Instructure Holdings Inc (INST) Stock Fundamental Analysis
NYSE:INST - New York Stock Exchange, Inc. - US4577901030 - Common Stock - Currency: USD
Overall INST gets a fundamental rating of 3 out of 10. We evaluated INST against 283 industry peers in the Software industry. INST has a bad profitability rating. Also its financial health evaluation is rather negative. INST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year INST was profitable.
INST had a positive operating cash flow in the past year.
In the past 5 years INST always reported negative net income.
Of the past 5 years INST 4 years had a positive operating cash flow.
1.2 Ratios
INST has a Return On Assets (-1.80%) which 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 better Return On Invested Capital (1.27%) than 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
With a decent Operating Margin value of 6.68%, INST is doing good in the industry, outperforming 73.57% of the companies in the same industry.
INST's Gross Margin of 66.28% is in line compared to the rest of the industry. INST outperforms 47.14% of its industry peers.
In the last couple of years the Gross Margin of INST has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INST is destroying value.
INST has more shares outstanding than it did 1 year ago.
The number of shares outstanding for INST has been increased compared to 5 years ago.
INST has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that INST is in the distress zone and has some risk of bankruptcy.
INST has a Altman-Z score of 1.28. This is in the lower half of the industry: INST underperforms 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.
INST's Debt to FCF ratio of 10.83 is in line compared to the rest of the industry. INST outperforms 50.00% of its industry peers.
INST has a Debt/Equity ratio of 0.90. This is a neutral value indicating INST is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, INST is not doing good in the industry: 74.64% of the companies in the same industry are doing better.
| 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.
With a Current ratio value of 0.92, INST is not doing good in the industry: 77.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that INST may have some problems paying its short term obligations.
INST's Quick ratio of 0.92 is on the low side compared to the rest of the industry. INST is outperformed by 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.
Looking at the last year, INST shows a quite strong growth in Revenue. The Revenue has grown by 11.58% in the last year.
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
Based on estimates for the next years, INST will show a small growth in Earnings Per Share. The EPS will grow by 7.25% on average per year.
Based on estimates for the next years, INST will show a quite strong growth in Revenue. The Revenue will grow by 14.05% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.93, the valuation of INST can be described as expensive.
INST's Price/Earnings ratio is a bit cheaper when compared to the industry. INST is cheaper than 77.50% of the companies in the same industry.
INST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.62.
INST is valuated quite expensively with a Price/Forward Earnings ratio of 25.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INST indicates a somewhat cheap valuation: INST is cheaper than 74.64% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. INST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 25.02 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than INST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INST is valued a bit cheaper than 77.14% of the companies 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 an expensive valuation of the company.
PEG (NY)30.19
PEG (5Y)N/A
EPS Next 2Y4.72%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
No dividends for INST!.
| 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-99.98%
Ins Owners6.07%
Ins Owner Change-41.91%
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%