Imperial Brands Share Discussion Threads

[action] 30/10/2020 10:03

Low of the year now

[action] 30/10/2020 10:02

ESG is also affecting oil companies big time apart from demand destruction.

[spud] 30/10/2020 09:38

I'll say only this: ESGspud

[creditcrunchies] 30/10/2020 09:32

if you look on Stockopedia it lists 19 brokers, 14 have it as a buy to strong buy, 3 have it as a hold, only 2 have it as a sell, 0 strong sell. It just keeps on dropping though, even the traffic light metrics it uses has this as very good value, decent stock rank around 65. On scans a good candidate is stock rank over 60 and value rank over 85 then you typically check each stock out

[gary1966] 30/10/2020 09:07

Think he is referring to going Xd

[action] 30/10/2020 09:02

Why ? Sale proceed will reduce debt is it not?

[action] 30/10/2020 08:24

Ex divi 19.11.20 payable 31.12.20.20 days to go

[kiwi2007] 29/10/2020 22:33

GabsterX - 11.8x full year 2019 EBITDA.

[gabsterx] 29/10/2020 16:19

At what earnings/cash flow multiple was the cigar business sold?

[buywell3] 29/10/2020 14:27

Next support search in progress

[spud] 29/10/2020 11:39

IMPERIAL BRANDS PLC



29 October 2020


Imperial Brands PLC completes sale of its Worldwide Premium Cigar Businesses

Imperial Brands PLC ("Imperial") is pleased to confirm the completion today of the sale of its worldwide premium cigar businesses ("Premium Cigars") for a total consideration of €1,225 million, of which net cash proceeds of €1.1 billion will be used to reduce debt.


As announced on 27 April 2020, €88 million of consideration will be deferred for 12 months from today's close, with a further €69 million deferred and contingent upon the transfer of the Dominican Republic factory, which is expected to complete in 2021. As subsequently announced on 28 September, Imperial has provided a further six-month deferral of €250 million while the buyers finalise long-term financing arrangements.

spud

[gary1966] 28/10/2020 16:09

Yep bought more today at £12.18, hopefully that will prove a good buy.

GLA

[action] 27/10/2020 16:11

Next divi in 27 days.

[minerve 2] 27/10/2020 15:35

Thanks spud.

[spud] 27/10/2020 12:02

A more positive outlook for Imperial Brands shares ahead



The tobacco business has continued to perform well despite an uncertain and disrupted trading environment, says Imperial Brands (LSE:IMB) in its recent trading statement. The tobacco giant has forecast a drop in earnings per share of 6%, after making increased provisions for Covid costs and uncertainties. The share price stands at 1,300 (as at 23/10/20, which is 29.87% down year-to-date), with a dividend yield of 14.58% and an EPS of 0.9.

Imperial Brands said it expected full-year net revenue to be broadly flat, as an unexpected 1% increase in its tobacco business offset a 30% drop in its new Next Generation Products business (which includes its vaping products).

We see this as a creditable performance, considering the significant headwinds the company was facing even before Covid. GlobalData research shows that in the UK, cigarettes sales are expected to fall 15%, with a 13% drop in value in 2019-2020 compared to pre-Covid projections.

GlobalData estimates that the tobacco industry has lost $1.9bn in revenues as a result of anti-smoking measures introduced by governments to promote health, while the obvious concerns over respiratory health during the Covid crisis, coupled with consumers’ tightened budgets, lockdown-related closures and social distancing have all affected the consumption of tobacco products.

Imperial Brands’ debt pile has forced the sale of its premium cigar business for just over £1.12bn. Imperial Brands has also had to scale back investment in its New Generation Products business, after the business failed to meet expectations as the next frontier for the tobacco industry.

Imperial Brands’ customers have shown their brand loyalty throughout the Covid crisis, and can be expected to continue driving the company’s revenue growth and generating cash for dividends into the new year and beyond. Whether the FTSE 100 stalwart can maintain its profitability and cash flow for dividends over the long term, in the face of mounting regulatory pressure and the increasingly widespread use of ethical fund screening, remains to be seen.

Another unknown is the new chief executive Stefan Bomhard, who has already made a number of senior hires to bring in new ‘perspectives’. He is also conducting a strategic review of the business, with the aim of making some initial observations when the preliminary results are published on 17 November.

The Imperial Brands share price, like much of the London stock market, has declined steadily since the Brexit vote in 2016, as investors shunned UK stocks. But with all such negative factors baked into the share price, we like to think that Imperial Brands stock could benefit when the UK/EU negotiations are finally concluded in the coming months, lifting a significant source of uncertainty from investors’ minds.

With the matter finally resolved, deal or no deal, investors may take another look at UK stocks, recognising them as among the most underpriced anywhere: Imperial Brands’ share priced has slipped from £35 five years ago to £13 today.

We would also note Imperial’s wide economic moat, which means it is a dominant player in its sector. And it has one of the highest dividends in the FTSE 100, with plans to return excess cash to shareholders via share buybacks. To sum up, Imperial Brands is a well-run business that rewards its investors, and heading into calmer waters next year.

spud

[buywell3] 27/10/2020 07:25

Don't worry it will be heading south soon along with loads more

[cassini] 26/10/2020 17:21

IMB getting very attracted to the 1300p mark the last couple of trading sessions.

[spud] 24/10/2020 09:48

The Capital Group Companies, Inc. have just taken their holding to above 5%.spud

[lonrho] 22/10/2020 11:55

Acquired intangible assets,effectively goodwill, are arbitrarily written off each year to the tune of over 1 billion per annum. This results in a reduction in net assets but is added back for earnings per share calculations and of course does not affect cash flow.

[spud] 22/10/2020 11:39

I think the key here is Senior Management getting a firm grip on the business, identifying the problem areas and putting in place a strong action plan to address all the fall down areas.

I suspect that's being done at the moment and the evidence of that initiative should be tangible next year hence my p.t of £15 which they should be able to grow.

Once the Market realises that the dividend is not being cut again, we should see a fairly steady re-rating.

spud

[stewart64] 22/10/2020 11:22

Kiwi 2007..Yep I've lost a fair amount here. Could have been worse as I have used stops all the way down. I tried to engage the forum on the perennial upgrade in EPS earnings. Hence you have a stock that is shown to be always in single digit p/e territory with dividend cover yet the balance sheet says different, net assets dropping from 5.7 billion to 5.5 billion from 2016 to 2019. There is analysis out there of IMB being able to pay down debt in just 7 years, but an explanation of what went wrong up to 2019 during a fairly trouble free three years and why the next seven years are going to be different would be worth knowing?

I should add I was close to adding some today, glutton for punishment.

[spud] 22/10/2020 10:28

Until we see the broom's tangible impact on the business, we will continue with the jo jo undervaluation. I've a p.t in my head of £15 for 2021. spud