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 281 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
INST had positive earnings in the past year.
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
The Return On Assets of INST (-1.80%) is comparable to the rest of the industry.
INST has a Return On Equity (-4.19%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.27%, INST is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
| 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
INST has a Operating Margin of 6.68%. This is in the better half of the industry: INST outperforms 73.57% of its industry peers.
With a Gross Margin value of 66.28%, INST perfoms like the industry average, 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
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.
INST has more shares outstanding than it did 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.
INST's Altman-Z score of 1.28 is on the low side compared to the rest of the industry. INST is outperformed by 62.50% of its industry peers.
The Debt to FCF ratio of INST is 10.83, which is on the high side as it means it would take INST, 10.83 years of fcf income to pay off all of its debts.
INST has a Debt to FCF ratio of 10.83. This is comparable 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.
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
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.
Looking at the Current ratio, with a value of 0.92, INST is doing worse than 77.86% of the companies in the same industry.
INST has a Quick 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.
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.
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.
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
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.93 indicates a quite expensive valuation of INST.
Based on the Price/Earnings ratio, INST is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
INST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.98, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.02, INST can be considered very expensive at the moment.
74.64% of the companies in the same industry are more expensive than INST, based on the Price/Forward Earnings ratio.
INST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 25.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INST indicates a somewhat cheap valuation: INST is cheaper than 80.00% of the companies listed in the same industry.
INST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INST is 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 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 Change-0.2%
Ins Owners6.07%
Ins Owner Change-39.03%
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%