LSE:IMI

Stock Analysis Report

Executive Summary

IMI plc, a specialist engineering company, designs, manufactures, and services engineered products worldwide.


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

IMIIndustryMarket
7 Day0%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

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

NamePositionTenureCompensationOwnership
Roy Twite
CEO & Director0.92yrUK£1.39m0.062% £1.2m
Daniel Shook
Finance Director & Director5.25yrsUK£1.19m0.018% £351.8k
John Dean
Head of Investor Relations5yrsno datano data
John O'Shea
Group Legal Director & Company Secretary3.58yrsno datano data
Geoff Tranfield
Group Human Resources Director6.25yrsno datano data
Jackie Hu
Divisional Managing Director of Critical Engineering1.08yrsno datano data
Mike Semens-Flanagan
Chief Technology Officer at IMI Critical Engineering2.5yrsno datano data
Ian Johnson
Chief Financial Officer of IMI Critical Engineering6.5yrsno datano data
Massimo Grassi
Divisional Managing Director of IMI Precision Engineering4.83yrsno datano data
Phil Clifton
Divisional Managing Director of IMI Hydronic Engineering2.25yrsno datano data

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: IMI's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Twite
CEO & Director0.92yrUK£1.39m0.062% £1.2m
Daniel Shook
Finance Director & Director5.25yrsUK£1.19m0.018% £351.8k
Edmund Moriz Forster
Senior Independent Director2.33yrsUK£83.00k0.00097% £19.0k
Robert Smith
Chairman of the Board4.92yrsUK£325.00k0.0053% £103.5k
Thomas Andersen
Independent Non-Executive Director1.75yrsUK£37.00k0.00097% £19.0k
Katie Jackson
Independent Non-Executive Director1.75yrsUK£33.00k0.00097% £19.0k
Isobel Sharp
Independent Non-Executive Director4.58yrsUK£85.00k0.0011% £21.8k
Caroline Dowling
Independent Non-Executive Director0.25yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMIA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
IMILSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
IMI1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
IMILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
IMIA.YOTCPK (Pink Sheets LLC)SPONSORED ADR NEUSUSDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:13
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.