AIM:INL

Stock Analysis Report

Executive Summary

Inland Homes plc operates as a real estate development company in the United Kingdom.

Rewards

Trading at 52.7% below its fair value

Earnings are forecast to grow 21.93% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Latest financial reports are more than 6 months old



Snowflake Analysis

Very undervalued with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

INL

1.6%

GB Real Estate

-0.8%

GB Market


1 Year Return

59.0%

INL

24.1%

GB Real Estate

8.5%

GB Market

Return vs Industry: INL exceeded the UK Real Estate industry which returned 24.1% over the past year.

Return vs Market: INL exceeded the UK Market which returned 8.5% over the past year.


Shareholder returns

INLIndustryMarket
7 Day-0.6%1.6%-0.8%
30 Day-0.3%5.9%-0.9%
90 Day17.9%9.7%1.5%
1 Year65.8%59.0%27.4%24.1%14.1%8.5%
3 Year48.6%35.0%1.9%-5.7%19.2%4.0%
5 Year53.9%37.4%30.1%15.2%41.8%9.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Inland Homes 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: INL (£0.79) is trading below our estimate of fair value (£1.67)

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


Price To Earnings Ratio

PE vs Industry: INL is good value based on its PE Ratio (10.3x) compared to the Real Estate industry average (14.4x).

PE vs Market: INL is good value based on its PE Ratio (10.3x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: INL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: INL is good value based on its PB Ratio (1.1x) compared to the GB Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Inland Homes forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INL's forecast earnings growth (21.9% per year) is above the savings rate (0.5%).

Earnings vs Market: INL's earnings (21.9% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: INL's revenue (23.4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: INL's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INL's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Inland Homes performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INL has high quality earnings.

Growing Profit Margin: INL's current net profit margins (11.4%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: INL's earnings have grown by 4.2% per year over the past 5 years.

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

Earnings vs Industry: INL had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Real Estate industry average (2.2%).


Return on Equity

High ROE: INL's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inland Homes's financial position?


Financial Position Analysis

Short Term Liabilities: INL's short term assets (£241.8M) exceed its short term liabilities (£71.9M).

Long Term Liabilities: INL's short term assets (£241.8M) exceed its long term liabilities (£95.7M).


Debt to Equity History and Analysis

Debt Level: INL's debt to equity ratio (86%) is considered high.

Reducing Debt: INL's debt to equity ratio has increased from 39.1% to 86% over the past 5 years.

Debt Coverage: INL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: INL's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: INL has a high level of physical assets or inventory.

Debt Coverage by Assets: INL's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.0%markettop25%5.3%industryaverage2.6%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: INL's dividend (2.78%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: INL's dividend (2.78%) is low compared to the top 25% of dividend payers in the UK market (5.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INL has been paying a dividend for less than 10 years.

Growing Dividend: INL's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.2%), INL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INL's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Stephen Wicks (68yo)

0yrs

Tenure

UK£472,000

Compensation

Mr. Stephen Desmond Wicks founded Inland Homes PLC in June 2005 and serves as its Chief Executive. Mr. Wicks serves as Chief Executive at Inland Homes Limited. Mr. Wicks served as an Information Technology ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD618.34K) is about average for companies of similar size in the UK market ($USD660.26K).

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


Management Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: INL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

61yo

Average Age

Experienced Board: INL's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

BuyUK£99,00008 Jul 19
Nishith Malde
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares150,000
Max PriceUK£0.66
BuyUK£138,60008 Jul 19
Stephen Wicks
EntityIndividual
Role
Chief Executive Officer
Chief Executive & Executive Director
Shares210,000
Max PriceUK£0.66
BuyUK£37,33229 Apr 19
Nishith Malde
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares61,200
Max PriceUK£0.61
BuyUK£75,75029 Mar 19
Stephen Wicks
EntityIndividual
Role
Chief Executive Officer
Chief Executive & Executive Director
Shares125,000
Max PriceUK£0.61

Ownership Breakdown

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


Management Team

  • Nish Malde (61yo)

    Group Finance Director & Executive Director

    • Tenure: 14.5yrs
    • Compensation: UK£469.00k
  • Stephen Wicks (68yo)

    Chief Executive & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£472.00k
  • Paul Brett (43yo)

    Consultant

    • Tenure: 1.7yrs
    • Compensation: UK£247.03k
  • Tom Cuff

    Group Legal Director

    • Tenure: 0yrs
  • Vicki Noon

    Sales & Marketing Director

    • Tenure: 0yrs
  • Kat Worth

    Company Secretary

    • Tenure: 0.2yrs
  • Gary Skinner (49yo)

    MD & Director

    • Tenure: 1.6yrs
    • Compensation: UK£345.48k

Board Members

  • Nish Malde (61yo)

    Group Finance Director & Executive Director

    • Tenure: 14.5yrs
    • Compensation: UK£469.00k
  • Stephen Wicks (68yo)

    Chief Executive & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£472.00k
  • Terry Roydon (72yo)

    Non Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£55.00k
  • Simon Bennett (61yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£45.00k
  • Laure, Briscoe Duhot (57yo)

    Non-Executive Director

    • Tenure: 1.5yrs
  • John Brian Johnson (58yo)

    Non-Executive Director

    • Tenure: 1.5yrs
  • Gary Skinner (49yo)

    MD & Director

    • Tenure: 1.6yrs
    • Compensation: UK£345.48k

Company Information

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


Key Information

  • Name: Inland Homes plc
  • Ticker: INL
  • Exchange: AIM
  • Founded: 2005
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: UK£162.537m
  • Shares outstanding: 205.74m
  • Website: https://www.inlandhomes.co.uk

Number of Employees


Location

  • Inland Homes plc
  • Burnham Yard
  • London End
  • Beaconsfield
  • Buckinghamshire
  • HP9 2JH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INLAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2007

Biography

Inland Homes plc operates as a real estate development company in the United Kingdom. It develops brownfield sites for residential and mixed use projects. The company is also involved in the provision of f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:11
End of Day Share Price2019/12/06 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.