LSE:IMI

Stock Analysis Report

Executive Summary

IMI plc designs, manufactures, and services engineered products worldwide.

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

2.2%

IMI

0.1%

GB Machinery

1.1%

GB Market


1 Year Return

-2.4%

IMI

-2.5%

GB Machinery

2.7%

GB Market

Return vs Industry: IMI matched the UK Machinery industry which returned -2.5% over the past year.

Return vs Market: IMI underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

IMIIndustryMarket
7 Day2.2%0.1%1.1%
30 Day-5.0%-7.3%-1.7%
90 Day-4.7%-8.9%-2.7%
1 Year1.8%-2.4%0.4%-2.5%7.8%2.7%
3 Year2.0%-8.8%19.2%10.4%19.3%4.7%
5 Year-0.4%-17.2%27.8%10.4%38.0%8.1%

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?

15.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: IMI (£9.72) is trading above our estimate of fair value (£8.46)

Significantly Undervalued: IMI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IMI is good value based on its PE Ratio (15.6x) compared to the Machinery industry average (17.9x).

PE vs Market: IMI is good value based on its PE Ratio (15.6x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: IMI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: IMI is overvalued based on its PB Ratio (3.9x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

How is IMI forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMI's forecast earnings growth (11.4% per year) is above the savings rate (1.2%).

Earnings vs Market: IMI's earnings (11.4% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: IMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: IMI's revenue (2.5% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: IMI's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IMI's Return on Equity is forecast to be high in 3 years time (25.9%)


Next Steps

Past Performance

How has IMI performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IMI's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: IMI's earnings growth over the past year (16.2%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: IMI earnings growth over the past year (16.2%) exceeded the Machinery industry 8%.


Return on Equity

High ROE: IMI's Return on Equity (25.1%) is considered high.


Return on Assets

ROA vs Industry: IMI has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: IMI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is IMI's financial position?


Financial Position Analysis

Short Term Liabilities: IMI's short term assets (£858.0M) exceeds its short term liabilities (£638.5M)

Long Term Liabilities: IMI's short term assets (858.0M) exceeds its long term liabilities (576.1M)


Debt to Equity History and Analysis

Debt Level: IMI's debt to equity ratio (78.1%) is considered high

Reducing Debt: IMI's debt to equity ratio has increased from 60.9% to 78.1% over the past 5 years.

Debt Coverage: IMI's debt is well covered by operating cash flow (51%).

Interest Coverage: IMI's interest payments on its debt are well covered by EBIT (18.4x 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 1.630550x debt).


Next Steps

Dividend

What is IMI's current dividend yield, its reliability and sustainability?

4.18%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IMI's dividend (4.18%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: IMI's dividend (4.18%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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 (65.5%), 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 (54.8% payout ratio).


Next Steps

Management

What is the CEO of IMI's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Roy Twite (52yo)

0.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: IMI's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

Experienced Board: IMI's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£13010 Apr 19
Mark Selway
EntityIndividual
Shares13
Max PriceUK£10.01
BuyUK£13010 Apr 19
Roy Twite
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares13
Max PriceUK£10.01
BuyUK£13010 Apr 19
Daniel Shook
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Director
Shares13
Max PriceUK£10.01
BuyUK£13010 Apr 19
Paul Roberts
EntityIndividual
Shares13
Max PriceUK£10.01

Ownership Breakdown


Management Team

  • Massimo Grassi (57yo)

    Divisional Managing Director of IMI Precision Engineering

    • Tenure: 4.3yrs
  • John O'Shea

    Group Legal Director & Company Secretary

    • Tenure: 3.1yrs
  • Roy Twite (52yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: UK£1.39m
  • Dan Shook (52yo)

    Finance Director & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.19m
  • Phil Clifton (59yo)

    Divisional Managing Director of IMI Hydronic Engineering

    • Tenure: 1.8yrs
  • Geoff Tranfield

    Group Human Resources Director

    • Tenure: 5.8yrs
  • Jackie Hu

    Divisional Managing Director of Critical Engineering

    • Tenure: 0.6yrs
  • Ian Johnson (47yo)

    Chief Financial Officer of IMI Critical Engineering

    • Tenure: 6yrs
  • Mike Semens-Flanagan

    Chief Technology Officer at IMI Critical Engineering

    • Tenure: 2yrs
  • John Dean

    Head of Investor Relations

    • Tenure: 4.5yrs

Board Members

  • Carl-Peter Forster (65yo)

    Senior Independent Director

    • Tenure: 1.8yrs
    • Compensation: UK£83.00k
  • Robert Smith (75yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: UK£325.00k
  • Birgit Nørgaard (61yo)

    Employee Engagement Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£88.00k
  • Roy Twite (52yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: UK£1.39m
  • Dan Shook (52yo)

    Finance Director & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.19m
  • Thomas Andersen (64yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£37.00k
  • Katie Jackson

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£33.00k
  • Isobel Sharp (63yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£85.00k

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£2.632b
  • Shares outstanding: 270.82m
  • 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 designs, manufactures, and services engineered products worldwide. The company operates through three divisions: IMI Critical Engineering, IMI Precision Engineering, and IMI Hydronic Engineering. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:36
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.