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ITRK

Intertek GroupLSE:ITRK Stock Report

Last Price

UK£53.76

Market Cap

UK£8.7b

7D

0.2%

1Y

-3.9%

Updated

21 Jan, 2022

Data

Company Financials +
ITRK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends5/6

ITRK Stock Overview

Intertek Group plc provides quality assurance solutions to various industries worldwide.

Intertek Group Competitors

Thermo Fisher Scientific

NYSE:TMO

US$231.8b

IQVIA Holdings

NYSE:IQV

US$46.7b

Agilent Technologies

NYSE:A

US$42.1b

SGS

SWX:SGSN

CHF20.1b

Price History & Performance

Summary of all time highs, changes and price drops for Intertek Group
Historical stock prices
Current Share PriceUK£53.76
52 Week HighUK£63.06
52 Week LowUK£47.24
Beta0.47
1 Month Change-4.10%
3 Month Change7.67%
1 Year Change-3.90%
3 Year Change10.69%
5 Year Change55.96%
Change since IPO1,144.44%

Recent News & Updates

Dec 28
Intertek Group (LON:ITRK) Seems To Use Debt Quite Sensibly

Intertek Group (LON:ITRK) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Dec 13
A Look At The Fair Value Of Intertek Group plc (LON:ITRK)

A Look At The Fair Value Of Intertek Group plc (LON:ITRK)

In this article we are going to estimate the intrinsic value of Intertek Group plc ( LON:ITRK ) by taking the expected...

Nov 10
Returns On Capital At Intertek Group (LON:ITRK) Have Hit The Brakes

Returns On Capital At Intertek Group (LON:ITRK) Have Hit The Brakes

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...

Sep 27
Is Intertek Group (LON:ITRK) Using Too Much Debt?

Is Intertek Group (LON:ITRK) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

ITRKGB Professional ServicesGB Market
7D0.2%1.0%-0.5%
1Y-3.9%18.8%8.7%

Return vs Industry: ITRK underperformed the UK Professional Services industry which returned 18.8% over the past year.

Return vs Market: ITRK underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is ITRK's price volatile compared to industry and market?
ITRK volatility
ITRK Average Weekly Movement3.3%
Professional Services Industry Average Movement4.3%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: ITRK is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ITRK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188543,769Andre Pierre Lacroixhttps://www.intertek.com

Intertek Group plc provides quality assurance 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.

Intertek Group Fundamentals Summary

How do Intertek Group's earnings and revenue compare to its market cap?
ITRK fundamental statistics
Market CapUK£8.66b
Earnings (TTM)UK£267.00m
Revenue (TTM)UK£2.73b

32.4x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITRK income statement (TTM)
RevenueUK£2.73b
Cost of RevenueUK£1.15b
Gross ProfitUK£1.58b
ExpensesUK£1.31b
EarningsUK£267.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 01, 2022

Earnings per share (EPS)1.66
Gross Margin57.76%
Net Profit Margin9.78%
Debt/Equity Ratio64.7%

How did ITRK perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

64%

Payout Ratio

Valuation

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

32.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITRK (£53.76) is trading above our estimate of fair value (£50.59)

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


Price To Earnings Ratio

PE vs Industry: ITRK is good value based on its PE Ratio (32.4x) compared to the UK Professional Services industry average (33.9x).

PE vs Market: ITRK is poor value based on its PE Ratio (32.4x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ITRK is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ITRK is overvalued based on its PB Ratio (9.2x) compared to the GB Professional Services industry average (3.1x).


Future Growth

How is Intertek Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITRK's forecast earnings growth (10.9% per year) is above the savings rate (0.9%).

Earnings vs Market: ITRK's earnings (10.9% per year) are forecast to grow slower than the UK market (12.1% per year).

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

Revenue vs Market: ITRK's revenue (5.3% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: ITRK's revenue (5.3% 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 (26.9%)


Past Performance

How has Intertek Group performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITRK has high quality earnings.

Growing Profit Margin: ITRK's current net profit margins (9.8%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: ITRK has become profitable over the past 5 years, growing earnings by 17% per year.

Accelerating Growth: ITRK's earnings growth over the past year (0.8%) is below its 5-year average (17% per year).

Earnings vs Industry: ITRK earnings growth over the past year (0.8%) underperformed the Professional Services industry 5.2%.


Return on Equity

High ROE: ITRK's Return on Equity (28.9%) is considered high.


Financial Health

How is Intertek Group's financial position?


Financial Position Analysis

Short Term Liabilities: ITRK's short term assets (£853.0M) exceed its short term liabilities (£794.3M).

Long Term Liabilities: ITRK's short term assets (£853.0M) exceed its long term liabilities (£810.1M).


Debt to Equity History and Analysis

Debt Level: ITRK's net debt to equity ratio (44.5%) is considered high.

Reducing Debt: ITRK's debt to equity ratio has reduced from 229% to 64.7% over the past 5 years.

Debt Coverage: ITRK's debt is well covered by operating cash flow (86.1%).

Interest Coverage: ITRK's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet


Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITRK's dividend (1.97%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: ITRK's dividend (1.97%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


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 (63.8%), 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 (52.5% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Andre Pierre Lacroix (60 yo)

6.67yrs

Tenure

UK£2,578,000

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: Andre Pierre's total compensation ($USD3.50M) is about average for companies of similar size in the UK market ($USD3.96M).

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


Leadership Team

Experienced Management: ITRK's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: ITRK's board of directors are considered experienced (4.5 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Intertek Group plc's 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
  • Implied Market Cap: UK£8.660b
  • Shares outstanding: 161.08m
  • Website: https://www.intertek.com

Number of Employees


Location

  • Intertek Group plc
  • 33 Cavendish Square
  • London
  • Greater London
  • W1G 0PS
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:13
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.