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Should I Invest in IMI?

http://www.fool.com/investing/international/2013/01/20/should-i-invest-in-imi.aspx

Kevin Godbold
January 20, 2013

LONDON -- To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment, and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of around 3% per annum since January 2008.

Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value.

So this series aims to identify appealing FTSE 100 investment opportunities, and today I'm looking at IMI (LSE: IMI), an international engineering company.

With the shares at 1140 pence, IMI's market cap is 3,666 million pounds.

This table summarizes the firm's recent financial record:

Year to December

2007

2008

2009

2010

2011

Revenue (millions of pounds)

1,599

1,901

1,792

1,911

2,131

Net cash from operations (millions of pounds)

120

219.8

236

257.4

216.6

Adjusted earnings per share (pence)

41.9

54.1

45.8

66.3

81.5

Dividend per share (pence)

20.2

20.7

21.2

26

30

The recent half-year results showed steady progress at IMI, which opera