INSPIRED ENTERTAINMENT INC (INSE) Stock Fundamental Analysis
NASDAQ:INSE - US45782N1081 - Common Stock
9.05 USD
-0.03 (-0.33%)
9.05 USD
0 (0%)
Overall INSE gets a fundamental rating of 3 out of 10. We evaluated INSE against 134 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year INSE has reported negative net income.
In the past year INSE had a positive cash flow from operations.
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
With an excellent Return On Assets value of 12.45%, INSE belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
INSE has a Return On Invested Capital of 5.00%. This is comparable to the rest of the industry: INSE outperforms 51.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INSE is below the industry average of 16.00%.
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 Profit Margin of 20.26%. This is amongst the best in the industry. INSE outperforms 94.03% of its industry peers.
Looking at the Operating Margin, with a value of 10.77%, INSE is in line with its industry, outperforming 59.70% of the companies in the same industry.
INSE's Operating Margin has improved in the last couple of years.
INSE has a Gross Margin of 69.84%. This is amongst the best in the industry. INSE outperforms 84.33% of its industry peers.
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
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
Compared to 1 year ago, INSE has an improved debt to assets ratio.
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 85.07% of its industry peers.
INSE has a debt to FCF ratio of 10.27. This is a negative value and a sign of low solvency as INSE would need 10.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.27, INSE is in line with its industry, outperforming 58.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.27 | ||
| Altman-Z | 0 |
ROIC/WACC0.6
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.69 indicates that INSE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, INSE is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
INSE has a Quick 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 Quick ratio, with a value of 1.43, INSE is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
INSE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1000.00%.
INSE shows a decrease in Revenue. In the last year, the revenue decreased by -5.77%.
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)-1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-485.71%
Revenue 1Y (TTM)-5.77%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%6.22%
3.2 Future
The Earnings Per Share is expected to decrease by -160.31% on average over the next years. This is quite bad
Based on estimates for the next years, INSE will show a small growth in Revenue. The Revenue will grow by 1.74% on average per year.
EPS Next Y1421.5%
EPS Next 2Y380.83%
EPS Next 3Y-160.31%
EPS Next 5YN/A
Revenue Next Year2.41%
Revenue Next 2Y2.6%
Revenue Next 3Y1.74%
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
INSE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 13.05, the valuation of INSE can be described as correct.
INSE's Price/Forward Earnings ratio is rather cheap when compared to the industry. INSE is cheaper than 81.34% of the companies in the same industry.
INSE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
INSE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INSE is cheaper than 89.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INSE indicates a rather cheap valuation: INSE is cheaper than 97.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.73 | ||
| EV/EBITDA | 6.6 |
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.
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 2Y380.83%
EPS Next 3Y-160.31%
5. Dividend
5.1 Amount
INSE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.05
-0.03 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.07%
Inst Owner Change1.78%
Ins Owners3.43%
Ins Owner Change0%
Market Cap243.63M
Analysts80
Price Target13.6 (50.28%)
Short Float %3.47%
Short Ratio4.68
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)-248.32%
EPS beat(12)1
Avg EPS beat(12)-181.03%
EPS beat(16)4
Avg EPS beat(16)-116.75%
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)4.17%
EPS NQ rev (1m)-40.76%
EPS NQ rev (3m)-25.71%
EPS NY rev (1m)-55.98%
EPS NY rev (3m)-35.84%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.05 | ||
| P/S | 0.81 | ||
| P/FCF | 6.73 | ||
| P/OCF | 3.27 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.6 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.69
Fwd EY7.66%
FCF(TTM)1.34
FCFY14.86%
OCF(TTM)2.77
OCFY30.58%
SpS11.11
BVpS-0.35
TBVpS-4.12
PEG (NY)N/A
PEG (5Y)N/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%
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-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.27 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 70.66% | ||
| Cap/Sales | 12.81% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 86.23% | ||
| Profit Quality | 59.74% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 0 |
F-Score7
WACC8.33%
ROIC/WACC0.6
Cap/Depr(3y)91.87%
Cap/Depr(5y)77.36%
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)-1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-485.71%
EPS Next Y1421.5%
EPS Next 2Y380.83%
EPS Next 3Y-160.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.77%
Revenue growth 3Y12.46%
Revenue growth 5Y14.13%
Sales Q2Q%6.22%
Revenue Next Year2.41%
Revenue Next 2Y2.6%
Revenue Next 3Y1.74%
Revenue Next 5YN/A
EBIT growth 1Y-15.49%
EBIT growth 3Y263.68%
EBIT growth 5YN/A
EBIT Next Year191.79%
EBIT Next 3Y45%
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%