AIM:IMO

Stock Analysis Report

Executive Summary

IMImobile PLC provides cloud communications software and solutions that enables companies to use mobile and digital technologies to communicate and engage with their customers.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has IMImobile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

IMO

-7.5%

GB Software

-5.4%

GB Market


1 Year Return

81.7%

IMO

6.1%

GB Software

2.0%

GB Market

Return vs Industry: IMO exceeded the UK Software industry which returned 6.1% over the past year.

Return vs Market: IMO exceeded the UK Market which returned 2% over the past year.


Shareholder returns

IMOIndustryMarket
7 Day0%-7.5%-5.4%
30 Day8.3%-8.6%-4.2%
90 Day28.1%-2.4%-2.6%
1 Year81.7%81.7%13.6%6.1%7.6%2.0%
3 Year135.7%135.7%9.0%-7.9%11.4%-2.7%
5 Year265.0%265.0%50.2%24.4%29.0%-0.6%

Price Volatility Vs. Market

How volatile is IMImobile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IMImobile undervalued compared to its fair value and its price relative to the market?

3.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: IMO (£4.13) is trading above our estimate of fair value (£3.1)

Significantly Below Fair Value: IMO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IMO is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: IMO is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IMO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IMO is overvalued based on its PB Ratio (3.6x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

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

66.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: IMO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IMO's is expected to become profitable in the next 3 years.

Revenue vs Market: IMO's revenue (13.3% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: IMO's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMO's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has IMImobile performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMO is currently unprofitable.

Growing Profit Margin: IMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IMO is unprofitable, but has reduced losses over the past 5 years at a rate of 16.5% per year.

Accelerating Growth: Unable to compare IMO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IMO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (6.8%).


Return on Equity

High ROE: IMO has a negative Return on Equity (-0.65%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IMImobile's financial position?


Financial Position Analysis

Short Term Liabilities: IMO's short term assets (£66.5M) do not cover its short term liabilities (£69.1M).

Long Term Liabilities: IMO's short term assets (£66.5M) exceed its long term liabilities (£51.2M).


Debt to Equity History and Analysis

Debt Level: IMO's debt to equity ratio (48.4%) is considered high.

Reducing Debt: Insufficient data to determine if IMO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: IMO has a low level of unsold assets or inventory.

Debt Coverage by Assets: IMO's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IMO has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: IMO has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IMO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IMO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IMO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IMO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IMO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jay Patel (49yo)

7.1yrs

Tenure

UK£310,000

Compensation

Mr. Jayesh Ramesh Patel, also known as Jay, has been Group Chief Executive of IMImobile PLC since 2013. Mr. Patel serves as the Managing Director of WIN Plc and IMImobile Europe Limited. Mr. Patel serves a ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD400.68K) is below average for companies of similar size in the UK market ($USD829.95K).

Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jayesh Patel
Group CEO & Executive Director7.1yrsUK£310.00k4.86% £15.0m
Shyamprasad Bhat
Founder0yrsUK£76.00k0.63% £1.9m
Viswanath Alluri
Founder & Non-Executive Director0yrsUK£33.00k8.42% £26.0m
Michael David Jefferies
Group CFO & Executive Director0yrsUK£292.00k0.018% £55.4k
Aseem Sadana
Group Chief Operating Officer0.3yrsno data0.26% £809.5k
Thomas Boesen
Senior Vice President of Business Development0yrsno datano data
Alex Klose
Vice President of Marketing2.6yrsno datano data
Alex Cambell
Senior Vice President of Strategic Account Management0yrsno datano data
Chaitanya Devalapally
Executive Vice President of APAC0.8yrsno datano data
Ashwani Chadha
Executive Vice President0yrsno datano data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: IMO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


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 been diluted in the past year, with total shares outstanding growing by 8.5%.


Top Shareholders

Company Information

IMImobile PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IMImobile PLC
  • Ticker: IMO
  • Exchange: AIM
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£308.307m
  • Shares outstanding: 74.74m
  • Website: https://www.imimobile.com

Number of Employees


Location

  • IMImobile PLC
  • 5 St John's Lane
  • London
  • Greater London
  • EC1M 4BH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2014

Biography

IMImobile PLC provides cloud communications software and solutions that enables companies to use mobile and digital technologies to communicate and engage with their customers. The company offers IMIbot.ai, a modular AI platform for the end-to-end delivery of automated conversational experiences across the customer lifecycle; IMIchat, a cloud application that consolidates digital, mobile, and social customer service channels to a single agent desktop; IMIcampaign, a cloud campaign management application designed for multi-channel communication; IMIconnect, an enterprise-grade communications platform; and MIsocial that enhances live programming with audience content. It also provides IMInmx, a cloud Platform-as-a-Service gateway for application to person messaging; Textlocal, a cloud based, self-serve platform that allows businesses to access to SMS messaging and mobile marketing tools; IMIdigital that provides the infrastructure and tools to deploy mobile content services across multiple touchpoints and devices; and Virtual PBX, which connect enterprise customers through cloud PBX. The company serves customers in various industries, including telecoms, banking, financial services and insurance, utilities, healthcare, retail, logistics and travel, contact centers, and gambling. It operates in Europe, the Americas, the Middle East, Africa, India, and South East Asia. IMImobile PLC was founded in 1999 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:53
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.