LSE:IMI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet 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

Stable Share Price: IMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

IMI

2.2%

GB Machinery

1.1%

GB Market


1 Year Return

11.3%

IMI

7.5%

GB Machinery

-15.4%

GB Market

Return vs Industry: IMI exceeded the UK Machinery industry which returned 6.6% over the past year.

Return vs Market: IMI exceeded the UK Market which returned -15.5% over the past year.


Shareholder returns

IMIIndustryMarket
7 Day2.9%2.2%1.1%
30 Day0.5%2.3%-2.2%
90 Day16.2%8.8%-3.0%
1 Year14.8%11.3%9.4%7.5%-12.2%-15.4%
3 Year-3.4%-13.5%10.8%3.3%-8.6%-19.5%
5 Year26.4%5.2%76.3%54.3%16.0%-9.7%

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?

18.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IMI (£10.6) is trading above our estimate of fair value (£7.64)

Significantly Below Fair Value: 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 (18.7x) compared to the GB Machinery industry average (22.8x).

PE vs Market: IMI is poor value based on its PE Ratio (18.7x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: IMI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: IMI is overvalued based on its PB Ratio (3.4x) compared to the GB Machinery industry average (1.5x).


Next Steps

Future Growth

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

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMI's forecast earnings growth (15.3% per year) is above the savings rate (1.2%).

Earnings vs Market: IMI's earnings (15.3% per year) are forecast to grow slower than the UK market (24.2% 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 (6.3% 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

Future ROE: IMI's Return on Equity is forecast to be high in 3 years time (23.2%)


Next Steps

Past Performance

How has IMI performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMI has a large one-off loss of £57.0M impacting its June 30 2020 financial results.

Growing Profit Margin: IMI's current net profit margins (8.4%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: IMI's earnings have grown by 4.5% 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 (-9.4%) over the past year, making it difficult to compare to the Machinery industry average (-13%).


Return on Equity

High ROE: IMI's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is IMI's financial position?


Financial Position Analysis

Short Term Liabilities: IMI's short term assets (£872.9M) exceed its short term liabilities (£575.5M).

Long Term Liabilities: IMI's short term assets (£872.9M) exceed its long term liabilities (£598.4M).


Debt to Equity History and Analysis

Debt Level: IMI's debt to equity ratio (52.9%) is considered high.

Reducing Debt: IMI's debt to equity ratio has reduced from 60.5% to 52.9% over the past 5 years.

Debt Coverage: IMI's debt is well covered by operating cash flow (67.8%).

Interest Coverage: IMI's interest payments on its debt are well covered by EBIT (20.6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IMI's dividend (3.88%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: IMI's dividend (3.88%) is low compared to the top 25% of dividend payers in the UK market (5.27%).


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 (59.6%), 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 well covered by earnings (34.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Roy Twite (53 yo)

1.33yrs

Tenure

UK£1,707,000

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 and served as its Interim Divisional Managing Director of IMI Precision ...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD2.20M) is about average for companies of similar size in the UK market ($USD2.14M).

Compensation vs Earnings: Roy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roy Twite
CEO & Director1.33yrsUK£1.71m0.059%
£ 1.7m
Daniel Shook
Finance Director & Director5.67yrsUK£1.11m0.017%
£ 478.6k
John Dean
Head of Investor Relations5.42yrsno datano data
John O'Shea
Group Legal Director & Company Secretary4yrsno datano data
Geoff Tranfield
Group Human Resources Director6.67yrsno datano data
Jackie Hu
Divisional Managing Director of IMI Critical Engineering1.5yrsno datano data
Mike Semens-Flanagan
Chief Technology Officer at IMI Critical Engineering2.92yrsno datano data
Ian Johnson
Chief Financial Officer of IMI Critical Engineering6.92yrsno datano data
Phil Clifton
Divisional Managing Director of IMI Hydronic Engineering2.67yrsno datano data
Beth Ferreira
Divisional Managing Director of IMI Precision Engineering Division0.083yrno datano data
Nick Adcock
President of CCI4.17yrsno datano data
Marshall Goldberg
President of Display Technologies11.5yrsno datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: IMI's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Twite
CEO & Director1.33yrsUK£1.71m0.059%
£ 1.7m
Daniel Shook
Finance Director & Director5.67yrsUK£1.11m0.017%
£ 478.6k
Edmund Moriz Forster
Senior Independent Non-Executive Director2.75yrsUK£87.00k0.00097%
£ 27.8k
Robert Smith
Chairman of the Board5.33yrsUK£334.00k0.0053%
£ 151.6k
Thomas Andersen
Independent Non-Executive Director2.17yrsUK£74.00k0.00097%
£ 27.8k
Katie Jackson
Independent Non-Executive Director2.17yrsUK£70.00k0.00097%
£ 27.8k
Isobel Sharp
Independent Non-Executive Director5yrsUK£84.00k0.0011%
£ 31.9k
Caroline Dowling
Independent Non-Executive Director0.67yrno datano data

3.9yrs

Average Tenure

64yo

Average Age

Experienced Board: IMI's board of directors are considered experienced (3.9 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.


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£2.871b
  • Shares outstanding: 270.85m
  • 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 Engineeri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 21:06
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
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.