IMI (IMI.L)
Industrials · LSE · UK
Fundamentals
Valuation and ratings
IMI trades at £29.40, which is 62% below the £47.74 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 68 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About IMI
IMI plc designs and manufactures fluid and motion control solutions in the United Kingdom, Germany, rest of Europe, the United States, rest of the Americas, China, rest of the Asia Pacific, the Middle East, and Africa. It operates through Automation and Life Technology segments. The company provides engineer advanced fluid control automation solutions; creates fluid and motion control solutions; pneumatic and electric motion systems for creating smart, safe, and sustainable factories, production lines, and operations; valves, actuators, and digitally connected products. It also develops solutions that reduce emissions from commercial vehicles; and develops new products to support zero emission technologies. In addition, the company offers heating and cooling systems; syringe pumps; and detection technologies. It serves process automation, industrial automation, climate control, life science and fluid control, and transportation sectors. The company was formerly known as Imperial Metal Industries Limited and changed its name to IMI plc in December 1978. IMI plc was founded in 1862 and is headquartered in Birmingham, the United Kingdom.
IMI.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is IMI (IMI.L) undervalued?
Against our discounted cash flow estimate of £47.74, IMI.L at £29.40 is 62% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is IMI.L's P/E ratio?
IMI.L trades at 22.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.