Market Cap
UK£2.0b
Last Updated
2020/04/04 21:13 UTC
Data Sources
Company Financials +
Executive Summary
IMI plc, a specialist engineering company, designs, manufactures, and services engineered products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has IMI's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IMI's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0%
IMI
0.3%
GB Machinery
-2.2%
GB Market
1 Year Return
-27.1%
IMI
-27.0%
GB Machinery
-25.9%
GB Market
Return vs Industry: IMI underperformed the UK Machinery industry which returned -26% over the past year.
Return vs Market: IMI underperformed the UK Market which returned -25.2% over the past year.
Shareholder returns
| IMI | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.3% | -2.2% |
| 30 Day | -27.1% | -24.3% | -21.7% |
| 90 Day | -38.7% | -31.7% | -29.6% |
| 1 Year | -26.0%-27.1% | -25.2%-27.0% | -22.2%-25.9% |
| 3 Year | -33.2%-39.1% | -15.3%-21.3% | -16.1%-26.6% |
| 5 Year | -34.3%-44.3% | -0.7%-13.7% | -4.6%-26.2% |
Price Volatility Vs. Market
How volatile is IMI's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
IMI plc's (LON:IMI) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?2 weeks ago | Simply Wall St
How Does IMI's (LON:IMI) P/E Compare To Its Industry, After The Share Price Drop?3 weeks ago | Simply Wall St
Should IMI plc's (LON:IMI) Recent Earnings Decline Worry You?Valuation
Is IMI undervalued compared to its fair value and its price relative to the market?
35.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IMI (£7.24) is trading below our estimate of fair value (£11.27)
Significantly Below Fair Value: IMI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IMI is poor value based on its PE Ratio (12.8x) compared to the Machinery industry average (12.2x).
PE vs Market: IMI is poor value based on its PE Ratio (12.8x) compared to the UK market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: IMI is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: IMI is overvalued based on its PB Ratio (2.8x) compared to the GB Machinery industry average (1.3x).
Next Steps
Future Growth
How is IMI forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IMI's forecast earnings growth (6.7% per year) is above the savings rate (0.5%).
Earnings vs Market: IMI's earnings (6.7% per year) are forecast to grow slower than the UK market (15.3% per year).
High Growth Earnings: IMI's earnings are forecast to grow, but not significantly.
Revenue vs Market: IMI's revenue (0.8% per year) is forecast to grow slower than the UK market (2.4% per year).
High Growth Revenue: IMI's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IMI's Return on Equity is forecast to be high in 3 years time (24.4%)
Next Steps
Past Performance
How has IMI performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IMI has a large one-off loss of £54.0M impacting its December 31 2019 financial results.
Growing Profit Margin: IMI's current net profit margins (8.2%) are lower than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: IMI's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: IMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IMI had negative earnings growth (-9.5%) over the past year, making it difficult to compare to the Machinery industry average (-2%).
Return on Equity
High ROE: IMI's Return on Equity (21.6%) is considered high.
Next Steps
Financial Health
How is IMI's financial position?
Financial Position Analysis
Short Term Liabilities: IMI's short term assets (£771.0M) exceed its short term liabilities (£562.1M).
Long Term Liabilities: IMI's short term assets (£771.0M) exceed its long term liabilities (£551.6M).
Debt to Equity History and Analysis
Debt Level: IMI's debt to equity ratio (61.4%) is considered high.
Reducing Debt: IMI's debt to equity ratio has increased from 44% to 61.4% over the past 5 years.
Debt Coverage: IMI's debt is well covered by operating cash flow (72.3%).
Interest Coverage: IMI's interest payments on its debt are well covered by EBIT (17.3x coverage).
Balance Sheet
Inventory Level: IMI has a high level of physical assets or inventory.
Debt Coverage by Assets: IMI's debt is covered by short term assets (assets are 1.8x debt).
Next Steps
Dividend
What is IMI's current dividend yield, its reliability and sustainability?
5.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IMI's dividend (5.68%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).
High Dividend: IMI's dividend (5.68%) is low compared to the top 25% of dividend payers in the UK market (7.57%).
Stability and Growth of Payments
Stable Dividend: IMI's dividends per share have been stable in the past 10 years.
Growing Dividend: IMI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.6%), IMI's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IMI's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Roy Twite (52yo)
0.92
Tenure
UK£1,392,000
Compensation
Mr. Roy M. Twite has been the Chief Executive Officer at IMI Plc since May 9, 2019 and its Executive Director since February 1, 2007. Mr. Twite served as Divisional Managing Director of IMI Critical Engine ...
CEO Compensation Analysis
Compensation vs Market: Roy's total compensation ($USD1.70M) is below average for companies of similar size in the UK market ($USD2.46M).
Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.92yr | UK£1.39m | 0.062% £1.2m | |
| Finance Director & Director | 5.25yrs | UK£1.19m | 0.018% £351.8k | |
| Head of Investor Relations | 5yrs | no data | no data | |
| Group Legal Director & Company Secretary | 3.58yrs | no data | no data | |
| Group Human Resources Director | 6.25yrs | no data | no data | |
| Divisional Managing Director of Critical Engineering | 1.08yrs | no data | no data | |
| Chief Technology Officer at IMI Critical Engineering | 2.5yrs | no data | no data | |
| Chief Financial Officer of IMI Critical Engineering | 6.5yrs | no data | no data | |
| Divisional Managing Director of IMI Precision Engineering | 4.83yrs | no data | no data | |
| Divisional Managing Director of IMI Hydronic Engineering | 2.25yrs | no data | no data |
4.2yrs
Average Tenure
52yo
Average Age
Experienced Management: IMI's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.92yr | UK£1.39m | 0.062% £1.2m | |
| Finance Director & Director | 5.25yrs | UK£1.19m | 0.018% £351.8k | |
| Senior Independent Director | 2.33yrs | UK£83.00k | 0.00097% £19.0k | |
| Chairman of the Board | 4.92yrs | UK£325.00k | 0.0053% £103.5k | |
| Independent Non-Executive Director | 1.75yrs | UK£37.00k | 0.00097% £19.0k | |
| Independent Non-Executive Director | 1.75yrs | UK£33.00k | 0.00097% £19.0k | |
| Independent Non-Executive Director | 4.58yrs | UK£85.00k | 0.0011% £21.8k | |
| Independent Non-Executive Director | 0.25yr | no data | no data |
3.5yrs
Average Tenure
63yo
Average Age
Experienced Board: IMI's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
IMI plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: IMI plc
- Ticker: IMI
- Exchange: LSE
- Founded: 1862
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: UK£1.961b
- Shares outstanding: 270.84m
- Website: https://www.imiplc.com
Number of Employees
Location
- IMI plc
- Lakeside
- Solihull Parkway
- Birmingham
- West Midlands
- B37 7XZ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IMIA.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| IMI | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| IMI1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| IMIL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| IMIA.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR NE | US | USD | Jan 2011 |
Biography
IMI plc, a specialist engineering company, designs, manufactures, and services engineered products worldwide. The company operates through three divisions: IMI Precision Engineering, IMI Critical Engineering, and IMI Hydronic Engineering. The IMI Precision Engineering division develops motion and fluid control technologies for industrial automation, commercial vehicle, life sciences, energy, and rail applications. This division offers valves, valve islands, proportional and pressure monitoring controls, and air preparation products, as well as pneumatic actuators; cab chassis and powertrain solutions; stainless steel valves and regulators, nuclear class valves, and emergency shutdown controls; components for the rail industry; and precision flow control solutions that are used in medical devices, diagnostic equipment, and biotech and analytical instruments. It provides its products under the IMI Norgren, IMI Buschjost, IMI FAS, IMI Herion, IMI Maxseal, and Bimba brands. The IMI Critical Engineering division offers flow control solutions, such as specialized valves and actuators to the fossil power, oil and gas, petrochemical, nuclear, marine, and pharmaceutical markets under the IMI Bopp & Reuther, IMI CCI, IMI Fluid Kinetics, IMI InterAtiva, IMI NH, IMI Orton, IMI PBM, IMI Remosa, IMI STI, IMI TH Jansen, IMI Truflo Marine, IMI Truflo Rona, and IMI Z&J brands. The IMI Hydronic Engineering division provides products for hydronic distribution systems, which deliver heating and cooling systems to the residential and commercial building sectors. It offers balancing and control solutions, thermostatic control and pressurization systems, dirt and air separators, and pressure step degassers under the IMI Pneumatex, IMI TA, IMI Flow Design, and IMI Heimeier brands. The company was founded in 1862 and is headquartered in Birmingham, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 21:13 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.