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.

Perfect Corp.

SoundHound AI, Inc.

Nerdy, Inc.

Cognyte Software Ltd.

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
NET PROFIT(Q) At USD 4 MM has Fallen at -74.8%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.09 times
INTEREST(Q) Highest at USD 12.5 MM

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 -29.12%, its profits have risen by 6440%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.12% 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.

-24.59%

-0.74

47.94%

S&P 500

16.12%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.78%

EBIT Growth (5y)

48.18%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

3.63

Net Debt to Equity (avg)

-132.64

Sales to Capital Employed (avg)

1.16

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

-20.54

EV to EBIT

12.82

EV to EBITDA

5.37

EV to Capital Employed

1.63

EV to Sales

1.62

PEG Ratio

Dividend Yield

ROCE (Latest)

12.72%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 57.7 MM

PRE-TAX PROFIT(Q)

At USD 3.3 MM has Grown at 135.71%

RAW MATERIAL COST(Y)

Fallen by 0.57% (YoY

NET SALES(Q)

Highest at USD 86.2 MM

OPERATING PROFIT(Q)

Highest at USD 30.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.27 %

-20What is not working for the Company

NET PROFIT(Q)

At USD 4 MM has Fallen at -74.8%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.09 times

INTEREST(Q)

Highest at USD 12.5 MM

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

Operating Cash Flow

Highest at USD 57.7 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)

Pre-Tax Profit

At USD 3.3 MM has Grown at 135.71%

over average net sales of the previous four periods of USD 1.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Sales

Highest at USD 86.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 30.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 35.27 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by 0.57% (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 Profit

At USD 4 MM has Fallen at -74.8%

over average net sales of the previous four periods of USD 15.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 12.5 MM has Grown at 76.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 4.09 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

Interest

Highest at USD 12.5 MM

in the last five periods and Increased by 76.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)