INSPIRED ENTERTAINMENT INC (INSE) Stock Fundamental Analysis
USA - NASDAQ:INSE - US45782N1081 - Common Stock
8.34 USD
+0.21 (+2.58%)
8.34 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to INSE. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
INSE had negative earnings in the past year.
INSE had a positive operating cash flow in the past year.
In multiple years INSE reported negative net income over the last 5 years.
In the past 5 years INSE always reported a positive cash flow from operatings.
1.2 Ratios
INSE has a Return On Assets of 12.45%. This is amongst the best in the industry. INSE outperforms 88.64% of its industry peers.
The Return On Invested Capital of INSE (5.00%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for INSE is in line with the industry average of 10.94%.
The 3 year average ROIC (11.19%) for INSE is well above the current ROIC(5.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | N/A | ||
| ROIC | 5% |
ROA(3y)8.07%
ROA(5y)0.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.19%
ROIC(5y)7.47%
1.3 Margins
INSE has a better Profit Margin (20.26%) than 93.94% of its industry peers.
With a Operating Margin value of 10.77%, INSE perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
INSE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 69.84%, INSE belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
In the last couple of years the Gross Margin of INSE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 20.26% | ||
| GM | 69.84% |
OM growth 3Y223.39%
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), INSE is 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 -0.03, we must say that INSE is in the distress zone and has some risk of bankruptcy.
INSE has a Altman-Z score of -0.03. This is amonst the worse of the industry: INSE underperforms 82.58% of its industry peers.
The Debt to FCF ratio of INSE is 10.27, which is on the high side as it means it would take INSE, 10.27 years of fcf income to pay off all of its debts.
INSE has a Debt to FCF ratio of 10.27. This is comparable to the rest of the industry: INSE outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.27 | ||
| Altman-Z | -0.03 |
ROIC/WACC0.67
WACC7.41%
2.3 Liquidity
INSE has a Current Ratio of 1.69. This is a normal value and indicates that INSE is financially healthy and should not expect problems in meeting its short term obligations.
INSE has a Current ratio of 1.69. This is in the better half of the industry: INSE outperforms 78.79% of its industry peers.
A Quick Ratio of 1.43 indicates that INSE should not have too much problems paying its short term obligations.
The Quick ratio of INSE (1.43) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for INSE have decreased strongly by -375.00% in the last year.
The Revenue has decreased by -8.02% in the past year.
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)-375%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.38%
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%10.51%
3.2 Future
INSE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -160.31% yearly.
The Revenue is expected to decrease by -0.39% on average over the next years.
EPS Next Y469.5%
EPS Next 2Y382.24%
EPS Next 3Y-160.31%
EPS Next 5YN/A
Revenue Next Year2.36%
Revenue Next 2Y-0.16%
Revenue Next 3Y-0.39%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for INSE. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 11.95, which indicates a very decent valuation of INSE.
INSE's Price/Forward Earnings ratio is rather cheap when compared to the industry. INSE is cheaper than 80.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, INSE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
INSE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INSE is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INSE is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 6.77 |
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.
A cheap valuation may be justified as INSE's earnings are expected to decrease with -160.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y382.24%
EPS Next 3Y-160.31%
5. Dividend
5.1 Amount
No dividends for INSE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.34
+0.21 (+2.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.85%
Inst Owner Change-0.37%
Ins Owners3.43%
Ins Owner Change0%
Market Cap224.51M
Revenue(TTM)297.10M
Net Income(TTM)60.60M
Analysts80
Price Target13.6 (63.07%)
Short Float %3.61%
Short Ratio8.87
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)-184.48%
Min EPS beat(2)-268.96%
Max EPS beat(2)-100%
EPS beat(4)0
Avg EPS beat(4)-126.5%
Min EPS beat(4)-268.96%
Max EPS beat(4)-16.65%
EPS beat(8)0
Avg EPS beat(8)-248.04%
EPS beat(12)1
Avg EPS beat(12)-180.84%
EPS beat(16)4
Avg EPS beat(16)-116.61%
Revenue beat(2)1
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-12.07%
Max Revenue beat(2)4.45%
Revenue beat(4)2
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-12.07%
Max Revenue beat(4)4.45%
Revenue beat(8)4
Avg Revenue beat(8)-0.8%
Revenue beat(12)8
Avg Revenue beat(12)0.9%
Revenue beat(16)12
Avg Revenue beat(16)2.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-83.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.95 | ||
| P/S | 0.75 | ||
| P/FCF | 6.2 | ||
| P/OCF | 3.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.77 |
EPS(TTM)-0.22
EYN/A
EPS(NY)0.7
Fwd EY8.37%
FCF(TTM)1.34
FCFY16.12%
OCF(TTM)2.77
OCFY33.18%
SpS11.11
BVpS-0.35
TBVpS-4.12
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | N/A | ||
| ROCE | 8.29% | ||
| ROIC | 5% | ||
| ROICexc | 5.68% | ||
| ROICexgc | 8.07% | ||
| OM | 10.77% | ||
| PM (TTM) | 20.26% | ||
| GM | 69.84% | ||
| FCFM | 12.1% |
ROA(3y)8.07%
ROA(5y)0.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.19%
ROIC(5y)7.47%
ROICexc(3y)12.79%
ROICexc(5y)8.62%
ROICexgc(3y)25.48%
ROICexgc(5y)18.82%
ROCE(3y)18.56%
ROCE(5y)12.38%
ROICexgc growth 3Y146.73%
ROICexgc growth 5YN/A
ROICexc growth 3Y217.18%
ROICexc growth 5YN/A
OM growth 3Y223.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.09%
GM growth 5Y-2.05%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.27 | ||
| Debt/EBITDA | 4.57 | ||
| Cap/Depr | 79.46% | ||
| Cap/Sales | 12.81% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 92.66% | ||
| Profit Quality | 59.74% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | -0.03 |
F-Score7
WACC7.41%
ROIC/WACC0.67
Cap/Depr(3y)97.39%
Cap/Depr(5y)80.68%
Cap/Sales(3y)12.81%
Cap/Sales(5y)13.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-375%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.38%
EPS Next Y469.5%
EPS Next 2Y382.24%
EPS Next 3Y-160.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%10.51%
Revenue Next Year2.36%
Revenue Next 2Y-0.16%
Revenue Next 3Y-0.39%
Revenue Next 5YN/A
EBIT growth 1Y-15.49%
EBIT growth 3Y263.68%
EBIT growth 5YN/A
EBIT Next Year201.32%
EBIT Next 3Y48.78%
EBIT Next 5YN/A
FCF growth 1Y102.24%
FCF growth 3YN/A
FCF growth 5Y-1.95%
OCF growth 1Y32.33%
OCF growth 3Y72.28%
OCF growth 5Y0.64%
INSPIRED ENTERTAINMENT INC / INSE FAQ
What is the fundamental rating for INSE stock?
ChartMill assigns a fundamental rating of 4 / 10 to INSE.
Can you provide the valuation status for INSPIRED ENTERTAINMENT INC?
ChartMill assigns a valuation rating of 6 / 10 to INSPIRED ENTERTAINMENT INC (INSE). This can be considered as Fairly Valued.
How profitable is INSPIRED ENTERTAINMENT INC (INSE) stock?
INSPIRED ENTERTAINMENT INC (INSE) has a profitability rating of 6 / 10.
What is the earnings growth outlook for INSPIRED ENTERTAINMENT INC?
The Earnings per Share (EPS) of INSPIRED ENTERTAINMENT INC (INSE) is expected to grow by 469.5% in the next year.