LSE:INCH

Stock Analysis Report

Executive Summary

Inchcape plc operates as an automotive distributor and retailer in the premium and luxury automotive sectors.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

INCH

1.1%

GB Retail Distributors

2.0%

GB Market


1 Year Return

2.4%

INCH

2.8%

GB Retail Distributors

3.3%

GB Market

Return vs Industry: INCH matched the UK Retail Distributors industry which returned 2.8% over the past year.

Return vs Market: INCH matched the UK Market which returned 3.3% over the past year.


Share holder returns

INCHIndustryMarket
7 Day1.2%1.1%2.0%
30 Day-3.6%0.3%-1.0%
90 Day4.5%3.9%-1.7%
1 Year7.1%2.4%6.1%2.8%8.3%3.3%
3 Year2.9%-8.0%9.3%-1.3%19.0%4.5%
5 Year18.4%0.2%38.3%19.5%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: INCH (£6.27) is trading below our estimate of fair value (£7.57)

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


Price Based on Earnings

PE vs Industry: INCH is poor value based on its PE Ratio (48.3x) compared to the Retail Distributors industry average (10.6x).

PE vs Market: INCH is poor value based on its PE Ratio (48.3x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: INCH is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

PB vs Industry: INCH is overvalued based on its PB Ratio (1.9x) compared to the XE Retail Distributors industry average (1.4x).


Next Steps

Future Growth

How is Inchcape expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: INCH's forecast earnings growth (22.8% per year) is above the savings rate (1.2%).

Earnings vs Market: INCH's earnings (22.8% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: INCH's revenue (1.4% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: INCH's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: INCH's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Inchcape performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INCH's earnings have declined by -8.3% per year over the past 5 years.

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

Earnings vs Industry: INCH had negative earnings growth (-77.6%) over the past year, making it difficult to compare to the Retail Distributors industry average (-1.2%).


Return on Equity

High ROE: INCH's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: INCH's Return on Assets is below or equal to the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: INCH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Inchcape's financial position?


Financial Position Analysis

Short Term Liabilities: INCH's short term assets (£3.0B) exceeds its short term liabilities (£2.7B)

Long Term Liabilities: INCH's short term assets (3.0B) exceeds its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: INCH's debt to equity ratio (150.8%) is considered high

Reducing Debt: INCH's debt to equity ratio has increased from 23.9% to 150.8% over the past 5 years.

Debt Coverage: INCH's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: INCH's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: INCH's debt is covered by short term assets (assets are 1.457000x debt).


Next Steps

Dividend

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

4.27%

Expected Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.0%markettop25%5.4%industryaverage3.3%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: INCH's dividend (4.28%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: INCH's dividend (4.28%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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

Growing Dividend: INCH's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (206.7%), INCH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INCH's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Stefan Bomhard (51yo)

4.5yrs

Tenure

UK£2,269,000

Compensation

Mr. Stefan Bomhard has been Group Chief Executive Officer of Inchcape plc since April 2015. Mr. Bomhard served as the Regional President of Europe for Bacardi Limited since January 2011 until January 2015. ...


CEO Compensation Analysis

Compensation vs. Market: Stefan's total compensation ($USD2.88M) is about average for companies of similar size in the UK market ($USD2.29M).

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


Management Age and Tenure

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: INCH's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: INCH's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUK£14,00610 Oct 19
George Ashford
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Asia
Shares2,280
Max PriceUK£6.14
BuyUK£4,04001 Aug 19
John Langston
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares659
Max PriceUK£6.13
BuyUK£5,86601 Aug 19
Till Vestring
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares957
Max PriceUK£6.13
BuyUK£59,00905 Mar 19
Nigel Stein
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUK£5.90
BuyUK£2,92904 Mar 19
Till Vestring
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares489
Max PriceUK£5.99
BuyUK£2,01904 Mar 19
John Langston
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares337
Max PriceUK£5.99
BuyUK£2,01904 Mar 19
Coline McConville
EntityIndividual
Shares337
Max PriceUK£5.99
BuyUK£2,77303 Dec 18
Till Vestring
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares462
Max PriceUK£6.00
BuyUK£1,96903 Dec 18
John Langston
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares328
Max PriceUK£6.00
BuyUK£1,96903 Dec 18
Coline McConville
EntityIndividual
Shares328
Max PriceUK£6.00

Ownership Breakdown


Management Team

  • George Ashford (52yo)

    Chief Executive Officer of Asia

    • Tenure: 3yrs
  • Bertrand Mallet (47yo)

    Chief Development Officer

    • Tenure: 0yrs
  • Aris Aravanis

    Chief Executive Officer of Continental Europe

    • Tenure: 4.3yrs
  • Stefan Bomhard (51yo)

    Group CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£2.27m
  • Stéphane Chatal

    Group Chief Information Officer

    • Tenure: 11.8yrs
  • Ruslan Kinebas

    Chief Executive Officer of Emerging Markets

    • Tenure: 4yrs
  • Tamsin Waterhouse

    Group Company Secretary

    • Tenure: 0yrs
  • Alison Clarke

    Chief Human Resources Officer

    • Tenure: 3.1yrs
  • Jasmmine Wong (43yo)

    Managing Director

    • Tenure: 2.3yrs
  • Gijsbert de Zoeten (53yo)

    CFO & Executive Director

    • Tenure: 0.08yrs

Board Members

  • Nigel Stein (63yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: UK£218.00k
  • John Langston (69yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: UK£75.00k
  • Jane Kingston (61yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£26.00k
  • Jerry Buhlmann

    Senior Independent Director

    • Tenure: 0.6yrs
    • Compensation: UK£60.00k
  • Stefan Bomhard (51yo)

    Group CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£2.27m
  • Till Vestring (54yo)

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£70.00k
  • Rachel Empey (43yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£60.00k
  • Gijsbert de Zoeten (53yo)

    CFO & Executive Director

    • Tenure: 0.08yrs

Company Information

Inchcape plc's company bio, 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£2.517b
  • Shares outstanding: 401.83m
  • Website: https://www.inchcape.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INCP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNo data
IHCP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1988
INCHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1988
IJCADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1988
INCHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1988
INCP.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD SHSUSUSDJan 2011

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 22:30
End of Day Share Price2019/10/11 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.

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