Imperial Brands Plc (IMB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

British American Tobacco plc

Imperial Brands Plc

Why is Imperial Brands Plc ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.73% and Operating profit at -1.10% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.73% and Operating profit at -1.10% over the last 5 years

ROCE(HY) Lowest at 38.62%
INTEREST COVERAGE RATIO(Q) Lowest at 771.3
CASH AND EQV(HY) Lowest at GBP 497 MM

With ROE of 57.77%, it has a very expensive valuation with a 5.24 Price to Book Value

Over the past year, while the stock has generated a return of -8.01%, its profits have fallen by -14%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.01% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Imperial Brands Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Imperial Brands Plc

-8.01%

1.06

20.73%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.73%

EBIT Growth (5y)

-1.10%

EBIT to Interest (avg)

8.31

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

2.01

Sales to Capital Employed (avg)

1.17

Tax Ratio

14.65%

Dividend Payout Ratio

63.85%

Pledged Shares

Institutional Holding

0.15%

ROCE (avg)

22.79%

ROE (avg)

49.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.24

EV to EBIT

8.54

EV to EBITDA

7.22

EV to Capital Employed

2.18

EV to Sales

1.63

PEG Ratio

Dividend Yield

691.26%

ROCE (Latest)

25.59%

ROE (Latest)

57.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 6,052 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 139.21%

DIVIDEND PER SHARE(HY)

Highest at GBP 6.47

-11What is not working for the Company

ROCE(HY)

Lowest at 38.62%

INTEREST COVERAGE RATIO(Q)

Lowest at 771.3

CASH AND EQV(HY)

Lowest at GBP 497 MM

DEBT-EQUITY RATIO (HY)

Highest at 266.11 %

OPERATING PROFIT(Q)

Lowest at GBP 1,774 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.53 %

PRE-TAX PROFIT(Q)

Lowest at GBP 1,207 MM

NET PROFIT(Q)

Lowest at GBP 765.32 MM

EPS(Q)

Lowest at GBP 0.59

Here's what is working for Imperial Brands Plc

Operating Cash Flow

Highest at GBP 6,052 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend per share

Highest at GBP 6.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 139.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Imperial Brands Plc

Interest Coverage Ratio

Lowest at 771.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at GBP 1,774 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 19.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 1,207 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 765.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 497 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 266.11 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio