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 133 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
INSE had positive earnings in the past year.
INSE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: INSE reported negative net income in multiple 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 92.48% of its industry peers.
INSE has a Return On Invested Capital (6.05%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INSE is below the industry average of 13.97%.
The 3 year average ROIC (11.43%) for INSE is well above the current ROIC(6.05%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 23.88%, INSE belongs to the best of the industry, outperforming 97.74% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.55%, INSE is in line with its industry, outperforming 57.89% 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 69.50%, INSE belongs to the best of the industry, outperforming 83.46% 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 | 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.
Compared to 1 year ago, INSE has more shares outstanding
The number of shares outstanding for INSE has been increased compared to 5 years ago.
INSE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.06, we must say that INSE is in the distress zone and has some risk of bankruptcy.
INSE's Altman-Z score of -0.06 is on the low side compared to the rest of the industry. INSE is outperformed by 84.21% 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.
With a Debt to FCF ratio value of 15.57, INSE perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.57 | ||
| Altman-Z | -0.06 |
ROIC/WACC0.71
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.43 indicates that INSE should not have too much problems paying its short term obligations.
INSE has a Current ratio of 1.43. This is in the better half of the industry: INSE outperforms 71.43% of its industry peers.
INSE has a Quick Ratio of 1.16. This is a normal value and indicates that INSE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.16, INSE is doing good in the industry, outperforming 64.66% of the companies in the same industry.
| 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.
The Revenue has decreased by -8.63% in the past year.
The Revenue has been growing by 14.13% on average over the past years. This is quite good.
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
Based on estimates for the next years, INSE will show a very strong growth in Earnings Per Share. The EPS will grow by 665.63% on average per year.
INSE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.17% yearly.
EPS Next Y2271.5%
EPS Next 2Y523.26%
EPS Next 3Y665.63%
EPS Next 5YN/A
Revenue Next Year0.91%
Revenue Next 2Y1.06%
Revenue Next 3Y-9.17%
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
A Price/Earnings ratio of 34.00 indicates a quite expensive valuation of INSE.
INSE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.25. INSE is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 6.71 indicates a rather cheap valuation of INSE.
INSE's Price/Forward Earnings ratio is rather cheap when compared to the industry. INSE is cheaper than 93.98% of the companies in the same industry.
INSE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
89.47% of the companies in the same industry are more expensive than INSE, based on the Enterprise Value to EBITDA ratio.
INSE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INSE is cheaper than 92.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
INSE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INSE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as INSE's earnings are expected to grow with 665.63% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y523.26%
EPS Next 3Y665.63%
5. Dividend
5.1 Amount
No dividends for INSE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.82
-0.24 (-2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.82%
Inst Owner Change2.59%
Ins Owners4.23%
Ins Owner Change0.46%
Market Cap210.44M
Analysts80
Price Target13.06 (67.01%)
Short Float %2.94%
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)0%
PT rev (3m)-14.67%
EPS NQ rev (1m)-37.76%
EPS NQ rev (3m)-22.59%
EPS NY rev (1m)-28.83%
EPS NY rev (3m)14.87%
Revenue NQ rev (1m)-2.45%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 6.71 | ||
| P/S | 0.71 | ||
| P/FCF | 9.52 | ||
| P/OCF | 3.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.29 |
EPS(TTM)0.23
EY2.94%
EPS(NY)1.17
Fwd EY14.9%
FCF(TTM)0.82
FCFY10.5%
OCF(TTM)2.02
OCFY25.85%
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 | -0.06 |
F-Score5
WACC8.53%
ROIC/WACC0.71
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 Y2271.5%
EPS Next 2Y523.26%
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 Year0.91%
Revenue Next 2Y1.06%
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%