Instructure Holdings Inc (INST) Stock Fundamental Analysis
NYSE:INST - New York Stock Exchange, Inc. - US4577901030 - Common Stock - Currency: USD
Taking everything into account, INST scores 3 out of 10 in our fundamental rating. INST was compared to 282 industry peers in the Software industry. Both the profitability and financial health of INST have multiple concerns. While showing a medium growth rate, INST is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
INST had positive earnings in the past year.
In the past year INST had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -1.80%, INST is in line with its industry, outperforming 57.14% of the companies in the same industry.
INST has a Return On Equity (-4.19%) which is in line with its industry peers.
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
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.
Looking at the Gross Margin, with a value of 66.28%, INST is in line with its industry, outperforming 47.14% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INST is destroying value.
INST has more shares outstanding than it did 1 year ago.
INST has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INST has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.28, INST is doing worse than 62.50% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 10.83, INST is in line with its industry, outperforming 50.00% of the companies in the same industry.
INST has a Debt/Equity ratio of 0.90. This is a neutral value indicating INST is somewhat dependend on debt financing.
INST has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: INST underperforms 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
A Current Ratio of 0.92 indicates that INST may have some problems paying 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 has a Quick ratio of 0.92. This is in the lower half of the industry: INST underperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
INST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.64%, which is quite good.
INST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.58%.
The Revenue has been growing by 20.41% on average over the past years. This is a very strong growth!
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
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
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.
INST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.02 indicates a quite expensive valuation of INST.
Based on the Price/Forward Earnings ratio, INST is valued a bit cheaper than the industry average as 74.64% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of INST to the average of the S&P500 Index (21.76), 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
INST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INST is cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INST is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
| 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
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 Change0%
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%