IHS HOLDING LTD (IHS) Stock Fundamental Analysis
NYSE:IHS - KYG4701H1092 - Common Stock
7.23 USD
-0.1 (-1.36%)
7.14 USD
-0.09 (-1.24%)
We assign a fundamental rating of 4 out of 10 to IHS. IHS was compared to 34 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of IHS while its profitability can be described as average. IHS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IHS had positive earnings in the past year.
IHS had a positive operating cash flow in the past year.
In the past 5 years IHS always reported negative net income.
Each year in the past 5 years IHS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.03%, IHS is in line with its industry, outperforming 41.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.82%, IHS belongs to the best of the industry, outperforming 94.12% 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 7.14%.
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
The Operating Margin of IHS (39.62%) is better than 100.00% of its industry peers.
IHS's Operating Margin has improved in the last couple of years.
IHS has a Gross Margin of 51.75%. This is comparable to the rest of the industry: IHS outperforms 47.06% of its industry peers.
In the last couple of years the Gross Margin of IHS has grown nicely.
| 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.
The number of shares outstanding for IHS has been increased compared to 1 year ago.
IHS has more shares outstanding than it did 5 years ago.
IHS has a worse debt/assets ratio than last year.
2.2 Solvency
IHS has an Altman-Z score of -0.56. This is a bad value and indicates that IHS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IHS (-0.56) is worse than 88.24% of its industry peers.
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.
IHS has a Debt to FCF ratio of 6.65. This is in the better half of the industry: IHS outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | -0.56 |
ROIC/WACC1.78
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.27 indicates that IHS should not have too much problems paying its short term obligations.
IHS has a Current ratio of 1.27. This is in the better half of the industry: IHS outperforms 61.76% of its industry peers.
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 better Quick ratio (1.21) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
IHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.46%, which is quite impressive.
Looking at the last year, IHS shows a very negative growth in Revenue. The Revenue has decreased by -19.49% in the last year.
The Revenue has been growing slightly by 6.81% on average over the past years.
EPS 1Y (TTM)104.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.78%
Revenue 1Y (TTM)-19.49%
Revenue growth 3Y2.7%
Revenue growth 5Y6.81%
Sales Q2Q%-0.48%
3.2 Future
The Earnings Per Share is expected to grow by 21.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, IHS will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y107.21%
EPS Next 2Y44.88%
EPS Next 3Y28.74%
EPS Next 5Y21.72%
Revenue Next Year1.93%
Revenue Next 2Y3.7%
Revenue Next 3Y4.4%
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
With a Price/Earnings ratio of 22.59, IHS is valued on the expensive side.
IHS's Price/Earnings is on the same level as the industry average.
IHS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.86, the valuation of IHS can be described as correct.
73.53% of the companies in the same industry are more expensive than IHS, based on the Price/Forward Earnings ratio.
IHS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
IHS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IHS is cheaper than 91.18% 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 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.08 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
IHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IHS may justify a higher PE ratio.
IHS's earnings are expected to grow with 28.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y44.88%
EPS Next 3Y28.74%
5. Dividend
5.1 Amount
IHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.23
-0.1 (-1.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners22.39%
Inst Owner Change0%
Ins Owners6.35%
Ins Owner Change0%
Market Cap2.43B
Analysts80
Price Target9.59 (32.64%)
Short Float %0.31%
Short Ratio0.62
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)5.62%
PT rev (3m)23.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.8%
EPS NY rev (1m)8.66%
EPS NY rev (3m)-6.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 14.86 | ||
| P/S | 1.4 | ||
| P/FCF | 4.08 | ||
| P/OCF | 2.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.47 |
EPS(TTM)0.32
EY4.43%
EPS(NY)0.49
Fwd EY6.73%
FCF(TTM)1.77
FCFY24.53%
OCF(TTM)2.54
OCFY35.19%
SpS5.17
BVpS-1.05
TBVpS-4.37
PEG (NY)0.21
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 | -0.56 |
F-Score5
WACC8.31%
ROIC/WACC1.78
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)104.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.78%
EPS Next Y107.21%
EPS Next 2Y44.88%
EPS Next 3Y28.74%
EPS Next 5Y21.72%
Revenue 1Y (TTM)-19.49%
Revenue growth 3Y2.7%
Revenue growth 5Y6.81%
Sales Q2Q%-0.48%
Revenue Next Year1.93%
Revenue Next 2Y3.7%
Revenue Next 3Y4.4%
Revenue Next 5Y5.19%
EBIT growth 1Y37.21%
EBIT growth 3Y6.12%
EBIT growth 5YN/A
EBIT Next Year148.18%
EBIT Next 3Y38.06%
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%