Imperial Brands PLC (IMB.L) stock analysis

In our weekly check, Imperial Brands PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5.

About Imperial Brands PLC

Imperial Brands PLC is a Consumer Defensive company (Tobacco) based in the United Kingdom, listed on LSE as IMB.L.

What our checks show for IMB.L

Red flags

• Net debt is 2x a year of EBITDA (debt/equity 2.78). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 2.2 points over 5 years, to 6.4%: the company keeps less of each sale as profit.
• Analysts expect revenue to shrink about 31.9% a year.
• Revenue fell 0.4% a year over the last 3 years.
• The stock has fallen as much as 71% from a peak. Would you have held through that?

Warning signs

• The net margin is only 6.4%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 10.2 times over.
• The gross margin is 21.8% and has risen by 3.4 points: pricing power is holding.
• Operating cash flow is 1.57x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 18% a year over the next years.
• Analysts expect the net margin to improve by 27.5 points from today's 6.4%.
• Earnings per share grew 14.8% a year over the last 3 years.

Next earnings report: 2026-11-17

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Questions

What grade does Imperial Brands PLC (IMB.L) have?

In our weekly check, Imperial Brands PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of IMB.L stock?

This week's biggest flags for Imperial Brands PLC: High debt, Margins falling, Weak revenue forecast. In total 7 of 25 checks show a warning or a red flag.

What does Imperial Brands PLC do?

Imperial Brands PLC is a Consumer Defensive company (Tobacco) based in the United Kingdom, listed on LSE as IMB.L.

When does Imperial Brands PLC report earnings next?

The next earnings report is expected on 2026-11-17. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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