LSE:ITRK

Stock Analysis Report

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Market Cap

UK£9.0b

Last Updated

2021/06/24 18:15 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


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 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.


Market Performance


7 Day Return

0.5%

ITRK

-0.1%

GB Professional Services

-0.7%

GB Market


1 Year Return

2.9%

ITRK

6.0%

GB Professional Services

19.3%

GB Market

Return vs Industry: ITRK underperformed the UK Professional Services industry which returned 5.8% over the past year.

Return vs Market: ITRK underperformed the UK Market which returned 19.5% over the past year.


Shareholder returns

ITRKIndustryMarket
7 Day0.5%-0.1%-0.7%
30 Day-6.4%0.4%0.4%
90 Day-0.5%8.2%6.0%
1 Year4.8%2.9%8.0%6.0%25.0%19.3%
3 Year4.4%-1.6%29.7%21.6%14.1%1.0%
5 Year74.9%60.0%78.0%59.5%46.8%19.1%

Long-Term 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

Valuation

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

36.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITRK (£55.68) is trading above our estimate of fair value (£45.95)

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


Price To Earnings Ratio

PE vs Industry: ITRK's PE Ratio (36.2x) is in line with the UK Professional Services industry average.

PE vs Market: ITRK is poor value based on its PE Ratio (36.2x) compared to the UK market (25x).


Price to Earnings Growth Ratio

PEG Ratio: ITRK is poor value based on its PEG Ratio (3.6x)


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?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITRK's forecast earnings growth (10% per year) is above the savings rate (0.9%).

Earnings vs Market: ITRK's earnings (10% per year) are forecast to grow slower than the UK market (17.3% per year).

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

Revenue vs Market: ITRK's revenue (4.3% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: ITRK's revenue (4.3% 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 (27.1%)


Past Performance

How has Intertek Group performed over the past 5 years?

36.0%

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%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: ITRK has become profitable over the past 5 years, growing earnings by 36% per year.

Accelerating Growth: ITRK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ITRK had negative earnings growth (-20.9%) over the past year, making it difficult to compare to the Professional Services industry average (-10.4%).


Return on Equity

High ROE: ITRK's Return on Equity (26.2%) is considered high.


Financial Health

How is Intertek Group's financial position?


Financial Position Analysis

Short Term Liabilities: ITRK's short term assets (£865.1M) exceed its short term liabilities (£751.2M).

Long Term Liabilities: ITRK's short term assets (£865.1M) exceed its long term liabilities (£860.9M).


Debt to Equity History and Analysis

Debt Level: ITRK's debt to equity ratio (62.2%) is considered high.

Reducing Debt: ITRK's debt to equity ratio has reduced from 268.9% to 62.2% over the past 5 years.

Debt Coverage: ITRK's debt is well covered by operating cash flow (89.6%).

Interest Coverage: ITRK's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITRK's dividend (1.9%) is higher than the bottom 25% of dividend payers in the UK market (1.27%).

High Dividend: ITRK's dividend (1.9%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


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 (68.9%), 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 (53.3% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

André Pierre Lacroix (59 yo)

6.08yrs

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: André Pierre's total compensation ($USD3.60M) is about average for companies of similar size in the UK market ($USD3.62M).

Compensation vs Earnings: André 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 (5.6 years average tenure).


Board Members

Experienced Board: ITRK's board of directors are considered experienced (3.8 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 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£8.969b
  • 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


Biography

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, inspe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 18:15
End of Day Share Price2021/06/24 00:00
Earnings2020/12/31
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.