Imperial Brands Net Income vs. Operating Margin

ITB Stock  EUR 31.41  0.04  0.13%   
Based on Imperial Brands' profitability indicators, Imperial Brands PLC may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Imperial Brands' ability to earn profits and add value for shareholders.
For Imperial Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Imperial Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Imperial Brands PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Imperial Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Imperial Brands PLC over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Imperial Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Imperial Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Imperial Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Imperial Brands PLC Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Imperial Brands's current stock value. Our valuation model uses many indicators to compare Imperial Brands value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.1520V3QDBJI4GCITB 00.10.20.30.4 -10B-8B-6B-4B-2B02B
Imperial Brands PLC is currently regarded as number one stock in net income category among its peers. It also is currently regarded as number one stock in operating margin category among its peers . The ratio of Net Income to Operating Margin for Imperial Brands PLC is about  8,263,157,895 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Imperial Brands' earnings, one of the primary drivers of an investment's value.

Imperial Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Imperial Brands

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.57 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Imperial Brands

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Imperial Operating Margin Comparison

100%
Imperial Brands is currently under evaluation in operating margin category among its peers.

Imperial Brands Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Imperial Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Imperial Brands will eventually generate negative long term returns. The profitability progress is the general direction of Imperial Brands' change in net profit over the period of time. It can combine multiple indicators of Imperial Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products. Imperial Brands PLC was founded in 1901 and is headquartered in Bristol, the United Kingdom. IMPERIAL BRANDS is traded on Frankfurt Stock Exchange in Germany.

Imperial Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Imperial Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Imperial Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Imperial Brands' important profitability drivers and their relationship over time.

Use Imperial Brands in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Imperial Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Imperial Brands will appreciate offsetting losses from the drop in the long position's value.

Imperial Brands Pair Trading

Imperial Brands PLC Pair Trading Analysis

The ability to find closely correlated positions to Imperial Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Imperial Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Imperial Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Imperial Brands PLC to buy it.
The correlation of Imperial Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Imperial Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Imperial Brands PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Imperial Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Imperial Brands position

In addition to having Imperial Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Entertainment Thematic Idea Now

Entertainment
Entertainment Theme
Companies from entertainment industry including show business, news and media. The Entertainment theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Entertainment Theme or any other thematic opportunities.
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Other Information on Investing in Imperial Stock

To fully project Imperial Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Imperial Brands PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Imperial Brands' income statement, its balance sheet, and the statement of cash flows.
Potential Imperial Brands investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Imperial Brands investors may work on each financial statement separately, they are all related. The changes in Imperial Brands's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Imperial Brands's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.