IHS HOLDING LTD (IHS) Stock Fundamental Analysis
NYSE:IHS - New York Stock Exchange, Inc. - KYG4701H1092 - Common Stock - Currency: USD
Taking everything into account, IHS scores 4 out of 10 in our fundamental rating. IHS was compared to 32 industry peers in the Diversified Telecommunication Services industry. IHS has a medium profitability rating, but doesn't score so well on its financial health evaluation. IHS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IHS has reported negative net income.
IHS had a positive operating cash flow in the past year.
IHS had negative earnings in each of the past 5 years.
Each year in the past 5 years IHS had a positive operating cash flow.
1.2 Ratios
IHS's Return On Assets of -1.03% is in line compared to the rest of the industry. IHS outperforms 46.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.82%, IHS belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
IHS had an Average Return On Invested Capital over the past 3 years of 9.60%. This is above the industry average of 7.13%.
The 3 year average ROIC (9.60%) for IHS is below the current ROIC(14.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.03% | ||
| ROE | N/A | ||
| ROIC | 14.82% |
ROA(3y)-27.43%
ROA(5y)-18%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.6%
ROIC(5y)8.76%
1.3 Margins
IHS has a Operating Margin of 39.62%. This is amongst the best in the industry. IHS outperforms 100.00% of its industry peers.
IHS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 51.75%, IHS perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
IHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.62% | ||
| PM (TTM) | N/A | ||
| GM | 51.75% |
OM growth 3Y3.33%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y6.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IHS is still creating some value.
IHS has more shares outstanding than it did 1 year ago.
IHS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IHS has a worse debt to assets ratio.
2.2 Solvency
IHS has an Altman-Z score of -0.61. This is a bad value and indicates that IHS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.61, IHS is doing worse than 87.50% of the companies in the same industry.
The Debt to FCF ratio of IHS is 6.65, which is on the high side as it means it would take IHS, 6.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IHS (6.65) is better than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | -0.61 |
ROIC/WACC1.8
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.27 indicates that IHS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.27, IHS is doing good in the industry, outperforming 65.63% of the companies in the same industry.
IHS has a Quick Ratio of 1.21. This is a normal value and indicates that IHS is financially healthy and should not expect problems in meeting its short term obligations.
IHS has a Quick ratio of 1.21. This is in the better half of the industry: IHS outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 98.67% over the past year.
IHS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.70%.
Measured over the past years, IHS shows a small growth in Revenue. The Revenue has been growing by 6.81% on average per year.
EPS 1Y (TTM)98.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%102.14%
Revenue 1Y (TTM)-10.7%
Revenue growth 3Y2.7%
Revenue growth 5Y6.81%
Sales Q2Q%5.23%
3.2 Future
Based on estimates for the next years, IHS will show a very strong growth in Earnings Per Share. The EPS will grow by 21.61% on average per year.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y106.63%
EPS Next 2Y45.48%
EPS Next 3Y28.76%
EPS Next 5Y21.61%
Revenue Next Year0.99%
Revenue Next 2Y2.88%
Revenue Next 3Y4.22%
Revenue Next 5Y5.19%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IHS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 10.55, the valuation of IHS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IHS indicates a rather cheap valuation: IHS is cheaper than 81.25% of the companies listed in the same industry.
IHS is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
IHS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IHS is cheaper than 90.63% of the companies in the same industry.
IHS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IHS is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IHS's earnings are expected to grow with 28.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.48%
EPS Next 3Y28.76%
5. Dividend
5.1 Amount
No dividends for IHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.04
+0.08 (+1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners22.41%
Inst Owner Change0%
Ins Owners6.35%
Ins Owner Change0%
Market Cap2.03B
Analysts80
Price Target8.98 (48.68%)
Short Float %0.33%
Short Ratio0.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)876.64%
Min EPS beat(2)31.31%
Max EPS beat(2)1721.96%
EPS beat(4)2
Avg EPS beat(4)119.93%
Min EPS beat(4)-886.1%
Max EPS beat(4)1721.96%
EPS beat(8)2
Avg EPS beat(8)-4862.14%
EPS beat(12)2
Avg EPS beat(12)-3671.69%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.76%
Min Revenue beat(2)2.24%
Max Revenue beat(2)5.28%
Revenue beat(4)4
Avg Revenue beat(4)2.41%
Min Revenue beat(4)0.65%
Max Revenue beat(4)5.28%
Revenue beat(8)8
Avg Revenue beat(8)3.08%
Revenue beat(12)12
Avg Revenue beat(12)3.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.39%
PT rev (3m)17.99%
EPS NQ rev (1m)4.31%
EPS NQ rev (3m)-50.61%
EPS NY rev (1m)-14.07%
EPS NY rev (3m)-19.16%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-2.24%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.55 | ||
| P/S | 1.17 | ||
| P/FCF | 3.41 | ||
| P/OCF | 2.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)-0.14
EYN/A
EPS(NY)0.57
Fwd EY9.47%
FCF(TTM)1.77
FCFY29.37%
OCF(TTM)2.54
OCFY42.13%
SpS5.17
BVpS-1.05
TBVpS-4.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.03% | ||
| ROE | N/A | ||
| ROCE | 18.76% | ||
| ROIC | 14.82% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 28.3% | ||
| OM | 39.62% | ||
| PM (TTM) | N/A | ||
| GM | 51.75% | ||
| FCFM | 34.34% |
ROA(3y)-27.43%
ROA(5y)-18%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.6%
ROIC(5y)8.76%
ROICexc(3y)10.85%
ROICexc(5y)10.15%
ROICexgc(3y)17.62%
ROICexgc(5y)16.87%
ROCE(3y)12.16%
ROCE(5y)11.08%
ROICexcg growth 3Y10.15%
ROICexcg growth 5YN/A
ROICexc growth 3Y14.01%
ROICexc growth 5YN/A
OM growth 3Y3.33%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y6.43%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 70.93% | ||
| Cap/Sales | 14.92% | ||
| Interest Coverage | 1.87 | ||
| Cash Conversion | 81.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | -0.61 |
F-Score5
WACC8.25%
ROIC/WACC1.8
Cap/Depr(3y)110.28%
Cap/Depr(5y)98.41%
Cap/Sales(3y)24.14%
Cap/Sales(5y)22.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)98.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%102.14%
EPS Next Y106.63%
EPS Next 2Y45.48%
EPS Next 3Y28.76%
EPS Next 5Y21.61%
Revenue 1Y (TTM)-10.7%
Revenue growth 3Y2.7%
Revenue growth 5Y6.81%
Sales Q2Q%5.23%
Revenue Next Year0.99%
Revenue Next 2Y2.88%
Revenue Next 3Y4.22%
Revenue Next 5Y5.19%
EBIT growth 1Y37.21%
EBIT growth 3Y6.12%
EBIT growth 5YN/A
EBIT Next Year130.04%
EBIT Next 3Y37.75%
EBIT Next 5Y26.84%
FCF growth 1Y47.54%
FCF growth 3Y9.8%
FCF growth 5Y3.71%
OCF growth 1Y-14.13%
OCF growth 3Y-0.94%
OCF growth 5Y2.59%