BST:54I

Stock Analysis Report

Executive Summary

Instem plc provides information technology solutions to the life science market worldwide.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has Instem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 54I has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

54I

2.3%

DE Healthcare Services

0.07%

DE Market


1 Year Return

89.9%

54I

32.9%

DE Healthcare Services

14.8%

DE Market

Return vs Industry: 54I exceeded the German Healthcare Services industry which returned 33% over the past year.

Return vs Market: 54I exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

54IIndustryMarket
7 Day-8.2%2.3%0.07%
30 Day20.2%0.8%1.4%
90 Day25.0%11.1%6.1%
1 Year89.9%89.9%34.1%32.9%18.4%14.8%
3 Yearn/a68.6%64.3%17.4%7.0%
5 Yearn/a196.3%183.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is Instem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Instem undervalued compared to its fair value and its price relative to the market?

41.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 54I (€5.05) is trading above our estimate of fair value (€4.27)

Significantly Below Fair Value: 54I is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 54I is poor value based on its PE Ratio (41.8x) compared to the Healthcare Services industry average (12.7x).

PE vs Market: 54I is poor value based on its PE Ratio (41.8x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 54I's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 54I is overvalued based on its PB Ratio (4.4x) compared to the DE Healthcare Services industry average (2.6x).


Next Steps

Future Growth

How is Instem forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 54I's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if 54I's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 54I's revenue (11.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 54I's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 54I's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Instem performed over the past 5 years?

44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 54I has high quality earnings.

Growing Profit Margin: 54I's current net profit margins (7.4%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: 54I's earnings have grown significantly by 44.7% per year over the past 5 years.

Accelerating Growth: 54I's earnings growth over the past year (27.3%) is below its 5-year average (44.7% per year).

Earnings vs Industry: 54I earnings growth over the past year (27.3%) underperformed the Healthcare Services industry 27.6%.


Return on Equity

High ROE: 54I's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Instem's financial position?


Financial Position Analysis

Short Term Liabilities: 54I's short term assets (£13.8M) exceed its short term liabilities (£12.8M).

Long Term Liabilities: 54I's short term assets (£13.8M) exceed its long term liabilities (£4.8M).


Debt to Equity History and Analysis

Debt Level: 54I is debt free.

Reducing Debt: 54I has no debt compared to 5 years ago when its debt to equity ratio was 4.3%.

Debt Coverage: 54I has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 54I has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 54I has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 54I's debt is covered by short term assets.


Next Steps

Dividend

What is Instem's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 54I's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 54I's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 54I's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 54I's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 54I's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Instem's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Phil Reason (57yo)

0yrs

Tenure

UK£243,000

Compensation

Mr. Phil J. Reason serves as the Chief Executive Officer of Instem LSS Limited, Instem Associates Limited and Instem plc (Instem Life Science Systems plc). Mr. Reason is an experienced chief executive who  ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD315.97K) is about average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: 54I's management team is considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€26,16003 Jun 19
Michael McGoun
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares6,786
Max Price€3.86
Sell€119,14624 May 19
Michael McGoun
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max Price€3.97

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gordon Baxter

    Chief Scientific Officer

    • Nigel Goldsmith (57yo)

      CFO, Secretary & Executive Director

      • Tenure: 8.2yrs
      • Compensation: UK£133.00k
    • Phil Reason (57yo)

      CEO & Executive Director

      • Compensation: UK£243.00k
    • Mike Harwood

      Executive Vice President of Regulatory eStudy Solutions

      • Gregor Grant

        Executive Vice President of Preclinical Solutions

        • Gary Mitchell

          Vice President of Global Marketing

          • Jerry Hacker

            Senior Vice President of Global Sales

            • Tenure: 3.4yrs
          • Marybeth Thompson

            Chief Operating Officer

            • Tenure: 3yrs
          • Adrian Gare

            Vice President of Corporate Development

            • Eve Leconte

              Head of People Services

              • Tenure: 1yrs

            Board Members

            • Mike McGoun (72yo)

              Independent Non-Executive Director

              • Compensation: UK£30.00k
            • David Sherwin (62yo)

              Non-Executive Director

              • Compensation: UK£30.00k
            • Nigel Goldsmith (57yo)

              CFO, Secretary & Executive Director

              • Tenure: 8.2yrs
              • Compensation: UK£133.00k
            • Phil Reason (57yo)

              CEO & Executive Director

              • Compensation: UK£243.00k
            • David Gare (75yo)

              Non-Executive Chairman

              • Compensation: UK£60.00k

            Company Information

            Instem plc's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Instem plc
            • Ticker: 54I
            • Exchange: BST
            • Founded: 1969
            • Industry: Health Care Technology
            • Sector: Healthcare
            • Market Cap: UK£75.635m
            • Listing Market Cap: UK£88.823m
            • Shares outstanding: 16.62m
            • Website: https://www.instem.com

            Number of Employees


            Location

            • Instem plc
            • Diamond Way
            • Stone Business Park
            • Stone
            • Staffordshire
            • ST15 0SD
            • United Kingdom

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            INSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2010
            54IBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2010

            Biography

            Instem plc provides information technology solutions to the life science market worldwide. The company offers solutions for data collection, management, and analysis to meet the needs of life science and healthcare organizations for data-driven decision making. Its solutions include Provantis, an integrated Windows-based system for organizations and universities that are engaged in non-clinical evaluation studies; submit platform that provides a suite of integrated tools and services for the creation and management of SEND datasets and associated documents for contract research organizations and sponsors; ALPHADAS, an eSource EDC system for early phase clinical trials; Animal Care Information System, an animal management software solution; Logbook, a repository for information; and Toxicology Resource Planning, a toxicology solution for pharmaceutical, chemical, and contract research laboratory corporations. The company also provides Comet Assay IV, a live video imaging system for reproducible comet slide scoring; and Sorcerer Colony Counter for automatic plate counter; Cyto Study Manager, a data acquisition and reporting solution; Ames Study Manager, plate countiner; Sorcerer Colony Counter for automatic plate counter; NOTOCORD-hem and NOTOCORD-fps software platforms to acquire, display, and analyze physiological signals; SEND Explorer, a Web-based application with optional data warehousing capabilities; and SRS data integration platform. It also provides data management, cloud, safety assessment, regulatory information management, solution deployment, and validation services. Additionally, it provides software solutions for extracting intelligence from research and development related healthcare data; and develops, manufactures, and supplies software and hardware products for in vitro study data collection and study management. Instem plc was founded in 1969 and is headquartered in Stone, the United Kingdom. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/19 22:06
            End of Day Share Price2020/01/17 00:00
            Earnings2019/06/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.