AIM:INS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Instem plc, together with its subsidiaries, provides information technology applications to the life sciences healthcare market worldwide. More Details


Snowflake Analysis

Flawless balance sheet with poor track record.

Share Price & News

How has Instem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: INS's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

6.9%

INS

1.2%

GB Healthcare Services

1.3%

GB Market


1 Year Return

24.7%

INS

2.7%

GB Healthcare Services

-6.4%

GB Market

Return vs Industry: INS exceeded the UK Healthcare Services industry which returned 2.4% over the past year.

Return vs Market: INS exceeded the UK Market which returned -6.8% over the past year.


Shareholder returns

INSIndustryMarket
7 Day6.9%1.2%1.3%
30 Day0%15.8%14.1%
90 Day-9.7%15.1%9.6%
1 Year24.7%24.7%4.7%2.7%-2.7%-6.4%
3 Year225.2%225.2%34.4%26.8%3.9%-8.6%
5 Year123.0%123.0%39.1%26.5%34.6%4.4%

Long-Term Price Volatility Vs. Market

How volatile is Instem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

226.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INS (£4.65) is trading above our estimate of fair value (£3.8)

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


Price To Earnings Ratio

PE vs Industry: INS is poor value based on its PE Ratio (226.4x) compared to the XE Healthcare Services industry average (46.3x).

PE vs Market: INS is poor value based on its PE Ratio (226.4x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INS is overvalued based on its PB Ratio (5.7x) compared to the GB Healthcare Services industry average (4.4x).


Next Steps

Future Growth

How is Instem forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if INS's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if INS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INS's revenue (6.2% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: INS's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INS's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Instem performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INS has a large one-off loss of £3.4M impacting its June 30 2020 financial results.

Growing Profit Margin: INS's current net profit margins (1.2%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: INS's earnings have grown by 12.6% per year over the past 5 years.

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

Earnings vs Industry: INS had negative earnings growth (-80.6%) over the past year, making it difficult to compare to the Healthcare Services industry average (-14.6%).


Return on Equity

High ROE: INS's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is Instem's financial position?


Financial Position Analysis

Short Term Liabilities: INS's short term assets (£18.4M) exceed its short term liabilities (£15.0M).

Long Term Liabilities: INS's short term assets (£18.4M) exceed its long term liabilities (£7.2M).


Debt to Equity History and Analysis

Debt Level: INS is debt free.

Reducing Debt: INS has no debt compared to 5 years ago when its debt to equity ratio was 30.6%.

Debt Coverage: INS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: INS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Instem current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Phil Reason (58 yo)

no data

Tenure

UK£261,000

Compensation

Mr. Phil J. Reason serves as the Chief Executive Officer of Instem LSS Limited, Instem Associates Limited and Instem plc (Instem Life Science Systems plc). Mr. Reason is an experienced chief executive who ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD348.22K) is about average for companies of similar size in the UK market ($USD347.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phil Reason
CEO & Executive Directorno dataUK£261.00k3.57%
£ 3.4m
Nigel Goldsmith
CFO, Secretary & Executive Director9.08yrsUK£141.00kno data
Marybeth Thompson
Chief Operating Officer3.92yrsno datano data
Gordon Baxter
Chief Scientific Officerno datano datano data
Gary Mitchell
Vice President of Global Marketingno datano datano data
Jerry Hacker
Senior Vice President of Global Sales4.33yrsno datano data
Adrian Gare
Vice President of Corporate Developmentno datano datano data
Eve Leconte
Head of People Services1.92yrsno datano data
Mike Harwood
Executive Vice President of Regulatory eStudy Solutionsno datano datano data
Gregor Grant
Executive Vice President of Preclinical Solutionsno datano datano data

4.1yrs

Average Tenure

Experienced Management: INS's management team is considered experienced (4.1 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 been diluted in the past year, with total shares outstanding growing by 23.9%.


Top Shareholders

Company Information

Instem plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Instem plc
  • Ticker: INS
  • Exchange: AIM
  • Founded: 1969
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: UK£95.241m
  • Shares outstanding: 20.48m
  • Website: https://www.instem.com

Number of Employees


Location

  • Instem plc
  • Diamond Way
  • Stone Business Park
  • Stone
  • Staffordshire
  • ST15 0SD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2010
54IBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2010

Biography

Instem plc, together with its subsidiaries, provides information technology applications to the life sciences healthcare market worldwide. The company offers solutions for data collection, management, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 20:06
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.