IMI plc (IMI) AI Stock Analysis

• Market Cap: £6.09B
• Dividend Yield: 1.29%
• Average Volume (3M): 617.01K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.38
• Revenue Growth: -0.32%
• EPS Growth: -3.96%
• Country: UK
• Employees: 10,352
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.56
• Shares Outstanding: 247,004,560
• 10 Day Avg. Volume: 799,914
• 30 Day Avg. Volume: 617,009
• PEG Ratio: 4.36
• Price to Book (P/B): 4.34
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 16.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,697.78
• Price Target Upside: 9.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 2,772.00p ▲(12.14% Upside)

IMI plc's overall stock score reflects strong financial performance and positive corporate events, which are the most significant factors. The technical analysis indicates a bullish trend, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock may be overvalued, which slightly tempers the overall score. The earnings call provided a positive outlook, reinforcing confidence in the company's strategic direction.

Positive Factors

Revenue Growth

Consistent organic revenue and profit growth indicate strong demand for IMI's products and effective market strategies, supporting long-term business expansion.

Cash Generation

Robust cash generation allows IMI to return significant capital to shareholders, reflecting strong operational cash flow and financial health.

Order Intake

Strong order intake through strategic initiatives like the Growth Hub underscores IMI's competitive position and potential for sustained revenue growth.

Negative Factors

Cyber Attack Impact

The cyber attack resulted in significant costs and operational disruptions, highlighting vulnerabilities in IT infrastructure that could affect future performance.

Decline in Industrial Automation

Revenue decline in Industrial Automation reflects challenges in maintaining growth amidst operational disruptions, impacting segment performance.

Challenges in Fluid Control

Decreased revenue in Fluid Control indicates market challenges and potential competitive pressures, affecting overall segment growth prospects.

IMI plc Business Overview & Revenue Model

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.

How the Company Makes Money

IMI plc generates revenue primarily through the sale of its engineering products and solutions across its three divisions. Key revenue streams include the sale of precision engineering components, which are utilized in sectors like automotive, oil and gas, and energy; hydronic products that optimize heating and cooling systems in buildings; and critical engineering solutions for high-demand industries such as aerospace and marine. Additionally, IMI benefits from long-term service agreements and aftermarket sales, which provide recurring revenue. Strategic partnerships with major industrial clients and investments in research and development further enhance its competitive edge, enabling the company to deliver innovative solutions that meet evolving market demands.

IMI plc Financial Statement Overview

Summary

IMI plc exhibits a solid financial standing with consistent revenue growth and strong profitability metrics. The balance sheet is stable with manageable leverage, though continued monitoring of debt levels is advisable. Cash flows remain robust, supporting the company's operational and strategic initiatives.

Income Statement

IMI plc has demonstrated steady revenue growth with a 0.64% increase from 2023 to 2024. The gross profit margin is solid at 47.27%, indicating efficient cost management. The net profit margin of 11.25% and EBIT margin of 16.11% are healthy, reflecting good operational efficiency. EBITDA margin of 21.44% suggests strong earnings quality, although there is room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.64 indicates moderate leverage, which is manageable but higher than prior years. Return on equity at 22.90% highlights strong shareholder value creation. The equity ratio of 43.56% suggests a balanced capital structure, though there is potential risk if debt levels increase significantly.

Cash Flow

Operating cash flow to net income ratio is 1.49, showing robust cash generation compared to net income. Free cash flow growth is slightly negative, but the free cash flow to net income ratio of 1.13 reflects sufficient free cash flow generation to support dividends and reinvestment. Overall, cash flow is stable, with strong operational cash flows providing a buffer against fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	2.21B	2.20B	2.05B	1.87B	1.82B
Gross Profit	783.55M	1.04B	1.01B	900.40M	836.20M	790.50M
EBITDA	348.50M	473.90M	457.60M	431.40M	358.60M	340.20M
Net Income	181.05M	248.50M	237.30M	226.30M	196.30M	170.20M
Balance Sheet
Total Assets	2.50B	2.49B	2.47B	2.52B	2.17B	1.98B
Cash, Cash Equivalents and Short-Term Investments	123.60M	150.00M	108.20M	135.00M	97.50M	211.00M
Total Debt	859.20M	695.50M	745.10M	945.00M	717.40M	524.10M
Total Liabilities	1.58B	1.41B	1.44B	1.61B	1.39B	1.18B
Stockholders Equity	914.80M	1.09B	1.03B	905.60M	779.10M	799.50M
Cash Flow
Free Cash Flow	255.75M	280.10M	283.30M	193.20M	199.60M	267.30M
Operating Cash Flow	307.20M	371.60M	363.20M	264.50M	257.10M	318.00M
Investing Cash Flow	-114.10M	-58.00M	-69.10M	-278.00M	-234.40M	-73.00M
Financing Cash Flow	-232.20M	-276.20M	-276.40M	24.50M	-109.40M	-146.60M

IMI plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2472.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IMI, the sentiment is Positive. The current price of 2472 is above the 20-day moving average (MA) of 2455.70, above the 50-day MA of 2417.12, and above the 200-day MA of 2154.55, indicating a bullish trend. The MACD of 17.98 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IMI.

IMI plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£6.09B	26.41	23.79%	1.29%	-0.32%	-3.96%
WEIR	75 Outperform	£7.35B	24.00	17.68%	1.26%	-1.97%	40.55%
SPX	72 Outperform	£4.99B	30.69	14.19%	2.46%	0.10%	-15.33%
ROR	66 Neutral	£2.67B	27.47	16.97%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.57B	27.77	12.85%	1.93%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRO	50 Neutral	£7.37B	23.84	10.69%	1.10%	-0.38%	―

IMI plc Corporate Events

IMI plc Updates on Share Capital and Voting Rights

IMI plc announced its current issued share capital consists of 259,653,401 ordinary shares, with 12,648,836 held in Treasury, resulting in 247,004,565 total voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

IMI plc Sells Truflo Marine to Fairbanks Morse Defense for £225 Million

IMI plc has announced the sale of its Truflo Marine business to Fairbanks Morse Defense for an enterprise value of £225 million. This strategic move is part of IMI’s focus on aligning with growth trends in energy, automation, and healthcare, which are expected to drive sustainable growth. The transaction, pending regulatory approvals, is anticipated to complete by mid-2026. IMI’s CEO expressed confidence in Fairbanks Morse Defense as a suitable new home for Truflo Marine, highlighting their commitment to investing in the business’s success.

IMI plc Executives Acquire Shares, Signaling Confidence

IMI plc announced transactions involving its top executives, including CEO Roy Twite, CFO Luke Grant, and Chief People Officer Elizabeth Rose, who purchased shares under the IMI Employee Share Ownership Plan. These transactions, conducted on the London Stock Exchange, reflect the executives’ commitment to the company’s growth and align their interests with those of shareholders, potentially impacting the company’s market perception positively.

IMI plc Reports Strong Third Quarter Performance and Reconfirms Full-Year Guidance

IMI plc reported an excellent third quarter performance with a 12% increase in organic revenue compared to the same period last year, and a 5% increase year to date. The company is on track to achieve its fourth consecutive year of mid-single digit organic revenue growth, driven by strong performances in the Process Automation sector and other market sectors like Climate Control and Life Science & Fluid Control. The company reconfirmed its full-year guidance, highlighting its strong balance sheet and cash generation capabilities, which allow for investments in growth and shareholder returns.

IMI plc Announces Current Share Capital and Voting Rights

IMI plc announced its current issued share capital consists of 259,652,973 ordinary shares, with 12,648,836 held in Treasury, resulting in 247,004,137 total voting rights. This figure is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

IMI plc Engages Shareholders After Resolution Falls Short

IMI plc, during its 2025 Annual General Meeting, encountered a situation where Special Resolution B, concerning the authority to allot securities for cash, did not achieve the 80% support threshold as per the UK Corporate Governance Code, garnering only 78.25% support. This shortfall was attributed to institutional voting policies and concerns about potential dilution without a specific transaction in mind. The company’s board remains committed to engaging with shareholders to address these concerns and will provide further updates in its 2025 Annual Report.

IMI plc Executives Increase Stake Through Share Ownership Plan

IMI plc announced transactions involving its top executives, including CEO Roy Twite, CFO Luke Grant, and Chief People Officer Elizabeth Rose, who purchased shares under the IMI Employee Share Ownership Plan. This move reflects the leadership’s commitment to aligning their interests with the company’s performance, potentially boosting stakeholder confidence and reinforcing IMI’s market position.

IMI plc Announces Share Capital and Voting Rights Update

IMI plc has announced its current issued share capital, which consists of 259,651,784 ordinary shares, with 12,648,836 held in Treasury, resulting in a total of 247,002,948 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments in the company.

IMI plc Director Acquires Shares, Signaling Confidence

IMI plc announced that Ajai Puri, a Non-executive Director, purchased 1,000 ordinary shares of the company at a price of £22.346 per share on 25 September 2025. This transaction, conducted on the London Stock Exchange, highlights a notable investment by a key managerial figure, potentially signaling confidence in the company’s future performance and stability, which could influence stakeholder perspectives.

IMI plc Executives Increase Stake Through Share Ownership Plan

IMI plc has announced transactions by key executives, including CEO Roy Twite, CFO Luke Grant, and Chief People Officer Elizabeth Rose, who have purchased shares as part of the IMI Employee Share Ownership Plan. These transactions, conducted on the London Stock Exchange, reflect the executives’ confidence in the company’s future prospects and align their interests with those of shareholders.