Imperial BrandsSTU:ITBA 72 ROA % is 3.34% as of Mar. 2026, which is 32% below its 10-year median of 4.90. GuruFocus rates STU:ITBA with a GF Score™ of 72/100 and a GF Value™ of €20.69. The stock has 3 warning signs investors should review. Among 49 Tobacco Products companies, Imperial Brands ranks worse than 53.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Imperial Brands's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,096 Mil.
Imperial Brands's average Total Assets over the quarter that ended in Mar. 2026 was €32,811 Mil. Therefore, Imperial Brands's annualized ROA % for the quarter that ended in Mar. 2026 was 3.34%.
The historical rank and industry rank for Imperial Brands's ROA % or its related term are showing as below:
STU:ITBA'
s ROA % Range Over the Past 10 Years
Min: 2.01 Med: 4.9 Max: 9.23
Current: 6.15
During the past 13 years, Imperial Brands's highest ROA % was 9.23%. The lowest was 2.01%. And the median was 4.90%.
STU:ITBA's ROA % is ranked worse than 53.06% of 49
companies
in the Tobacco Products industry
Industry Median: 6.68
vs STU:ITBA: 6.15
Imperial Brands (STU:ITBA) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Imperial Brands ROA % Related Terms
Imperial Brands ROA % Historical Data
* Premium members only.
The historical data trend for Imperial Brands's ROA % 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.
For the Tobacco subindustry, Imperial Brands's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's ROA % distribution charts can be found below:
* The bar in red indicates where Imperial Brands's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Imperial Brands (STU:ITBA) has a ROA % of 3.34% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Imperial Brands and its competitors. This is 32% below median its historical median of 4.90. Over the past decade, Imperial Brands' ROA % has ranged from 2.01 to 9.23. According to the industry distribution chart, Imperial Brands ranks #26 out of 49 companies in the Tobacco Products industry, placing it in the top 53.1%.
Is Imperial Brands' ROA % too high?
Imperial Brands' current ROA % of 3.34% is 32% below median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 9.23. The Tobacco Products industry median ROA % is 6.68. Imperial Brands' value of 3.34% is 50% below this industry median. Based on the distribution chart, Imperial Brands ranks #26 out of 49 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' ROA % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Imperial Brands ranks #26 out of 49 companies for ROA %. This places Imperial Brands in the lower half of its industry. The industry median ROA % is 6.68. Imperial Brands' value of 3.34% is 50% below this benchmark. Historically, Imperial Brands' own ROA % has ranged from 2.01 to 9.23 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 6.68, 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 ROA % for a Tobacco Products company?
The median ROA % among Tobacco Products companies is 6.68, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Imperial Brands's current ROA % of 3.34% is 50% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Imperial Brands and its competitors. For the Tobacco Products industry, the median ROA % is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Brands's current ROA % is 3.34%, which is 32% below median its own 10-year median of 4.90. 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 ROA % of 3.34%. The stock's GF Value™ is €20.69, compared to a current price of €32.20 — trading 55.6% above its estimated fair value. The current ROA % is 3.34%, which is 32% below median its 10-year median of 4.90 and 50% below the Tobacco Products industry median of 6.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Imperial Brands (STU:ITBA), the current ROA % is 3.34% 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 €32.20 is trading 55.6% above its estimated GF Value™ of €20.69.
Key valuation signals for STU:ITBA:
ROA %: 3.34% (32% below median its 10-year median of 4.90)
GF Value™: €20.69 vs. price of €32.20 (55.6% above fair value)
Industry Position: 50% below the Tobacco Products median (#26 of 49)
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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