AIM:INS

Stock Analysis Report

Executive Summary

Instem plc provides information technology solutions to the life science market worldwide.


Snowflake Analysis

Flawless balance sheet with proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

INS

-2.2%

GB Healthcare Services

0.5%

GB Market


1 Year Return

60.8%

INS

3.6%

GB Healthcare Services

7.0%

GB Market

Return vs Industry: INS exceeded the UK Healthcare Services industry which returned 3.6% over the past year.

Return vs Market: INS exceeded the UK Market which returned 7% over the past year.


Shareholder returns

INSIndustryMarket
7 Day0%-2.2%0.5%
30 Day1.1%-2.8%-0.3%
90 Day0.8%-2.0%0.4%
1 Year60.8%60.8%5.1%3.6%12.6%7.0%
3 Year73.1%73.1%41.2%33.2%18.7%3.6%
5 Year200.8%200.8%88.7%72.2%41.8%9.3%

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?

34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INS (£3.73) is trading above our estimate of fair value (£3.17)

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 (34x) compared to the Healthcare Services industry average (31.9x).

PE vs Market: INS is poor value based on its PE Ratio (34x) compared to the UK market (17.2x).


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 good value based on its PB Ratio (3.6x) compared to the GB Healthcare Services industry average (3.7x).


Next Steps

Future Growth

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

11.3%

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 (0.5%).

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 (11.3% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: INS's revenue (11.3% 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 (14.9%).


Next Steps

Past Performance

How has Instem performed over the past 5 years?

44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INS has high quality earnings.

Growing Profit Margin: INS's current net profit margins (7.4%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: INS's earnings have grown significantly by 44.7% per year over the past 5 years.

Accelerating Growth: INS's earnings growth over the past year (27.3%) is below its 5-year average (44.7% per year).

Earnings vs Industry: INS earnings growth over the past year (27.3%) exceeded the Healthcare Services industry 8%.


Return on Equity

High ROE: INS's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Instem's financial position?


Financial Position Analysis

Short Term Liabilities: INS's short term assets (£13.8M) exceed its short term liabilities (£12.8M).

Long Term Liabilities: INS's short term assets (£13.8M) exceed its long term liabilities (£4.8M).


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 4.3%.

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

Inventory Level: INS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if INS's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.2%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

What is the CEO of Instem's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Phil Reason (57yo)

0yrs

Tenure

UK£243,000

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 ($USD320.19K) is about average for companies of similar size in the UK market ($USD334.31K).

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


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: INS's management team is considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£23,07203 Jun 19
Michael McGoun
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares6,786
Max PriceUK£3.40
SellUK£104,26524 May 19
Michael McGoun
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceUK£3.48

Ownership Breakdown

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


Management Team

  • Gordon Baxter

    Chief Scientific Officer

    • Tenure: 0yrs
  • Nigel Goldsmith (57yo)

    CFO, Secretary & Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£133.00k
  • Phil Reason (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£243.00k
  • Mike Harwood

    Executive Vice President of Regulatory eStudy Solutions

    • Tenure: 0yrs
  • Gregor Grant

    Executive Vice President of Preclinical Solutions

    • Tenure: 0yrs
  • Gary Mitchell

    Vice President of Global Marketing

    • Tenure: 0yrs
  • Jerry Hacker

    Senior Vice President of Global Sales

    • Tenure: 3.3yrs
  • Marybeth Thompson

    Chief Operating Officer

    • Tenure: 2.9yrs
  • Adrian Gare

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Eve Leconte

    Head of People Services

    • Tenure: 0.9yrs

Board Members

  • Mike McGoun (72yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • David Sherwin (62yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • Nigel Goldsmith (57yo)

    CFO, Secretary & Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£133.00k
  • Phil Reason (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£243.00k
  • David Gare (75yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£60.00k

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£61.654m
  • Shares outstanding: 16.53m
  • 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 provides information technology solutions to the life science market worldwide. The company offers solutions for data collection, management, and analysis to meet the needs of life science and h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 21:15
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.