Inchcape Plc (INCH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Inchcape Plc

Vertu Motors Plc

Pets At Home Group Plc

Why is Inchcape Plc ?

Weak Long Term Fundamental Strength with a 33.04% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 5.88% and Operating profit at 33.04% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at GBP 819 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 7.57% (YoY)

With ROE of 23.46%, it has a expensive valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of 25.42%, its profits have fallen by -5.9% ; the PEG ratio of the company is 2.8

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Inchcape Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Inchcape Plc

25.42%

0.20

22.52%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.88%

EBIT Growth (5y)

33.04%

EBIT to Interest (avg)

5.42

Debt to EBITDA (avg)

0.58

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

4.22

Tax Ratio

35.59%

Dividend Payout Ratio

44.54%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

35.88%

ROE (avg)

15.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.25

EV to EBIT

5.62

EV to EBITDA

4.57

EV to Capital Employed

1.99

EV to Sales

0.35

PEG Ratio

2.79

Dividend Yield

4.47%

ROCE (Latest)

35.45%

ROE (Latest)

23.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 45.13%

CASH AND EQV(HY)

Highest at GBP 716 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 819 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 7.57% (YoY

DIVIDEND PER SHARE(HY)

Lowest at GBP 10.82

OPERATING PROFIT MARGIN(Q)

Lowest at 6.5 %

PRE-TAX PROFIT(Q)

Lowest at GBP 186 MM

NET PROFIT(Q)

Lowest at GBP 123.39 MM

EPS(Q)

Lowest at GBP 0.24

Here's what is working for Inchcape Plc

Cash and Eqv

Highest at GBP 716 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 45.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Inchcape Plc

Operating Cash Flow

Lowest at GBP 819 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Operating Profit Margin

Lowest at 6.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 186 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 123.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Dividend per share

Lowest at GBP 10.82

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 7.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales