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 limited growth.


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

-1.4%

INCH

0.8%

GB Retail Distributors

-0.2%

GB Market


1 Year Return

-7.8%

INCH

-4.7%

GB Retail Distributors

-1.9%

GB Market

INCH underperformed the Retail Distributors industry which returned -4.7% over the past year.

INCH underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.8% over the past year.


Share holder returns

INCHIndustryMarket
7 Day-1.4%0.8%-0.2%
30 Day11.9%6.4%4.4%
90 Day4.5%4.9%0.5%
1 Year-3.6%-7.8%-1.6%-4.7%2.9%-1.9%
3 Year7.4%-4.0%8.6%-1.9%20.7%6.3%
5 Year11.6%-5.5%26.9%9.2%33.2%5.1%

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?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Inchcape is overvalued based on earnings compared to the Europe 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

Inchcape is poor value based on expected growth next year.


Price Based on Value of Assets

Inchcape is overvalued based on assets compared to the Europe Retail Distributors industry average.


Next Steps

Future Growth

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

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Inchcape's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Inchcape's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

Inchcape's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Inchcape's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Inchcape's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Inchcape is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 Europe Retail Distributors industry average.


Return on Equity

Inchcape has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Inchcape used its assets less efficiently than the Europe Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Inchcape's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Inchcape's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Inchcape's level of debt (150.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.9% vs 150.8% today).

Debt is not well covered by operating cash flow (15.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

4.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (5.41%).

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 9 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Stefan Bomhard (51yo)

4.4yrs

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

Stefan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Stefan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

51yo

Average Age

The tenure for the Inchcape management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

The tenure for the Inchcape board of directors is about average.


Insider Trading

More shares have been bought than sold by Inchcape individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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
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: 2.9yrs
  • 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: 4.4yrs
    • Compensation: UK£2.27m
  • Stéphane Chatal

    Group Chief Information Officer

    • Tenure: 11.7yrs
  • Ruslan Kinebas

    Chief Executive Officer of Emerging Markets

    • Tenure: 3.9yrs
  • Tamsin Waterhouse

    Group Company Secretary

    • Tenure: 0yrs
  • Alison Clarke

    Chief Human Resources Officer

    • Tenure: 3yrs
  • Jasmmine Wong (43yo)

    Managing Director

    • Tenure: 2.2yrs
  • Gijsbert de Zoeten (53yo)

    CFO & Executive Director

    • Tenure: 0yrs

Board Members

  • Nigel Stein (63yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: UK£218.00k
  • John Langston (69yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: UK£75.00k
  • Jane Kingston (61yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£26.00k
  • Jerry Buhlmann

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: UK£60.00k
  • Stefan Bomhard (51yo)

    Group CEO & Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£2.27m
  • Till Vestring (54yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: UK£70.00k
  • Rachel Empey (43yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£60.00k
  • Gijsbert de Zoeten (53yo)

    CFO & Executive Director

    • Tenure: 0yrs

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£2.588b
  • Shares outstanding: 403.68m
  • 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
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 Analysis2019/09/22 21:04
End of Day Share Price2019/09/20 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.