Professional
Added to YB: 2024-05-16
Pitch date: 2024-05-15
IMBBY [bullish]
Imperial Brands PLC
+78.87%
current return
Author Info
No bio for this author
Company Info
Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, the Americas, Africa, the Asia, Australasia, and internationally.
Market Cap
GBP 23.1B
Pitch Price
GBP 17.97
Price Target
36.00 (+13%)
Dividend
5.43%
EV/EBITDA
7.65
P/E
9.45
EV/Sales
1.73
Sector
Tobacco
Category
dividend
Imperial Brands PLC: Solid Fiscal First Half; Shares Still Undervalue Cash Flow Generation
IMBBY: Imperial Brands 1H24 adj op profit +2.8% CC, inline. FY guidance maintained: low single-digit net rev growth for tobacco & NGP, mid single-digit adj op profit growth CC. Valuation underappreciates future FCF generation. Focused strategy on cash flow & capital return over growth. £604M of £1.1B buyback done, rest on track for FY24. Wide moat on intangibles. Risks: menthol ban in US (28% of EBIT), cigarette alternatives fragmenting market. $36 FV estimate. Upside scenario: revenue +3%, flat EBIT long-term.
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