LSE:ITRK

Stock Analysis Report

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Executive Summary

Intertek Group plc provides quality and safety solutions to various industries worldwide.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


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

1.6%

ITRK

2.7%

GB Professional Services

3.7%

GB Market


1 Year Return

3.2%

ITRK

7.6%

GB Professional Services

-9.5%

GB Market

Return vs Industry: ITRK underperformed the UK Professional Services industry which returned 6.6% over the past year.

Return vs Market: ITRK exceeded the UK Market which returned -11% over the past year.


Shareholder returns

ITRKIndustryMarket
7 Day1.6%2.7%3.7%
30 Day22.9%14.4%10.8%
90 Day2.2%1.6%-5.0%
1 Year5.3%3.2%10.0%7.6%-5.1%-9.5%
3 Year35.9%28.7%37.6%28.2%-1.7%-13.7%
5 Year137.9%117.8%104.6%81.5%16.4%-9.7%

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?

28.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITRK (£55.52) is trading above our estimate of fair value (£33.49)

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 (28.5x) compared to the Professional Services industry average (17.4x).

PE vs Market: ITRK is poor value based on its PE Ratio (28.5x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: ITRK is poor value based on its PEG Ratio (8.3x)


Price to Book Ratio

PB vs Industry: ITRK is overvalued based on its PB Ratio (9.3x) compared to the GB Professional Services industry average (2.2x).


Next Steps

Future Growth

How is Intertek Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITRK's forecast earnings growth (3.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ITRK's earnings (3.4% per year) are forecast to grow slower than the UK market (20.5% per year).

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

Revenue vs Market: ITRK's revenue (2% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: ITRK's revenue (2% 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 (27.2%)


Next Steps

Past Performance

How has Intertek Group performed over the past 5 years?

33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITRK has high quality earnings.

Growing Profit Margin: ITRK's current net profit margins (10.5%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: ITRK's earnings have grown significantly by 33.1% per year over the past 5 years.

Accelerating Growth: ITRK's earnings growth over the past year (10.1%) is below its 5-year average (33.1% per year).

Earnings vs Industry: ITRK earnings growth over the past year (10.1%) exceeded the Professional Services industry 9.7%.


Return on Equity

High ROE: ITRK's Return on Equity (33.9%) is considered high.


Next Steps

Financial Health

How is Intertek Group's financial position?


Financial Position Analysis

Short Term Liabilities: ITRK's short term assets (£960.1M) exceed its short term liabilities (£900.0M).

Long Term Liabilities: ITRK's short term assets (£960.1M) exceed its long term liabilities (£933.1M).


Debt to Equity History and Analysis

Debt Level: ITRK's debt to equity ratio (87%) is considered high.

Reducing Debt: ITRK's debt to equity ratio has reduced from 93.3% to 87% over the past 5 years.

Debt Coverage: ITRK's debt is well covered by operating cash flow (65.7%).

Interest Coverage: ITRK's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITRK's dividend (1.91%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: ITRK's dividend (1.91%) is low compared to the top 25% of dividend payers in the UK market (5.56%).


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 (54.4%), 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 (50.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

André Pierre Lacroix (58yo)

5.08yrs

Tenure

UK£5,397,000

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 ($USD6.80M) is above average for companies of similar size in the UK market ($USD4.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
André Pierre Lacroix
CEO & Director5.08yrsUK£5.40m0.27% £24.0m
Ross McCluskey
Group CFO & Executive Director1.83yrsUK£1.10m0.0033% £294.9k
Diane Bitzel
Group Chief Information Officer2.08yrsno datano data
Mark Thomas
Group General Counsel5.42yrsno datano data
Ken Lee
Executive Vice President of Marketing & Communications3.75yrsno datano data
Julia Thomas
Senior Vice President of Corporate Development4.08yrsno datano data
Tony George
Executive Vice President of Human Resources4.92yrsno datano data
Gregg Tiemann
Executive Vice President of Americas12.42yrsno datano data
Raymond Pirie
Vice President of Exploration & Productionno datano datano data
Ian Galloway
Executive Vice President of Middle-East4.58yrsno datano data

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: ITRK's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
André Pierre Lacroix
CEO & Director5.08yrsUK£5.40m0.27% £24.0m
Ross McCluskey
Group CFO & Executive Director1.83yrsUK£1.10m0.0033% £294.9k
Jean-Michel Valette
Independent Non-Executive Director2.92yrsUK£77.00k0.0064% £568.3k
Gill Rider
Independent Non-Executive Director4.92yrsUK£78.00k0.00039% £34.8k
David Reid
Independent Non-Executive Chairman8.42yrsUK£354.00k0.0041% £366.4k
Andrew Martin
Independent Non-Executive Director4.08yrsUK£92.00k0.00023% £20.6k
Louise Makin
Independent Non-Executive Director7.92yrsUK£77.00k0.00066% £59.0k
Graham Allan
Senior Independent Non-Executive Director2.67yrsUK£89.00k0.00014% £12.5k
Lena Wilson
Independent Non-Executive Director7.92yrsUK£81.00k0.00066% £59.0k
Gurnek Bains
Independent Non-Executive Director2.92yrsUK£77.00k0.00015% £13.4k

4.5yrs

Average Tenure

58.5yo

Average Age

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.


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£8.936b
  • Shares outstanding: 160.95m
  • Website: https://www.intertek.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITRKLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2002
IT1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2002
IKTS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2002
ITRKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2002
ITRK NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2002
IKTS.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 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. Intertek Group plc was founded in 1885 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 20:47
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.