Imperial BrandsSTU:ITBA +0.62%72 Gross Margin % is 21.52% as of Mar. 2026, which is 6% above its 10-year median of 20.28. GuruFocus rates STU:ITBA with a GF Score™ of 72/100 and a GF Value™ of €20.71. The stock has 3 warning signs investors should review. Among 47 Tobacco Products companies, Imperial Brands ranks worse than 68.09% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Imperial Brands had a gross margin of 21.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Imperial Brands Gross Margin % Related Terms
Imperial Brands Gross Margin % Historical Data
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The historical data trend for Imperial Brands's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:ITBA vs PM, MO, TPB: Gross Margin % Comparison
For the Tobacco subindustry, Imperial Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Imperial Brands Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Imperial Brands's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Imperial Brands (STU:ITBA) has a Gross Margin % of 21.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Imperial Brands and its competitors. This is near median its historical median of 20.28. Over the past decade, Imperial Brands' Gross Margin % has ranged from 18.38 to 21.80. According to the industry distribution chart, Imperial Brands ranks #32 out of 47 companies in the Tobacco Products industry, placing it in the top 68.1%.
Is Imperial Brands' Gross Margin % too high?
Imperial Brands' current Gross Margin % of 21.52% is near median its 10-year median of 20.28. Over the past 10 years, this metric has ranged from a low of 18.38 to a high of 21.80. The Tobacco Products industry median Gross Margin % is 33.29. Imperial Brands' value of 21.52% is 35.4% below this industry median. Based on the distribution chart, Imperial Brands ranks #32 out of 47 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, Imperial Brands has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Imperial Brands' Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Imperial Brands ranks #32 out of 47 companies for Gross Margin %. This places Imperial Brands in the lower half of its industry. The industry median Gross Margin % is 33.29. Imperial Brands' value of 21.52% is 35.4% below this benchmark. Historically, Imperial Brands' own Gross Margin % has ranged from 18.38 to 21.80 over the past decade. While the company's 10-year median is 20.28 vs. the industry median of 33.29, Imperial Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Imperial Brands's current Gross Margin % of 21.52% is 35.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Imperial Brands and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Brands's current Gross Margin % is 21.52%, which is near median its own 10-year median of 20.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Imperial Brands stock overvalued right now?
Imperial Brands (STU:ITBA) has a current Gross Margin % of 21.52%. The stock's GF Value™ is €20.71, compared to a current price of €32.40 — trading 56.4% above its estimated fair value. The current Gross Margin % is 21.52%, which is near median its 10-year median of 20.28 and 35.4% below the Tobacco Products industry median of 33.29. Imperial Brands' overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Imperial Brands (STU:ITBA), the current Gross Margin % is 21.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Imperial Brands (STU:ITBA) Overvalued in 2026?
Based on GuruFocus' analysis, Imperial Brands stock appears to be overvalued.
The current stock price of €32.40 is trading 56.4% above its estimated GF Value™ of €20.71.
Key valuation signals for STU:ITBA:
Gross Margin %: 21.52% (near median its 10-year median of 20.28)
GF Value™: €20.71 vs. price of €32.40 (56.4% above fair value)
Industry Position: 35.4% below the Tobacco Products median (#32 of 47)
No single metric tells the full story. See the STU:ITBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco), with total fiscal 2025 volume of 187 billion cigarettes sold in more than 120 countries. Its largest and most important markets are the US (where it sits as the third-largest manufacturer, following its acquisition of the Winston and Blu brands), Germany, the UK, Spain, and Australia. The firm also holds a leading global position in the fine-cut tobacco and hand-rolling paper categories. It has a logistics platform in Western Europe, Altadis.
72GF Score
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