LSE:IMB

Stock Analysis Report

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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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IMB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

IMB

0.006%

GB Tobacco

-0.7%

GB Market


1 Year Return

-19.8%

IMB

-18.3%

GB Tobacco

-8.5%

GB Market

Return vs Industry: IMB matched the UK Tobacco industry which returned -19.2% over the past year.

Return vs Market: IMB underperformed the UK Market which returned -8.7% over the past year.


Shareholder returns

IMBIndustryMarket
7 Day1.5%0.006%-0.7%
30 Day3.9%0.6%3.8%
90 Day25.6%9.4%14.6%
1 Year-11.2%-19.8%-11.4%-18.3%-4.7%-8.5%
3 Year-28.2%-45.1%-30.7%-44.1%3.9%-8.8%
5 Year-34.8%-54.4%-8.2%-32.2%47.6%14.1%

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 (£16.35) is trading below our estimate of fair value (£90.89)

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


Price To Earnings Ratio

PE vs Industry: IMB's PE Ratio (10.3x) is in line with the XE Tobacco industry average.

PE vs Market: IMB is good value based on its PE Ratio (10.3x) compared to the UK market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: IMB is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: IMB is overvalued based on its PB Ratio (3.1x) compared to the XE Tobacco industry average (1.3x).


Next Steps

Future Growth

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

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMB's forecast earnings growth (8.8% per year) is above the savings rate (1%).

Earnings vs Market: IMB's earnings (8.8% per year) are forecast to grow slower than the UK market (26% per year).

High Growth Earnings: IMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: IMB's revenue is expected to decline over the next 3 years (-17% per year).

High Growth Revenue: IMB's revenue is forecast to decline over the next 3 years (-17% 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 (39%)


Next Steps

Past Performance

How has Imperial Brands performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMB has high quality earnings.

Growing Profit Margin: IMB's current net profit margins (9%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: IMB's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: IMB's earnings growth over the past year (48.1%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: IMB earnings growth over the past year (48.1%) exceeded the Tobacco industry 9.1%.


Return on Equity

High ROE: Whilst IMB's Return on Equity (28.23%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Imperial Brands's financial position?


Financial Position Analysis

Short Term Liabilities: IMB's short term assets (£9.7B) do not cover its short term liabilities (£12.3B).

Long Term Liabilities: IMB's short term assets (£9.7B) do not cover its long term liabilities (£14.5B).


Debt to Equity History and Analysis

Debt Level: IMB's debt to equity ratio (211.7%) is considered high.

Reducing Debt: IMB's debt to equity ratio has reduced from 250.2% to 211.7% over the past 5 years.

Debt Coverage: IMB's debt is well covered by operating cash flow (34.5%).

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


Balance Sheet


Next Steps

Dividend

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

8.43%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IMB's dividend (8.43%) is higher than the bottom 25% of dividend payers in the UK market (1.55%).

High Dividend: IMB's dividend (8.43%) is in the top 25% of dividend payers in the UK market (4.55%)


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: At its current payout ratio (87%), IMB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMB's dividends in 3 years are forecast to be covered by earnings (55.9% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Stefan Bomhard (52 yo)

0.50

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 ($USD1.50M) is below average for companies of similar size in the UK market ($USD4.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Bomhard
CEO & Director0.50yrUK£1.10mno data
Oliver Tant
CFO & Executive Director7.25yrsUK£1.71m0.0080%
£ 1.2m
Peter Durman
Investor Relations Directorno datano datano data
Alex Parsons
Director of Corporate Communicationsno datano datano data
Martin Goodall
Head of Salesno datano datano data
Andrew Newall
Group Human Resources Director8.25yrsno datano data
Christopher Street
Head of Grocery and Key Accounts9.5yrsno datano data
Surinder Sond
Group Head of Sustainability2.92yrsno datano data
Alison Clarke
Chief People & Culture Officer0.25yrno datano data
John Jones
Group Treasurerno datano datano data
John Downing
Company Secretary8.58yrsno datano data
Simon Evans
Group Media Relations Managerno datano datano data

7.2yrs

Average Tenure

Experienced Management: IMB's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Bomhard
CEO & Director0.50yrUK£1.10mno data
Oliver Tant
CFO & Executive Director7.25yrsUK£1.71m0.0080%
£ 1.2m
Sue Clark
Senior Independent Director1yrUK£130.00k0.00061%
£ 93.5k
Steven Stanbrook
Independent Non-Executive Director4.92yrsUK£104.00k0.0021%
£ 314.2k
Thérèse Esperdy
Independent Non-Executive Chairman1yrUK£512.00k0.0062%
£ 948.7k
Alan Johnson
Non-Executive Directorno datano datano data
Simon Langelier
Independent Non-Executive Director3.58yrsUK£88.00k0.0027%
£ 412.3k
Robert Kunze-Concewitz
Non-Executive Director0.17yrno datano data
Jonathan Stanton
Independent Non-Executive Director1.67yrsUK£96.00k0.00021%
£ 32.2k
Pierre-Jean Sivignon
Non-Executive Director0.50yrUK£21.00kno data

1.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: IMB's board of directors are not considered experienced ( 1 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: IMB 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£15.326b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMBB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1996
IMBLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 1996
ITBDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1996
ITBXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1996
IMBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 1996
IMB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 1996
IMBSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1996
IMBB.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1 ORD SHUSUSDOct 1996
ITBADB (Deutsche Boerse AG)SPON ADR EACH REPR 1 ORD SHDEEUROct 1996

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 Analysis2021/01/18 02:21
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.