Calculating The Intrinsic Value Of IMI plc (LON:IMI)
Today we will run through one way of estimating the intrinsic value of IMI plc ( LON:IMI ) by estimating the company's...
U.K. (FTSE) Machinery Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies24
- 7D-4.6%
- 3M-3.4%
- 1Y26.4%
- YTD14.2%
Over the last 7 days, the Machinery industry has dropped 4.6%, driven by a pullback from Spirax-Sarco Engineering of 5.2%. Meanwhile, Porvair actually outperformed within the industry, gaining 5.2% in the last week. This takes the industry's 12 month performance to a gain of 26%.
Industry Valuation and Performance
Has the U.K. Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | UK£29.8b | UK£10.8b | UK£864.6m | 24.7x |
| Tue, 26 Oct 2021 | UK£29.8b | UK£10.8b | UK£856.3m | 26.6x |
| Thu, 23 Sep 2021 | UK£31.4b | UK£10.7b | UK£842.2m | 29.5x |
| Sat, 21 Aug 2021 | UK£30.4b | UK£10.6b | UK£840.7m | 27.5x |
| Sat, 05 Jun 2021 | UK£28.2b | UK£10.5b | UK£745.6m | 30.3x |
| Tue, 09 Mar 2021 | UK£25.5b | UK£10.4b | UK£639.9m | 31.5x |
| Mon, 30 Nov 2020 | UK£23.7b | UK£10.2b | UK£668.8m | 28.8x |
| Thu, 03 Sep 2020 | UK£20.9b | UK£10.4b | UK£706.8m | 24.4x |
| Sun, 07 Jun 2020 | UK£19.0b | UK£10.8b | UK£793.9m | 17.5x |
| Sat, 29 Feb 2020 | UK£20.0b | UK£11.4b | UK£874.5m | 17.7x |
| Tue, 03 Dec 2019 | UK£21.7b | UK£11.8b | UK£898.0m | 17.9x |
| Fri, 06 Sep 2019 | UK£20.4b | UK£12.1b | UK£901.2m | 17.9x |
| Mon, 10 Jun 2019 | UK£20.4b | UK£11.9b | UK£912.2m | 18.6x |
| Sun, 03 Mar 2019 | UK£19.9b | UK£11.7b | UK£916.9m | 18.1x |
| Wed, 05 Dec 2018 | UK£18.7b | UK£11.4b | UK£881.8m | 19.3x |
PE Ratio
19.3x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 22.5x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: Both revenue and earnings for companies in the Machinery industry have remained mostly flat over the last three years. This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the U.K. Machinery industry?
| Construction Machinery and Vehicles | -4.56% | |
| Industrial Machinery | -4.60% | |
Industry PE: Investors are most optimistic about the Industrial Machinery industry, which is trading close to its 3-year average PE ratio of 23.3x. However analysts are expecting annual earnings growth of 13%, which is lower than the prior year's growth of 19% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Construction Machinery and Vehicles industry, which is trading close to its 3-year average of 10.5x.
Forecasted Growth: Analysts are most optimistic on the Industrial Machinery industry, expecting annual earnings growth of 13% over the next 5 years. However this is lower than its past earnings growth rate of 19% per year. Meanwhile, the Construction Machinery and Vehicles industry is expected to see its earnings grow by 2.4% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| PRV Porvair | 5.2%+UK£15.7m | 28.7% | PE31.9x | |
| EQT EQTEC | 7.1%+UK£7.9m | 89.3% | PS72.7x | |
| BOY Bodycote | 0.1%+UK£1.9m | 16.9% | PE47.4x | |
| INSP Inspirit Energy Holdings | 26.3%+UK£427.2k | -46.7% | PB0.8x |
