Imperial Brands PLC
Imperial Brands PLC Fundamental Analysis
Imperial Brands PLC (IMBBY) shows moderate financial fundamentals with a PE ratio of 13.12, profit margin of 8.93%, and ROE of 39.40%. The company generates $19.0B in annual revenue with weak year-over-year growth of -0.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IMBBY's fundamental strength across five key dimensions:
Efficiency Score
WeakIMBBY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIMBBY trades at attractive valuation levels.
Growth Score
WeakIMBBY faces weak or negative growth trends.
Financial Health Score
WeakIMBBY carries high financial risk with limited liquidity.
Profitability Score
ModerateIMBBY maintains healthy but balanced margins.
Key Financial Metrics
Is IMBBY Expensive or Cheap?
P/E Ratio
IMBBY trades at 13.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IMBBY's PEG of -0.33 indicates potential undervaluation.
Price to Book
The market values Imperial Brands PLC at 5.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.76 times EBITDA. This is generally considered low.
How Well Does IMBBY Make Money?
Net Profit Margin
For every $100 in sales, Imperial Brands PLC keeps $8.93 as profit after all expenses.
Operating Margin
Core operations generate 18.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.40 in profit for every $100 of shareholder equity.
ROA
Imperial Brands PLC generates $6.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Imperial Brands PLC produces operating cash flow of $3.03B, showing steady but balanced cash generation.
Free Cash Flow
Imperial Brands PLC generates strong free cash flow of $2.74B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.54 in free cash annually.
FCF Yield
IMBBY converts 12.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How IMBBY Stacks Against Its Sector Peers
| Metric | IMBBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.12 | 21.04 | Better (Cheaper) |
| ROE | 39.40% | 1188.00% | Weak |
| Net Margin | 8.93% | -2528.00% (disorted) | Weak |
| Debt/Equity | 2.78 | 0.81 | Weak (High Leverage) |
| Current Ratio | 0.70 | 2.55 | Weak Liquidity |
| ROA | 6.18% | -563145.00% (disorted) | Weak |
IMBBY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Imperial Brands PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.13%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
58.62%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
2.86%
Industry Style: Defensive, Dividend, Low Volatility
Growing