BIT:IMA

Stock Analysis Report

I.M.A. Industria Macchine Automatiche

Executive Summary

I.M.A. Industria Macchine Automatiche S.p.A.

Rewards

PE ratio (17.2x) is below the Italian market (18.7x)

Earnings are forecast to grow 1.4% per year

Earnings grew by 8.3% over the past year

Pays a high and reliable dividend of 3.12%

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

How has I.M.A. Industria Macchine Automatiche's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

IMA

-5.2%

IT Machinery

-2.4%

IT Market


1 Year Return

3.8%

IMA

-7.5%

IT Machinery

14.1%

IT Market

Return vs Industry: IMA exceeded the Italian Machinery industry which returned -0.6% over the past year.

Return vs Market: IMA underperformed the Italian Market which returned 18.6% over the past year.


Shareholder returns

IMAIndustryMarket
7 Day-6.7%-5.2%-2.4%
30 Day-6.4%-3.5%-1.4%
90 Day-2.3%1.6%3.0%
1 Year6.8%3.8%-5.9%-7.5%19.1%14.1%
3 Year6.2%-1.0%21.0%15.9%27.9%9.5%
5 Year76.4%56.0%48.8%39.2%21.2%-19.7%

Price Volatility Vs. Market

How volatile is I.M.A. Industria Macchine Automatiche's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is I.M.A. Industria Macchine Automatiche undervalued compared to its fair value and its price relative to the market?

16.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IMA (€64.15) is trading above our estimate of fair value (€42.27)

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


Price To Earnings Ratio

PE vs Industry: IMA is good value based on its PE Ratio (17.2x) compared to the Machinery industry average (17.5x).

PE vs Market: IMA is good value based on its PE Ratio (17.2x) compared to the Italian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: IMA is poor value based on its PEG Ratio (12.2x)


Price to Book Ratio

PB vs Industry: IMA is overvalued based on its PB Ratio (6.2x) compared to the IT Machinery industry average (1.9x).


Next Steps

Future Growth

How is I.M.A. Industria Macchine Automatiche forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMA's forecast earnings growth (1.4% per year) is above the savings rate (1.2%).

Earnings vs Market: IMA's earnings (1.4% per year) are forecast to grow slower than the Italian market (8.7% per year).

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

Revenue vs Market: IMA's revenue (5.2% per year) is forecast to grow faster than the Italian market (3.8% per year).

High Growth Revenue: IMA's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMA's Return on Equity is forecast to be high in 3 years time (28.2%)


Next Steps

Past Performance

How has I.M.A. Industria Macchine Automatiche performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMA has a large one-off gain of €44.8M impacting its September 30 2019 financial results.

Growing Profit Margin: IMA's current net profit margins (9.5%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: IMA's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: IMA's earnings growth over the past year (8.3%) is below its 5-year average (20.8% per year).

Earnings vs Industry: IMA earnings growth over the past year (8.3%) exceeded the Machinery industry -7.6%.


Return on Equity

High ROE: Whilst IMA's Return on Equity (37.41%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is I.M.A. Industria Macchine Automatiche's financial position?


Financial Position Analysis

Short Term Liabilities: IMA's short term assets (€1.0B) exceed its short term liabilities (€935.4M).

Long Term Liabilities: IMA's short term assets (€1.0B) exceed its long term liabilities (€929.6M).


Debt to Equity History and Analysis

Debt Level: IMA's debt to equity ratio (182.8%) is considered high.

Reducing Debt: IMA's debt to equity ratio has reduced from 365.9% to 182.8% over the past 5 years.

Debt Coverage: IMA's debt is well covered by operating cash flow (24%).

Interest Coverage: IMA's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet

Inventory Level: IMA has a high level of physical assets or inventory.

Debt Coverage by Assets: IMA's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is I.M.A. Industria Macchine Automatiche's current dividend yield, its reliability and sustainability?

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.1%markettop25%4.3%industryaverage2.2%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: IMA's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: IMA's dividend (3.12%) is low compared to the top 25% of dividend payers in the Italian market (4.19%).


Stability and Growth of Payments

Stable Dividend: IMA's dividends per share have been stable in the past 10 years.

Growing Dividend: IMA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), IMA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IMA's dividends in 3 years are forecast to be covered by earnings (69.7% payout ratio).


Next Steps

Management

What is the CEO of I.M.A. Industria Macchine Automatiche's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average board tenure


CEO

Alberto Vacchi (55yo)

0yrs

Tenure

€2,076,830

Compensation

Mr. Alberto Vacchi serves as Chief Executive Officer at I.M.A. Industria Macchine Automatiche S.p.A. and has been its Managing Director since 1996. Mr. Vacchi Delegated powers at Ima - Industria Macchine A ...


CEO Compensation Analysis

Compensation vs Market: Alberto's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.68M).

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


Board Age and Tenure

10.0yrs

Average Tenure

58yo

Average Age

Experienced Board: IMA's board of directors are seasoned and experienced ( 10 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

Buy€1,093,05523 Sep 19
Hydra SpA
EntityCompany
Shares17,000
Max Price€64.53
Buy€2,091,11217 Sep 19
Hydra SpA
EntityCompany
Shares33,000
Max Price€65.35

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andrea Malagoli (54yo)

    Non-executive Director

    • Compensation: €1.67m
  • Visentini Stefano (73yo)

    General Manager

    • Alberto Vacchi (55yo)

      Chairman

      • Compensation: €2.08m
    • Giovanni Pecchioli (63yo)

      COO & Director

      • Tenure: 5yrs
    • Claudio Rizzi

      Head of the Group Internal Audit & Member of Supervisory Board


      Board Members

      • Andrea Malagoli (54yo)

        Non-executive Director

        • Compensation: €1.67m
      • Luca Poggi (58yo)

        Non-Executive Director

        • Tenure: 10yrs
        • Compensation: €1.40m
      • Marco Vacchi (82yo)

        Honorary Chairman

        • Tenure: 12.6yrs
        • Compensation: €20.00k
      • Maria Schiavina (54yo)

        Non-Executive Director

        • Tenure: 10yrs
        • Compensation: €35.00k
      • Alberto Vacchi (55yo)

        Chairman

        • Compensation: €2.08m
      • Giovanni Pecchioli (63yo)

        COO & Director

        • Tenure: 5yrs
      • Paolo Frugoni (72yo)

        Lead Independent Director

        • Compensation: €20.00k
      • Rita Rolli (50yo)

        Independent Director

        • Francesco Panni (65yo)

          Chairman of Board of Auditors

          • Tenure: 3.7yrs
        • Cesare Conti

          Independent Director

          • Tenure: 2yrs

        Company Information

        I.M.A. Industria Macchine Automatiche S.p.A.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: I.M.A. Industria Macchine Automatiche S.p.A.
        • Ticker: IMA
        • Exchange: BIT
        • Founded: 1961
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: €2.614b
        • Shares outstanding: 43.11m
        • Website: https://www.ima.it

        Number of Employees


        Location

        • I.M.A. Industria Macchine Automatiche S.p.A.
        • Via Emilia, 428/442
        • Ozzano dell'Emilia
        • Bologna
        • 40064
        • Italy

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        IMABIT (Borsa Italiana)YesCommon StockITEURJun 1995
        0LD1LSE (London Stock Exchange)YesCommon StockGBEURJun 1995
        IMAMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 1995
        12MDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995

        Biography

        I.M.A. Industria Macchine Automatiche S.p.A. designs, manufactures, and sells automatic machines for the processing and packaging of pharmaceuticals, cosmetics, tea, coffee, tobacco, and other food products worldwide. The company's Tea, Food & Other segment offers machines for the packaging of tea and herbal teas in filter bags, and the packaging of coffee in pods; end-of-line machines; machines and plants for the dosing and packaging of cheese portions and stock cubes; machines and systems for horizontal flowpack and fold packaging for the food and cosmetics industries; and machines for containers and sticks, and ultraclean closures and wrappers, as well as forming, filling, and sealing. This segment also provides machines for the food and beverage, and personal care sectors; machines and lines for flexible food and non-food packaging; machines for the filling and packaging of single-serve coffee capsules; refurbished second-hand machines for packaging processed cheese, and tea and herbs in filter bags; machines for the production of wet wipes; and machines for the assembly of plastic material in the caps and closures sector, as well as medical products for self-medication, such as inhalers, insulin syringes, and injection systems. Its Pharmaceutical segment offers machines for the packaging of pharmaceutical capsules and tablets in blisters and bottles; machines for filling bottles and vials with liquid and powdered products in sterile and non-sterile environments; machines for freeze-drying, tube-filling, and cartoning; and systems for the production of tablets and capsules, and for coating and granulation, as well as related services. The company's Tobacco Packaging segment provides machines and plants for tobacco packaging, and related services. The company was founded in 1961 and is headquartered in Ozzano dell'Emilia, Italy. I.M.A. Industria Macchine Automatiche S.p.A. is a subsidiary of SO.FI.M.A. Societa Finanziaria Macchine Automatiche S.p.a. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/27 21:01
        End of Day Share Price2020/01/27 00:00
        Earnings2019/09/30
        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.