LSE:INCH

Stock Analysis Report

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Executive Summary

Inchcape plc operates as an automotive distributor and retailer.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

INCH

3.5%

GB Retail Distributors

2.8%

GB Market


1 Year Return

-7.4%

INCH

-6.9%

GB Retail Distributors

-7.7%

GB Market

Return vs Industry: INCH matched the UK Retail Distributors industry which returned -6.9% over the past year.

Return vs Market: INCH matched the UK Market which returned -7.6% over the past year.


Shareholder returns

INCHIndustryMarket
7 Day4.2%3.5%2.8%
30 Day12.4%2.6%2.2%
90 Day7.8%7.2%9.2%
1 Year-7.4%-7.4%-5.8%-6.9%-4.0%-7.7%
3 Year-34.9%-40.1%-11.1%-18.8%-3.4%-15.0%
5 Year-21.7%-32.1%6.8%-7.1%20.4%-6.4%

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

115.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INCH (£5.05) is trading above our estimate of fair value (£4.97)

Significantly Below Fair Value: INCH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INCH is poor value based on its PE Ratio (115.9x) compared to the XE Retail Distributors industry average (15.3x).

PE vs Market: INCH is poor value based on its PE Ratio (115.9x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: INCH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: INCH is overvalued based on its PB Ratio (1.8x) compared to the XE Retail Distributors industry average (1.7x).


Next Steps

Future Growth

How is Inchcape forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

103.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INCH's forecast earnings growth (103.2% per year) is above the savings rate (1.2%).

Earnings vs Market: INCH's earnings (103.2% per year) are forecast to grow faster than the UK market (23.1% per year).

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

Revenue vs Market: INCH's revenue (8.7% per year) is forecast to grow faster than the UK market (5.6% per year).

High Growth Revenue: INCH's revenue (8.7% 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 (15.2%).


Next Steps

  • Explore growth companies in the Retail industry.

Past Performance

How has Inchcape performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INCH has a large one-off loss of £227.9M impacting its June 30 2020 financial results.

Growing Profit Margin: INCH's current net profit margins (0.2%) are lower than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: INCH's earnings have declined by 8% 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 (-55.9%) over the past year, making it difficult to compare to the Retail Distributors industry average (-2.8%).


Return on Equity

High ROE: INCH's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Inchcape's financial position?


Financial Position Analysis

Short Term Liabilities: INCH's short term assets (£2.6B) exceed its short term liabilities (£2.2B).

Long Term Liabilities: INCH's short term assets (£2.6B) exceed its long term liabilities (£917.5M).


Debt to Equity History and Analysis

Debt Level: INCH's debt to equity ratio (157.7%) is considered high.

Reducing Debt: INCH's debt to equity ratio has increased from 32.7% to 157.7% over the past 5 years.

Debt Coverage: INCH's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: INCH's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.54%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INCH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: INCH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INCH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Duncan Tait (54 yo)

0.17

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Gijsbert de Zoeten
CFO & Executive Director0.92yrUK£719.40k0.017%
£ 345.6k
Duncan Tait
Group CEO & Director0.17yrno data0.011%
£ 220.8k
Mike Bowers
Group General Counsel0.58yrno datano data
Bertrand Mallet
Chief Development Officerno datano data0.011%
£ 217.7k
Alison Clarke
Chief Human Resources Officer3.92yrsno data0.012%
£ 235.6k
George Ashford
Chief Executive Officer of Inchcape APAC0.58yrno data0.0021%
£ 41.0k
Ruslan Kinebas
Chief Executive Officer of Americas & Africa0.58yrno datano data
Glafkos Persianis
Chief Executive Officer of Europe0.33yrno datano data
Aris Aravanis
Chief Executive Officer of Continental Europe5.17yrsno data0.016%
£ 327.3k
Tamsin Waterhouse
Group Company Secretaryno datano datano data
James Brearley
Chief Executive Officer of Inchcape UK3.58yrsno datano data
Jasmmine Wong
Chief Executive of Greater China & Singapore0.58yrno datano data

0.6yrs

Average Tenure

53yo

Average Age

Experienced Management: INCH's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gijsbert de Zoeten
CFO & Executive Director0.92yrUK£719.40k0.017%
£ 345.6k
Duncan Tait
Group CEO & Director0.17yrno data0.011%
£ 220.8k
Nigel Stein
Independent Chairman of the Board2.25yrsUK£322.00k0.017%
£ 338.8k
John Langston
Independent Non-Executive Director7yrsUK£77.00k0.0020%
£ 40.4k
Jane Kingston
Independent Non-Executive Director2.08yrsUK£67.00k0.00089%
£ 17.7k
Jerry Buhlmann
Non-Executive Director3.42yrsUK£73.00k0.0038%
£ 76.0k
Till Bernhard Vestring
Independent Non-Executive Director8.92yrsUK£74.00k0.0028%
£ 56.1k
Rachel Empey
Independent Non-Executive Director4.25yrsUK£60.00k0.0017%
£ 34.2k
Alexandra Jensen
Non-Executive Director0.58yrno datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: INCH's board of directors are not considered experienced ( 2.3 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 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£1.990b
  • 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
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. The company sells and distributes new and used cars. It also provides aftersales service, bodyshop repairs, and parts sales; and finance and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 20:42
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.