ÷ (1 + 6.55%)10
£30,435.85
LSE:IMB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £20,318.77 + £30,435.85
£50,754.62
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £50,754.62 / 948.30
£53.52
LSE:IMB Discount to Share Price
Calculation Result
Value per share (GBP) From above. £53.52
Current discount Discount to share price of £21.00
= -1 x (£21.00 - £53.52) / £53.52
60.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Imperial Brands is available for.
Intrinsic value
>50%
Share price is £21 vs Future cash flow value of £53.52
Current Discount Checks
For Imperial Brands to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Imperial Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Imperial Brands's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Imperial Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Imperial Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:IMB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £1.63
LSE:IMB Share Price ** LSE (2019-05-22) in GBP £21
Global Tobacco Industry PE Ratio Median Figure of 11 Publicly-Listed Tobacco Companies 14.03x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Imperial Brands.

LSE:IMB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:IMB Share Price ÷ EPS (both in GBP)

= 21 ÷ 1.63

12.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Brands is good value based on earnings compared to the Global Tobacco industry average.
  • Imperial Brands is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Imperial Brands's expected growth come at a high price?
Raw Data
LSE:IMB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
5.9%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 2.22x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:IMB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.88x ÷ 5.9%

2.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Brands is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Imperial Brands's assets?
Raw Data
LSE:IMB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £5.15
LSE:IMB Share Price * LSE (2019-05-22) in GBP £21
Global Tobacco Industry PB Ratio Median Figure of 17 Publicly-Listed Tobacco Companies 2.99x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.51x
LSE:IMB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:IMB Share Price ÷ Book Value per Share (both in GBP)

= 21 ÷ 5.15

4.07x

* Primary Listing of Imperial Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Imperial Brands is overvalued based on assets compared to the Global Tobacco industry average.
X
Value checks
We assess Imperial Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Imperial Brands has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Imperial Brands expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Imperial Brands expected to grow at an attractive rate?
  • Imperial Brands's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Imperial Brands's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Imperial Brands's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:IMB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:IMB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 5.9%
LSE:IMB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 1.5%
Global Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 8.2%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:IMB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:IMB Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 10,428 4,303 2,115 4
2022-09-30 9,901 4,053 2,094 5
2021-09-30 9,501 3,354 2,088 11
2020-09-30 9,222 3,177 1,937 15
2019-09-30 8,991 2,978 1,734 13
LSE:IMB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 15,696 2,198 1,556
2018-12-31 15,544 2,643 1,462
2018-09-30 15,399 3,087 1,368
2018-06-30 15,278 3,213 1,297
2018-03-31 15,157 3,339 1,225
2017-12-31 15,219 3,202 1,317
2017-09-30 15,280 3,065 1,409
2017-06-30 15,040 3,238 1,213
2017-03-31 14,800 3,410 1,016
2016-12-31 14,450 3,284 824
2016-09-30 14,099 3,157 631
2016-06-30 13,664 3,186 880

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Imperial Brands's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Imperial Brands's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:IMB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Imperial Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IMB Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 2.24 2.46 2.02 2.00
2022-09-30 2.20 2.44 1.86 3.00
2021-09-30 2.19 2.57 1.68 4.00
2020-09-30 2.03 2.46 1.52 5.00
2019-09-30 1.81 2.30 1.38 5.00
LSE:IMB Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 1.63
2018-12-31 1.53
2018-09-30 1.44
2018-06-30 1.36
2018-03-31 1.29
2017-12-31 1.38
2017-09-30 1.48
2017-06-30 1.27
2017-03-31 1.06
2016-12-31 0.86
2016-09-30 0.66
2016-06-30 0.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Imperial Brands is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Imperial Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Imperial Brands has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Imperial Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Imperial Brands's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Imperial Brands's year on year earnings growth rate has been positive over the past 5 years.
  • Imperial Brands's 1-year earnings growth exceeds its 5-year average (27% vs 0.5%)
  • Imperial Brands's earnings growth has exceeded the Global Tobacco industry average in the past year (27% vs 15.9%).
Earnings and Revenue History
Imperial Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Imperial Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IMB Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 15,696.00 1,556.00 2,405.00
2018-12-31 15,543.50 1,462.00 2,398.50
2018-09-30 15,399.00 1,368.00 2,454.00
2018-06-30 15,278.00 1,296.50 2,447.00
2018-03-31 15,157.00 1,225.00 2,440.00
2017-12-31 15,218.50 1,317.00 2,449.50
2017-09-30 15,280.00 1,409.00 2,459.00
2017-06-30 15,040.00 1,212.50 2,377.00
2017-03-31 14,800.00 1,016.00 2,295.00
2016-12-31 14,449.50 823.50 2,192.00
2016-09-30 14,099.00 631.00 2,089.00
2016-06-30 13,663.50 879.50 2,031.50
2016-03-31 13,228.00 1,128.00 1,974.00
2015-12-31 12,966.00 1,409.50 1,925.00
2015-09-30 12,704.00 1,691.00 1,876.00
2015-06-30 12,867.00 1,800.00 1,885.50
2015-03-31 13,030.00 1,909.00 1,895.00
2014-12-31 13,281.00 1,665.50 1,930.00
2014-09-30 13,532.00 1,422.00 1,965.00
2014-06-30 13,935.50 1,041.00 1,563.50
2014-03-31 14,257.00 660.00 1,675.00
2013-12-31 14,422.50 782.50 1,885.00
2013-09-30 14,588.00 905.00 2,095.00
2013-06-30 14,470.50 684.00 2,091.00
2013-03-31 14,353.00 463.00 2,087.00
2012-12-31 14,512.50 570.50 2,055.50
2012-09-30 14,672.00 678.00 2,024.00
2012-06-30 14,938.00 1,187.00 2,021.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Imperial Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Imperial Brands used its assets less efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Imperial Brands has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Imperial Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Imperial Brands has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Imperial Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Imperial Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Imperial Brands's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Imperial Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Imperial Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Imperial Brands Company Filings, last reported 1 month ago.

LSE:IMB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,526.00 13,346.00 539.00
2018-12-31 5,526.00 13,346.00 539.00
2018-09-30 6,445.00 11,995.00 803.00
2018-06-30 6,445.00 11,995.00 803.00
2018-03-31 5,359.00 13,106.00 658.00
2017-12-31 5,359.00 13,106.00 658.00
2017-09-30 6,226.00 12,582.00 671.00
2017-06-30 6,226.00 12,582.00 671.00
2017-03-31 5,646.00 15,300.00 653.00
2016-12-31 5,646.00 15,300.00 653.00
2016-09-30 5,742.00 13,938.00 1,306.00
2016-06-30 5,742.00 13,938.00 1,306.00
2016-03-31 5,272.00 14,308.00 561.00
2015-12-31 5,272.00 14,308.00 561.00
2015-09-30 5,696.00 14,227.00 2,097.00
2015-06-30 5,696.00 14,227.00 2,097.00
2015-03-31 5,289.00 10,220.00 633.00
2014-12-31 5,289.00 10,220.00 633.00
2014-09-30 5,463.00 9,891.00 1,440.00
2014-06-30 5,477.00 9,932.00 1,458.00
2014-03-31 4,803.00 11,845.00 631.00
2013-12-31 4,803.00 11,845.00 631.00
2013-09-30 5,652.00 11,134.00 2,012.00
2013-06-30 5,652.00 11,134.00 2,012.00
2013-03-31 6,250.00 11,698.00 649.00
2012-12-31 6,250.00 11,698.00 649.00
2012-09-30 6,084.00 9,587.00 836.00
2012-06-30 6,084.00 9,587.00 836.00
  • Imperial Brands's level of debt (241.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (245.8% vs 241.5% today).
  • Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).
  • Imperial Brands earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Imperial Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Imperial Brands has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.94%
Current annual income from Imperial Brands dividends. Estimated to be 10.77% next year.
If you bought £2,000 of Imperial Brands shares you are expected to receive £179 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Imperial Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Imperial Brands's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
Upcoming dividend payment

Purchase Imperial Brands before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:IMB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:IMB Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 2.58 3.00
2022-09-30 2.44 5.00
2021-09-30 2.38 13.00
2020-09-30 2.22 16.00
2019-09-30 2.07 13.00
LSE:IMB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-06 1.878 7.612
2017-12-14 1.707 6.274
2017-11-07 1.707 5.517
2016-11-08 1.552 4.438
2016-02-03 1.964 5.113
2015-05-06 0.856 2.539
2014-12-16 1.281 4.170
2013-11-11 1.164 4.607
2013-04-30 1.091 4.810
2012-10-30 1.056 4.437
2011-12-19 0.951 3.915
2011-11-01 0.951 4.129
2011-05-10 0.881 4.166
2010-12-17 0.843 4.309
2010-12-15 0.843 4.384
2010-11-02 0.843 4.307
2009-12-17 0.730 3.780
2009-11-10 0.730 3.928

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Imperial Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Imperial Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Imperial Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Imperial Brands has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Imperial Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alison Cooper
COMPENSATION £3,935,000
AGE 52
TENURE AS CEO 9 years
CEO Bio

Mrs. Alison J. Cooper, BSC, ACA has been the Chief Executive Officer and Executive Director at Imperial Brands PLC since May 12, 2010 and July 2007 respectively. Mrs. Cooper served as the Chief Operating Officer of Imperial Tobacco Group PLC since March 2009. Mrs. Cooper has been responsible for strategic planning and business development as well as for Corporate Affairs. Mrs. Cooper served as a Director of Corporate Development at Imperial Tobacco Group PLC from July 1, 2007 to March 2009, Director of Finance & Planning since June 2003 and its Regional Director of Western Europe from 2005 to July 1, 2007. Prior to joining Imperial Tobacco Group PLC in 1999, she worked with Imperial Tobacco for several years in a number of areas, including acquisitions at PricewaterhouseCoopers. She served as a Group Financial Controller of Imperial Tobacco since 2001 and was responsible for the financial management and control of the Group, including the financial evaluation of acquisitions, corporate planning and development and investor relations. She served as a Non-Executive Director at Inchcape PLC from July 1, 2009 to February 28, 2017. She served as a Director of Compania De Distribucion Integral Logista Holdings, S.A.U. She is a Chartered Accountant.

CEO Compensation
  • Alison's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alison's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Imperial Brands management team in years:

6.8
Average Tenure
46
Average Age
  • The average tenure for the Imperial Brands management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alison Cooper

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
52
TENURE
9 yrs

Oliver Tant

TITLE
CFO & Executive Director
COMPENSATION
£2M
TENURE
5.5 yrs

Matthew Phillips

TITLE
Chief Development Officer and Executive Director
COMPENSATION
£2M
AGE
45
TENURE
3.9 yrs

Peter Durman

TITLE
Investor Relations Director

Alex Parsons

TITLE
Director of Corporate Communications

Martin Goodall

TITLE
Head of Sales

Andy Newall

TITLE
Group Human Resources Director
TENURE
6.6 yrs

Chris Street

TITLE
Head of Grocery and Key Accounts
TENURE
7.8 yrs

John Jones

TITLE
Group Treasurer

John Downing

TITLE
Company Secretary
AGE
46
TENURE
6.9 yrs
Board of Directors Tenure

Average tenure and age of the Imperial Brands board of directors in years:

5.3
Average Tenure
54.5
Average Age
  • The tenure for the Imperial Brands board of directors is about average.
Board of Directors

Mark Williamson

TITLE
Non-Executive Chairman
COMPENSATION
£534K
AGE
60
TENURE
5.3 yrs

Alison Cooper

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
52
TENURE
11.8 yrs

Oliver Tant

TITLE
CFO & Executive Director
COMPENSATION
£2M
TENURE
5.6 yrs

Matthew Phillips

TITLE
Chief Development Officer and Executive Director
COMPENSATION
£2M
AGE
45
TENURE
6.9 yrs

Karen Witts

TITLE
Non-Executive Director
COMPENSATION
£109K
AGE
55
TENURE
5.3 yrs

Sue Clark

TITLE
Idependent Non-Executive Director
AGE
54
TENURE
0.4 yrs

Thérèse Esperdy

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£111K
AGE
57

Steven Stanbrook

TITLE
Independent Non-Executive Director
COMPENSATION
£96K
AGE
61
TENURE
3.3 yrs

Simon Langelier

TITLE
Independent Non-Executive Director
COMPENSATION
£86K
TENURE
1.9 yrs

Jon Stanton

TITLE
Non-Executive Director
AGE
51
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Imperial Brands insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Mar 19 Buy Oliver Tant Individual 19. Mar 19 19. Mar 19 118 £26.71 £3,152
14. Dec 18 Buy Matthew Phillips Individual 14. Dec 18 14. Dec 18 10,920 £23.94 £261,468
14. Dec 18 Buy Alison Cooper Individual 14. Dec 18 14. Dec 18 20,597 £23.94 £493,175
14. Dec 18 Buy Oliver Tant Individual 14. Dec 18 14. Dec 18 5,392 £23.94 £129,096
20. Sep 18 Buy Oliver Tant Individual 20. Sep 18 20. Sep 18 5,386 £25.86 £139,282
06. Jun 18 Buy Oliver Tant Individual 05. Jun 18 05. Jun 18 100 £27.10 £2,710
X
Management checks
We assess Imperial Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Imperial Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Imperial Brands PLC (LON:IMB): The Best Of Both Worlds

In the case of Imperial Brands PLC (LON:IMB), there's is a notable dividend-paying company with a an impressive track record of performance, trading at a great value. … For those interested in digger a bit deeper into my commentary, read the full report on Imperial Brands here. … LSE:IMB Historical Dividend Yield, May 13th 2019 Next Steps: For Imperial Brands, I've compiled three relevant factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for IMB’s future growth?

Simply Wall St -

Do Institutions Own Imperial Brands PLC (LON:IMB) Shares?

The big shareholder groups in Imperial Brands PLC (LON:IMB) have power over the company. … Imperial Brands is a pretty big company. … View our latest analysis for Imperial Brands

Simply Wall St -

Don't Sell Imperial Brands PLC (LON:IMB) Before You Read This

We'll show how you can use Imperial Brands PLC's (LON:IMB) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate Imperial Brands's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Who Bought Imperial Brands (LON:IMB) Shares Three Years Ago Are Now Down 30%

Unfortunately, that's been the case for longer term Imperial Brands PLC (LON:IMB) shareholders, since the share price is down 30% in the last three years, falling well short of the market return of around 30%. … To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Simply Wall St -

Does Imperial Brands PLC's (LON:IMB) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other large companies. … How Does Alison Cooper's Compensation Compare With Similar Sized Companies. … Our data indicates that Imperial Brands PLC is worth UK£25b, and total annual CEO compensation is UK£3.9m.

Simply Wall St -

What Should We Expect From Imperial Brands PLC's (LON:IMB) Earnings Over The Next Year?

Help shape the future of investing tools and you could win a $250 gift card! … Looking at Imperial Brands PLC's (LON:IMB) earnings update in September 2018, … the past 5-year average growth rate of 1.8%.

Simply Wall St -

What Do Analysts Think About Imperial Brands PLC's (LON:IMB) Earnings Trend?

Imperial Brands PLC's (LON:IMB) most recent earnings update in September 2018a … showed

Simply Wall St -

With A Return On Equity Of 22%, Has Imperial Brands PLC's (LON:IMB) Management Done Well?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Imperial Brands PLC (LON:IMB). … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did Imperial Brands PLC (LON:IMB) Insiders Buy Up More Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell Imperial Brands PLC (LON:IMB), you may well want to know whether insiders have been buying or selling. … Imperial Brands Insider Transactions Over The Last Year.

Simply Wall St -

Imperial Brands PLC (LON:IMB) Is Trading At A 47.06% Discount

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

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, and cigars; and e-vapour products. The company sells its products under the growth brands, such as Davidoff, Gauloises Blondes, JPS, West, Lambert & Butler, Bastos, Fine, Winston, News, and Parker & Simpson; and specialist brands consisting of blu, Kool, Gitanes, Jade, Cohiba, Montecristo, Romeo Y Julieta, Backwoods, Skruf, Golden Virginia, and Drum in approximately 160 countries worldwide. It also provides logistics services that include the distribution of tobacco products for tobacco product manufacturers; and various non-tobacco products and services. In addition, the company is involved in the management of a golf course; market of papers; restaurant business; distribution of pharmaceuticals, POS software, and published materials and other products; and printing and publishing activities, as well as offers 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 headquartered in Bristol, the United Kingdom.

Details
Name: Imperial Brands PLC
IMB
Exchange: LSE
Founded: 1901
£19,914,218,604
948,296,124
Website: http://www.imperialbrandsplc.com
Address: Imperial Brands PLC
121 Winterstoke Road,
Bristol,
BS3 2LL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE IMB Ordinary Shares London Stock Exchange GB GBP 02. Oct 1996
OTCPK IMBB.F Ordinary Shares Pink Sheets LLC US USD 02. Oct 1996
DB ITB Ordinary Shares Deutsche Boerse AG DE EUR 02. Oct 1996
XTRA ITB Ordinary Shares XETRA Trading Platform DE EUR 02. Oct 1996
SWX IMB Ordinary Shares SIX Swiss Exchange CH CHF 02. Oct 1996
BMV IMB N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Oct 1996
BATS-CHIXE IMBL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Oct 1996
OTCPK IMBB.Y SPON ADR Pink Sheets LLC US USD 03. Oct 1996
DB ITBA SPON ADR Deutsche Boerse AG DE EUR 03. Oct 1996
Number of employees
Current staff
Staff numbers
33,300
Imperial Brands employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 20:54
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.