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

-3.8%

IMI

-2.6%

GB Machinery

-0.2%

GB Market


1 Year Return

-14.2%

IMI

-8.8%

GB Machinery

-1.9%

GB Market

IMI underperformed the Machinery industry which returned -7.6% over the past year.

IMI underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.9% over the past year.


Share holder returns

IMIIndustryMarket
7 Day-3.8%-2.6%-0.2%
30 Day2.2%3.3%3.5%
90 Day-2.2%-5.8%0.6%
1 Year-10.5%-14.2%-6.3%-8.8%2.9%-1.9%
3 Year2.5%-8.4%29.5%20.3%20.7%6.2%
5 Year-4.9%-20.9%21.7%5.3%33.6%5.4%

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

2 weeks ago | Simply Wall St

Here's How We Evaluate IMI plc's (LON:IMI) Dividend

Valuation

Is IMI undervalued based on future cash flows and its price relative to the stock market?

15.74x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

IMI's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

IMI's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

IMI is good value based on earnings compared to the GB Machinery industry average.

IMI is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

IMI is poor value based on expected growth next year.


Price Based on Value of Assets

IMI is overvalued based on assets compared to the GB Machinery industry average.


Next Steps

Future Growth

How is IMI expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IMI's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

IMI's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

IMI's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

IMI's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

IMI's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

IMI is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

IMI's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

IMI's 1-year earnings growth exceeds its 5-year average (16.2% vs -1.3%)

IMI's earnings growth has exceeded the GB Machinery industry average in the past year (16.2% vs 8%).


Return on Equity

IMI has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

IMI used its assets more efficiently than the GB Machinery industry average last year based on Return on Assets.


Return on Capital Employed

IMI has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is IMI's financial position?


Financial Position Analysis

IMI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

IMI's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

IMI's level of debt (78.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (60.9% vs 78.1% today).

Debt is well covered by operating cash flow (51%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

4.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

IMI's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

IMI's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.44%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Roy Twite (52yo)

0.3yrs

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

Roy's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Roy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

52yo

Average Age

The tenure for the IMI management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

63yo

Average Age

The tenure for the IMI board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£13010 Apr 19
Mark Selway
EntityIndividual
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
Roy Twite
EntityIndividual
Role
Chief Executive Officer
CEO & 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: 3yrs
  • Roy Twite (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: UK£1.39m
  • Dan Shook (52yo)

    Finance Director & Director

    • Tenure: 4.7yrs
    • Compensation: UK£1.19m
  • Phil Clifton (59yo)

    Divisional Managing Director of IMI Hydronic Engineering

    • Tenure: 1.7yrs
  • Geoff Tranfield

    Group Human Resources Director

    • Tenure: 5.7yrs
  • Jackie Hu

    Divisional Managing Director of Critical Engineering

    • Tenure: 0.5yrs
  • Ian Johnson (47yo)

    Chief Financial Officer of IMI Critical Engineering

    • Tenure: 5.9yrs
  • Mike Semens-Flanagan

    Chief Technology Officer at IMI Critical Engineering

    • Tenure: 1.9yrs
  • John Dean

    Head of Investor Relations

    • Tenure: 4.4yrs

Board Members

  • Carl-Peter Forster (65yo)

    Senior Independent Director

    • Tenure: 1.8yrs
    • Compensation: UK£66.00k
  • Robert Smith (75yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: UK£325.00k
  • Birgit Nørgaard (61yo)

    Employee Engagement Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£88.00k
  • Roy Twite (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: UK£1.39m
  • Dan Shook (52yo)

    Finance Director & Director

    • Tenure: 4.7yrs
    • Compensation: UK£1.19m
  • Thomas Andersen (64yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£37.00k
  • Katie Jackson

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£33.00k
  • Isobel Sharp (63yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • 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£2.676b
  • 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 Analysis2019/09/20 20:37
End of Day Share Price2019/09/20 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.