Inspired Entertainment, Inc. Fundamental Analysis (NASDAQ: INSE)
Inspired Entertainment, Inc. Fundamental Analysis (NASDAQ: INSE)
Inspired Entertainment, Inc. (NASDAQ: INSE) shows moderate financial fundamentals with a PE ratio of -11.15, profit margin of -3.34%, and ROE of 70.68%. The company generates $0.3B in annual revenue with weak year-over-year growth of 2.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 270.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze INSE's fundamental strength across five key dimensions:
Efficiency Score
WeakINSE struggles to generate sufficient returns from assets.
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 -11.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INSE's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Inspired Entertainment, Inc. at -6.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.24 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 $-3.34 as profit after all expenses.
Operating Margin
Core operations generate 16.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $70.68 in profit for every $100 of shareholder equity.
ROA
Inspired Entertainment, Inc. generates $-2.39 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 $37.65M, showing steady but balanced cash generation.
Free Cash Flow
Inspired Entertainment, Inc. generates weak or negative free cash flow of $7.01M, restricting financial flexibility.
FCF Per Share
Each share generates $0.26 in free cash annually.
FCF Yield
INSE converts 8.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
-6.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-22.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.71
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How INSE Stacks Against Its Sector Peers
| Metric | INSE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.15 | 24.38 | Better (Cheaper) |
| ROE | 70.68% | 940.00% | Weak |
| Net Margin | -3.34% | -2412.00% (disorted) | Weak |
| Debt/Equity | -22.00 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 2.27 | 2.34 | Strong Liquidity |
| ROA | -2.39% | 356.00% | Weak |
INSE outperforms its industry in 3 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
18.20%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
76.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-24.23%
Industry Style: Cyclical, Growth, Discretionary
Declining