Imperial BrandsSTU:ITBA +0.62%72 Pretax Margin % is 5.37% as of Mar. 2026, which is 26% below its 10-year median of 7.25. 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 48 Tobacco Products companies, Imperial Brands ranks worse than 62.5% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Imperial Brands Pretax Margin % Related Terms
Imperial Brands Pretax Margin % Historical Data
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The historical data trend for Imperial Brands's Pretax 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: Pretax Margin % Comparison
For the Tobacco subindustry, Imperial Brands's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Imperial Brands's Pretax 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.
Imperial Brands (STU:ITBA) has a Pretax Margin % of 5.37% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Imperial Brands and its competitors. This is 26% below median its historical median of 7.25. Over the past decade, Imperial Brands' Pretax Margin % has ranged from 3.28 to 9.87. According to the industry distribution chart, Imperial Brands ranks #30 out of 48 companies in the Tobacco Products industry, placing it in the top 62.5%.
Is Imperial Brands' Pretax Margin % too high?
Imperial Brands' current Pretax Margin % of 5.37% is 26% below median its 10-year median of 7.25. Over the past 10 years, this metric has ranged from a low of 3.28 to a high of 9.87. The Tobacco Products industry median Pretax Margin % is 9.62. Imperial Brands' value of 5.37% is 44.1% below this industry median. Based on the distribution chart, Imperial Brands ranks #30 out of 48 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' Pretax Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Imperial Brands ranks #30 out of 48 companies for Pretax Margin %. This places Imperial Brands in the lower half of its industry. The industry median Pretax Margin % is 9.62. Imperial Brands' value of 5.37% is 44.1% below this benchmark. Historically, Imperial Brands' own Pretax Margin % has ranged from 3.28 to 9.87 over the past decade. While the company's 10-year median is 7.25 vs. the industry median of 9.62, 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 Pretax Margin % for a Tobacco Products company?
The median Pretax Margin % among Tobacco Products companies is 9.62, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Imperial Brands's current Pretax Margin % of 5.37% is 44.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Imperial Brands and its competitors. For the Tobacco Products industry, the median Pretax Margin % is 9.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Brands's current Pretax Margin % is 5.37%, which is 26% below median its own 10-year median of 7.25. 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 Pretax Margin % of 5.37%. 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 Pretax Margin % is 5.37%, which is 26% below median its 10-year median of 7.25 and 44.1% below the Tobacco Products industry median of 9.62. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Imperial Brands (STU:ITBA), the current Pretax Margin % is 5.37% 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:
Pretax Margin %: 5.37% (26% below median its 10-year median of 7.25)
GF Value™: €20.71 vs. price of €32.40 (56.4% above fair value)
Industry Position: 44.1% below the Tobacco Products median (#30 of 48)
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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