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INCH

InchcapeLSE:INCH Stock Report

Market Cap

UK£3.2b

7D

-2.0%

1Y

34.9%

Updated

30 Nov, 2021

Data

Company Financials +
INCH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends4/6

INCH Stock Overview

Inchcape plc operates as an automotive distributor and retailer.

Price History & Performance

Summary of all time highs, changes and price drops for Inchcape
Historical stock prices
Current Share PriceUK£8.29
52 Week HighUK£9.41
52 Week LowUK£5.92
Beta1.37
1 Month Change0.36%
3 Month Change-8.95%
1 Year Change34.91%
3 Year Change48.30%
5 Year Change38.63%
Change since IPO-73.51%

Recent News & Updates

Nov 13
Should You Think About Buying Inchcape plc (LON:INCH) Now?

Should You Think About Buying Inchcape plc (LON:INCH) Now?

While Inchcape plc ( LON:INCH ) might not be the most widely known stock at the moment, it saw significant share price...

Oct 29
Inchcape's (LON:INCH) Returns On Capital Tell Us There Is Reason To Feel Uneasy

Inchcape's (LON:INCH) Returns On Capital Tell Us There Is Reason To Feel Uneasy

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Oct 01
Calculating The Intrinsic Value Of Inchcape plc (LON:INCH)

Calculating The Intrinsic Value Of Inchcape plc (LON:INCH)

How far off is Inchcape plc ( LON:INCH ) from its intrinsic value? Using the most recent financial data, we'll take a...

Sep 01
Inchcape (LON:INCH) Seems To Use Debt Quite Sensibly

Inchcape (LON:INCH) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Jul 29
Investors Could Be Concerned With Inchcape's (LON:INCH) Returns On Capital

Investors Could Be Concerned With Inchcape's (LON:INCH) Returns On Capital

When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...

Shareholder Returns

INCHGB Retail DistributorsGB Market
7D-2.0%-1.9%-2.6%
1Y34.9%77.8%10.9%

Return vs Industry: INCH underperformed the UK Retail Distributors industry which returned 82.4% over the past year.

Return vs Market: INCH exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is INCH's price volatile compared to industry and market?
INCH volatility
INCH Average Weekly Movement3.0%
Retail Distributors Industry Average Movement6.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

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

Volatility Over Time: INCH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
184715,000Duncan Taithttps://www.inchcape.com

Inchcape plc operates as an automotive distributor and retailer. The company engages in the sale and distribution of new and used cars, and parts. It also provides aftersales service, body shop repairs, and parts sales; and finance and insurance products and services.

Inchcape Fundamentals Summary

How do Inchcape's earnings and revenue compare to its market cap?
INCH fundamental statistics
Market CapUK£3.19b
Earnings (TTM)UK£74.20m
Revenue (TTM)UK£7.75b

43.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
INCH income statement (TTM)
RevenueUK£7.75b
Cost of RevenueUK£6.69b
Gross ProfitUK£1.06b
ExpensesUK£985.60m
EarningsUK£74.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.19
Gross Margin13.68%
Net Profit Margin0.96%
Debt/Equity Ratio96.3%

How did INCH perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INCH (£8.29) is trading below our estimate of fair value (£9.5)

Significantly Below Fair Value: INCH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INCH is poor value based on its PE Ratio (43x) compared to the European Retail Distributors industry average (16.3x).

PE vs Market: INCH is poor value based on its PE Ratio (43x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: INCH is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: INCH is good value based on its PB Ratio (2.7x) compared to the GB Retail Distributors industry average (3.7x).


Future Growth

How is Inchcape forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INCH's forecast earnings growth (21.7% per year) is above the savings rate (0.9%).

Earnings vs Market: INCH's earnings (21.7% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: INCH's revenue (3.1% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: INCH's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INCH's Return on Equity is forecast to be low in 3 years time (19.7%).


Past Performance

How has Inchcape performed over the past 5 years?

-32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INCH has a large one-off loss of £140.9M impacting its June 30 2021 financial results.

Growing Profit Margin: INCH's current net profit margins (1%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: INCH's earnings have declined by 32% per year over the past 5 years.

Accelerating Growth: INCH's earnings growth over the past year (326.4%) exceeds its 5-year average (-32% per year).

Earnings vs Industry: INCH earnings growth over the past year (326.4%) exceeded the Retail Distributors industry 36%.


Return on Equity

High ROE: INCH's Return on Equity (6.6%) is considered low.


Financial Health

How is Inchcape's financial position?


Financial Position Analysis

Short Term Liabilities: INCH's short term assets (£2.2B) exceed its short term liabilities (£1.7B).

Long Term Liabilities: INCH's short term assets (£2.2B) exceed its long term liabilities (£707.0M).


Debt to Equity History and Analysis

Debt Level: INCH's net debt to equity ratio (41.4%) is considered high.

Reducing Debt: INCH's debt to equity ratio has increased from 33.7% to 96.3% over the past 5 years.

Debt Coverage: INCH's debt is well covered by operating cash flow (39.1%).

Interest Coverage: INCH's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INCH's dividend (1.54%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: INCH's dividend (1.54%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: INCH's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.4%), INCH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INCH's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Duncan Tait (55 yo)

1.33yrs

Tenure

UK£765,024

Compensation

Mr. Duncan Tait serves as Group Chief Executive Officer and Executive Director at Inchcape PLC since July 01, 2020. Mr. Tait has been Head of the Unisys UKMEA Global Outsourcing and Infrastructure Services...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD1.01M) is below average for companies of similar size in the UK market ($USD1.75M).

Compensation vs Earnings: Insufficient data to compare Duncan's compensation with company performance.


Leadership Team

Experienced Management: INCH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: INCH's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: INCH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Inchcape plc's employee growth, exchange listings and data sources


Key Information

  • Name: Inchcape plc
  • Ticker: INCH
  • Exchange: LSE
  • Founded: 1847
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: UK£3.189b
  • Shares outstanding: 384.72m
  • Website: https://www.inchcape.com

Number of Employees


Location

  • Inchcape plc
  • 22a St James’s Square
  • London
  • Greater London
  • SW1Y 5LP
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:37
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.