# Imperial Brands PLC (IMB.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Tobacco. Price 2478p, market value 18.7 billionp.

## Valuation
- **P/E (trailing): 11.6×** (5-yr avg 859.5×, 3-yr avg 885.6×). Imperial Brands PLC trades at 11.6× trailing earnings, well below its own five-year average of 859.5×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 6.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 4.9×**. The shares trade at 4.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.5×**. Enterprise value is 3.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 30.4%** (5-yr avg 0.1%). Free cash flow equals 30.4% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.6%**. The inverse of the P/E: 8.6% of the price is earned each year.

## Profitability
- **Gross margin: 35.6%**. Imperial Brands PLC keeps 35.6% of revenue after the direct cost of what it sells.
- **Operating margin: 18.6%**. 18.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 6.4%**. 6.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 42.9%**. 42.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 41.7%**. Return on all capital, debt included, is 41.7%: comfortably above what that capital costs.
- **Return on assets: 15.0%**. Each dollar of assets produces 15.0% of profit.

## Growth
- **Revenue growth (1 yr): -0.7%** (3-yr -0.4%/yr, 5-yr -0.2%/yr). Revenue fell 0.7% over the last year, against -0.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -16.7%** (3-yr 14.7%/yr, 5-yr 9.5%/yr). Earnings per share fell 16.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 3.4%/yr**. Free cash flow has compounded at 3.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 2.07**. Debt is 2.07 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 8.1×**. Operating profit covers interest 8.1× over, a safe margin.
- **Current ratio: 0.74** (quick 0.37). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.11**. A Z-score of 2.11 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.70%** (2p per share, trailing). Imperial Brands PLC yields 6.70%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 75%** (37% of free cash flow). 75% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 1.5%/yr** (1-yr 15.6%). The dividend has grown 1.5% a year over five years.
- **Shareholder yield: 18.2%**. Dividends plus net buybacks return 18.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -21.2%** (YTD -20.6%, 3-mo -10.5%). The shares are down 21.2% over twelve months including dividends.
- **From 52-week high: -31.8%** (0.5% above the low). Trading 32% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 33**. An RSI of 33 is neutral.
- **Beta (1 yr): 0.62** (volatility 22%). Beta of 0.62 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IMB.L · Page: https://foliofundamentals.com/stocks/imb.l

Not investment advice.