Download PDF

1. Company Snapshot

1.a. Company Description

IMI plc, a specialist engineering company, designs, manufactures, and services engineered products worldwide.The company operates through three divisions: IMI Precision Engineering, IMI Critical Engineering, and IMI Hydronic Engineering.The IMI Precision Engineering division develops motion and fluid control technologies for industrial automation, commercial vehicle, life sciences, energy, and rail applications.


This division offers actuators, air preparation products, pressure switches, and fittings; pneumatic, hydraulic, electric, and vacuum motion solutions; solenoid valves, angle-seat valves, motorized valves, and systems for dust filters; miniature fluid control solutions; precise and accurate syringes, syringe pumps, and rotary valves; cab chassis, powertrain solutions, stainless steel valves and regulators, and emergency shutdown controls; and stainless steel valves and regulators, nuclear class valves, and emergency shutdown controls.It provides its products under the Norgren, Bimba, Buschjost, FAS, Herion, Kloehn, Adaptas, and Maxseal brands.The IMI Critical Engineering division offers specialized valves and actuators to the fossil power, oil and gas, petrochemical, nuclear, marine, and pharmaceutical markets under the IMI Bopp & Reuther, IMI CCI, IMI Fluid Kinetics, IMI NH, IMI Orton, IMI Remosa, IMI STI, IMI TH Jansen, IMI Thompson Valves, IMI Truflo Marine, IMI Truflo Rona, IMI PBM, and IMI Z&J brands.


The IMI Hydronic Engineering division provides products for hydronic distribution systems, which deliver heating and cooling systems to the residential and commercial building sectors.This segment offers balancing and control solutions, thermostatic control systems, and pressure maintenance systems, dirt and air separators, and pressure step degassers under the IMI Pneumatex, IMI TA, IMI Flow Design, IMI Heimeier, and IMI Aero-Dynamiek brands.The company was founded in 1862 and is headquartered in Birmingham, the United Kingdom.

Show Full description

1.b. Last Insights on IMI

IMI plc's recent performance has been driven by several positive factors. The company's first half 2025 earnings, released on August 3, showed a stable revenue of UK£1.09b, comparable to the same period last year. Although EPS decreased slightly to UK£0.46, the company's dividend announcement on August 6, of £0.11 per share, is expected to be paid on September 22. This dividend payout and the company's fair value, as explored by the community, may attract investors, suggesting IMI could be a buy for its upcoming dividend.

1.c. Company Highlights

2. IMI Delivers Solid First Half, Driven by Order Growth and Margin Expansion

IMI reported a strong first half, with organic sales growth of 2% and adjusted operating profit growth of 5%. The company also saw a 30 basis point increase in adjusted operating margin, reaching 16.9%. This performance was driven by growth in both the Process Automation and Industrial Automation divisions. EPS came in at 129.3p, slightly ahead of the midpoint of guidance of 132.5p.

Publication Date: Aug -09

📋 Highlights
  • Organic Growth Metrics: 2% sales growth, 5% adjusted operating profit growth, and 30 bps margin improvement in H1
  • Shareholder Returns: GBP 200 million share buyback completed; total returns since 2019 exceed GBP 1 billion
  • Process Automation Momentum: Record order intake with 7% organic growth (excluding large marine contract) and GBP 15 million book-to-ship increase
  • Innovation & Productivity: Growth Hub secured GBP 64 million in orders; Brno facility identified 600+ improvement initiatives
  • Aftermarket Strength: 17% growth in IMI upgrade valves and 12% in competitor valves, driving profitability in Process Automation

Record Order Intake in Process Automation

IMI's Process Automation division achieved a record order intake in the first half, driven by strength in the Power and Nuclear sectors. This division also saw a 5% organic order book growth, despite a large multi-year marine contract in the prior year. The company expects the order book to be higher at year-end, leading to growth in 2024. This positive momentum in aftermarket and order book improvements is a key driver of IMI's future growth.

Industrial Automation Rebounds After Cyber Incident

The Industrial Automation (IA) division experienced a rebound in Q2 following the cyber incident that impacted the first half. Order growth exceeded the 3%-4% outlook for the second half, indicating a strong recovery.

Focus on Value Engineering and M&A

While the Transport segment is expected to be flat in the second half, IMI is actively reviewing its strategic options. The company is focused on value engineering, exiting less profitable businesses, and exploring external options to optimize its portfolio. In addition, IMI is actively reviewing M&A opportunities to further strengthen its position in key growth markets.

Valuation Metrics Suggest Market Optimism

IMI's current valuation metrics suggest that the market is optimistic about the company's future prospects. The P/E ratio of 23.22 is above the historical average, indicating that investors are willing to pay a premium for the company's growth potential. The P/B ratio of 5.32 also suggests that the market values IMI's assets highly.

3. NewsRoom

Card image cap

Fairbanks Morse Defense to Acquire Truflo Marine from IMI

Nov -24

Source:

Card image cap

RedBird Drops $660 Million Bid for Britain’s Telegraph Newspaper

Nov -14

Source:

Card image cap

FTSE 100 nudges higher but weak data dents pound

Oct -14

Source:

Card image cap

Calculating The Intrinsic Value Of IMI plc (LON:IMI)

Sep -12

Source:

Card image cap

Is IMI plc's (LON:IMI) Latest Stock Performance A Reflection Of Its Financial Health?

Aug -27

Source:

Card image cap

IMI (LON:IMI) Could Be A Buy For Its Upcoming Dividend

Aug -10

Source:

Card image cap

IMI's (LON:IMI) Dividend Will Be £0.11

Aug -06

Source:

Card image cap

IMI First Half 2025 Earnings: EPS: UK£0.46 (vs UK£0.48 in 1H 2024)

Aug -03

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.20%)

6. Segments

Automation

Expected Growth: 4.5%

The Automation segment is expected to grow slightly above the global average due to its strong presence in the industrial automation market and the increasing demand for efficient manufacturing processes. The growth is driven by the need for precision engineering solutions and advancements in technology. The segment's diversified product portfolio and global reach also contribute to its growth prospects.

Life Technology

Expected Growth: 5.0%

The Life Technology segment is expected to grow above the global average due to the increasing demand for medical devices and healthcare services. The segment's focus on precision components and customized solutions for the medical industry positions it well for growth. The aging population and the need for advanced medical technologies also drive the growth prospects of this segment.

7. Detailed Products

Critical Engineering

IMI plc's Critical Engineering segment provides critical flow control solutions for the oil and gas, power, and petrochemical industries.

IMI Precision Engineering

IMI plc's Precision Engineering segment designs and manufactures precision engineered components and solutions for the industrial, aerospace, and automotive markets.

Hydronic Engineering

IMI plc's Hydronic Engineering segment provides heating and cooling solutions for the building services market.

Severe Service

IMI plc's Severe Service segment provides valve and actuator solutions for the oil and gas, power, and petrochemical industries.

8. IMI plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for IMI plc is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for IMI plc is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for IMI plc is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for IMI plc is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for IMI plc is high due to the competitive nature of the industry, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.41%
Debt Cost 5.35%
Equity Weight 60.59%
Equity Cost 9.59%
WACC 7.92%
Leverage 65.05%

11. Quality Control: IMI plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Smiths

A-Score: 6.0/10

Value: 2.7

Growth: 5.1

Quality: 6.7

Yield: 3.1

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
GEA

A-Score: 6.0/10

Value: 2.7

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 9.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Valmet

A-Score: 5.7/10

Value: 5.1

Growth: 4.8

Quality: 5.1

Yield: 7.5

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
IMI

A-Score: 5.4/10

Value: 1.8

Growth: 5.1

Quality: 6.0

Yield: 2.5

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Mycronic

A-Score: 5.2/10

Value: 1.6

Growth: 8.1

Quality: 8.5

Yield: 3.1

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Fluidra

A-Score: 4.8/10

Value: 3.1

Growth: 6.2

Quality: 5.3

Yield: 4.4

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.64$

Current Price

24.64$

Potential

-0.00%

Expected Cash-Flows