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INSPIRED ENTERTAINMENT INC (INSE) Stock Fundamental Analysis

NASDAQ:INSE - Nasdaq - US45782N1081 - Common Stock - Currency: USD

7.54  +0.23 (+3.15%)

After market: 7.54 0 (0%)

Fundamental Rating

4

Taking everything into account, INSE scores 4 out of 10 in our fundamental rating. INSE was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. While INSE is still in line with the averages on profitability rating, there are concerns on its financial health. INSE is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

INSE had positive earnings in the past year.
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.
Each year in the past 5 years INSE had a positive operating cash flow.
INSE Yearly Net Income VS EBIT VS OCF VS FCFINSE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M

1.2 Ratios

With an excellent Return On Assets value of 14.78%, INSE belongs to the best of the industry, outperforming 91.91% of the companies in the same industry.
INSE's Return On Invested Capital of 5.54% is in line compared to the rest of the industry. INSE outperforms 50.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INSE is below the industry average of 14.17%.
The 3 year average ROIC (11.19%) for INSE is well above the current ROIC(5.54%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 14.78%
ROE N/A
ROIC 5.54%
ROA(3y)8.07%
ROA(5y)0.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.19%
ROIC(5y)7.47%
INSE Yearly ROA, ROE, ROICINSE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2017 2018 2019 2020 2021 2022 2023 2024 0 1K -1K 2K

1.3 Margins

Looking at the Profit Margin, with a value of 21.81%, INSE belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
The Operating Margin of INSE (10.33%) is comparable to the rest of the industry.
INSE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 68.93%, INSE belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
INSE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.33%
PM (TTM) 21.81%
GM 68.93%
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%
INSE Yearly Profit, Operating, Gross MarginsINSE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

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3

2. Health

2.1 Basic Checks

INSE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, INSE has more shares outstanding
Compared to 5 years ago, INSE has more shares outstanding
The debt/assets ratio for INSE has been reduced compared to a year ago.
INSE Yearly Shares OutstandingINSE Yearly Shares OutstandingYearly Shares Outstanding 2015 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
INSE Yearly Total Debt VS Total AssetsINSE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

Based on the Altman-Z score of -0.07, we must say that INSE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.07, INSE is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
The Debt to FCF ratio of INSE is 115.17, which is on the high side as it means it would take INSE, 115.17 years of fcf income to pay off all of its debts.
INSE has a worse Debt to FCF ratio (115.17) than 66.18% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 115.17
Altman-Z -0.07
ROIC/WACC0.69
WACC8.06%
INSE Yearly LT Debt VS Equity VS FCFINSE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

2.3 Liquidity

INSE has a Current Ratio of 1.54. 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 better Current ratio (1.54) than 75.00% of its industry peers.
A Quick Ratio of 1.27 indicates that INSE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.27, INSE is doing good in the industry, outperforming 71.32% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.27
INSE Yearly Current Assets VS Current LiabilitesINSE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

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3

3. Growth

3.1 Past

INSE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.00%.
INSE shows a decrease in Revenue. In the last year, the revenue decreased by -8.61%.
INSE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.13% yearly.
EPS 1Y (TTM)-88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-8.61%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%2.22%

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 Y3232%
EPS Next 2Y1016.21%
EPS Next 3Y665.63%
EPS Next 5YN/A
Revenue Next Year2.91%
Revenue Next 2Y3.22%
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.
INSE Yearly Revenue VS EstimatesINSE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
INSE Yearly EPS VS EstimatesINSE Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 5 10

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6

4. Valuation

4.1 Price/Earnings Ratio

INSE is valuated quite expensively with a Price/Earnings ratio of 251.33.
64.71% of the companies in the same industry are cheaper than INSE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.18. INSE is valued rather expensively when compared to this.
INSE is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
Based on the Price/Forward Earnings ratio, INSE is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.81. INSE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 251.33
Fwd PE 7.54
INSE Price Earnings VS Forward Price EarningsINSE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

85.29% of the companies in the same industry are more expensive than INSE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INSE is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 69.94
EV/EBITDA 6.86
INSE Per share dataINSE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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)0.08
PEG (5Y)N/A
EPS Next 2Y1016.21%
EPS Next 3Y665.63%

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0

5. Dividend

5.1 Amount

No dividends for INSE!.
Industry RankSector Rank
Dividend Yield N/A

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INSPIRED ENTERTAINMENT INC

NASDAQ:INSE (5/2/2025, 8:02:28 PM)

After market: 7.54 0 (0%)

7.54

+0.23 (+3.15%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-17 2025-03-17/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners86.82%
Inst Owner Change5.22%
Ins Owners4.23%
Ins Owner Change0.46%
Market Cap202.83M
Analysts80
Price Target13.06 (73.21%)
Short Float %2.94%
Short Ratio5
Dividend
Industry RankSector 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)-68.53%
Min EPS beat(2)-120.4%
Max EPS beat(2)-16.65%
EPS beat(4)0
Avg EPS beat(4)-362.14%
Min EPS beat(4)-1276.24%
Max EPS beat(4)-16.65%
EPS beat(8)0
Avg EPS beat(8)-221.97%
EPS beat(12)3
Avg EPS beat(12)-131.37%
EPS beat(16)5
Avg EPS beat(16)-100.25%
Revenue beat(2)1
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-6%
Max Revenue beat(2)0.84%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-6%
Max Revenue beat(4)0.84%
Revenue beat(8)5
Avg Revenue beat(8)0.49%
Revenue beat(12)9
Avg Revenue beat(12)2.39%
Revenue beat(16)13
Avg Revenue beat(16)5.75%
PT rev (1m)-14.67%
PT rev (3m)-14.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)27.16%
EPS NY rev (3m)33.24%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.39%
Valuation
Industry RankSector Rank
PE 251.33
Fwd PE 7.54
P/S 0.68
P/FCF 69.94
P/OCF 6.4
P/B N/A
P/tB N/A
EV/EBITDA 6.86
EPS(TTM)0.03
EY0.4%
EPS(NY)1
Fwd EY13.26%
FCF(TTM)0.11
FCFY1.43%
OCF(TTM)1.18
OCFY15.63%
SpS11.04
BVpS-0.12
TBVpS-3.7
PEG (NY)0.08
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 14.78%
ROE N/A
ROCE 9.18%
ROIC 5.54%
ROICexc 6.07%
ROICexgc 8.87%
OM 10.33%
PM (TTM) 21.81%
GM 68.93%
FCFM 0.98%
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%
ROICexcg growth 3Y146.73%
ROICexcg 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-Score6
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 115.17
Debt/EBITDA 4.2
Cap/Depr 66.51%
Cap/Sales 9.69%
Interest Coverage 1.15
Cash Conversion 42.84%
Profit Quality 4.48%
Current Ratio 1.54
Quick Ratio 1.27
Altman-Z -0.07
F-Score6
WACC8.06%
ROIC/WACC0.69
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)-88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y3232%
EPS Next 2Y1016.21%
EPS Next 3Y665.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.61%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%2.22%
Revenue Next Year2.91%
Revenue Next 2Y3.22%
Revenue Next 3Y-9.17%
Revenue Next 5YN/A
EBIT growth 1Y-36.83%
EBIT growth 3Y263.68%
EBIT growth 5YN/A
EBIT Next Year202.14%
EBIT Next 3Y45%
EBIT Next 5YN/A
FCF growth 1Y226.09%
FCF growth 3YN/A
FCF growth 5Y-1.95%
OCF growth 1Y-30.33%
OCF growth 3Y72.28%
OCF growth 5Y0.64%