Inspired Entertainment, Inc.
Inspired Entertainment, Inc. Fundamental Analysis
Inspired Entertainment, Inc. (INSE) shows moderate financial fundamentals with a PE ratio of 4.22, profit margin of 18.00%, and ROE of -9.22%. The company generates $0.3B in annual revenue with weak year-over-year growth of -8.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -468.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INSE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINSE demonstrates superior asset utilization.
Valuation Score
ExcellentINSE trades at attractive valuation levels.
Growth Score
WeakINSE faces weak or negative growth trends.
Financial Health Score
ExcellentINSE maintains a strong and stable balance sheet.
Profitability Score
ModerateINSE maintains healthy but balanced margins.
Key Financial Metrics
Is INSE Expensive or Cheap?
P/E Ratio
INSE trades at 4.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INSE's PEG of -0.50 indicates potential undervaluation.
Price to Book
The market values Inspired Entertainment, Inc. at -25.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.32 times EBITDA. This is generally considered low.
How Well Does INSE Make Money?
Net Profit Margin
For every $100 in sales, Inspired Entertainment, Inc. keeps $18.00 as profit after all expenses.
Operating Margin
Core operations generate 9.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.22 in profit for every $100 of shareholder equity.
ROA
Inspired Entertainment, Inc. generates $11.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Inspired Entertainment, Inc. produces operating cash flow of $53.48M, showing steady but balanced cash generation.
Free Cash Flow
Inspired Entertainment, Inc. produces free cash flow of $23.36M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
INSE converts 11.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
-25.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-41.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-9.22
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How INSE Stacks Against Its Sector Peers
| Metric | INSE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.22 | 24.85 | Better (Cheaper) |
| ROE | -921.67% | 1165.00% | Weak |
| Net Margin | 18.00% | 749.00% | Weak |
| Debt/Equity | -41.76 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.82 | 9.23 | Neutral |
| ROA | 11.38% | 1271.00% | Weak |
INSE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Inspired Entertainment, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
234.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-20.74%
Industry Style: Cyclical, Growth, Discretionary
Declining