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Intertek Group

LSE:ITRK
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ITRK
LSE
£8B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

Intertek Group plc provides quality and safety solutions to various industries worldwide. The last earnings update was 60 days ago. More info.


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ITRK Share Price and Events
7 Day Returns
-0.4%
LSE:ITRK
3.6%
GB Professional Services
1.5%
GB Market
1 Year Returns
-3.8%
LSE:ITRK
10.2%
GB Professional Services
-6.3%
GB Market
ITRK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Intertek Group (ITRK) -0.4% -5.2% -2.7% -3.8% 53.3% 74.5%
GB Professional Services 3.6% 3.8% 8.4% 10.2% 52% 85%
GB Market 1.5% -2.1% 1.8% -6.3% 15.4% 2%
1 Year Return vs Industry and Market
  • ITRK underperformed the Professional Services industry which returned 10.2% over the past year.
  • ITRK outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
ITRK
Industry
5yr Volatility vs Market

ITRK Value

 Is Intertek Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Intertek Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Intertek Group.

LSE:ITRK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:ITRK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.877 (1 + (1- 19%) (12.11%))
0.975
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.975 * 6.65%)
7.71%

Discounted Cash Flow Calculation for LSE:ITRK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Intertek Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:ITRK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.71%)
2019 316.89 Analyst x7 294.20
2020 350.54 Analyst x8 302.15
2021 378.10 Analyst x5 302.57
2022 389.77 Est @ 3.09% 289.58
2023 399.62 Est @ 2.53% 275.65
2024 408.17 Est @ 2.14% 261.38
2025 415.78 Est @ 1.86% 247.19
2026 422.73 Est @ 1.67% 233.34
2027 429.24 Est @ 1.54% 219.97
2028 435.45 Est @ 1.45% 207.17
Present value of next 10 years cash flows £2,633.21
LSE:ITRK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £435.45 × (1 + 1.23%) ÷ (7.71% – 1.23%)
£6,798.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £6,798.09 ÷ (1 + 7.71%)10
£3,234.34
LSE:ITRK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,633.21 + £3,234.34
£5,867.55
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,867.55 / 160.94
£36.46
LSE:ITRK Discount to Share Price
Calculation Result
Value per share (GBP) From above. £36.46
Current discount Discount to share price of £50.54
= -1 x (£50.54 - £36.46) / £36.46
-38.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Intertek Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Intertek Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Intertek Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:ITRK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £1.77
LSE:ITRK Share Price ** LSE (2019-05-21) in GBP £50.54
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 33 Publicly-Listed Professional Services Companies 18.74x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Intertek Group.

LSE:ITRK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ITRK Share Price ÷ EPS (both in GBP)

= 50.54 ÷ 1.77

28.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Intertek Group is overvalued based on earnings compared to the GB Professional Services industry average.
  • Intertek Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Intertek Group's expected growth come at a high price?
Raw Data
LSE:ITRK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
8.2%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Professional Services Companies 1.67x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:ITRK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.59x ÷ 8.2%

3.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Intertek Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Intertek Group's assets?
Raw Data
LSE:ITRK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £5.43
LSE:ITRK Share Price * LSE (2019-05-21) in GBP £50.54
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 44 Publicly-Listed Professional Services Companies 2.86x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.5x
LSE:ITRK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ITRK Share Price ÷ Book Value per Share (both in GBP)

= 50.54 ÷ 5.43

9.31x

* Primary Listing of Intertek Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Intertek Group is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess Intertek Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Intertek Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ITRK Future Performance

 How is Intertek Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Intertek Group expected to grow at an attractive rate?
  • Intertek Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Intertek Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Intertek Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:ITRK Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:ITRK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 8.2%
LSE:ITRK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 4.9%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:ITRK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:ITRK Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,244 522 365 12
2020-12-31 3,096 487 341 16
2019-12-31 2,952 445 317 16
LSE:ITRK Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 2,801 459 284
2018-09-30 2,773 444 287
2018-06-30 2,745 429 290
2018-03-31 2,757 440 289
2017-12-31 2,769 450 287
2017-09-30 2,752 465 281
2017-06-30 2,735 481 276
2017-03-31 2,651 450 265
2016-12-31 2,567 420 255
2016-09-30 2,439 370 -45
2016-06-30 2,310 321 -344
2016-03-31 2,238 333 -352

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Intertek Group's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
  • Intertek Group's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:ITRK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Intertek Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ITRK Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.26 2.39 2.20 6.00
2020-12-31 2.10 2.17 2.00 8.00
2019-12-31 1.93 2.00 1.87 8.00
LSE:ITRK Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 1.77
2018-09-30 1.78
2018-06-30 1.80
2018-03-31 1.79
2017-12-31 1.79
2017-09-30 1.75
2017-06-30 1.71
2017-03-31 1.65
2016-12-31 1.58
2016-09-30 -0.28
2016-06-30 -2.14
2016-03-31 -2.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Intertek Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Intertek Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Intertek Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ITRK Past Performance

  How has Intertek Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Intertek Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Intertek Group's year on year earnings growth rate has been positive over the past 5 years.
  • Intertek Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Intertek Group's 1-year earnings growth is negative, it can't be compared to the GB Professional Services industry average.
Earnings and Revenue History
Intertek Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Intertek Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ITRK Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,801.20 284.40
2018-09-30 2,773.10 287.00
2018-06-30 2,745.00 289.60
2018-03-31 2,757.05 288.50
2017-12-31 2,769.10 287.40
2017-09-30 2,752.00 281.45
2017-06-30 2,734.90 275.50
2017-03-31 2,650.95 265.25
2016-12-31 2,567.00 255.00
2016-09-30 2,438.50 -44.65
2016-06-30 2,310.00 -344.30
2016-03-31 2,238.15 -352.40
2015-12-31 2,166.30 -360.50
2015-09-30 2,147.75 -85.05
2015-06-30 2,129.20 190.40
2015-03-31 2,111.25 183.35
2014-12-31 2,093.30 176.30
2014-09-30 2,108.65 186.50
2014-06-30 2,124.00 196.70
2014-03-31 2,154.20 198.60
2013-12-31 2,184.40 200.50
2013-09-30 2,166.20 189.50 1.80
2013-06-30 2,148.00 178.50 3.60
2013-03-31 2,101.15 176.15 3.60
2012-12-31 2,054.30 173.80 3.60
2012-09-30 2,015.80 171.05 4.35
2012-06-30 1,977.30 168.30 5.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Intertek Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Intertek Group used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • Intertek Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Intertek Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Intertek Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ITRK Health

 How is Intertek Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Intertek Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Intertek Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Intertek Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Intertek Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Intertek Group Company Filings, last reported 4 months ago.

LSE:ITRK Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 908.30 985.10 206.90
2018-09-30 908.30 985.10 206.90
2018-06-30 817.80 740.80 172.70
2018-03-31 817.80 740.80 172.70
2017-12-31 744.20 681.10 137.00
2017-09-30 744.20 681.10 137.00
2017-06-30 650.90 842.10 145.80
2017-03-31 650.90 842.10 145.80
2016-12-31 602.40 919.30 175.60
2016-09-30 602.40 919.30 175.60
2016-06-30 454.70 1,046.50 159.30
2016-03-31 454.70 1,046.50 159.30
2015-12-31 339.40 916.50 141.10
2015-09-30 339.40 916.50 141.10
2015-06-30 824.80 749.20 130.10
2015-03-31 824.80 749.20 130.10
2014-12-31 806.70 753.00 119.50
2014-09-30 806.70 753.00 119.50
2014-06-30 761.00 761.30 100.50
2014-03-31 761.00 761.30 100.50
2013-12-31 756.70 734.60 116.40
2013-09-30 756.70 734.60 116.40
2013-06-30 696.50 757.30 123.80
2013-03-31 696.50 757.30 123.80
2012-12-31 654.90 717.20 166.50
2012-09-30 654.90 717.20 166.50
2012-06-30 586.60 778.70 160.20
  • Intertek Group's level of debt (108.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (97.1% vs 108.5% today).
  • Debt is well covered by operating cash flow (46.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.8x coverage).
X
Financial health checks
We assess Intertek Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Intertek Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ITRK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.96%
Current annual income from Intertek Group dividends. Estimated to be 2.15% next year.
If you bought £2,000 of Intertek Group shares you are expected to receive £39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Intertek Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2%).
  • Intertek Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:ITRK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:ITRK Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.17 13.00
2020-12-31 1.09 17.00
2019-12-31 1.01 17.00
LSE:ITRK Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-22 0.991 1.947
2019-03-05 0.991 2.078
2018-03-06 0.713 1.418
2017-03-07 0.624 1.343
2016-04-06 0.523 1.538
2016-03-02 0.523 1.684
2015-04-13 0.491 1.887
2015-03-02 0.491 1.927
2014-03-18 0.460 1.744
2014-03-03 0.460 1.533
2013-07-29 0.430 1.380
2013-03-04 0.410 1.271
2012-05-30 0.337 1.170
2011-06-07 0.281 1.348
2010-05-13 0.255 1.441
2009-08-03 0.219 1.721

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Intertek Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Intertek Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Intertek Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Intertek Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ITRK Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
André Pierre Lacroix
COMPENSATION £6,226,000
AGE 57
TENURE AS CEO 4 years
CEO Bio

Mr. Andre Pierre Joseph Lacroix has been the Chief Executive Officer at Intertek Group plc since May 16, 2015. Mr. Lacroix served as Secretary of Geomega Resources Inc. since November 1, 2010. He served as Group Chief Executive Officer of Inchcape Plc from January 1, 2006 to March 31, 2015. He served as the Chief Executive Officer and Chairman of Gérant, Management Company of Euro Disney SCA from July 2003 to May 2005. He spent 7 years with Burger King, where he served as the President of Burger King International from 2000 to 2003, responsible for development, profitability and management of the brand outside North America. From 1996 to 2003, he held a series of senior international roles at Burger King International, owned by Diageo. From 1988 to 1996, he held a series of senior marketing, sales and general management roles at Pepsi Cola. He worked for Colgate-Palmolive and Ernst & Young. He serves as the Chairman of Good Restaurants AG. He was an Independent Non-Executive Director of Reckitt Benckiser Group PLC since October 1, 2008 until December 31, 2018 and served its Senior Independent Director since June 2013 until December 31, 2018. He has been a Director at Intertek Group plc since May 16, 2015. He served as an Executive Director of Inchcape Plc from September 1, 2005 to March 31, 2015. He served as a Director of Gérant of Euro Disney SCA until May 2005. He is a graduate of ESCP Europe.

CEO Compensation
  • André Pierre's compensation has been consistent with company performance over the past year, both up more than 20%.
  • André Pierre's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Intertek Group management team in years:

3
Average Tenure
57
Average Age
  • The tenure for the Intertek Group management team is about average.
Management Team

André Pierre Lacroix

TITLE
CEO & Director
COMPENSATION
£6M
AGE
57
TENURE
4 yrs

Ross McCluskey

TITLE
Group CFO & Executive Director
COMPENSATION
£809K
TENURE
0.8 yrs

Diane Bitzel

TITLE
Group Chief Information Officer
TENURE
1 yrs

Mark Thomas

TITLE
Group General Counsel
TENURE
4.3 yrs

Ken Lee

TITLE
Executive Vice President of Marketing & Communications
AGE
62
TENURE
2.7 yrs

Julia Thomas

TITLE
Senior Vice President of Corporate Development
TENURE
3 yrs

Tony George

TITLE
Executive Vice President of Human Resources
AGE
54
TENURE
3.8 yrs

Gregg Tiemann

TITLE
Executive Vice President of Americas
TENURE
11.3 yrs

Ann-Michele Bowlin

TITLE
Chief ATIC Innovation Officer
TENURE
1.3 yrs

Raymond Pirie

TITLE
Vice President of Exploration & Production
Board of Directors Tenure

Average tenure and age of the Intertek Group board of directors in years:

3.4
Average Tenure
57.5
Average Age
  • The tenure for the Intertek Group board of directors is about average.
Board of Directors

David Reid

TITLE
Chairman
COMPENSATION
£352K
AGE
71
TENURE
7.3 yrs

André Pierre Lacroix

TITLE
CEO & Director
COMPENSATION
£6M
AGE
57
TENURE
4 yrs

Ross McCluskey

TITLE
Group CFO & Executive Director
COMPENSATION
£809K
TENURE
0.8 yrs

Gill Rider

TITLE
Non-Executive Director
COMPENSATION
£77K
AGE
63
TENURE
3.8 yrs

Andy Martin

TITLE
Non-Executive Director
COMPENSATION
£90K
AGE
58
TENURE
3 yrs

Graham Allan

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£87K
AGE
63
TENURE
1.6 yrs

Louise Makin

TITLE
Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
6.8 yrs

Lena Wilson

TITLE
Non-Executive Director
COMPENSATION
£86K
AGE
54
TENURE
6.8 yrs

Gurnek Bains

TITLE
Non-Executive Director
COMPENSATION
£75K
TENURE
1.8 yrs

Jean-Michel Valette

TITLE
Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Intertek Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
09. Apr 19 Sell Lena Wilson Individual 08. Apr 19 08. Apr 19 -393 £50.38 £-19,801
09. Apr 19 Buy Lena Wilson Individual 08. Apr 19 08. Apr 19 393 £50.40 £19,807
13. Mar 19 Buy Gurnek Bains Individual 12. Mar 19 12. Mar 19 123 £46.57 £5,728
13. Mar 19 Buy Lena Wilson Individual 12. Mar 19 12. Mar 19 123 £46.57 £5,728
13. Mar 19 Buy Graham Allan Individual 12. Mar 19 12. Mar 19 123 £46.57 £5,728
13. Mar 19 Buy Louise Makin Individual 12. Mar 19 12. Mar 19 112 £46.57 £5,216
13. Mar 19 Buy Andrew Martin Individual 12. Mar 19 12. Mar 19 112 £46.57 £5,216
13. Mar 19 Buy David Reid Individual 12. Mar 19 12. Mar 19 351 £46.57 £16,346
13. Mar 19 Buy Gill Rider Individual 12. Mar 19 12. Mar 19 123 £46.57 £5,728
13. Mar 19 Buy Jean-Michel Valette Individual 12. Mar 19 12. Mar 19 125 £46.57 £5,821
X
Management checks
We assess Intertek Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Intertek Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ITRK News

Simply Wall St News

Are Intertek Group plc's (LON:ITRK) Interest Costs Too High?

Check out our latest analysis for Intertek Group ITRK’s Debt (And Cash Flows) ITRK's debt levels surged from UK£681m to UK£985m over the last 12 months – this includes long-term debt. … Moreover, ITRK has generated UK£459m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 47%, indicating that ITRK’s current level of operating cash is high enough to cover debt. … We can check to see whether ITRK is able to meet its debt obligations by looking at the net interest coverage ratio.

Simply Wall St -

Is Intertek Group plc (LON:ITRK) A Great Dividend Stock?

Dividend paying stocks like Intertek Group plc (LON:ITRK) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … A 1.9% yield is nothing to get excited about, but investors probably think the long payment history suggests Intertek Group has some staying power.!

Simply Wall St -

Intertek Group plc (LON:ITRK) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should We Be Delighted With Intertek Group plc's (LON:ITRK) ROE Of 34%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Intertek Group has a return on equity of 34% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Intertek Group (LON:ITRK) Shareholders Have Enjoyed A 57% Share Price Gain

For example, the Intertek Group plc (LON:ITRK) share price is up 57% in the last 5 years, clearly besting than the market return of around 3.1% (ignoring dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … It is of course excellent to see how Intertek Group has grown profits over the years, but the future is more important for shareholders

Simply Wall St -

Has Intertek Group plc (LON:ITRK) Improved Earnings In Recent Times?

When Intertek Group plc (LON:ITRK) released its most recent earnings update (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Intertek Group's average earnings over the past couple of years, and its industry performance. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which ITRK is growing has slowed down

Simply Wall St -

Does Intertek Group plc's (LON:ITRK) CEO Pay Reflect Performance?

André Pierre Lacroix became the CEO of Intertek Group plc (LON:ITRK) in 2015. … Check out our latest analysis for Intertek Group … How Does André Pierre Lacroix's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What You Must Know About Intertek Group plc's (LON:ITRK) Financial Strength

The size of Intertek Group plc (LON:ITRK), a UK£8.2b large-cap, often attracts investors seeking a reliable investment in the stock market. … This article will examine Intertek Group’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Should We Worry About Intertek Group plc's (LON:ITRK) P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Intertek Group plc's (LON:ITRK) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Can We Make Of Intertek Group plc’s (LON:ITRK) High Return On Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

ITRK Company Info

Description

Intertek Group plc provides quality and safety solutions to various industries worldwide. It operates in three segments: Products, Trade, and Resources. The Products segment offers assurance, testing, inspection, and certification services (ATIC), including laboratory safety, quality and performance testing, second-party supplier auditing, sustainability analysis, products assurance, vendor compliance, process performance analysis, facility plant and equipment verification, and third party certification. This segment serves a range of industries including textiles, footwear, toys, hardlines, home appliances, consumer electronics, information and communication technology, automotive, aerospace, lighting, building products, industrial and renewable energy products, food and hospitality, healthcare and beauty, and pharmaceuticals. The Trade segment provides cargo inspection, analytical assessment, calibration, and related research and technical services to the petroleum and biofuels industries; inspection services to governments and regulatory bodies to support trade activities; and analytical and testing services to agricultural trading companies and growers. The Resources segment offers technical inspection, asset integrity management, analytical testing, and ongoing training services for the oil, gas, nuclear, and power industries. This segment also provides a range of ATIC service solutions to the mining and minerals exploration industries covering the resource supply chain. The company also offers cyber security services for products, devices, and networks across various industries. Intertek Group plc was founded in 1885 and is based in London, the United Kingdom.

Details
Name: Intertek Group plc
ITRK
Exchange: LSE
Founded: 1885
£8,133,789,538
160,937,664
Website: http://www.intertek.com
Address: Intertek Group plc
33 Cavendish Square,
London,
Greater London, W1G 0PS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ITRK Ordinary Shares London Stock Exchange GB GBP 24. May 2002
OTCPK IKTS.F Ordinary Shares Pink Sheets LLC US USD 24. May 2002
DB IT1 Ordinary Shares Deutsche Boerse AG DE EUR 24. May 2002
BATS-CHIXE ITRKL Ordinary Shares BATS 'Chi-X Europe' GB GBP 24. May 2002
OTCPK IKTS.Y ADR Pink Sheets LLC US USD 13. Oct 2008
Number of employees
Current staff
Staff numbers
44,720
Intertek Group employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 20:45
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/03/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.