Intertek Group plc
Intertek Group plc Fundamental Analysis
Intertek Group plc (IKTSF) shows moderate financial fundamentals with a PE ratio of 15.70, profit margin of 10.01%, and ROE of 31.07%. The company generates $3.4B in annual revenue with weak year-over-year growth of 1.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IKTSF's fundamental strength across five key dimensions:
Efficiency Score
WeakIKTSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIKTSF trades at attractive valuation levels.
Growth Score
ModerateIKTSF shows steady but slowing expansion.
Financial Health Score
ModerateIKTSF shows balanced financial health with some risks.
Profitability Score
ModerateIKTSF maintains healthy but balanced margins.
Key Financial Metrics
Is IKTSF Expensive or Cheap?
P/E Ratio
IKTSF trades at 15.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IKTSF's PEG of -6.71 indicates potential undervaluation.
Price to Book
The market values Intertek Group plc at 4.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.22 times EBITDA. This is generally considered low.
How Well Does IKTSF Make Money?
Net Profit Margin
For every $100 in sales, Intertek Group plc keeps $10.01 as profit after all expenses.
Operating Margin
Core operations generate 17.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.07 in profit for every $100 of shareholder equity.
ROA
Intertek Group plc generates $9.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intertek Group plc produces operating cash flow of $536.91M, showing steady but balanced cash generation.
Free Cash Flow
Intertek Group plc generates strong free cash flow of $392.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.56 in free cash annually.
FCF Yield
IKTSF converts 7.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How IKTSF Stacks Against Its Sector Peers
| Metric | IKTSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.70 | 25.55 | Better (Cheaper) |
| ROE | 31.07% | 1262.00% | Weak |
| Net Margin | 10.01% | -42065.00% (disorted) | Strong |
| Debt/Equity | 1.52 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.08 | 10.09 | Neutral |
| ROA | 9.13% | -1502268.00% (disorted) | Weak |
IKTSF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intertek Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
10.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
5.80%
Industry Style: Cyclical, Value, Infrastructure
Growing