Instructure Holdings Inc (INST) Stock Fundamental Analysis
NYSE:INST - New York Stock Exchange, Inc. - US4577901030 - Common Stock - Currency: USD
INST gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. INST has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, INST is valued expensive at the moment.
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.
INST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
INST's Return On Assets of -1.80% is in line compared to the rest of the industry. INST outperforms 57.14% of its industry peers.
Looking at the Return On Equity, with a value of -4.19%, INST is in line with its industry, outperforming 57.50% of the companies in the same industry.
INST's Return On Invested Capital of 1.27% is fine compared to the rest of the industry. INST outperforms 66.07% of its industry peers.
| 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
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.
INST's Gross Margin has been stable in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
INST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, INST has more shares outstanding
INST has more shares outstanding than it did 5 years ago.
INST has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of INST is 10.83, which is on the high side as it means it would take INST, 10.83 years of fcf income to pay off all of its debts.
INST has a Debt to FCF ratio (10.83) which is in line with its industry peers.
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 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.
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.
The Quick ratio of INST (0.92) is worse than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.64% over the past year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.93, which means the current valuation is very expensive for INST.
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.
The average S&P500 Price/Earnings ratio is at 26.55. INST is around the same levels.
Based on the Price/Forward Earnings ratio of 25.02, the valuation of INST can be described as expensive.
74.64% of the companies in the same industry are more expensive than INST, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of INST to the average of the S&P500 Index (22.40), we can say INST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 25.02 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INST indicates a somewhat cheap valuation: INST is cheaper than 77.14% of the companies listed 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%
5. Dividend
5.1 Amount
INST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.6
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change-91.04%
Ins Owners6.07%
Ins Owner Change0%
Market Cap3.47B
Analysts52.31
Price Target24.21 (2.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3YN/A
ROICexcg 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 Rank | Sector 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%