Instructure Holdings Inc (INST) Fundamental Analysis & Valuation

NYSE:INST • US4577901030

23.6 USD
+0.02 (+0.08%)
At close: Nov 12, 2024
25 USD
+1.4 (+5.93%)
After Hours: 11/12/2024, 8:11:18 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This INST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to INST. INST was compared to 277 industry peers in the Software industry. INST has a bad profitability rating. Also its financial health evaluation is rather negative. INST is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. INST Profitability Analysis

1.1 Basic Checks

  • INST had positive earnings in the past year.
  • INST had a positive operating cash flow in the past year.
  • In the past 5 years INST always reported negative net income.
  • INST had a positive operating cash flow in 4 of the past 5 years.
INST Yearly Net Income VS EBIT VS OCF VS FCFINST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

1.2 Ratios

  • The Return On Assets of INST (-1.80%) is comparable to the rest of the industry.
  • INST has a Return On Equity (-4.19%) which is in line with its industry peers.
  • INST has a Return On Invested Capital of 1.27%. This is in the better half of the industry: INST outperforms 66.07% of its industry peers.
Industry RankSector 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
INST Yearly ROA, ROE, ROICINST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

1.3 Margins

  • INST has a better Operating Margin (6.68%) than 73.57% of its industry peers.
  • INST has a Gross Margin (66.28%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of INST has remained more or less at the same level.
Industry RankSector 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%
INST Yearly Profit, Operating, Gross MarginsINST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 -60

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1

2. INST Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INST is destroying value.
  • Compared to 1 year ago, INST has more shares outstanding
  • The debt/assets ratio for INST has been reduced compared to a year ago.
INST Yearly Shares OutstandingINST Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
INST Yearly Total Debt VS Total AssetsINST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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.
  • INST has a worse Altman-Z score (1.28) than 62.50% of its industry peers.
  • 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.
  • A Debt/Equity ratio of 0.90 indicates that INST is somewhat dependend on debt financing.
  • INST's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. INST is outperformed by 74.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 10.83
Altman-Z 1.28
ROIC/WACC0.11
WACC12.02%
INST Yearly LT Debt VS Equity VS FCFINST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 0.92 indicates that INST may have some problems paying its short term obligations.
  • The Current ratio of INST (0.92) is worse than 77.86% of its industry peers.
  • INST has a Quick 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 Quick ratio, with a value of 0.92, INST is doing worse than 77.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.92
INST Yearly Current Assets VS Current LiabilitesINST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. INST Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.64% over the past year.
  • INST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.58%.
  • 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

  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
INST Yearly Revenue VS EstimatesINST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
INST Yearly EPS VS EstimatesINST Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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3

4. INST Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.93, which means the current valuation is very expensive for INST.
  • Based on the Price/Earnings ratio, INST is valued a bit cheaper than 77.50% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.45, INST is valued at the same level.
  • INST is valuated quite expensively with a Price/Forward Earnings ratio of 25.02.
  • Based on the Price/Forward Earnings ratio, INST is valued a bit cheaper than the industry average as 74.64% of the companies are valued more expensively.
  • INST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.65.
Industry RankSector Rank
PE 25.93
Fwd PE 25.02
INST Price Earnings VS Forward Price EarningsINST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, INST is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
  • 77.14% of the companies in the same industry are more expensive than INST, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.89
EV/EBITDA 22.44
INST Per share dataINST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. INST Dividend Analysis

5.1 Amount

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

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INST Fundamentals: All Metrics, Ratios and Statistics

Instructure Holdings Inc

NYSE:INST (11/12/2024, 8:11:18 PM)

After market: 25 +1.4 (+5.93%)

23.6

+0.02 (+0.08%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-08
Earnings (Next)N/A
Inst Owners98.16%
Inst Owner Change0%
Ins Owners6.07%
Ins Owner Change0%
Market Cap3.47B
Revenue(TTM)530.21M
Net Income(TTM)-53.34M
Analysts52.31
Price Target24.21 (2.58%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.76%
Min EPS beat(2)15.15%
Max EPS beat(2)46.37%
EPS beat(4)3
Avg EPS beat(4)20.51%
Min EPS beat(4)-0.74%
Max EPS beat(4)46.37%
EPS beat(8)5
Avg EPS beat(8)9.19%
EPS beat(12)9
Avg EPS beat(12)20.77%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.31%
Revenue beat(12)6
Avg Revenue beat(12)0.42%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0.56%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 25.93
Fwd PE 25.02
P/S 5.82
P/FCF 30.89
P/OCF 29.13
P/B 2.73
P/tB N/A
EV/EBITDA 22.44
EPS(TTM)0.91
EY3.86%
EPS(NY)0.94
Fwd EY4%
FCF(TTM)0.76
FCFY3.24%
OCF(TTM)0.81
OCFY3.43%
SpS4.05
BVpS8.65
TBVpS-8.15
PEG (NY)30.19
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -1.8%
ROE -4.19%
ROCE 1.6%
ROIC 1.27%
ROICexc 1.34%
ROICexgc N/A
OM 6.68%
PM (TTM) N/A
GM 66.28%
FCFM 18.85%
ROA(3y)-2.44%
ROA(5y)-7.63%
ROE(3y)-4.1%
ROE(5y)-17.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 10.83
Debt/EBITDA 5.62
Cap/Depr 4.17%
Cap/Sales 1.14%
Interest Coverage 0.61
Cash Conversion 58.77%
Profit Quality N/A
Current Ratio 0.92
Quick Ratio 0.92
Altman-Z 1.28
F-Score4
WACC12.02%
ROIC/WACC0.11
Cap/Depr(3y)3.87%
Cap/Depr(5y)13.03%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8%
EPS Next Y0.86%
EPS Next 2Y4.72%
EPS Next 3Y7.25%
EPS Next 5YN/A
Revenue 1Y (TTM)11.58%
Revenue growth 3Y20.62%
Revenue growth 5Y20.41%
Sales Q2Q%28.34%
Revenue Next Year25.44%
Revenue Next 2Y17.22%
Revenue Next 3Y14.05%
Revenue Next 5YN/A
EBIT growth 1Y477.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.52%
EBIT Next 3Y16.91%
EBIT Next 5YN/A
FCF growth 1Y19.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.16%
OCF growth 3YN/A
OCF growth 5Y339.52%

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.