Intertek Group Plc (ITRK) 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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Why is Intertek Group Plc ?

High Management Efficiency with a high ROCE of 25.58%

Poor long term growth as Operating profit has grown by an annual rate 7.87% of over the last 5 years

With a growth in Operating Profit of 20.08%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at GBP 1,139.9 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 90.34%
RAW MATERIAL COST(Y) Fallen by -8.39% (YoY)

With ROE of 36.35%, it has a very expensive valuation with a 8.27 Price to Book Value

Over the past year, while the stock has generated a return of 22.01%, its profits have risen by 2.6% ; the PEG ratio of the company is 3.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Intertek Group Plc should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Intertek Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Intertek Group Plc

22.01%

-0.51

33.83%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.59%

EBIT Growth (5y)

7.87%

EBIT to Interest (avg)

13.00

Debt to EBITDA (avg)

0.98

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.41

Tax Ratio

25.06%

Dividend Payout Ratio

75.65%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

25.58%

ROE (avg)

27.22%

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

8.27

EV to EBIT

17.16

EV to EBITDA

12.74

EV to Capital Employed

4.66

EV to Sales

2.92

PEG Ratio

3.11

Dividend Yield

297.50%

ROCE (Latest)

27.15%

ROE (Latest)

36.35%

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

OBV

Mildly Bearish

Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,139.9 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 90.34%

RAW MATERIAL COST(Y)

Fallen by -8.39% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 4.65

NET SALES(Q)

Highest at GBP 1,758.9 MM

OPERATING PROFIT(Q)

Highest at GBP 429.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.41 %

PRE-TAX PROFIT(Q)

Highest at GBP 296 MM

-5What is not working for the Company

INTEREST(HY)

At GBP 30.5 MM has Grown at 45.24%

INVENTORY TURNOVER RATIO(HY)

Lowest at 145.67 times

DEBT-EQUITY RATIO (HY)

Highest at 121.8 %

Here's what is working for Intertek Group Plc

Operating Cash Flow

Highest at GBP 1,139.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 90.34% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at GBP 1,758.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 429.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 24.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 296 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Dividend per share

Highest at GBP 4.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -8.39% (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

Depreciation

Highest at GBP 104.7 MM

in the last five periods

MOJO Watch

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

Depreciation (GBP MM)

Here's what is not working for Intertek Group Plc

Interest

At GBP 30.5 MM has Grown at 45.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Inventory Turnover Ratio

Lowest at 145.67 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at 121.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio