IMPERIAL BRANDS PLC (ITB.DE) Stock Fundamental Analysis
FRA:ITB - Deutsche Boerse Ag - GB0004544929 - Common Stock - Currency: EUR
ITB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 4 industry peers in the Tobacco industry. ITB has an average financial health and profitability rating. ITB may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ITB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ITB was profitable.
ITB had a positive operating cash flow in the past year.
Each year in the past 5 years ITB has been profitable.
In the past 5 years ITB always reported a positive cash flow from operatings.
1.2 Ratios
ITB has a Return On Assets (9.24%) which is comparable to the rest of the industry.
The Return On Equity of ITB (51.85%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.79%, ITB is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ITB is below the industry average of 20.78%.
The last Return On Invested Capital (18.79%) for ITB is above the 3 year average (16.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 51.85% | ||
| ROIC | 18.79% |
ROA(3y)7.45%
ROA(5y)7.35%
ROE(3y)36.52%
ROE(5y)38.64%
ROIC(3y)16.45%
ROIC(5y)15.34%
1.3 Margins
ITB has a worse Profit Margin (8.06%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of ITB has grown nicely.
Looking at the Operating Margin, with a value of 11.06%, ITB is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ITB has grown nicely.
ITB's Gross Margin of 21.34% is on the low side compared to the rest of the industry. ITB is outperformed by 75.00% of its industry peers.
ITB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.06% | ||
| PM (TTM) | 8.06% | ||
| GM | 21.34% |
OM growth 3Y4.84%
OM growth 5Y6.84%
PM growth 3Y-2.29%
PM growth 5Y20.32%
GM growth 3Y4.4%
GM growth 5Y1.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ITB is creating value.
ITB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ITB has less shares outstanding
Compared to 1 year ago, ITB has an improved debt to assets ratio.
2.2 Solvency
ITB has an Altman-Z score of 1.96. This is not the best score and indicates that ITB is in the grey zone with still only limited risk for bankruptcy at the moment.
ITB has a Altman-Z score of 1.96. This is comparable to the rest of the industry: ITB outperforms 50.00% of its industry peers.
The Debt to FCF ratio of ITB is 3.80, which is a good value as it means it would take ITB, 3.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.80, ITB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that ITB has dependencies on debt financing.
ITB has a better Debt to Equity ratio (1.62) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 1.96 |
ROIC/WACC2.44
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ITB may have some problems paying its short term obligations.
ITB has a Current ratio (0.68) which is comparable to the rest of the industry.
A Quick Ratio of 0.30 indicates that ITB may have some problems paying its short term obligations.
The Quick ratio of ITB (0.30) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.30% over the past year.
Measured over the past 5 years, ITB shows a small growth in Earnings Per Share. The EPS has been growing by 1.60% on average per year.
The Revenue has decreased by -0.55% in the past year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)6.3%
EPS 3Y6.22%
EPS 5Y1.6%
EPS Q2Q%2.84%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-0.39%
Revenue growth 5Y0.51%
Sales Q2Q%0.74%
3.2 Future
Based on estimates for the next years, ITB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.09% on average per year.
Based on estimates for the next years, ITB will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y10.94%
EPS Next 2Y10.26%
EPS Next 3Y10.13%
EPS Next 5Y10.09%
Revenue Next Year2.36%
Revenue Next 2Y2.22%
Revenue Next 3Y2.04%
Revenue Next 5Y2.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.69, the valuation of ITB can be described as very reasonable.
Based on the Price/Earnings ratio, ITB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.55. ITB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.05, which indicates a very decent valuation of ITB.
ITB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ITB is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ITB to the average of the S&P500 Index (22.30), we can say ITB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
ITB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ITB is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ITB is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.26 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
ITB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ITB may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)6.06
EPS Next 2Y10.26%
EPS Next 3Y10.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.50%, ITB is a good candidate for dividend investing.
ITB's Dividend Yield is comparable with the industry average which is at 5.80.
ITB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
5.2 History
The dividend of ITB decreases each year by -5.11%.
Dividend Growth(5Y)-5.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ITB pays out 50.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.14%
EPS Next 2Y10.26%
EPS Next 3Y10.13%
FRA:ITB (6/6/2025, 7:00:00 PM)
34.3
-0.19 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners69.77%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap28.08B
Analysts82
Price Target39.23 (14.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend1.77
Dividend Growth(5Y)-5.11%
DP50.14%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.54%
PT rev (3m)11.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.05 | ||
| P/S | 0.74 | ||
| P/FCF | 8.26 | ||
| P/OCF | 7.1 | ||
| P/B | 4.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)3.54
EY10.32%
EPS(NY)4.26
Fwd EY12.42%
FCF(TTM)4.15
FCFY12.11%
OCF(TTM)4.83
OCFY14.09%
SpS46.33
BVpS7.2
TBVpS-16.07
PEG (NY)0.89
PEG (5Y)6.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.24% | ||
| ROE | 51.85% | ||
| ROCE | 22.15% | ||
| ROIC | 18.79% | ||
| ROICexc | 19.52% | ||
| ROICexgc | N/A | ||
| OM | 11.06% | ||
| PM (TTM) | 8.06% | ||
| GM | 21.34% | ||
| FCFM | 8.97% |
ROA(3y)7.45%
ROA(5y)7.35%
ROE(3y)36.52%
ROE(5y)38.64%
ROIC(3y)16.45%
ROIC(5y)15.34%
ROICexc(3y)17.83%
ROICexc(5y)16.61%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.41%
ROCE(5y)18.09%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y8.14%
ROICexc growth 5Y11.93%
OM growth 3Y4.84%
OM growth 5Y6.84%
PM growth 3Y-2.29%
PM growth 5Y20.32%
GM growth 3Y4.4%
GM growth 5Y1.15%
F-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 71.28% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 8.07 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 111.26% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 1.96 |
F-Score8
WACC7.7%
ROIC/WACC2.44
Cap/Depr(3y)60.34%
Cap/Depr(5y)50.96%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.11%
Profit Quality(3y)136.93%
Profit Quality(5y)143.13%
High Growth Momentum
Growth
EPS 1Y (TTM)6.3%
EPS 3Y6.22%
EPS 5Y1.6%
EPS Q2Q%2.84%
EPS Next Y10.94%
EPS Next 2Y10.26%
EPS Next 3Y10.13%
EPS Next 5Y10.09%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y-0.39%
Revenue growth 5Y0.51%
Sales Q2Q%0.74%
Revenue Next Year2.36%
Revenue Next 2Y2.22%
Revenue Next 3Y2.04%
Revenue Next 5Y2.06%
EBIT growth 1Y4.06%
EBIT growth 3Y4.43%
EBIT growth 5Y7.38%
EBIT Next Year9.86%
EBIT Next 3Y5.38%
EBIT Next 5Y1.11%
FCF growth 1Y34.13%
FCF growth 3Y13.74%
FCF growth 5Y0.69%
OCF growth 1Y32.09%
OCF growth 3Y15.13%
OCF growth 5Y0.52%