INSPIRED ENTERTAINMENT INC (INSE)
US45782N1081 - Common Stock
INSE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. While INSE is still in line with the averages on profitability rating, there are concerns on its financial health. INSE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
INSE had positive earnings in the past year.
In the past year INSE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: INSE reported negative net income in multiple years.
INSE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.08%, INSE is doing worse than 63.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.00%, INSE is doing good in the industry, outperforming 70.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INSE is in line with the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | N/A | ||
| ROIC | 10% |
ROA(3y)-0.54%
ROA(5y)-4.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.27%
ROIC(5y)N/A
1.3 Margins
INSE has a Operating Margin of 12.69%. This is in the better half of the industry: INSE outperforms 61.54% of its industry peers.
INSE's Operating Margin has improved in the last couple of years.
INSE's Gross Margin of 67.24% is amongst the best of the industry. INSE outperforms 80.77% of its industry peers.
In the last couple of years the Gross Margin of INSE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.69% | ||
| PM (TTM) | N/A | ||
| GM | 67.24% |
OM growth 3Y30.82%
OM growth 5Y77.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.03%
GM growth 5Y-5.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INSE is still creating some value.
The number of shares outstanding for INSE has been increased compared to 1 year ago.
The number of shares outstanding for INSE has been increased compared to 5 years ago.
Compared to 1 year ago, INSE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.27, we must say that INSE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.27, INSE is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.27 |
ROIC/WACC1.19
WACC8.4%
2.3 Liquidity
INSE has a Current Ratio of 1.51. This is a normal value and indicates that INSE is financially healthy and should not expect problems in meeting its short term obligations.
INSE's Current ratio of 1.51 is fine compared to the rest of the industry. INSE outperforms 70.77% of its industry peers.
A Quick Ratio of 1.22 indicates that INSE should not have too much problems paying its short term obligations.
The Quick ratio of INSE (1.22) is better than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
INSE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.78%.
The Revenue has decreased by -7.63% in the past year.
Measured over the past years, INSE shows a quite strong growth in Revenue. The Revenue has been growing by 17.96% on average per year.
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y17.36%
Revenue growth 5Y17.96%
Sales Q2Q%-20%
3.2 Future
The Earnings Per Share is expected to grow by 40.69% on average over the next years. This is a very strong growth
INSE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.83% yearly.
EPS Next Y22.4%
EPS Next 2Y88.4%
EPS Next 3Y40.69%
EPS Next 5YN/A
Revenue Next Year-4.14%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
INSE is valuated quite expensively with a Price/Earnings ratio of 110.87.
Based on the Price/Earnings ratio, INSE is valued a bit more expensive than 66.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. INSE is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 10.00, the valuation of INSE can be described as very reasonable.
INSE's Price/Forward Earnings ratio is rather cheap when compared to the industry. INSE is cheaper than 93.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. INSE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.87 | ||
| Fwd PE | 10 |
4.2 Price Multiples
INSE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INSE is cheaper than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as INSE's earnings are expected to grow with 40.69% in the coming years.
PEG (NY)4.95
PEG (5Y)N/A
EPS Next 2Y88.4%
EPS Next 3Y40.69%
5. Dividend
5.1 Amount
No dividends for INSE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INSPIRED ENTERTAINMENT INC
NASDAQ:INSE (1/3/2025, 8:00:02 PM)
After market: 8.87 0 (0%)8.87
+0.04 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners89.2%
Inst Owner Change-15.77%
Ins Owners4.02%
Ins Owner Change0%
Market Cap235.76M
Analysts80
Price Target15.3 (72.49%)
Short Float %1.99%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.95%
Min EPS beat(2)-35.26%
Max EPS beat(2)-16.65%
EPS beat(4)0
Avg EPS beat(4)-357.03%
Min EPS beat(4)-1276.24%
Max EPS beat(4)-16.65%
EPS beat(8)0
Avg EPS beat(8)-213.72%
EPS beat(12)3
Avg EPS beat(12)-137.78%
EPS beat(16)6
Avg EPS beat(16)-82.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-6%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-6%
Max Revenue beat(4)8.72%
Revenue beat(8)5
Avg Revenue beat(8)1.96%
Revenue beat(12)9
Avg Revenue beat(12)2.87%
Revenue beat(16)13
Avg Revenue beat(16)13.4%
PT rev (1m)0%
PT rev (3m)1.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-41.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.87 | ||
| Fwd PE | 10 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 8.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.99 |
EPS(TTM)0.08
EY0.9%
EPS(NY)0.89
Fwd EY10%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)0.99
OCFY11.2%
SpS11.21
BVpS-2.95
TBVpS-6.83
PEG (NY)4.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | N/A | ||
| ROCE | 13.53% | ||
| ROIC | 10% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 19.91% | ||
| OM | 12.69% | ||
| PM (TTM) | N/A | ||
| GM | 67.24% | ||
| FCFM | N/A |
ROA(3y)-0.54%
ROA(5y)-4.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.27%
ROIC(5y)N/A
ROICexc(3y)11.9%
ROICexc(5y)N/A
ROICexgc(3y)25.92%
ROICexgc(5y)N/A
ROCE(3y)13.89%
ROCE(5y)N/A
ROICexcg growth 3Y18.07%
ROICexcg growth 5Y73.15%
ROICexc growth 3Y48.76%
ROICexc growth 5Y92.93%
OM growth 3Y30.82%
OM growth 5Y77.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.03%
GM growth 5Y-5.02%
F-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 89.74% | ||
| Cap/Sales | 12.62% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 33.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | -0.27 |
F-Score4
WACC8.4%
ROIC/WACC1.19
Cap/Depr(3y)93.23%
Cap/Depr(5y)80.47%
Cap/Sales(3y)13.63%
Cap/Sales(5y)14.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y22.4%
EPS Next 2Y88.4%
EPS Next 3Y40.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y17.36%
Revenue growth 5Y17.96%
Sales Q2Q%-20%
Revenue Next Year-4.14%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
EBIT growth 1Y-12.9%
EBIT growth 3Y53.54%
EBIT growth 5Y109.56%
EBIT Next Year134.25%
EBIT Next 3Y37.64%
EBIT Next 5YN/A
FCF growth 1Y-1118.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.48%
OCF growth 3Y-4.9%
OCF growth 5Y5.86%