Intertek Group
Market Cap
UK£9.9b
Last Updated
2020/01/26 20:42 UTC
Data Sources
Company Financials +
Executive Summary
Intertek Group plc provides quality and safety solutions to various industries worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Intertek Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ITRK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.6%
ITRK
1.8%
GB Professional Services
-1.1%
GB Market
1 Year Return
27.0%
ITRK
28.7%
GB Professional Services
12.7%
GB Market
Return vs Industry: ITRK underperformed the UK Professional Services industry which returned 28.7% over the past year.
Return vs Market: ITRK exceeded the UK Market which returned 12.7% over the past year.
Shareholder returns
| ITRK | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.6% | 1.8% | -1.1% |
| 30 Day | 4.8% | 4.0% | -0.2% |
| 90 Day | 17.3% | 11.5% | 6.0% |
| 1 Year | 29.5%27.0% | 31.7%28.7% | 18.6%12.7% |
| 3 Year | 88.3%79.0% | 62.0%51.0% | 21.8%6.3% |
| 5 Year | 193.3%169.1% | 114.4%89.3% | 42.5%9.6% |
Price Volatility Vs. Market
How volatile is Intertek Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Does Intertek Group plc (LON:ITRK) Fare As A Dividend Stock?3 weeks ago | Simply Wall St
Is Intertek Group plc's (LON:ITRK) High P/E Ratio A Problem For Investors?1 month ago | Simply Wall St
Do You Know About Intertek Group plc’s (LON:ITRK) ROCE?Valuation
Is Intertek Group undervalued compared to its fair value and its price relative to the market?
34.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ITRK (£58.92) is trading above our estimate of fair value (£39.62)
Significantly Below Fair Value: ITRK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ITRK is poor value based on its PE Ratio (32.6x) compared to the Professional Services industry average (24.2x).
PE vs Market: ITRK is poor value based on its PE Ratio (32.6x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: ITRK is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: ITRK is overvalued based on its PB Ratio (10.7x) compared to the GB Professional Services industry average (3x).
Next Steps
Future Growth
How is Intertek Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
8.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ITRK's forecast earnings growth (8% per year) is above the savings rate (0.5%).
Earnings vs Market: ITRK's earnings (8% per year) are forecast to grow slower than the UK market (11.7% per year).
High Growth Earnings: ITRK's earnings are forecast to grow, but not significantly.
Revenue vs Market: ITRK's revenue (3.9% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: ITRK's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ITRK's Return on Equity is forecast to be high in 3 years time (30.9%)
Next Steps
Past Performance
How has Intertek Group performed over the past 5 years?
25.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ITRK has high quality earnings.
Growing Profit Margin: ITRK's current net profit margins (10.1%) are lower than last year (10.6%).
Past Earnings Growth Analysis
Earnings Trend: ITRK's earnings have grown significantly by 25% per year over the past 5 years.
Accelerating Growth: ITRK's earnings growth over the past year (0.6%) is below its 5-year average (25% per year).
Earnings vs Industry: ITRK earnings growth over the past year (0.6%) underperformed the Professional Services industry 16%.
Return on Equity
High ROE: Whilst ITRK's Return on Equity (34.09%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Intertek Group's financial position?
Financial Position Analysis
Short Term Liabilities: ITRK's short term assets (£991.6M) exceed its short term liabilities (£736.6M).
Long Term Liabilities: ITRK's short term assets (£991.6M) do not cover its long term liabilities (£1.3B).
Debt to Equity History and Analysis
Debt Level: ITRK's debt to equity ratio (114%) is considered high.
Reducing Debt: ITRK's debt to equity ratio has increased from 100% to 114% over the past 5 years.
Debt Coverage: ITRK's debt is well covered by operating cash flow (47.9%).
Interest Coverage: ITRK's interest payments on its debt are well covered by EBIT (14x coverage).
Balance Sheet
Inventory Level: ITRK has a high level of physical assets or inventory.
Debt Coverage by Assets: ITRK's debt is not covered by short term assets (assets are 0.9x debt).
Next Steps
Dividend
What is Intertek Group's current dividend yield, its reliability and sustainability?
1.61%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ITRK's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: ITRK's dividend (1.68%) is low compared to the top 25% of dividend payers in the UK market (4.95%).
Stability and Growth of Payments
Stable Dividend: ITRK's dividends per share have been stable in the past 10 years.
Growing Dividend: ITRK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56%), ITRK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ITRK's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).
Next Steps
Management
What is the CEO of Intertek Group's salary, the management and board of directors tenure and is there insider trading?
4.2yrs
Average management tenure
CEO
André Pierre Lacroix (58yo)
4.7yrs
Tenure
UK£6,226,000
Compensation
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 ...
CEO Compensation Analysis
Compensation vs Market: André Pierre's total compensation ($USD8.10M) is above average for companies of similar size in the UK market ($USD4.48M).
Compensation vs Earnings: André Pierre's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.2yrs
Average Tenure
58yo
Average Age
Experienced Management: ITRK's management team is considered experienced (4.2 years average tenure).
Board Age and Tenure
4.1yrs
Average Tenure
58.5yo
Average Age
Experienced Board: ITRK's board of directors are considered experienced (4.1 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
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 393 |
| Max Price | UK£50.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 393 |
| Max Price | UK£50.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 112 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 112 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Lead Director Senior Independent Non-Executive Director |
| Shares | 123 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 123 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 351 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 123 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 123 |
| Max Price | UK£46.57 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 125 |
| Max Price | UK£46.57 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
André Pierre Lacroix (58yo)
CEO & Director
- Tenure: 4.7yrs
- Compensation: UK£6.23m
Tony George (55yo)
Executive Vice President of Human Resources
- Tenure: 4.5yrs
Ken Lee (63yo)
Executive Vice President of Marketing & Communications
- Tenure: 3.3yrs
Gregg Tiemann
Executive Vice President of Americas
- Tenure: 12yrs
Ross McCluskey
Group CFO & Executive Director
- Tenure: 1.4yrs
- Compensation: UK£809.05k
Julia Thomas
Senior Vice President of Corporate Development
- Tenure: 3.7yrs
Raymond Pirie
Vice President of Exploration & Production
Ian Galloway
Executive Vice President of Middle-East
- Tenure: 4.2yrs
Mark Thomas
Group General Counsel
- Tenure: 5yrs
Diane Bitzel
Group Chief Information Officer
- Tenure: 1.7yrs
Board Members
Jean-Michel Valette (58yo)
Non-Executive Director
- Tenure: 2.5yrs
- Compensation: UK£75.00k
Gill Rider (64yo)
Non-Executive Director
- Tenure: 4.5yrs
- Compensation: UK£77.00k
David Reid (72yo)
Chairman
- Tenure: 8yrs
- Compensation: UK£352.00k
Andy Martin (59yo)
Non-Executive Director
- Tenure: 3.7yrs
- Compensation: UK£90.00k
André Pierre Lacroix (58yo)
CEO & Director
- Tenure: 4.7yrs
- Compensation: UK£6.23m
Louise Makin (58yo)
Non-Executive Director
- Tenure: 7.5yrs
- Compensation: UK£75.00k
Graham Allan (64yo)
Senior Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: UK£87.00k
Lena Wilson (55yo)
Non-Executive Director
- Tenure: 7.5yrs
- Compensation: UK£86.00k
Ross McCluskey
Group CFO & Executive Director
- Tenure: 1.4yrs
- Compensation: UK£809.05k
Gurnek Bains
Non-Executive Director
- Tenure: 2.5yrs
- Compensation: UK£75.00k
Company Information
Intertek Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Intertek Group plc
- Ticker: ITRK
- Exchange: LSE
- Founded: 1885
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: UK£9.930b
- Shares outstanding: 160.94m
- Website: https://www.intertek.com
Number of Employees
Location
- Intertek Group plc
- 33 Cavendish Square
- London
- Greater London
- W1G 0PS
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ITRK | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | May 2002 |
| IT1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2002 |
| IKTS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2002 |
| ITRKL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | May 2002 |
| ITRK N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | May 2002 |
| IKTS.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/26 20:42 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.