INSTONE REAL ESTATE GROUP SE (INS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:INS - DE000A2NBX80 - Common Stock
8.305 EUR
+0.11 (+1.28%)
We assign a fundamental rating of 4 out of 10 to INS. INS was compared to 77 industry peers in the Real Estate Management & Development industry. While INS is still in line with the averages on profitability rating, there are concerns on its financial health. INS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year INS was profitable.
- In the past year INS has reported a negative cash flow from operations.
- Each year in the past 5 years INS has been profitable.
- Each year in the past 5 years INS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.81%, INS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- With an excellent Return On Equity value of 8.22%, INS belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.28%, INS is in the better half of the industry, outperforming 70.13% of the companies in the same industry.
- INS had an Average Return On Invested Capital over the past 3 years of 4.38%. This is in line with the industry average of 3.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 8.22% | ||
| ROIC | 3.28% |
ROA(3y)1.66%
ROA(5y)2.61%
ROE(3y)5.3%
ROE(5y)7.29%
ROIC(3y)4.38%
ROIC(5y)5.76%
1.3 Margins
- With a decent Profit Margin value of 12.72%, INS is doing good in the industry, outperforming 61.04% of the companies in the same industry.
- In the last couple of years the Profit Margin of INS has declined.
- Looking at the Operating Margin, with a value of 12.49%, INS is in line with its industry, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Operating Margin of INS has declined.
- The Gross Margin of INS (24.19%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of INS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.49% | ||
| PM (TTM) | 12.72% | ||
| GM | 24.19% |
OM growth 3Y-11.37%
OM growth 5Y-7.83%
PM growth 3Y-13.8%
PM growth 5Y-12.12%
GM growth 3Y-3.52%
GM growth 5Y-4.26%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INS is destroying value.
- INS has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, INS has more shares outstanding
- Compared to 1 year ago, INS has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.34, we must say that INS is in the distress zone and has some risk of bankruptcy.
- INS has a better Altman-Z score (1.34) than 68.83% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that INS is somewhat dependend on debt financing.
- INS has a better Debt to Equity ratio (0.61) than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.6
WACC5.46%
2.3 Liquidity
- INS has a Current Ratio of 2.29. This indicates that INS is financially healthy and has no problem in meeting its short term obligations.
- INS has a Current ratio of 2.29. This is in the better half of the industry: INS outperforms 70.13% of its industry peers.
- INS has a Quick Ratio of 2.29. This is a bad value and indicates that INS is not financially healthy enough and could expect problems in meeting its short term obligations.
- INS has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- INS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 253.72%, which is quite impressive.
- Measured over the past years, INS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.52% on average per year.
- Looking at the last year, INS shows a very negative growth in Revenue. The Revenue has decreased by -13.35% in the last year.
- Measured over the past years, INS shows a decrease in Revenue. The Revenue has been decreasing by -3.13% on average per year.
EPS 1Y (TTM)253.72%
EPS 3Y-25.87%
EPS 5Y-16.52%
EPS Q2Q%336%
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y-16.3%
Revenue growth 5Y-3.13%
Sales Q2Q%2.5%
3.2 Future
- INS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.79% yearly.
- INS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y-1.23%
EPS Next 2Y16.21%
EPS Next 3Y17.68%
EPS Next 5Y30.79%
Revenue Next Year-16.33%
Revenue Next 2Y-0.29%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.22 indicates a rather cheap valuation of INS.
- Based on the Price/Earnings ratio, INS is valued cheaply inside the industry as 89.61% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, INS is valued rather cheaply.
- INS is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
- 89.61% of the companies in the same industry are more expensive than INS, based on the Price/Forward Earnings ratio.
- INS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
- INS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INS is cheaper than 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.83 |
4.3 Compensation for Growth
- INS's earnings are expected to grow with 17.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.21%
EPS Next 3Y17.68%
5. Dividend
5.1 Amount
- INS has a Yearly Dividend Yield of 5.82%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.16, INS pays a better dividend. On top of this INS pays more dividend than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, INS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 43.29% of the earnings are spent on dividend by INS. This is a bit on the high side, but may be sustainable.
DP43.29%
EPS Next 2Y16.21%
EPS Next 3Y17.68%
INSTONE REAL ESTATE GROUP SE / INS.DE FAQ
Can you provide the ChartMill fundamental rating for INSTONE REAL ESTATE GROUP SE?
ChartMill assigns a fundamental rating of 4 / 10 to INS.DE.
What is the valuation status of INSTONE REAL ESTATE GROUP SE (INS.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to INSTONE REAL ESTATE GROUP SE (INS.DE). This can be considered as Fairly Valued.
What is the profitability of INS stock?
INSTONE REAL ESTATE GROUP SE (INS.DE) has a profitability rating of 5 / 10.
What is the valuation of INSTONE REAL ESTATE GROUP SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INSTONE REAL ESTATE GROUP SE (INS.DE) is 7.22 and the Price/Book (PB) ratio is 0.64.
How financially healthy is INSTONE REAL ESTATE GROUP SE?
The financial health rating of INSTONE REAL ESTATE GROUP SE (INS.DE) is 3 / 10.