INSTONE REAL ESTATE GROUP SE (INS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:INS - DE000A2NBX80 - Common Stock
8.575 EUR
+0.08 (+1%)
Overall INS gets a fundamental rating of 4 out of 10. We evaluated INS against 71 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.
- INS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.81%, INS is doing good in the industry, outperforming 67.61% 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 80.28% of the companies in the same industry.
- With a decent Return On Invested Capital value of 3.28%, INS is doing good in the industry, outperforming 69.01% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for INS is in line with the industry average of 3.94%.
| 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
- INS's Profit Margin of 12.72% is in line compared to the rest of the industry. INS outperforms 59.15% of its industry peers.
- INS's Profit Margin has declined in the last couple of years.
- INS's Operating Margin of 12.49% is in line compared to the rest of the industry. INS outperforms 53.52% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INS is destroying value.
- INS has about the same amout of shares outstanding than it did 1 year ago.
- INS has more shares outstanding than it did 5 years ago.
- INS has a better debt/assets ratio than last year.
2.2 Solvency
- INS has an Altman-Z score of 1.35. This is a bad value and indicates that INS is not financially healthy and even has some risk of bankruptcy.
- INS has a better Altman-Z score (1.35) than 67.61% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that INS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, INS is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.6
WACC5.48%
2.3 Liquidity
- A Current Ratio of 2.29 indicates that INS has no problem at all paying its short term obligations.
- INS has a better Current ratio (2.29) than 70.42% 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.
- The Quick ratio of INS (0.81) 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.
- INS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.13% yearly.
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
- The Earnings Per Share is expected to grow by 30.79% on average over the next years. This is a very strong growth
- INS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y3.82%
EPS Next 2Y14.02%
EPS Next 3Y15.95%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.46, the valuation of INS can be described as very cheap.
- 87.32% of the companies in the same industry are more expensive than INS, based on the Price/Earnings ratio.
- INS is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.60, which indicates a very decent valuation of INS.
- INS's Price/Forward Earnings ratio is rather cheap when compared to the industry. INS is cheaper than 85.92% of the companies in the same industry.
- INS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INS is valued cheaper than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INS does not grow enough to justify the current Price/Earnings ratio.
- INS's earnings are expected to grow with 15.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.10%, INS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.22, INS pays a better dividend. On top of this INS pays more dividend than 84.51% of the companies listed in the same industry.
- INS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
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 2Y14.02%
EPS Next 3Y15.95%
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 7.46 and the Price/Book (PB) ratio is 0.66.
How financially healthy is INSTONE REAL ESTATE GROUP SE?
The financial health rating of INSTONE REAL ESTATE GROUP SE (INS.DE) is 3 / 10.