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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

8x8, Inc.

Nerdy, Inc.

Perfect Corp.

Cognyte Software Ltd.

SoundHound AI, Inc.

Domo, Inc.

PLAYSTUDIOS, Inc.

American Software, Inc.

Inspired Entertainment, Inc.

FingerMotion, 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

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At USD -7.7 MM has Grown at -111.34%
PRE-TAX PROFIT(Q) At USD -1.2 MM has Fallen at -270,215,977,642,229,664%
INTEREST(HY) At USD 21.2 MM has Grown at 34.18%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 6.81%, its profits have fallen by -116.4%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.18% over the previous quarter and currently hold 0% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Underperformed the market in the last 1 year

The stock has generated a return of 6.81% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

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.

6.81%

-0.33

47.20%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.76%

EBIT Growth (5y)

22.52%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

3.63

Net Debt to Equity (avg)

-132.64

Sales to Capital Employed (avg)

1.11

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

NA (Loss Making)

Industry P/E

Price to Book Value

-11.16

EV to EBIT

13.24

EV to EBITDA

5.21

EV to Capital Employed

1.67

EV to Sales

1.61

PEG Ratio

Dividend Yield

ROCE (Latest)

12.63%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 53.2 MM

NET PROFIT(Q)

At USD -0.5 MM has Grown at 81.98%

RAW MATERIAL COST(Y)

Fallen by -11.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.72 times

OPERATING PROFIT MARGIN(Q)

Highest at 38.81 %

-21What is not working for the Company

NET PROFIT(HY)

At USD -7.7 MM has Grown at -111.34%

PRE-TAX PROFIT(Q)

At USD -1.2 MM has Fallen at -270,215,977,642,229,664%

INTEREST(HY)

At USD 21.2 MM has Grown at 34.18%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.75 times

NET SALES(Q)

Lowest at USD 57.2 MM

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

Operating Cash Flow

Highest at USD 53.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD -0.5 MM has Grown at 81.98%

over average net sales of the previous four periods of USD -2.77 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Profit Margin

Highest at 38.81 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 5.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.12% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Net Sales

At USD 57.2 MM has Fallen at -24.76%

over average net sales of the previous four periods of USD 76.02 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -1.2 MM has Fallen at -270,215,977,642,229,664%

over average net sales of the previous four periods of USD -0 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest

At USD 21.2 MM has Grown at 34.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 3.75 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at USD 57.2 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)