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 ?

High Management Efficiency with a high ROCE of 22.79%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.70% and Operating profit at 4.19% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.70% and Operating profit at 4.19% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at GBP 6,134 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,174.66
RAW MATERIAL COST(Y) Fallen by -1.11% (YoY)

With ROE of 49.25%, it has a very expensive valuation with a 5.21 Price to Book Value

Over the past year, while the stock has generated a return of 11.44%, its profits have fallen by -16.4%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Imperial Brands Plc should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Imperial Brands Plc for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Imperial Brands Plc

11.44%

1.75

20.89%

FTSE 100

13.98%

1.02

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.70%

EBIT Growth (5y)

4.19%

EBIT to Interest (avg)

8.31

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

2.01

Sales to Capital Employed (avg)

1.15

Tax Ratio

14.65%

Dividend Payout Ratio

63.85%

Pledged Shares

Institutional Holding

0.12%

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

5.21

EV to EBIT

8.99

EV to EBITDA

7.61

EV to Capital Employed

2.55

EV to Sales

1.76

PEG Ratio

Dividend Yield

576.02%

ROCE (Latest)

28.41%

ROE (Latest)

49.25%

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 6,134 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,174.66

RAW MATERIAL COST(Y)

Fallen by -1.11% (YoY

CASH AND EQV(HY)

Highest at GBP 1,439 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.89 times

NET SALES(Q)

Highest at GBP 10,323 MM

OPERATING PROFIT(Q)

Highest at GBP 2,596 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.15 %

PRE-TAX PROFIT(Q)

Highest at GBP 2,038 MM

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 51.93%

DIVIDEND PER SHARE(HY)

Lowest at GBP 6.94

Here's what is working for Imperial Brands Plc

Operating Cash Flow

Highest at GBP 6,134 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 1,174.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at GBP 10,323 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 2,596 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 25.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 2,038 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Cash and Eqv

Highest at GBP 1,439 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 346 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Imperial Brands Plc

Dividend per share

Lowest at GBP 6.94

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 51.93%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)