LSE:INCH

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record.


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

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


Market Performance


7 Day Return

16.6%

INCH

8.8%

GB Retail Distributors

8.6%

GB Market


1 Year Return

-16.1%

INCH

-11.2%

GB Retail Distributors

-19.4%

GB Market

Return vs Industry: INCH underperformed the UK Retail Distributors industry which returned -17.8% over the past year.

Return vs Market: INCH matched the UK Market which returned -25.9% over the past year.


Shareholder returns

INCHIndustryMarket
7 Day16.6%8.8%8.6%
30 Day-11.3%-14.2%-3.5%
90 Day-28.5%-27.2%-23.0%
1 Year-12.2%-16.1%-8.2%-11.2%-15.5%-19.4%
3 Year-34.5%-41.5%-19.3%-27.3%-8.8%-19.9%
5 Year-29.2%-40.1%-1.9%-15.8%4.2%-19.0%

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 compared to its fair value and its price relative to the market?

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INCH (£4.21) is trading below our estimate of fair value (£8.46)

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


Price To Earnings Ratio

PE vs Industry: INCH is good value based on its PE Ratio (5.3x) compared to the Retail Distributors industry average (8.9x).

PE vs Market: INCH is good value based on its PE Ratio (5.3x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: INCH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: INCH is overvalued based on its PB Ratio (1.3x) compared to the XE Retail Distributors industry average (1x).


Next Steps

Future Growth

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

-10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INCH's earnings are forecast to decline over the next 3 years (-11.2% per year).

Earnings vs Market: INCH's earnings are forecast to decline over the next 3 years (-11.2% per year).

High Growth Earnings: INCH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: INCH's revenue (1.6% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: INCH's revenue (1.6% 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 (17.1%).


Next Steps

Past Performance

How has Inchcape performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INCH has high quality earnings.

Growing Profit Margin: INCH's current net profit margins (3.4%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: INCH's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: INCH's earnings growth over the past year (896.6%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: INCH earnings growth over the past year (896.6%) exceeded the Retail Distributors industry 28.4%.


Return on Equity

High ROE: Whilst INCH's Return on Equity (25.31%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Inchcape's financial position?


Financial Position Analysis

Short Term Liabilities: INCH's short term assets (£2.7B) exceed its short term liabilities (£2.3B).

Long Term Liabilities: INCH's short term assets (£2.7B) exceed its long term liabilities (£822.0M).


Debt to Equity History and Analysis

Debt Level: INCH's debt to equity ratio (130%) is considered high.

Reducing Debt: INCH's debt to equity ratio has increased from 48.7% to 130% over the past 5 years.

Debt Coverage: INCH's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: INCH's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INCH's dividend (6.36%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: INCH's dividend (6.36%) is low compared to the top 25% of dividend payers in the UK market (7.4%).


Stability and Growth of Payments

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 reasonably low payout ratio (33.9%), INCH's dividend payments are 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 (44.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

George Ashford (52yo)

3.5s

Tenure

Mr. George Ashford has been the Chief Executive Officer of Asia at Inchcape plc since October 6, 2016. Mr. Ashford served as the Chief Executive Officer and Director of Inchcape Australia Limited since Jan ...


Leadership Team

NamePositionTenureCompensationOwnership
Gijsbert de Zoeten
CFO & Executive Director0.58yrUK£719.40k0.010% £205.1k
Stefan Bomhard
Executive Director4.92yrsUK£1.64m0.11% £2.2m
Bertrand Mallet
Chief Development Officerno datano data0.0049% £95.6k
Alison Clarke
Chief Human Resources Officer3.58yrsno data0.012% £231.9k
George Ashford
Chief Executive Officer of Asia3.5yrsno data0.0021% £40.4k
Aris Aravanis
Chief Executive Officer of Continental Europe4.83yrsno data0.016% £322.2k
Tamsin Waterhouse
Group Company Secretaryno datano datano data
Ruslan Kinebas
Chief Executive Officer of Emerging Markets4.5yrsno datano data
Nick Senior
Chief Executive Officer of Australia3.5yrsno datano data
James Brearley
Chief Executive Officer of Inchcape UK3.25yrsno datano data

3.5yrs

Average Tenure

51.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Gijsbert de Zoeten
CFO & Executive Director0.58yrUK£719.40k0.010% £205.1k
Stefan Bomhard
Executive Director4.92yrsUK£1.64m0.11% £2.2m
Nigel Stein
Independent Chairman of the Board1.92yrsUK£322.00k0.012% £233.7k
John Langston
Non-Executive Director6.67yrsUK£77.00k0.0018% £35.5k
Jane Kingston
Non-Executive Director1.75yrsUK£67.00k0.00089% £17.4k
Jerry Buhlmann
Non-Executive Director3.08yrsUK£73.00k0.0038% £74.8k
Till Vestring
Non-Executive Director8.58yrsUK£74.00k0.011% £223.7k
Rachel Empey
Non-Executive Director3.92yrsUK£60.00k0.0017% £33.7k
Alexandra Jensen
Non-Executive Director0.25yrno datano data

3.1yrs

Average Tenure

54yo

Average Age

Experienced Board: INCH's board of directors are considered experienced (3.1 years average tenure).


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 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£1.959b
  • Shares outstanding: 392.41m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:08
End of Day Share Price2020/04/09 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.