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Inchcape

LSE:INCH
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
INCH
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

Inchcape plc operates as an automotive distributor and retailer in the premium and luxury automotive sectors. The last earnings update was 4 days ago. More info.


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INCH Share Price and Events
7 Day Returns
2%
LSE:INCH
1.9%
GB Retail Distributors
32.1%
GB Market
1 Year Returns
-14.4%
LSE:INCH
-13.2%
GB Retail Distributors
30.9%
GB Market
INCH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Inchcape (INCH) 2% -5% 7.4% -14.4% -20.1% -10.5%
GB Retail Distributors 1.9% -3.8% 6.1% -13.2% -10.3% -3.8%
GB Market 32.1% 31.6% 40.2% 30.9% 48.1% 12.2%
1 Year Return vs Industry and Market
  • INCH underperformed the Retail Distributors industry which returned -13.2% over the past year.
  • INCH underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 30.9% over the past year.
Price Volatility
INCH
Industry
5yr Volatility vs Market

INCH Value

 Is Inchcape undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Inchcape to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Inchcape.

LSE:INCH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:INCH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.887 (1 + (1- 19%) (94.05%))
1.377
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.377 * 6.65%)
10.38%

Discounted Cash Flow Calculation for LSE:INCH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Inchcape is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:INCH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 10.38%)
2019 208.35 Analyst x4 188.75
2020 237.08 Analyst x4 194.57
2021 238.03 Analyst x4 176.97
2022 247.90 Analyst x1 166.98
2023 257.20 Analyst x1 156.94
2024 263.31 Est @ 2.38% 145.56
2025 268.66 Est @ 2.03% 134.54
2026 273.47 Est @ 1.79% 124.07
2027 277.90 Est @ 1.62% 114.22
2028 282.08 Est @ 1.5% 105.03
Present value of next 10 years cash flows £1,507.63
LSE:INCH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £282.08 × (1 + 1.23%) ÷ (10.38% – 1.23%)
£3,118.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,118.31 ÷ (1 + 10.38%)10
£1,161.08
LSE:INCH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,507.63 + £1,161.08
£2,668.71
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,668.71 / 414.35
£6.44
LSE:INCH Discount to Share Price
Calculation Result
Value per share (GBP) From above. £6.44
Current discount Discount to share price of £5.78
= -1 x (£5.78 - £6.44) / £6.44
10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Inchcape is available for.
Intrinsic value
10%
Share price is £5.78 vs Future cash flow value of £6.44
Current Discount Checks
For Inchcape to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Inchcape's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Inchcape's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Inchcape's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Inchcape's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:INCH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.12
LSE:INCH Share Price ** LSE (2019-03-20) in GBP £5.78
United Kingdom of Great Britain and Northern Ireland Retail Distributors Industry PE Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 12.17x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 16.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Inchcape.

LSE:INCH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:INCH Share Price ÷ EPS (both in GBP)

= 5.78 ÷ 0.12

49.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inchcape is overvalued based on earnings compared to the GB Retail Distributors industry average.
  • Inchcape is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Inchcape's expected growth come at a high price?
Raw Data
LSE:INCH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
31.6%per year
Europe Retail Distributors Industry PEG Ratio Median Figure of 8 Publicly-Listed Retail Distributors Companies 1.13x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:INCH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 49.66x ÷ 31.6%

1.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inchcape is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Inchcape's assets?
Raw Data
LSE:INCH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £3.36
LSE:INCH Share Price * LSE (2019-03-20) in GBP £5.78
United Kingdom of Great Britain and Northern Ireland Retail Distributors Industry PB Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 1.73x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.53x
LSE:INCH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:INCH Share Price ÷ Book Value per Share (both in GBP)

= 5.78 ÷ 3.36

1.72x

* Primary Listing of Inchcape.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inchcape is good value based on assets compared to the GB Retail Distributors industry average.
X
Value checks
We assess Inchcape's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. Inchcape has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

INCH Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Inchcape expected to grow at an attractive rate?
  • Inchcape's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Inchcape's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Inchcape's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:INCH Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:INCH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 31.6%
LSE:INCH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 1.1%
Europe Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average 29.7%
Europe Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 6.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:INCH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:INCH Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,986 359 1
2022-12-31 9,668 349 2
2021-12-31 9,538 355 258 5
2020-12-31 9,374 348 251 6
2019-12-31 9,418 318 246 5
LSE:INCH Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 9,277 376 48
2018-09-30 9,200 361 145
2018-06-30 9,120 346 243
2018-03-31 9,034 368 256
2017-12-31 8,953 390 268
2017-09-30 8,739 376 235
2017-06-30 8,525 362 203
2017-03-31 8,182 317 194
2016-12-31 7,838 272 184
2016-09-30 7,526 249 183
2016-06-30 7,214 227 182
2016-03-31 7,025 234 179

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Inchcape's earnings are expected to grow significantly at over 20% yearly.
  • Inchcape's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:INCH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Inchcape Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:INCH Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.67 0.70 0.63 4.00
2020-12-31 0.63 0.65 0.61 4.00
2019-12-31 0.60 0.62 0.58 4.00
LSE:INCH Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.12
2018-09-30 0.35
2018-06-30 0.59
2018-03-31 0.62
2017-12-31 0.64
2017-09-30 0.56
2017-06-30 0.48
2017-03-31 0.46
2016-12-31 0.43
2016-09-30 0.43
2016-06-30 0.42
2016-03-31 0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Inchcape is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Inchcape's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Inchcape has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

INCH Past Performance

  How has Inchcape performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Inchcape's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Inchcape's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Inchcape's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Inchcape's 1-year earnings growth is negative, it can't be compared to the GB Retail Distributors industry average.
Earnings and Revenue History
Inchcape's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Inchcape Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:INCH Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 9,277.00 48.20 921.60
2018-09-30 9,200.40 145.10 908.55
2018-06-30 9,119.70 243.20 895.50
2018-03-31 9,034.45 256.05 876.30
2017-12-31 8,953.30 267.70 857.10
2017-09-30 8,739.25 235.35 828.50
2017-06-30 8,525.20 203.00 799.90
2017-03-31 8,181.80 193.70 771.00
2016-12-31 7,838.40 184.40 742.10
2016-09-30 7,526.25 183.10 718.25
2016-06-30 7,214.10 181.80 694.40
2016-03-31 7,025.20 178.80 678.65
2015-12-31 6,836.30 175.80 662.90
2015-09-30 6,790.70 172.35 669.25
2015-06-30 6,745.10 168.90 675.60
2015-03-31 6,723.90 174.25 666.85
2014-12-31 6,702.70 179.60 658.10
2014-09-30 6,625.35 199.25 648.95
2014-06-30 6,548.00 218.90 639.80
2014-03-31 6,536.45 206.55 649.60
2013-12-31 6,524.90 194.20 659.40
2013-09-30 6,407.25 189.65 646.10
2013-06-30 6,289.60 185.10 632.80
2013-03-31 6,187.50 183.30 625.60
2012-12-31 6,085.40 181.50 618.40
2012-09-30 6,045.25 165.35 621.15
2012-06-30 6,005.10 147.30 625.80
2012-03-31 5,915.70 144.75 622.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Inchcape has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Inchcape used its assets less efficiently than the GB Retail Distributors industry average last year based on Return on Assets.
  • Inchcape has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Inchcape's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Inchcape has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

INCH Health

 How is Inchcape's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Inchcape's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Inchcape is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Inchcape's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Inchcape's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Inchcape Company Filings, last reported 2 months ago.

LSE:INCH Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,415.80 2,250.40 642.30
2018-09-30 1,415.80 2,250.40 642.30
2018-06-30 1,516.10 2,612.50 980.90
2018-03-31 1,516.10 2,612.50 980.90
2017-12-31 1,447.90 2,444.20 976.80
2017-09-30 1,447.90 2,444.20 976.80
2017-06-30 1,339.10 825.60 825.50
2017-03-31 1,339.10 825.60 825.50
2016-12-31 1,362.50 1,151.90 800.40
2016-09-30 1,362.50 1,151.90 800.40
2016-06-30 1,381.00 461.70 597.50
2016-03-31 1,381.00 461.70 597.50
2015-12-31 1,241.90 674.80 581.40
2015-09-30 1,241.90 674.80 581.40
2015-06-30 1,288.40 419.70 450.40
2015-03-31 1,288.40 419.70 450.40
2014-12-31 1,318.10 649.10 628.50
2014-09-30 1,318.10 649.10 628.50
2014-06-30 1,462.40 350.60 513.70
2014-03-31 1,462.40 350.60 513.70
2013-12-31 1,499.20 589.00 494.90
2013-09-30 1,499.20 589.00 494.90
2013-06-30 1,639.80 420.50 490.20
2013-03-31 1,639.80 420.50 490.20
2012-12-31 1,528.40 590.90 712.40
2012-09-30 1,507.40 590.90 712.40
2012-06-30 1,371.60 420.50 649.70
2012-03-31 1,371.60 420.50 649.70
  • Inchcape's level of debt (158.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.1% vs 158.9% today).
  • Debt is not well covered by operating cash flow (16.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.7x coverage).
X
Financial health checks
We assess Inchcape's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Inchcape has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

INCH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.64%
Current annual income from Inchcape dividends. Estimated to be 4.82% next year.
If you bought £2,000 of Inchcape shares you are expected to receive £93 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Inchcape's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Inchcape's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
Upcoming dividend payment

Purchase Inchcape on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:INCH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:INCH Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.36 1.00
2022-12-31 0.29 2.00
2021-12-31 0.28 5.00
2020-12-31 0.27 6.00
2019-12-31 0.26 5.00
LSE:INCH Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-18 0.268 4.641
2019-02-28 0.268 4.668
2018-07-26 0.278 4.618
2018-03-14 0.268 3.626
2018-02-27 0.268 3.927
2017-03-15 0.238 3.005
2017-03-01 0.238 3.006
2016-04-04 0.209 3.074
2016-03-15 0.209 2.901
2015-07-30 0.206 2.771
2015-04-01 0.201 2.425
2015-03-10 0.201 2.526
2014-04-01 0.174 2.603
2014-03-11 0.174 2.730
2013-08-02 0.162 2.646
2013-03-12 0.145 2.769
2012-07-31 0.114 2.734
2012-03-13 0.110 3.128
2012-03-12 0.110 2.774
2011-07-28 0.072 2.248
2011-03-08 0.066 1.749
2011-03-07 0.066 1.681
2010-03-10 0.000 0.000
2010-03-01 0.000 0.000
2009-07-29 0.000 0.000
2009-03-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Inchcape has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Inchcape only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Inchcape's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Inchcape's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Inchcape afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Inchcape has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

INCH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stefan Bomhard
COMPENSATION £3,047,000
AGE 50
TENURE AS CEO 3.9 years
CEO Bio

Mr. Stefan Bomhard has been Group Chief Executive of Inchcape plc since April 2015. Mr. Bomhard served as the Regional President of Europe for Bacardi Limited since January 2011 until January 2015. He served as the Regional President of Europe, Middle East and Africa at Bacardi Limited from October 1, 2010 to January 2011. Mr. Bomhard served as Unit President at Bacardi Ltd. since October 1, 2010. He served at Kraft Foods as President for Kraft’s large European coffee business, based in Zurich. He served as Senior Vice President of Marketing for Burger King USA at Restaurant Brands International Inc. (alternative name Burger King Worldwide, Inc.) and served as its General Manager for Southern Europe since 2001 and Vice President of Marketing for EMEA since 1999. Mr. Bomhard served as Chief Commercial Officer for Cadbury Limited with worldwide responsibility for the marketing, category and sales functions of the chocolate, gum and candy brands since 2009. Since 2003, Mr. Bomhard joined Unilever N.V. as Senior Vice President of Marketing & Business Development for Foodsolutions with responsibility for several global customers. Since 2006, he served as the Chief Operating Officer for Foodsolutions Europe, based in Rotterdam with P&L responsibility for 30 Western and Eastern European countries. In 1999, Mr. Bomhard joined Diageo plc as Vice President of Marketing for Burger King EMEA, based in London. Mr. Bomhard started his career in 1991 with Procter & Gamble, where over a period of eight years he held various European marketing positions in Germany and Russia, including Brand Manager for Pampers in Europe and Marketing Manager for Russia. He serves as Non-Executive Director of Compass Group International B.V. He has been a Non-Executive Director of Compass Group PLC since May 05, 2016. He has been a Director of Inchcape plc since May 21, 2015. Mr. Bomhard has Undergraduate Business Degrees in European Business Administration from Middlesex University and ESB from Reutlingen University and a PhD in Marketing from Bradford University School of Management, the largest and longest-established management school Ph.D. program in Europe.

CEO Compensation
  • Stefan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Stefan's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Inchcape management team in years:

3.2
Average Tenure
48
Average Age
  • The tenure for the Inchcape management team is about average.
Management Team

Stefan Bomhard

TITLE
Group Chief Executive & Director
COMPENSATION
£3M
AGE
50
TENURE
3.9 yrs

Richard Howes

TITLE
CFO & Director
COMPENSATION
£1M
AGE
48
TENURE
2.9 yrs

Stéphane Chatal

TITLE
Group Chief Information Officer
TENURE
11.2 yrs

Bertrand Mallet

TITLE
Chief Development Officer
AGE
46

Alison Clarke

TITLE
Chief Human Resources Officer
TENURE
2.5 yrs

Jasmmine Wong

TITLE
Managing Director
AGE
42
TENURE
1.7 yrs

George Ashford

TITLE
Chief Executive Officer of Asia
AGE
51
TENURE
2.4 yrs

Aris Aravanis

TITLE
Chief Executive Officer of Continental Europe
TENURE
3.8 yrs

Tamsin Waterhouse

TITLE
Group Company Secretary

Ruslan Kinebas

TITLE
Chief Executive Officer of Emerging Markets
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Inchcape board of directors in years:

3.4
Average Tenure
54
Average Age
  • The tenure for the Inchcape board of directors is about average.
Board of Directors

Nigel Stein

TITLE
Chairman of the Board
COMPENSATION
£60K
AGE
62
TENURE
0.8 yrs

Stefan Bomhard

TITLE
Group Chief Executive & Director
COMPENSATION
£3M
AGE
50
TENURE
3.8 yrs

Richard Howes

TITLE
CFO & Director
COMPENSATION
£1M
AGE
48
TENURE
2.9 yrs

Till Vestring

TITLE
Non-Executive Director
COMPENSATION
£70K
AGE
53
TENURE
7.5 yrs

John Langston

TITLE
Non-Executive Director
COMPENSATION
£75K
AGE
68
TENURE
5.6 yrs

Coline McConville

TITLE
Non-Executive Director
COMPENSATION
£75K
AGE
54
TENURE
4.8 yrs

Nigel Northridge

TITLE
Senior Independent Director
COMPENSATION
£81K
AGE
62
TENURE
3.8 yrs

Rachel Empey

TITLE
Non-Executive Director
COMPENSATION
£60K
AGE
42
TENURE
2.8 yrs

Jerry Buhlmann

TITLE
Non-Executive Director
COMPENSATION
£50K
TENURE
2 yrs

Jane Kingston

TITLE
Non-Executive Director
AGE
60
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Inchcape insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
05. Mar 19 Buy Nigel Stein Individual 05. Mar 19 05. Mar 19 10,000 £5.90 £59,009
04. Mar 19 Buy Coline McConville Individual 04. Mar 19 04. Mar 19 337 £5.99 £2,019
04. Mar 19 Buy Till Vestring Individual 04. Mar 19 04. Mar 19 489 £5.99 £2,929
04. Mar 19 Buy John Langston Individual 04. Mar 19 04. Mar 19 337 £5.99 £2,019
03. Dec 18 Buy Coline McConville Individual 03. Dec 18 03. Dec 18 328 £6.00 £1,969
03. Dec 18 Buy Till Vestring Individual 03. Dec 18 03. Dec 18 462 £6.00 £2,773
03. Dec 18 Buy John Langston Individual 03. Dec 18 03. Dec 18 328 £6.00 £1,969
01. Aug 18 Buy Coline McConville Individual 01. Aug 18 01. Aug 18 279 £7.05 £1,967
01. Aug 18 Buy Till Vestring Individual 01. Aug 18 01. Aug 18 393 £7.05 £2,771
01. Aug 18 Buy John Langston Individual 01. Aug 18 01. Aug 18 279 £7.05 £1,967
08. Jun 18 Buy Nigel Stein Individual 07. Jun 18 07. Jun 18 26,500 £7.61 £201,533
01. Jun 18 Buy Till Vestring Individual 01. Jun 18 01. Jun 18 376 £7.37 £2,770
01. Jun 18 Buy Coline McConville Individual 01. Jun 18 01. Jun 18 267 £7.37 £1,967
01. Jun 18 Buy John Langston Individual 01. Jun 18 01. Jun 18 267 £7.37 £1,967
17. May 18 Sell Aris Aravanis Individual 14. May 18 14. May 18 -22,242 £7.46 £-166,010
X
Management checks
We assess Inchcape's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Inchcape has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

INCH News

Simply Wall St News

Volatility 101: Should Inchcape (LON:INCH) Shares Have Dropped 19%?

We regret to report that long term Inchcape plc (LON:INCH) shareholders have had that experience, with the share price dropping 19% in three years, versus a market return of about 68%. … To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … During the three years that the share price fell, Inchcape's earnings per share (EPS) dropped by 34% each year.

Simply Wall St -

Does Inchcape plc's (LON:INCH) CEO Pay Matter?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Stefan Bomhard's Compensation Compare With Similar Sized Companies. … According to our data, Inchcape plc has a market capitalization of UK£2.5b, and pays its CEO total annual compensation worth UK£3.0m.

Simply Wall St -

Should You Investigate Inchcape plc (LON:INCH) At UK£6.06?

saw a double-digit share price rise of over 10% in the past couple of months on the LSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain

Simply Wall St -

Inchcape plc (LON:INCH) Has Attractive Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … I've been keeping an eye on Inchcape plc (LON:INCH) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe INCH has a lot to offer.

Simply Wall St -

Intrinsic Calculation For Inchcape plc (LON:INCH) Shows Investors Are Overpaying

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Inchcape plc's (LON:INCH) ROE Of 17% Impressive?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every £1 worth of shareholders' equity, it generated £0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Must Know About Inchcape plc's (LON:INCH) Financial Strength

Mid-caps stocks, like Inchcape plc (LON:INCH) with a market capitalization of UK£2.2b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Inchcape plc (LON:INCH): A Look At Solid Capital Returns

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Inchcape plc's (LON:INCH) P/E Ratio Really That Good?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Inchcape has a price to earnings ratio of 9.9, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St -

Is Inchcape plc's (LON:INCH) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Stefan Bomhard's Compensation Compare With Similar Sized Companies. … Our data indicates that Inchcape plc is worth UK£2.3b, and total annual CEO compensation is UK£3.0m

Simply Wall St -

INCH Company Info

Description

Inchcape plc operates as an automotive distributor and retailer in the premium and luxury automotive sectors. The company sells and retails new and used cars of various brands. It also provides after sales servicing and parts; and vehicle finance and insurance products and services. The company operates in Asia, Australasia, the United Kingdom, Europe, Africa, South America, and Russia. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.

Details
Name: Inchcape plc
INCH
Exchange: LSE
Founded: 1847
£2,392,872,647
414,350,242
Website: http://www.inchcape.com
Address: Inchcape plc
22a St James’s Square,
London,
Greater London, SW1Y 5LP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE INCH Ordinary Shares London Stock Exchange GB GBP 07. Jun 1988
DB IJCA Ordinary Shares Deutsche Boerse AG DE EUR 07. Jun 1988
BATS-CHIXE INCHL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Jun 1988
OTCPK INCP.Y SPON ADR EACH REP 1 ORD SHS Pink Sheets LLC US USD 11. Jan 2011
OTCPK INCP.Y SPONSORED ADR Pink Sheets LLC US USD 20. Mar 2019
Number of employees
Current staff
Staff numbers
18,734
Inchcape employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 21:26
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/06
Last earnings filing: 2019/03/16
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.