LSE:INF

Stock Analysis Report

Executive Summary

Informa plc engages in business intelligence, academic publishing, and knowledge and events businesses worldwide.

Rewards

Trading at 61.8% below its fair value

Earnings are forecast to grow 20.35% per year

Earnings grew by 8.5% over the past year

Pays a reliable dividend of 6%

Risk Analysis

Has a high level of debt

Dividend of 6% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

INF

-7.1%

GB Media

0.1%

GB Market


1 Year Return

-44.1%

INF

-41.0%

GB Media

-23.6%

GB Market

Return vs Industry: INF underperformed the UK Media industry which returned -43.6% over the past year.

Return vs Market: INF underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

INFIndustryMarket
7 Day-2.4%-7.1%0.1%
30 Day-27.5%-29.1%-15.5%
90 Day-48.8%-47.1%-27.0%
1 Year-42.5%-44.1%-38.7%-41.0%-19.8%-23.6%
3 Year-27.6%-33.5%-47.2%-53.8%-13.5%-24.3%
5 Year-8.2%-27.2%-48.4%-59.1%-1.6%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INF (£3.92) is trading below our estimate of fair value (£10.26)

Significantly Below Fair Value: INF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: INF is poor value based on its PE Ratio (21.7x) compared to the Media industry average (16.7x).

PE vs Market: INF is poor value based on its PE Ratio (21.7x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: INF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: INF is overvalued based on its PB Ratio (0.9x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is Informa forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INF's forecast earnings growth (20.4% per year) is above the savings rate (0.5%).

Earnings vs Market: INF's earnings (20.4% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: INF's revenue (1.1% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: INF's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INF's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Informa performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INF has a large one-off loss of £189.7M impacting its December 31 2019 financial results.

Growing Profit Margin: INF's current net profit margins (7.8%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: INF has become profitable over the past 5 years, growing earnings by 30.5% per year.

Accelerating Growth: INF's earnings growth over the past year (8.5%) is below its 5-year average (30.5% per year).

Earnings vs Industry: INF earnings growth over the past year (8.5%) exceeded the Media industry -1.8%.


Return on Equity

High ROE: INF's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Informa's financial position?


Financial Position Analysis

Short Term Liabilities: INF's short term assets (£722.2M) do not cover its short term liabilities (£1.6B).

Long Term Liabilities: INF's short term assets (£722.2M) do not cover its long term liabilities (£3.3B).


Debt to Equity History and Analysis

Debt Level: INF's debt to equity ratio (43.4%) is considered high.

Reducing Debt: INF's debt to equity ratio has reduced from 74.3% to 43.4% over the past 5 years.

Debt Coverage: INF's debt is well covered by operating cash flow (28.4%).

Interest Coverage: INF's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.44%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: INF's dividend (6%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: INF's dividend (6%) is low compared to the top 25% of dividend payers in the UK market (7.4%).


Stability and Growth of Payments

Stable Dividend: INF's dividends per share have been stable in the past 10 years.

Growing Dividend: INF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (130.3%), INF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INF's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Stephen Carter (55yo)

6.58s

Tenure

UK£4,074,868

Compensation

Mr. Stephen Andrew Carter, CBE has been Group Chief Executive of Informa plc since September 2013. Mr. Carter has been an Executive Director of Informa plc since September 1, 2013. He has responsibilities  ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD4.99M) is above average for companies of similar size in the UK market ($USD3.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Carter
Group Chief Executive & Executive Director6.58yrsUK£4.07m0.0085% £462.0k
Gareth Wright
Group Finance Director & Director5.75yrsUK£2.05m0.0012% £63.8k
Patrick Martell
COO & Chief Executive of Informa Intelligence1.25yrsno datano data
Simon Hollins
Group CIO & CISO2.25yrsno datano data
Richard Menzies-Gow
Director of Investor Relations6.25yrsno datano data
Rupert John Hopley
Group General Counsel & Company Secretary8.42yrsno datano data
Peter Miller
Corporate Development Directorno datano datano data
Eleanor Phillips
Group HR Director2.25yrsno datano data
Andrew Mullins
Chief Executive of Informa Connect5.5yrsno datano data
Charles McCurdy
President & CEO of Informa Markets1.25yrsno datano data

5.5yrs

Average Tenure

55yo

Average Age

Experienced Management: INF's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Carter
Group Chief Executive & Executive Director6.58yrsUK£4.07m0.0085% £462.0k
Gareth Wright
Group Finance Director & Director5.75yrsUK£2.05m0.0012% £63.8k
David Flaschen
Independent Non-Executive Director4.58yrsUK£74.42k0.0011% £60.6k
Mary McDowell
Independent Non-Executive Director1.83yrsUK£37.36k0.00050% £27.0k
John Rishton
Independent Non-Executive Director3.58yrsUK£82.57k0.0012% £65.5k
Stephen Davidson
Independent Non-Executive Director4.58yrsUK£78.86k0.00040% £21.6k
Gareth Bullock
Senior Independent Non-Executive Director5.92yrsUK£77.74k0.0011% £58.4k
Derek Mapp
Non-Executive Chairman12.08yrsUK£334.23k0.014% £750.4k
Helen Owers
Independent Non-Executive Director6.25yrsUK£71.35k0.00032% £17.3k
Gillian Whitehead
Non-Executive Director0.67yrno datano data

5.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: INF's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: INF 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 18.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Informa plc
  • Ticker: INF
  • Exchange: LSE
  • Founded: 1998
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£5.410b
  • Shares outstanding: 1.25b
  • Website: https://www.informa.com

Number of Employees


Location

  • Informa plc
  • 5 Howick Place
  • London
  • Greater London
  • SW1P 1WG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFPJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1998
INFLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 1998
IEADB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1998
INFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 1998
IFJP.YOTCPK (Pink Sheets LLC)SPONSORED ADR NEUSUSDSep 2010

Biography

Informa plc engages in business intelligence, academic publishing, and knowledge and events businesses worldwide. The company operates through Academic Publishing, Business Intelligence, Global Exhibitions, Knowledge & Networking, and UBM segments. The Academic Publishing segment publishes academic books and journals in print and digital formats. It has a portfolio of approximately 145,000 book titles and 2,700 journals. This segment provides imprints of Taylor & Francis, Routledge, CRC Press, Cogent OA, and Dove brands. The Business Intelligence segment offers data-driven insight and intelligence to businesses. The Global Exhibitions segment organizes transaction-oriented exhibitions. The Knowledge & Networking segment creates content-driven events, training, and digital platforms. The UBM segment organizes business to business events and exhibitions. The company was formerly known as T&F Informa plc and changed its name to Informa plc in August 2005. Informa plc was founded in 1998 and is headquartered 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 Analysis2020/04/07 22:21
End of Day Share Price2020/04/07 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.