IMI plc (IMI) AI Stock Analysis

• Market Cap: £6.95B
• Dividend Yield: 1.29%
• Average Volume (3M): 617.01K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.42
• 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: 247,008,100
• 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: £2,720.00
• Price Target Upside: -3.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 3,179.00p ▲(12.57% 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

Strong cash generation

Consistently robust operating cash conversion and positive free cash flow provide durable funding for reinvestment, dividends and buybacks. This cash resilience reduces refinancing risk and supports strategic initiatives over the next 2-6 months even if revenue lags.

Healthy profit margins

High gross and mid-teens operating margins indicate structural pricing power and efficient cost management across divisions. These margins create a buffer against input cost volatility and sustain earnings quality, supporting durable profitability and investment capacity.

Disciplined shareholder returns & FCF guidance

A clear track record of returns plus committed FCF targets signal disciplined capital allocation and management alignment with shareholders. Predictable buybacks/dividends and targeted FCF generation strengthen investor confidence and reflect operational cash backing.

Negative Factors

Cybersecurity cost & disruption

The material charge and required IT rebuilds highlight elevated cyber risk and higher ongoing security capex. Beyond the one-off cost, persistent investment and potential operational controls may depress near-term margins and require sustained capital and management focus.

Weakness in key divisions

Organic declines in Industrial Automation and Transport point to cyclical exposure and demand sensitivity in meaningful end markets. Prolonged softness would pressure segment margins and group revenue growth, necessitating commercial or structural responses to restore momentum.

Moderate leverage

A 0.64 debt/equity ratio denotes manageable but material leverage. In a higher-rate or weaker-revenue scenario, interest cost pressure and reduced balance sheet flexibility could limit investment or shareholder returns, requiring careful debt management over the medium term.

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. Overall, the company is well-positioned in its industry, with potential for further financial improvements.

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: 2824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2824 is above the 20-day moving average (MA) of 2710.20, above the 50-day MA of 2567.28, and above the 200-day MA of 2273.24, indicating a bullish trend. The MACD of 72.09 indicates Negative momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, 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	£6.95B	30.17	23.79%	1.29%	-0.32%	-3.96%
WEIR	75 Outperform	£8.61B	28.12	17.68%	1.26%	-1.97%	40.55%
GDWN	73 Outperform	£2.07B	52.28	35.23%	1.01%	24.42%	103.25%
SPX	72 Outperform	£5.43B	33.43	14.19%	2.46%	0.10%	-15.33%
ROR	66 Neutral	£3.05B	31.51	16.97%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.99B	29.66	12.85%	1.93%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

IMI plc Corporate Events

IMI Updates Total Voting Rights and Share Capital

IMI plc has reported that its issued share capital stands at 259,656,939 ordinary shares, of which 12,648,836 are held in treasury, leaving 247,008,103 shares carrying voting rights. The company highlighted that this total voting rights figure serves as the reference point for shareholders when assessing whether they must disclose holdings or changes in their stake under the UK Financial Conduct Authority’s Disclosure and Transparency Rules, underscoring ongoing regulatory compliance and transparency in its shareholder reporting.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £3024.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI Executives Add to Holdings Through Employee Share Plan

IMI plc has disclosed that three senior executives — Chief Executive Officer Roy Twite, Chief Financial Officer Luke Grant and Chief People Officer Elizabeth Rose — have each purchased small tranches of IMI ordinary shares through the company’s Employee Share Ownership Plan. The transactions, executed on 13 January 2026 at a price of £26.18 per share and reported under Market Abuse Regulation requirements, modestly increase the leadership team’s direct equity stakes and underscore ongoing alignment between management and shareholders through structured share purchase schemes.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI plc Confirms Total Voting Rights at Year-End 2025

IMI plc reported that as of 31 December 2025 its issued share capital comprised 259,654,876 ordinary shares, of which 12,648,836 are held in treasury. This leaves a total of 247,006,040 voting rights in the company, a key reference figure shareholders must use to assess whether they are required to disclose holdings or changes in holdings under UK Financial Conduct Authority disclosure and transparency rules.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI plc Executives Participate in Share Ownership Plan

IMI plc, a company involved in the manufacturing and engineering sector, has announced transactions by its senior management as part of the IMI Employee Share Ownership Plan. The Chief Executive Officer, Chief Financial Officer, and Chief People Officer have each purchased shares at a price of £24.76 per share on the London Stock Exchange. This move reflects the company’s commitment to aligning management interests with those of shareholders, potentially enhancing stakeholder confidence.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £2772.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

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.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2550.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

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.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £28.10 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

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.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £28.10 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

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.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.