We assign a fundamental rating of 3 out of 10 to INST. INST was compared to 278 industry peers in the Software industry. INST may be in some trouble as it scores bad on both profitability and health. INST is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year INST was profitable.
In the past year INST had a positive cash flow from operations.
INST had negative earnings in each of the past 5 years.
Of the past 5 years INST 4 years had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -1.80%, INST perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With a Return On Equity value of -4.19%, INST perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.27%, INST is doing good in the industry, outperforming 66.07% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-1.8%
ROE	-4.19%
ROIC	1.27%

ROA(3y)-2.44%

ROA(5y)-7.63%

ROE(3y)-4.1%

ROE(5y)-17.24%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 6.68%, INST is in the better half of the industry, outperforming 73.57% of the companies in the same industry.
INST has a Gross Margin (66.28%) which is in line with its industry peers.
In the last couple of years the Gross Margin of INST has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	6.68%
PM (TTM)	N/A
GM	66.28%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y8.8%

GM growth 5Y-1.48%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INST is destroying value.
The number of shares outstanding for INST has been increased compared to 1 year ago.
The debt/assets ratio for INST has been reduced compared to a year ago.

2.2 Solvency

INST has an Altman-Z score of 1.28. This is a bad value and indicates that INST is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.28, INST is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
INST has a debt to FCF ratio of 10.83. This is a negative value and a sign of low solvency as INST would need 10.83 years to pay back of all of its debts.
The Debt to FCF ratio of INST (10.83) is comparable to the rest of the industry.
INST has a Debt/Equity ratio of 0.90. This is a neutral value indicating INST is somewhat dependend on debt financing.
The Debt to Equity ratio of INST (0.90) is worse than 74.64% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.9
Debt/FCF	10.83
Altman-Z	1.28

ROIC/WACC0.11

WACC12.02%

2.3 Liquidity

INST has a Current Ratio of 0.92. This is a bad value and indicates that INST is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.92, INST is doing worse than 77.86% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that INST may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, INST is doing worse than 77.50% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.92
Quick Ratio	0.92

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

INST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.64%, which is quite good.
The Revenue has grown by 11.58% in the past year. This is quite good.
Measured over the past years, INST shows a very strong growth in Revenue. The Revenue has been growing by 20.41% on average per year.

EPS 1Y (TTM)9.64%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-8%

Revenue 1Y (TTM)11.58%

Revenue growth 3Y20.62%

Revenue growth 5Y20.41%

Sales Q2Q%28.34%

3.2 Future

INST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.25% yearly.
INST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.05% yearly.

EPS Next Y0.86%

EPS Next 2Y4.72%

EPS Next 3Y7.25%

EPS Next 5YN/A

Revenue Next Year25.44%

Revenue Next 2Y17.22%

Revenue Next 3Y14.05%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.93, the valuation of INST can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of INST indicates a somewhat cheap valuation: INST is cheaper than 77.50% of the companies listed in the same industry.
INST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 25.02, INST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, INST is valued a bit cheaper than 74.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. INST is around the same levels.

		Industry Rank	Sector Rank
PE	25.93
Fwd PE	25.02

4.2 Price Multiples

80.00% of the companies in the same industry are more expensive than INST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INST is valued a bit cheaper than 77.14% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	30.89
EV/EBITDA	22.44

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INST does not grow enough to justify the current Price/Earnings ratio.

PEG (NY)30.19

PEG (5Y)N/A

EPS Next 2Y4.72%

EPS Next 3Y7.25%

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5. Dividend

5.1 Amount

INST does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Instructure Holdings Inc / INST FAQ

What is the ChartMill fundamental rating of Instructure Holdings Inc (INST) stock?

ChartMill assigns a fundamental rating of 3 / 10 to INST.

Can you provide the valuation status for Instructure Holdings Inc?

ChartMill assigns a valuation rating of 3 / 10 to Instructure Holdings Inc (INST). This can be considered as Overvalued.

What is the profitability of INST stock?

Instructure Holdings Inc (INST) has a profitability rating of 3 / 10.

What are the PE and PB ratios of Instructure Holdings Inc (INST) stock?

The Price/Earnings (PE) ratio for Instructure Holdings Inc (INST) is 25.93 and the Price/Book (PB) ratio is 2.73.

What is the earnings growth outlook for Instructure Holdings Inc?

The Earnings per Share (EPS) of Instructure Holdings Inc (INST) is expected to grow by 0.86% in the next year.