Instructure Holdings Inc (INST)

US4577901030 - Common Stock

23.6  +0.02 (+0.08%)

After market: 25 +1.4 (+5.93%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to INST. INST was compared to 280 industry peers in the Software industry. INST has a bad profitability rating. Also its financial health evaluation is rather negative. INST is valied quite expensively at the moment, while it does show a decent growth rate.



3

1. Profitability

1.1 Basic Checks

In the past year INST was profitable.
In the past year INST had a positive cash flow from operations.
INST had negative earnings in each of the past 5 years.
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.
With a Return On Equity value of -4.19%, INST perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
The Return On Invested Capital of INST (1.27%) is better than 66.07% of its industry peers.
Industry RankSector 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

INST has a better Operating Margin (6.68%) than 73.57% of its industry peers.
The Gross Margin of INST (66.28%) is comparable to the rest of the industry.
INST's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

1

2. Health

2.1 Basic Checks

INST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

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.
The Altman-Z score of INST (1.28) is worse than 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 has a Debt to FCF ratio (10.83) which is in line with 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.
The Debt to Equity ratio of INST (0.90) is worse than 74.64% of its industry peers.
Industry RankSector 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.
Looking at the Quick ratio, with a value of 0.92, INST is doing worse than 77.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.92

6

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.
The Revenue has grown by 11.58% in the past year. This is quite good.
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

The Earnings Per Share is expected to grow by 7.25% on average over the next years.
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

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

3

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.
Based on the Price/Earnings ratio, INST is valued a bit cheaper than 77.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of INST to the average of the S&P500 Index (27.20), we can say INST is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.02, INST can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, INST is valued at the same level.
Industry RankSector Rank
PE 25.93
Fwd PE 25.02

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, INST is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
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 RankSector 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%

0

5. Dividend

5.1 Amount

No dividends for INST!.
Industry RankSector Rank
Dividend Yield N/A

Instructure Holdings Inc

NYSE:INST (11/12/2024, 8:11:18 PM)

After market: 25 +1.4 (+5.93%)

23.6

+0.02 (+0.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-08 2024-11-08/amc
Earnings (Next)N/A N/A
Inst Owners98.16%
Inst Owner Change1.69%
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 RankSector Rank
Dividend Yield N/A
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 RankSector 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 RankSector 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 RankSector 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%