INSPIRED ENTERTAINMENT INC (INSE) Stock Fundamental Analysis
NASDAQ:INSE - Nasdaq - US45782N1081 - Common Stock - Currency: USD
Taking everything into account, INSE scores 5 out of 10 in our fundamental rating. INSE was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of INSE while its profitability can be described as average. INSE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year INSE was profitable.
In the past year INSE had a positive cash flow from operations.
In multiple years INSE reported negative net income over the last 5 years.
INSE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INSE has a better Return On Assets (15.32%) than 92.42% of its industry peers.
INSE's Return On Invested Capital of 6.05% is in line compared to the rest of the industry. INSE outperforms 56.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INSE is below the industry average of 13.91%.
The last Return On Invested Capital (6.05%) for INSE is well below the 3 year average (11.43%), which needs to be investigated, but indicates that INSE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | N/A | ||
| ROIC | 6.05% |
ROA(3y)8.09%
ROA(5y)0.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.43%
ROIC(5y)7.63%
1.3 Margins
INSE has a Profit Margin of 23.88%. This is amongst the best in the industry. INSE outperforms 97.73% of its industry peers.
INSE's Operating Margin of 11.55% is fine compared to the rest of the industry. INSE outperforms 60.61% of its industry peers.
INSE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 69.50%, INSE belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
INSE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.55% | ||
| PM (TTM) | 23.88% | ||
| GM | 69.5% |
OM growth 3Y223.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.09%
GM growth 5Y-2.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INSE is still creating some value.
The number of shares outstanding for INSE has been increased compared to 1 year ago.
Compared to 5 years ago, INSE has more shares outstanding
The debt/assets ratio for INSE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.00, we must say that INSE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of INSE (0.00) is worse than 82.58% of its industry peers.
The Debt to FCF ratio of INSE is 15.57, which is on the high side as it means it would take INSE, 15.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.57, INSE is in line with its industry, outperforming 49.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.57 | ||
| Altman-Z | 0 |
ROIC/WACC0.7
WACC8.61%
2.3 Liquidity
INSE has a Current Ratio of 1.43. This is a normal value and indicates that INSE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.43, INSE is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that INSE should not have too much problems paying its short term obligations.
INSE has a Quick ratio of 1.16. This is in the better half of the industry: INSE outperforms 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 283.33% over the past year.
INSE shows a decrease in Revenue. In the last year, the revenue decreased by -8.63%.
Measured over the past years, INSE shows a quite strong growth in Revenue. The Revenue has been growing by 14.13% on average per year.
EPS 1Y (TTM)283.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-8.63%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%-4.28%
3.2 Future
INSE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 665.63% yearly.
INSE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.17% yearly.
EPS Next Y3356.68%
EPS Next 2Y549.31%
EPS Next 3Y665.63%
EPS Next 5YN/A
Revenue Next Year0.48%
Revenue Next 2Y1%
Revenue Next 3Y-9.17%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 41.22, the valuation of INSE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as INSE.
Compared to an average S&P500 Price/Earnings ratio of 27.50, INSE is valued a bit more expensive.
INSE is valuated cheaply with a Price/Forward Earnings ratio of 7.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INSE indicates a rather cheap valuation: INSE is cheaper than 94.70% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INSE to the average of the S&P500 Index (36.44), we can say INSE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.22 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INSE indicates a rather cheap valuation: INSE is cheaper than 87.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INSE is valued cheaply inside the industry as 90.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 6.83 |
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.
The decent profitability rating of INSE may justify a higher PE ratio.
INSE's earnings are expected to grow with 665.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y549.31%
EPS Next 3Y665.63%
5. Dividend
5.1 Amount
INSE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.48
-0.21 (-2.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners81.99%
Inst Owner Change1.92%
Ins Owners3.43%
Ins Owner Change0%
Market Cap255.11M
Analysts80
Price Target13.6 (43.46%)
Short Float %3.31%
Short Ratio5.31
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)0
Avg EPS beat(2)-110.2%
Min EPS beat(2)-120.4%
Max EPS beat(2)-100%
EPS beat(4)0
Avg EPS beat(4)-68.08%
Min EPS beat(4)-120.4%
Max EPS beat(4)-16.65%
EPS beat(8)0
Avg EPS beat(8)-220.03%
EPS beat(12)2
Avg EPS beat(12)-152.8%
EPS beat(16)4
Avg EPS beat(16)-108.84%
Revenue beat(2)1
Avg Revenue beat(2)-5.61%
Min Revenue beat(2)-12.07%
Max Revenue beat(2)0.84%
Revenue beat(4)1
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-12.07%
Max Revenue beat(4)0.84%
Revenue beat(8)4
Avg Revenue beat(8)-1.17%
Revenue beat(12)8
Avg Revenue beat(12)1.11%
Revenue beat(16)12
Avg Revenue beat(16)4.27%
PT rev (1m)11.11%
PT rev (3m)-11.11%
EPS NQ rev (1m)39.89%
EPS NQ rev (3m)-12.93%
EPS NY rev (1m)14.55%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-3.12%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.22 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.87 | ||
| P/FCF | 11.54 | ||
| P/OCF | 4.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.83 |
EPS(TTM)0.23
EY2.43%
EPS(NY)1.26
Fwd EY13.34%
FCF(TTM)0.82
FCFY8.66%
OCF(TTM)2.02
OCFY21.32%
SpS10.94
BVpS-0.07
TBVpS-3.75
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | N/A | ||
| ROCE | 9.83% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.82% | ||
| ROICexgc | 10.06% | ||
| OM | 11.55% | ||
| PM (TTM) | 23.88% | ||
| GM | 69.5% | ||
| FCFM | 7.51% |
ROA(3y)8.09%
ROA(5y)0.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.43%
ROIC(5y)7.63%
ROICexc(3y)13.06%
ROICexc(5y)8.8%
ROICexgc(3y)26.05%
ROICexgc(5y)19.23%
ROCE(3y)18.57%
ROCE(5y)12.39%
ROICexcg growth 3Y146.99%
ROICexcg growth 5YN/A
ROICexc growth 3Y217.1%
ROICexc growth 5YN/A
OM growth 3Y223.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.09%
GM growth 5Y-2.05%
F-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.57 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 67.29% | ||
| Cap/Sales | 10.97% | ||
| Interest Coverage | 1.21 | ||
| Cash Conversion | 66.34% | ||
| Profit Quality | 31.44% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 0 |
F-Score5
WACC8.61%
ROIC/WACC0.7
Cap/Depr(3y)91.79%
Cap/Depr(5y)77.31%
Cap/Sales(3y)12.86%
Cap/Sales(5y)13.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)283.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y3356.68%
EPS Next 2Y549.31%
EPS Next 3Y665.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.63%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%-4.28%
Revenue Next Year0.48%
Revenue Next 2Y1%
Revenue Next 3Y-9.17%
Revenue Next 5YN/A
EBIT growth 1Y-17.27%
EBIT growth 3Y263.42%
EBIT growth 5YN/A
EBIT Next Year196.85%
EBIT Next 3Y45%
EBIT Next 5YN/A
FCF growth 1Y452.5%
FCF growth 3YN/A
FCF growth 5Y-1.28%
OCF growth 1Y22.52%
OCF growth 3Y72.82%
OCF growth 5Y0.83%