Operating Margin

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Price: 3 022 GBX 0.3% Market Closed

Market Cap: £24.2B

11.2%

Improving

by 0.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

11.2%

Operating Income

£3.6B

Revenue

£32.2B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

11.2%

Operating Income

GBX3.6B

Revenue

£32.2B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK		Imperial Brands PLC LSE:IMB	24.3B GBP	Loading...
US		Philip Morris International Inc NYSE:PM	268B USD	Loading...
UK		British American Tobacco PLC LSE:BATS	95.1B GBP	Loading...
JP		Japan Tobacco Inc TSE:2914	10T JPY	Loading...
US		Altria Group Inc NYSE:MO	103.7B USD	Loading...
IN		ITC Ltd NSE:ITC	4.1T INR	Loading...
SE	S	Swedish Match AB F:SWMC	15.2B EUR	Loading...
KR		KT&G Corp KRX:033780	15.6T KRW	Loading...
CN		Smoore International Holdings Ltd HKEX:6969	67.4B HKD	Loading...
ID		Hanjaya Mandala Sampoerna Tbk PT IDX:HMSP	93.1T IDR	Loading...
IN		Godfrey Phillips India Ltd NSE:GODFRYPHLP	311.5B INR	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

Imperial Brands PLC
Glance View

Economic Moat

None

Market Cap

24.2B GBX

Industry

Tobacco

Imperial Brands PLC, rooted in the tobacco industry's storied history, is a UK-based international tobacco company with a broad portfolio that stretches across continents. Since its formation in 1901, initially as Imperial Tobacco, the company has evolved significantly, adapting to the dynamic nature of consumer preferences and regulatory landscapes. At its core, Imperial Brands' business model revolves around manufacturing and distributing a wide array of tobacco products, such as cigarettes, cigars, and fine-cut tobacco. Through a portfolio of renowned brands like Davidoff, Gauloises, and West, the company ensures a strong foothold in a competitive market. Strategic acquisitions and innovations, such as expanding into the next-generation products category with a focus on e-cigarettes and heated tobacco, reflect its efforts to diversify revenue streams while responding to shifting consumer demands. Imperial Brands generates revenue by producing and selling its products through both traditional retail channels and direct sales in their core geographic markets, including Europe, the Americas, and the Asia-Pacific region. The company's profitability is driven by its ability to maintain significant scale and operational efficiencies, along with pricing power derived from its popular brands. Its logistics segment further adds value, offering distribution services to third-party manufacturers, thereby maximizing supply chain efficiency. Although navigating through increasing regulations and changing societal attitudes toward smoking presents challenges, Imperial Brands remains focused on its growth strategy by leveraging brand strength and embracing innovation, positioning itself to capitalize on evolving market trends.

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IMB Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Imperial Brands PLC
LSE:IMB

Peer Comparison

Market Distribution

Other Profitability Ratios

Imperial Brands PLC
Glance View

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Imperial Brands PLC LSE:IMB