Intertek Group
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
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Intertek Group.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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.
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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Intertek Group's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Intertek Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- 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)
- 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)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Intertek Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Intertek Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Intertek Group Company Filings, last reported 4 months ago.
| 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).
Financial health checks
We assess Intertek Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Intertek Group has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
£2,000 of
Intertek Group
shares you are expected to receive
£39
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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 |
| 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).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
Income/ dividend checks
We assess Intertek Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the Intertek Group management team is about average.
Management Team
André Pierre Lacroix
CEO & Director
£6M
57
4 yrs
Ross McCluskey
Group CFO & Executive Director
£809K
0.8 yrs
Diane Bitzel
Group Chief Information Officer
1 yrs
Mark Thomas
Group General Counsel
4.3 yrs
Ken Lee
Executive Vice President of Marketing & Communications
62
2.7 yrs
Julia Thomas
Senior Vice President of Corporate Development
3 yrs
Tony George
Executive Vice President of Human Resources
54
3.8 yrs
Gregg Tiemann
Executive Vice President of Americas
11.3 yrs
Ann-Michele Bowlin
Chief ATIC Innovation Officer
1.3 yrs
Raymond Pirie
Vice President of Exploration & Production
Board of Directors Tenure
Average tenure and age of the Intertek Group board of directors in years:
- The tenure for the Intertek Group board of directors is about average.
Board of Directors
David Reid
Chairman
£352K
71
7.3 yrs
André Pierre Lacroix
CEO & Director
£6M
57
4 yrs
Ross McCluskey
Group CFO & Executive Director
£809K
0.8 yrs
Gill Rider
Non-Executive Director
£77K
63
3.8 yrs
Andy Martin
Non-Executive Director
£90K
58
3 yrs
Graham Allan
Senior Independent Non-Executive Director
£87K
63
1.6 yrs
Louise Makin
Non-Executive Director
£75K
57
6.8 yrs
Lena Wilson
Non-Executive Director
£86K
54
6.8 yrs
Gurnek Bains
Non-Executive Director
£75K
1.8 yrs
Jean-Michel Valette
Non-Executive Director
£75K
57
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 | ||
Management checks
We assess Intertek Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleIs 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 - – Full articleIntertek 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 - – Full articleShould 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 - – Full articleIntertek 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 - – Full articleHas 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 - – Full articleDoes 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 - – Full articleWhat 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 - – Full articleShould 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 - – Full articleWhat 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 - – Full articleITRK 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
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.
