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Imperial Brands PLC IMB

Morningstar Rating
GBX 1,770.00 +14.00 (0.80%)
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Company Report

Imperial Brands Reports In Line Fiscal 2023 Performance

Stefan Bomhard unveiled a five-year strategic plan in 2021 that will concentrate Imperial's investments geographically and on emerging categories that are likely to become the largest profit pools in the future. The plan essentially recognizes Imperial's place in the marketplace—it is a fast follower, rather than a leader, in most markets. This makes Imperial a different investment proposition than its Big Tobacco peers, particularly Philip Morris International, which is investing in growth and moving away from the secular decline of the cigarette industry. Imperial, on the other hand, is likely to be the company more exposed to cigarettes, and although it should trade at a discount to its peer group, Imperial should remain a highly profitable and cash-generative business.

Price vs Fair Value

IMB is trading at a 40% discount.
Price
GBX 1,733.50
Fair Value
GBX 9,384.00
Uncertainty
Medium
1-Star Price
GBX 7,982.00
5-Star Price
GBX 4,773.00
Economic Moat
Znkmw
Capital Allocation
Zhqbyqwzl

Bulls Say, Bears Say

Bulls

The appointment of Simon Langelier, chairman of cannabis oil extract manufacturer PharamCielo, to the board of directors could open the door for Imperial to exploit more liberal legislation in the U.S.

Bears

With Philip Morris and British American Tobacco focused on diversifying revenue away from cigarettes, the probability of Imperial being acquired at a valuation premium has almost evaporated, in our view.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
GBX 1,756.00
Day Range
GBX 1,756.501,776.50
52-Week Range
GBX 1,553.502,016.00
Bid/Ask
GBX 1,669.00 / GBX 1,799.00
Market Cap
GBX 1.54 Tril
Volume/Avg
3.8 Mil / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
6.10
Price/Sales
0.50
Dividend Yield (Trailing)
8.36%
Dividend Yield (Forward)
8.36%
Total Yield
14.97%

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 160 countries. The firm holds a leading global position in the fine-cut tobacco and hand-rolling paper categories, and it has a logistics platform in Western Europe, Altadis. Through acquisition, Imperial is the third-largest manufacturer in the U.S. and owns the Winston and blu brands.
Sector
Consumer Defensive
Industry
Tobacco
Stock Style Box
Large Value
Total Number of Employees
25,700

Competitors

Valuation

Metric
IMB
BTI
PM
Price/Earnings (Normalized)
6.106.4515.35
Price/Book Value
2.621.05
Price/Sales
0.501.994.07
Price/Cash Flow
5.335.7813.64
Price/Earnings
IMB
BTI
PM

Financial Strength

Metric
IMB
BTI
PM
Quick Ratio
0.320.430.28
Current Ratio
0.720.910.75
Interest Coverage
3.58−8.147.54
Quick Ratio
IMB
BTI
PM

Profitability

Metric
IMB
BTI
PM
Return on Assets (Normalized)
8.61%6.03%14.43%
Return on Equity (Normalized)
41.72%12.92%
Return on Invested Capital (Normalized)
20.75%9.03%25.29%
Return on Assets
IMB
BTI
PM
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Tobacco Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
PM
Philip Morris International IncTvjdmgkytLrlr$143.2 Bil
MO
Altria Group IncZngtWhfx$77.0 Bil
BTAFF
British American Tobacco PLCNrmfss$67.4 Bil
BTI
British American Tobacco PLC ADRLpmthmkPwlmf$67.4 Bil
JAPAY
Japan Tobacco Inc ADRXzq$46.8 Bil
JAPAF
Japan Tobacco IncXpxmp$46.8 Bil
IMBBF
Imperial Brands PLCXnw$19.2 Bil
IMBBY
Imperial Brands PLC ADRGsjpjbrqzQccn$19.2 Bil
PHJMF
PT Hanjaya Mandala Sampoerna TbkMnbllpj$6.4 Bil
SMORF
Smoore International Holdings Ltd Ordinary SharesKbvtw$5.2 Bil

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