Inspired Entertainment, Inc. (INSE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cognyte Software Ltd.

Perfect Corp.

8x8, Inc.

SoundHound AI, Inc.

Nerdy, Inc.

Domo, Inc.

FingerMotion, Inc.

Inspired Entertainment, Inc.

American Software, Inc.

PLAYSTUDIOS, Inc.

LiveVox Holdings, Inc.

Why is Inspired Entertainment, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.01
PRE-TAX PROFIT(Q) At USD 1 MM has Fallen at -45.95%
RAW MATERIAL COST(Y) Grown by 6.27% (YoY)
NET PROFIT(Q) Lowest at USD -7.8 MM

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -18.50%, its profits have risen by 2121.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.50% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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 Software Products)

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

Is Inspired Entertainment, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Inspired Entertainment, Inc.

-8.44%

-0.31

48.48%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.40%

EBIT Growth (5y)

30.77%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

3.63

Net Debt to Equity (avg)

-132.64

Sales to Capital Employed (avg)

1.20

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.46%

ROE (avg)

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

-99.02

EV to EBIT

13.81

EV to EBITDA

6.04

EV to Capital Employed

1.76

EV to Sales

1.72

PEG Ratio

Dividend Yield

ROCE (Latest)

12.74%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 74.5 MM

INTEREST COVERAGE RATIO(Q)

Highest at 338.03

NET PROFIT(9M)

Higher at USD 60.1 MM

-13What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 1 MM has Fallen at -45.95%

RAW MATERIAL COST(Y)

Grown by 6.27% (YoY

NET PROFIT(Q)

Lowest at USD -7.8 MM

EPS(Q)

Lowest at USD -0.27

Here's what is working for Inspired Entertainment, Inc.

Interest Coverage Ratio

Highest at 338.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 74.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Depreciation

Highest at USD 16.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 16.1 MM has Grown at 41.23%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Inspired Entertainment, Inc.

Pre-Tax Profit

At USD 1 MM has Fallen at -45.95%

over average net sales of the previous four periods of USD 1.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -7.8 MM has Fallen at -142.56%

over average net sales of the previous four periods of USD 18.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Profit

Lowest at USD -7.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 6.27% (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