# Imi (IMI.LSE)

Canonical: https://gigainvestors.com/s/IMI.LSE

Analysis as of: 2026-10-16T07:36:05.933Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 2,950.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,717.01 per share, central GBX 2,496.12 per share, high GBX 2,930.65 per share. Buy at or below the central value GBX 2,496.12 per share. Valuation as of 2026-10-16T07:36:05.933Z; scenarios are not confidence intervals.

Expected annual return: 9.0% at the stated quote. About 9.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.13×

- FY2019: 0.13×

- FY2020: 0.14×

- FY2021: 0.16×

- FY2022: 0.17×

- FY2023: 0.15×

- FY2024: 0.16×

- FY2025: 0.18×

### moat: pass

- ROIC, median of available years: 29.3%

- ROIC, second-lowest year: 27.4%

- Typical minus recent gross margin: -2.2 pp

- Typical gross margin (annual median): 44.1%

- Recent gross margin (lower of latest and 3-year median): 46.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: 15.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 47.3%

- FY2017: 40.6%

- FY2018: 31.4%

- FY2019: 28.1%

- FY2020: 31.6%

- FY2021: 27.7%

- FY2022: 27.4%

- FY2023: 25.3%

- FY2024: 27.9%

- FY2025: 30.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 1.3B

- Net income, five-year total: GBP 1.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.5 pp

- Working capital / revenue, final three-year average: 30.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.12×

- FY2022: 1.13×

- FY2023: 1.10×

- FY2024: 1.04×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 40.6% vs 27.9%

- Per-share earnings: 0.49 to 0.96 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: GBP 3.4B

- Cumulative retained earnings: GBP 639M

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: GBP 0.48

- Per-share value, starting three-year median: GBP 0.49

- Per-share value, ending three-year median: GBP 0.96

- Buybacks concentrated in cheaper years (correlation): 0.02

- Average buyback yield: 1.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 1.3B

- Cumulative net income, 10 years: GBP 2.0B

- ROIC, first three-year median: 40.6%

- ROIC, last three-year median: 27.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.49

- FY2017: GBP 0.60

- FY2018: GBP 0.62

- FY2019: GBP 0.58

- FY2020: GBP 0.63

- FY2021: GBP 0.74

- FY2022: GBP 0.87

- FY2023: GBP 0.91

- FY2024: GBP 0.96

- FY2025: GBP 1.25

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.79×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.3%

- FY2017: -3.2%

- FY2018: -2.1%

- FY2019: -8.6%

- FY2020: -8.0%

- FY2021: -3.4%

- FY2022: -2.3%

- FY2023: -5.1%

- FY2024: -4.9%

- FY2025: -3.6%

## Holders

## Price story

Price needs cash profits to grow 9.5% a year for ten years · sales +4.3%

Story as of 2026-10-16T10:00:06.767Z; price observation 2026-10-15.

Price needs cash profits to grow 9.5% a year for ten years

### Sales · FY2024–2025

sales +4.3%; source https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml; observed 2026-04-07.

- FY2016: GBP 1.7B 

- FY2017: GBP 1.8B 

- FY2018: GBP 1.9B 

- FY2019: GBP 1.9B 

- FY2020: GBP 1.8B 

- FY2021: GBP 1.9B 

- FY2022: GBP 2.0B 

- FY2023: GBP 2.2B 

- FY2024: GBP 2.2B 

- FY2025: GBP 2.3B 

### Gross margin · FY2025

gross margin 46.3%; source https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml; observed 2026-04-07.

- FY2016: 44.2% 

- FY2017: 44.0% 

- FY2018: 42.9% 

- FY2019: 42.4% 

- FY2020: 43.3% 

- FY2021: 44.8% 

- FY2022: 43.9% 

- FY2023: 46.1% 

- FY2024: 47.3% 

- FY2025: 46.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are GBP 2.3 billion.

- Source: https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: revenue 2304000000; grossProfit 1067800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IMI.LSE: 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.

### Why customers stay

Margins ranged from 46.1% to 47.3% during 2023–25; it earns 29.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2023: grossProfit / revenue = 46.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2024: grossProfit / revenue = 47.3%.

- Source: https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: grossProfit / revenue = 46.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); 10-year return on capital observations [[2016,0.4726659524624088],[2017,0.4064274110072515],[2018,0.31382438019271736],[2019,0.2813565768621236],[2020,0.3160805315437122],[2021,0.2773724796723156],[2022,0.2739171149166415],[2023,0.2533568098905553],[2024,0.27915459103568735],[2025,0.30427264398918086]]; median 0.29281461042565227. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 201.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2016: growth capex 4600000; upkeep 66300000; owner earnings 130800000. Growth capex / owner earnings = 0.035168195718654434.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2017: growth capex 4000000; upkeep 65800000; owner earnings 162100000. Growth capex / owner earnings = 0.024676125848241828.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2018: growth capex 0; upkeep 38000000; owner earnings 211100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2019: growth capex 0; upkeep 65800000; owner earnings 180320000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2020: growth capex 0; upkeep 50700000; owner earnings 212940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2021: growth capex 0; upkeep 57500000; owner earnings 219520000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2022: growth capex 0; upkeep 71300000; owner earnings 256060000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2023: growth capex 0; upkeep 79900000; owner earnings 261760000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2024: growth capex 0; upkeep 91500000; owner earnings 258180000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: growth capex 0; upkeep 98600000; owner earnings 309080000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Dividend observations: [[2016,105000000],[2017,105500000],[2018,107900000],[2019,110800000],[2020,91600000],[2021,61800000],[2022,62200000],[2023,68800000],[2024,76000000],[2025,80600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: cash repurchases 201400000 GBP.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IMI.LSE SharesStats.PercentInsiders = 0.42 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.5% yearly over ten years; actual growth was 13.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Ten-year compound average after fade. Initial solved rate 0.16260748796255692. Price 2950; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3493577981651376 → FY2025 1.2433223917101113. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 994.00 per share

- 2016-11: GBX 970.00 per share

- 2016-12: GBX 1,040.00 per share

- 2017-01: GBX 1,166.00 per share

- 2017-02: GBX 1,241.00 per share

- 2017-03: GBX 1,193.00 per share

- 2017-04: GBX 1,279.00 per share

- 2017-05: GBX 1,254.00 per share

- 2017-06: GBX 1,195.00 per share

- 2017-07: GBX 1,203.00 per share

- 2017-08: GBX 1,135.00 per share

- 2017-09: GBX 1,243.00 per share

- 2017-10: GBX 1,222.00 per share

- 2017-11: GBX 1,256.00 per share

- 2017-12: GBX 1,333.00 per share

- 2018-01: GBX 1,329.00 per share

- 2018-02: GBX 1,227.00 per share

- 2018-03: GBX 1,080.00 per share

- 2018-04: GBX 1,092.00 per share

- 2018-05: GBX 1,160.00 per share

- 2018-06: GBX 1,132.00 per share

- 2018-07: GBX 1,242.00 per share

- 2018-08: GBX 1,208.00 per share

- 2018-09: GBX 1,097.00 per share

- 2018-10: GBX 994.50 per share

- 2018-11: GBX 973.50 per share

- 2018-12: GBX 944.00 per share

- 2019-01: GBX 957.00 per share

- 2019-02: GBX 946.00 per share

- 2019-03: GBX 958.00 per share

- 2019-04: GBX 1,050.50 per share

- 2019-05: GBX 906.00 per share

- 2019-06: GBX 1,038.00 per share

- 2019-07: GBX 1,045.50 per share

- 2019-08: GBX 1,005.00 per share

- 2019-09: GBX 960.20 per share

- 2019-10: GBX 1,003.00 per share

- 2019-11: GBX 1,121.00 per share

- 2019-12: GBX 1,179.00 per share

- 2020-01: GBX 1,104.00 per share

- 2020-02: GBX 1,006.00 per share

- 2020-03: GBX 747.40 per share

- 2020-04: GBX 827.50 per share

- 2020-05: GBX 900.00 per share

- 2020-06: GBX 922.50 per share

- 2020-07: GBX 1,044.00 per share

- 2020-08: GBX 1,055.00 per share

- 2020-09: GBX 1,050.00 per share

- 2020-10: GBX 1,034.00 per share

- 2020-11: GBX 1,118.00 per share

- 2020-12: GBX 1,165.00 per share

- 2021-01: GBX 1,246.00 per share

- 2021-02: GBX 1,309.00 per share

- 2021-03: GBX 1,334.00 per share

- 2021-04: GBX 1,594.00 per share

- 2021-05: GBX 1,660.00 per share

- 2021-06: GBX 1,720.00 per share

- 2021-07: GBX 1,756.00 per share

- 2021-08: GBX 1,823.00 per share

- 2021-09: GBX 1,660.00 per share

- 2021-10: GBX 1,634.00 per share

- 2021-11: GBX 1,701.00 per share

- 2021-12: GBX 1,736.00 per share

- 2022-01: GBX 1,649.00 per share

- 2022-02: GBX 1,463.00 per share

- 2022-03: GBX 1,363.00 per share

- 2022-04: GBX 1,355.00 per share

- 2022-05: GBX 1,411.00 per share

- 2022-06: GBX 1,173.00 per share

- 2022-07: GBX 1,335.00 per share

- 2022-08: GBX 1,149.00 per share

- 2022-09: GBX 1,119.00 per share

- 2022-10: GBX 1,228.00 per share

- 2022-11: GBX 1,348.00 per share

- 2022-12: GBX 1,288.00 per share

- 2023-01: GBX 1,447.00 per share

- 2023-02: GBX 1,557.00 per share

- 2023-03: GBX 1,534.00 per share

- 2023-04: GBX 1,595.00 per share

- 2023-05: GBX 1,594.00 per share

- 2023-06: GBX 1,640.00 per share

- 2023-07: GBX 1,629.00 per share

- 2023-08: GBX 1,502.00 per share

- 2023-09: GBX 1,568.00 per share

- 2023-10: GBX 1,465.00 per share

- 2023-11: GBX 1,563.00 per share

- 2023-12: GBX 1,684.00 per share

- 2024-01: GBX 1,685.00 per share

- 2024-02: GBX 1,733.00 per share

- 2024-03: GBX 1,815.00 per share

- 2024-04: GBX 1,752.00 per share

- 2024-05: GBX 1,855.00 per share

- 2024-06: GBX 1,764.00 per share

- 2024-07: GBX 1,894.00 per share

- 2024-08: GBX 1,831.00 per share

- 2024-09: GBX 1,812.00 per share

- 2024-10: GBX 1,650.00 per share

- 2024-11: GBX 1,820.00 per share

- 2024-12: GBX 1,821.00 per share

- 2025-01: GBX 2,012.00 per share

- 2025-02: GBX 2,002.00 per share

- 2025-03: GBX 1,887.00 per share

- 2025-04: GBX 1,768.00 per share

- 2025-05: GBX 1,988.00 per share

- 2025-06: GBX 2,094.00 per share

- 2025-07: GBX 2,222.00 per share

- 2025-08: GBX 2,274.00 per share

- 2025-09: GBX 2,286.00 per share

- 2025-10: GBX 2,388.00 per share

- 2025-11: GBX 2,434.00 per share

- 2025-12: GBX 2,488.00 per share

- 2026-01: GBX 2,762.00 per share

- 2026-02: GBX 2,880.00 per share

- 2026-03: GBX 2,530.00 per share

- 2026-04: GBX 2,792.00 per share

- 2026-05: GBX 2,782.00 per share

- 2026-06: GBX 2,964.00 per share

- 2026-07: GBX 2,936.00 per share

- 2026-08: GBX 3,112.00 per share

- 2026-09: GBX 3,136.00 per share

- 2026-10: GBX 2,950.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 679.32 per share, central GBX 770.34 per share, high GBX 891.58 per share

- FY2017: low GBX 775.55 per share, central GBX 966.36 per share, high GBX 1,124.24 per share

- FY2018: low GBX 894.74 per share, central GBX 1,176.96 per share, high GBX 1,372.17 per share

- FY2019: low GBX 718.36 per share, central GBX 814.64 per share, high GBX 942.82 per share

- FY2020: low GBX 769.61 per share, central GBX 866.88 per share, high GBX 996.37 per share

- FY2021: low GBX 872.41 per share, central GBX 989.58 per share, high GBX 1,145.55 per share

- FY2022: low GBX 1,041.49 per share, central GBX 1,180.11 per share, high GBX 1,364.63 per share

- FY2023: low GBX 1,106.21 per share, central GBX 1,255.34 per share, high GBX 1,453.86 per share

- FY2024: low GBX 1,406.07 per share, central GBX 1,902.78 per share, high GBX 2,223.61 per share

- FY2025: low GBX 1,631.86 per share, central GBX 2,367.81 per share, high GBX 2,778.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138002W9Q21PF751R30/2025-12-31/ESEF/GB/0/2138002W9Q21PF751R30-2025-12-31/reports/2138002W9Q21PF751R30-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-04-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.