BATS-CHIXE:INTERA

Stock Analysis Report

Executive Summary

Intertrust N.V. provides corporate, fund, capital market, and private wealth services in Western Europe, the Americas, and internationally.

Rewards

Trading at 50.9% below its fair value

Earnings are forecast to grow 9.98% per year

Earnings have grown 40.6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Undervalued second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.4%

INTERA

0.3%

GB Professional Services

-0.2%

GB Market


1 Year Return

3.2%

INTERA

24.5%

GB Professional Services

6.1%

GB Market

Return vs Industry: INTERA underperformed the UK Professional Services industry which returned 24.5% over the past year.

Return vs Market: INTERA underperformed the UK Market which returned 6.1% over the past year.


Shareholder returns

INTERAIndustryMarket
7 Day-3.4%0.3%-0.2%
30 Day-1.2%4.0%-1.8%
90 Day0.8%12.6%4.0%
1 Year7.1%3.2%27.4%24.5%11.8%6.1%
3 Year6.3%-5.2%57.9%47.3%17.5%2.6%
5 Yearn/a110.5%85.8%34.8%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INTERA (€16.91) is trading below our estimate of fair value (€34.43)

Significantly Below Fair Value: INTERA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: INTERA is good value based on its PE Ratio (16.8x) compared to the Professional Services industry average (21.3x).

PE vs Market: INTERA is good value based on its PE Ratio (16.8x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: INTERA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: INTERA is good value based on its PB Ratio (2x) compared to the GB Professional Services industry average (3x).


Next Steps

Future Growth

How is Intertrust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INTERA's forecast earnings growth (10% per year) is above the savings rate (0.5%).

Earnings vs Market: INTERA's earnings (10% per year) are forecast to grow slower than the UK market (12.2% per year).

High Growth Earnings: INTERA's earnings are forecast to grow, but not significantly.

Revenue vs Market: INTERA's revenue (6.3% per year) is forecast to grow faster than the UK market (3.4% per year).

High Growth Revenue: INTERA's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INTERA's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Intertrust performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INTERA has high quality earnings.

Growing Profit Margin: INTERA's current net profit margins (16.6%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: INTERA's earnings have grown significantly by 40.6% per year over the past 5 years.

Accelerating Growth: INTERA's earnings growth over the past year (1.1%) is below its 5-year average (40.6% per year).

Earnings vs Industry: INTERA earnings growth over the past year (1.1%) underperformed the Professional Services industry 16%.


Return on Equity

High ROE: INTERA's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intertrust's financial position?


Financial Position Analysis

Short Term Liabilities: INTERA's short term assets (€301.5M) do not cover its short term liabilities (€318.1M).

Long Term Liabilities: INTERA's short term assets (€301.5M) do not cover its long term liabilities (€1.1B).


Debt to Equity History and Analysis

Debt Level: INTERA's debt to equity ratio (130%) is considered high.

Reducing Debt: INTERA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: INTERA's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: INTERA's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: INTERA's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

3.72%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Intertrust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.7%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: INTERA's dividend (3.72%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: INTERA's dividend (3.72%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INTERA has been paying a dividend for less than 10 years.

Growing Dividend: INTERA's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.6%), INTERA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INTERA's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Stephanie Miller (51yo)

2.1yrs

Tenure

€1,208,248

Compensation

Ms. Stephanie D. Miller has been Chief Executive Officer at Intertrust N.V. since January 22, 2018 and has been its Member of the Management Board since February 7, 2018. Ms. Miller serves as a Senior Vice ...


CEO Compensation Analysis

Compensation vs Market: Stephanie's total compensation ($USD1.31M) is about average for companies of similar size in the UK market ($USD1.82M).

Compensation vs Earnings: Insufficient data to compare Stephanie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Stephanie Miller
CEO & Member of the Management Board2.1yrs€1.21m0.11% 1.7m
J. Turkesteen
Executive Officer0.4yrs€469.29kno data
Rogier Maurice van Wijk
CFO & Member of Management Board0.4yrsno data0.012% 177.6k
Theo Splinter
Chief Operating Officer1.7yrsno datano data
Marieke Palstra
Director of Investor Relations0yrsno datano data
Roberto Canenti
Chief Human Resources Officer1.7yrsno datano data
Cliff Pearce
Global Head of Capital Markets2.7yrsno datano data
Jan Van Drimmelen
Global Head of Corporate Client Services0yrsno datano data
Paul Lawrence
Global Head of Fund Services0yrsno datano data
Ian Rumens
Global Head of Private Wealth0yrsno datano data

1.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: INTERA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stewart Bennett
Member of the Supervisory Board0.8yrsno datano data
Anthony Ruys
Member of Supervisory Board4.5yrsno datano data
Charlotte Lambkin
Member of Supervisory Board2.3yrsno datano data
Paul Willing
Member of Supervisory Board2.3yrsno datano data
Hélène Vletter-van Dort
Chairperson of Supervisory Board5.1yrsno datano data
A. H. A. Van Laack
Member of Supervisory Board2.8yrsno datano data

2.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: INTERA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Intertrust N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intertrust N.V.
  • Ticker: INTERA
  • Exchange: BATS-CHIXE
  • Founded: 1952
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €1.524b
  • Shares outstanding: 90.05m
  • Website: https://www.intertrustgroup.com

Number of Employees


Location

  • Intertrust N.V.
  • Prins Bernhardplein 200
  • PO Box 990
  • Amsterdam
  • Noord-Holland
  • 1000 AZ
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INTERENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEUROct 2015
4ITDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
INTERABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2015
0RCLLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2015
ITRU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015

Biography

Intertrust N.V. provides corporate, fund, capital market, and private wealth services in Western Europe, the Americas, and internationally. The company offers formation and implementation; domiciliation, management, and trustee; legal and tax compliance; regulatory and compliance; accounting and reporting services; and liquidation services. It also provides corporate secretarial, escrow, performance and reward management, process agent, and treasury management services to corporates service line clients, including multinational corporations and financial institutions in various industries and regions. In addition, the company offers incorporation, administration, investor reporting, and regulatory reporting services for funds, including various forms of hedge funds primarily real estate and private equity funds; and depositary, ManCo, outsourced fiduciary, and private equity and real estate fund administration services. Further, it provides agency, corporate administration, investor reporting, listing, portfolio administration, and process agency services for capital markets clients primarily financial institutions; and business succession, family governance, philanthropy and charitable trust, real estate, and treasury and investment services to private wealth clients, such as Forbes 500 entrepreneurs, international entrepreneurial families, and family offices. The company was founded in 1952 and is based in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 19:53
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.