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Inchcape (GB:INCH)
LSE:INCH

Inchcape (INCH) AI Stock Analysis

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Inchcape

(LSE:INCH)

73Outperform
Inchcape exhibits strong financial performance with solid profitability and improved capital structure. The technical analysis shows moderate bullish momentum, while the valuation metrics highlight an attractive investment proposition. Recent corporate actions, including share buybacks and insider purchases, further bolster confidence in the company's future growth and shareholder value enhancement.
Positive Factors
Business Strategy
The recent exit from Retail positions Inchcape as a pure-play Distribution business, which should command a higher valuation multiple due to higher margins, higher returns, and strong cash flow.
Share Buyback
A new £250m share buyback underscores Inchcape's qualities as a cash generator.
Negative Factors
Trading Performance
Negative 3Q organic growth, rather than the FX related downgrade, will likely mute near term share price performance.

Inchcape (INCH) vs. S&P 500 (SPY)

Inchcape Business Overview & Revenue Model

Company DescriptionInchcape plc is a global automotive distributor and retailer headquartered in London, United Kingdom. The company operates across multiple sectors, primarily focusing on the distribution, retail, and servicing of vehicles. Inchcape partners with some of the world's leading automotive brands, providing a wide range of products and services, including new and used car sales, parts distribution, and vehicle servicing and maintenance.
How the Company Makes MoneyInchcape makes money through its diverse revenue streams, primarily from the distribution and retail of vehicles. The company acts as an intermediary between car manufacturers and customers, earning revenue from the sale of new and used vehicles. Additionally, Inchcape generates income from aftersales services, such as vehicle servicing, maintenance, and parts distribution. The company also benefits from its strategic partnerships with major automotive brands, which often provide exclusive distribution rights and enhance its market position. Financial services, including vehicle financing and insurance products, further contribute to Inchcape's earnings, allowing it to offer comprehensive solutions to its customer base.

Inchcape Financial Statement Overview

Summary
Inchcape demonstrates strong financial health with significant revenue and margin growth, reduced leverage, and improved shareholder returns. However, recent revenue fluctuations suggest some market pressures.
Income Statement
78
Positive
Inchcape has shown a strong revenue growth trajectory over the years, with significant increases in both gross and net profit margins. The revenue growth rate from 2020 to 2021 was impressive, indicating a robust recovery and expansion effort. The EBIT and EBITDA margins have also improved, demonstrating enhanced operational efficiency. However, the slight decrease in revenue and earnings in the latest year indicates potential market pressures or strategic adjustments.
Balance Sheet
72
Positive
The company maintains a solid equity ratio, showcasing a strong capital structure with significant shareholder equity. The decrease in debt-to-equity ratio over time reflects a positive trend in managing leverage, though the absolute level of debt remains considerable. The return on equity has improved, indicating better utilization of shareholder funds, although fluctuations in net income have impacted stability.
Cash Flow
75
Positive
Inchcape's cash flow statements highlight a healthy operating cash flow to net income ratio, indicating effective conversion of profits into cash. The free cash flow growth rate has been positive, supporting reinvestment and debt servicing. However, the volatility in investing and financing cash flows suggests potential strategic shifts or external market influences impacting cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.54B9.26B11.45B8.13B6.90B6.84B
Gross Profit
1.78B1.61B1.94B1.21B951.50M773.10M
EBIT
639.30M562.00M652.00M410.40M304.20M135.40M
EBITDA
707.00M740.00M814.00M492.10M287.40M11.70M
Net Income Common Stockholders
257.90M421.00M270.00M245.30M117.00M-142.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
642.30M549.00M689.00M1.06B596.60M481.40M
Total Assets
5.13B5.64B7.14B6.96B3.56B3.61B
Total Debt
628.80M1.04B3.61B3.36B541.70M550.80M
Net Debt
39.50M492.00M2.92B2.30B-54.70M69.60M
Total Liabilities
3.77B4.16B5.52B5.40B2.43B2.55B
Stockholders Equity
1.34B1.38B1.52B1.53B1.11B1.04B
Cash FlowFree Cash Flow
520.50M507.00M500.00M425.00M312.40M207.30M
Operating Cash Flow
611.80M586.00M593.00M493.50M377.00M249.20M
Investing Cash Flow
-204.10M328.00M-195.00M-475.40M14.40M8.00M
Financing Cash Flow
-414.40M-890.00M-934.00M366.50M-213.90M-159.90M

Inchcape Technical Analysis

Technical Analysis Sentiment
Positive
Last Price712.50
Price Trends
50DMA
698.67
Positive
100DMA
729.62
Negative
200DMA
763.88
Negative
Market Momentum
MACD
6.89
Negative
RSI
60.53
Neutral
STOCH
66.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INCH, the sentiment is Positive. The current price of 712.5 is above the 20-day moving average (MA) of 681.90, above the 50-day MA of 698.67, and below the 200-day MA of 763.88, indicating a neutral trend. The MACD of 6.89 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INCH.

Inchcape Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSRE
81
Outperform
£1.24B9.289.47%5.21%7.24%178.76%
75
Outperform
£6.85B25.2650.14%1.26%11.68%21.35%
GBVTU
74
Outperform
£168.82M9.485.36%4.40%7.94%-25.81%
73
Outperform
£2.80B11.5217.51%4.94%6.84%10.11%
60
Neutral
$12.39B10.471.07%3.58%1.64%-18.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:INCH
Inchcape
711.50
96.37
15.67%
GB:VTU
Vertu Motors
52.50
-11.27
-17.67%
GB:SRE
Sirius Real Estate
82.55
-3.59
-4.17%
GB:AUTO
Auto Trader
757.00
10.82
1.45%

Inchcape Corporate Events

Stock Buyback
Inchcape Advances Share Buyback Program with Latest Purchase
Positive
Mar 12, 2025

Inchcape plc has announced the purchase of 155,857 ordinary shares as part of its ongoing share buyback program, initiated on 4 March 2025. The company plans to cancel these shares, reducing the total number of shares in issue to 393,190,102. This move is part of a larger effort, with a total of 704,917 shares purchased since the program’s inception, costing £4,977,990.75. The buyback is aimed at optimizing the capital structure and potentially enhancing shareholder value.

Stock BuybackBusiness Operations and Strategy
Inchcape plc Advances Share Buyback Programme with Latest Purchase
Positive
Mar 11, 2025

Inchcape plc has announced the purchase of 155,499 of its ordinary shares as part of its share buyback programme, which was initiated on 4 March 2025. The shares were bought at a volume-weighted average price of 712.27 pence per share and will be cancelled, reducing the total number of shares in issue to 393,345,959. Since the start of the programme, the company has acquired 549,060 shares at a total cost of £3,867,876.20. This move is part of Inchcape’s strategy to enhance shareholder value and optimize its capital structure.

Stock Buyback
Inchcape PLC Advances Share Buyback Programme
Neutral
Mar 10, 2025

Inchcape PLC, a company involved in a share buyback programme, announced the purchase of 141,373 of its ordinary shares at a volume-weighted average price of 720.69 pence per share, which will be canceled and not held in treasury. This purchase is part of a larger buyback initiative started on 4 March 2025, resulting in a total of 393,561 shares bought for £2,760,298.50, reducing the total number of shares in issue to 393,501,458.

Stock BuybackBusiness Operations and Strategy
Inchcape Announces Share Buyback Programme
Positive
Mar 6, 2025

Inchcape plc has announced the purchase of 76,928 of its ordinary shares as part of a share buyback programme initiated on March 4, 2025. The company intends to cancel these shares, which will reduce the total number of shares in issue to 393,643,011. This move is part of a broader strategy to manage its capital structure and potentially enhance shareholder value.

Other
Inchcape Directors Increase Shareholding, Signaling Confidence
Positive
Mar 6, 2025

Inchcape plc announced that three of its Non-Executive Directors, Byron Grote, Alex Jensen, and Sarah Kuijlaars, have purchased ordinary shares in the company. These transactions, conducted on the London Stock Exchange, reflect a vote of confidence in the company’s future prospects and may positively influence stakeholder perception.

Stock BuybackBusiness Operations and Strategy
Inchcape Initiates Share Buyback Programme with 175,080 Share Purchase
Positive
Mar 5, 2025

Inchcape plc has announced the purchase of 175,080 of its ordinary shares as part of its share buyback programme, which was initiated on March 4, 2025. The shares were acquired through Jefferies International Limited at a volume-weighted average price of 679.57 pence per share, with the total cost amounting to £1,189,787.83. The company intends to cancel these shares, reducing its total number of ordinary shares in issue to 393,719,939. This move is part of Inchcape’s strategy to enhance shareholder value and optimize its capital structure.

Other
Inchcape Directors Increase Shareholdings, Signaling Confidence
Positive
Mar 5, 2025

Inchcape plc announced that several of its directors, including the Chairman and the Group Chief Executive, have purchased ordinary shares in the company. This move, conducted on March 4, 2025, is in accordance with the Market Abuse Regulation and reflects a significant investment by the company’s leadership, potentially indicating confidence in the company’s future performance and stability.

Stock BuybackBusiness Operations and Strategy
Inchcape Launches £250 Million Share Buyback Programme
Positive
Mar 4, 2025

Inchcape plc has announced a share buyback programme worth up to £250 million, in collaboration with Jefferies International Limited, as part of its FY 2024 financial results. This initiative is part of the company’s updated capital allocation policy, which emphasizes dividend payments, ongoing share buybacks, and value-accretive acquisitions, supported by strong free cash flow and a robust balance sheet. The programme aims to reduce the company’s capital by repurchasing and canceling shares, with purchases managed independently by Jefferies under specific market conditions and regulatory frameworks.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Inchcape Reports Strong 2024 Results and Announces New Share Buyback Program
Positive
Mar 4, 2025

Inchcape plc announced its preliminary results for 2024, highlighting strategic, operational, and financial progress. The company reported revenue of £9.3 billion, a 4% increase in constant currency, and a statutory profit before tax up by 10% to £414 million. Inchcape launched the Accelerate+ strategy, securing 22 distribution contracts and exiting non-core retail assets, generating £391 million in net cash. The company reduced leverage to 0.3x and completed a £150 million share buyback. Looking ahead, Inchcape aims for continued growth with a new £250 million share buyback program and targets a >10% EPS CAGR by 2030, driven by free cash flow generation and strategic acquisitions.

Business Operations and StrategyRegulatory Filings and Compliance
Inchcape Announces Update in Shareholder Voting Rights
Neutral
Feb 14, 2025

Inchcape PLC has announced a voluntary disclosure regarding an update in the chain of corporations controlled by its substantial shareholder, FMR LLC. This update indicates that FMR LLC now holds 5.7847% of voting rights in Inchcape, up from the previous 5.0912%. This change could impact Inchcape’s corporate governance and shareholder dynamics, as the increased voting rights may influence decision-making processes within the company.

Inchcape Completes Share Buyback Program
Jan 10, 2025

Inchcape plc has completed its share buyback program, initiated on August 1, 2024, by purchasing a total of 95,560 ordinary shares worth approximately £755.43 per share on January 9, 2025. This program, facilitated by Jefferies International Limited, resulted in the acquisition of 19,112,113 shares at a total cost of £149,999,567.98 and aimed to enhance shareholder value by reducing the number of shares in circulation.

Inchcape Continues Aggressive Share Buyback Programme
Jan 9, 2025

Inchcape plc has announced the purchase of 143,391 of its ordinary shares as part of its ongoing share buyback programme, which commenced on 1 August 2024. The company plans to cancel these shares, contributing to a reduction in the total number of shares in issue to 393,990,579. Since the start of the buyback program, Inchcape has repurchased 19,016,553 shares at a total cost of £149,277,677.35, a move that may influence its stock value and shareholder returns.

Inchcape Advances Share Buyback Program with Latest Purchase
Jan 8, 2025

Inchcape plc, a leading player in the global automotive distribution and retail sector, is actively engaging in its share buyback program. On January 7, 2025, the company purchased 42,637 of its ordinary shares at a weighted average price of 763.14 pence per share, aiming to cancel these shares and reduce its overall share count. This move is part of a broader buyback initiative that began in August 2024, with Inchcape having bought back 18,873,162 shares at a total cost of £148,199,833.30. The ongoing buyback strategy is intended to enhance shareholder value by reducing the number of shares in circulation, potentially increasing the value of remaining shares and indicating the company’s strong cash position.

Inchcape Advances Share Buyback Program with Latest Purchase
Jan 7, 2025

Inchcape plc announced the purchase of 21,465 of its ordinary shares as part of its ongoing share buyback program. The shares, purchased at an average price of 765.52 pence, will be cancelled, reducing the total shares in issue to 394,176,607. Since the buyback program’s initiation in August 2024, Inchcape has acquired over 18 million shares at a cost exceeding £147 million. This move is part of Inchcape’s strategy to optimize capital structure and return value to shareholders.

Inchcape Executes Share Buyback to Enhance Shareholder Value
Jan 6, 2025

Inchcape plc has recently executed a share buyback transaction, repurchasing 85,139 of its ordinary shares through Jefferies International Limited on January 3, 2025, at an average price of 759.52 pence per share. This move is part of a larger share buyback programme initiated on August 1, 2024, aiming to optimize the company’s capital structure. The repurchased shares will be canceled, reducing the total number of shares in issue to 394,198,072, reflecting the company’s strategic focus on enhancing shareholder value.

BlackRock Acquires 5% Voting Rights in Inchcape
Jan 3, 2025

Inchcape PLC, a UK-based company, has experienced a change in its voting rights structure following BlackRock, Inc.’s acquisition of a 5% voting rights threshold. This change was officially crossed on December 31, 2024, and notified to Inchcape on January 2, 2025. As a result of the acquisition, BlackRock now holds a total of 19,751,305 voting rights in Inchcape PLC, marking a significant increase in its influence within the company. Such a shift could impact Inchcape’s operations and governance, potentially influencing strategic decisions and shareholder dynamics.

Inchcape Continues Share Buyback Programme with Latest Purchase
Jan 3, 2025

Inchcape plc has announced a share buyback transaction where it purchased 49,961 of its ordinary shares at a weighted average price of 763.29 pence per share. This move is part of the company’s ongoing share buyback programme initiated on August 1, 2024, and aims to cancel the purchased shares, reducing the total number of shares in issue to 394,283,211. Since the programme began, Inchcape has bought back 18,723,921 shares at a total cost of £147,063,486.14, which reflects the company’s strategic initiative to enhance shareholder value.

Inchcape PLC Announces Share Capital and Voting Rights Update
Jan 2, 2025

Inchcape PLC announced its total voting rights and share capital status as of December 31, 2024, reporting an issued share capital of 394,436,528 ordinary shares. All shares carry equal voting rights, which will be used by shareholders to assess their notification requirements under the Disclosure Guidance and Transparency Rules.

Inchcape PLC Advances Share Buyback with New Purchase
Jan 2, 2025

Inchcape PLC announced the purchase of 22,344 of its ordinary shares as part of its ongoing share buyback program initiated on August 1, 2024. The company plans to cancel these shares, reducing the total number of shares in circulation to 394,333,172, reflecting its commitment to returning value to shareholders.

Inchcape Advances Share Buyback Initiative with Latest Purchase
Dec 31, 2024

Inchcape plc announced a recent purchase of 81,012 ordinary shares as part of its ongoing share buyback programme, initiated on August 1, 2024. This transaction, executed through Jefferies International Limited, is part of a larger strategy to optimize the company’s capital structure and return value to shareholders, having already acquired 18,651,616 shares at a cost of £146,511,506.63.

Inchcape Advances Share Buyback Strategy with Latest Purchase
Dec 30, 2024

Inchcape plc has executed a share buyback program, purchasing 198,322 of its ordinary shares on 27 December 2024. This transaction is part of a larger buyback initiative announced on 1 August 2024, which has seen the company repurchase a total of 18,570,604 shares at a cost of £145,894,162.79. The shares acquired are intended for cancellation, reducing the total number of shares in issue to 394,436,528. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

BlackRock Reduces Stake in Inchcape Below 5% Threshold
Dec 27, 2024

Inchcape PLC, a UK-based company, has recently seen a change in its major holdings as BlackRock, Inc., a US-based investment management corporation, reported a decrease in its voting rights below the 5% threshold on December 20, 2024. This adjustment indicates a reduction in BlackRock’s shareholding influence within Inchcape, which could have implications for the company’s governance and strategic decisions, although the precise impact on stakeholders remains unclear.

Inchcape Advances Share Buyback with Latest Purchase
Dec 27, 2024

Inchcape plc announced the purchase of 150,217 of its ordinary shares as part of its ongoing share buyback programme, which began on 1 August 2024. The purchase, conducted through Jefferies International Limited, was executed at a volume weighted average price of 781.42 pence per share. The company intends to cancel these shares, which will reduce the total number of ordinary shares in issue to 394,634,850. Since the initiation of the buyback programme, Inchcape has repurchased 18,372,282 shares at a total cost of £144,357,554.02, reflecting its commitment to returning value to shareholders.

Inchcape Enhances Shareholder Value with Continued Share Buyback
Dec 24, 2024

Inchcape plc announced the purchase of 203,087 ordinary shares on December 23, 2024, as part of its ongoing share buyback program. This initiative, which began on August 1, 2024, aims to cancel these shares, reducing the total number of shares in circulation to 394,785,067. Since the start of the program, the company has bought back 18,222,065 shares at a total cost of £143,183,726.08, potentially enhancing shareholder value and signaling confidence in the company’s financial position.

Inchcape Advances Share Buyback Program with Latest Repurchase
Dec 23, 2024

Inchcape plc announced the repurchase of 210,092 ordinary shares as part of its ongoing share buyback program initiated on 1 August 2024. The company plans to cancel these shares rather than holding them in treasury, reducing the total number of shares in issue to 394,988,154. This strategic move is a part of their broader effort to enhance shareholder value, reflecting significant capital allocation towards buybacks since August, amounting to £141,619,765.48.

Inchcape Advances Share Buyback Programme with Recent Purchases
Dec 20, 2024

Inchcape plc, a leading player in the automotive distribution and retail sector, has announced the purchase and cancellation of 200,751 of its ordinary shares as part of its share buyback programme. This strategic move, which began on August 1, 2024, has seen the company repurchase over 17 million shares, underscoring its commitment to returning value to shareholders and optimizing its capital structure.

Inchcape Continues Share Buyback with Recent Purchase
Dec 20, 2024

Inchcape PLC, a prominent player in the automotive distribution and retail industry, has announced a recent transaction under its share buyback programme. The company purchased 186,145 ordinary shares, intending to cancel them, a move that aligns with its ongoing initiative since August 2024. This strategic decision, which has involved the purchase of over 12 million shares, reflects Inchcape’s commitment to enhancing shareholder value and optimizing its capital structure.

Inchcape Reports Progress in Share Buyback Programme
Dec 20, 2024

Inchcape plc announced its recent activities in its share buyback programme, purchasing 171,741 ordinary shares on September 16, 2024, at a volume-weighted average price of 819.37 pence per share. The company plans to cancel these shares as part of its buyback strategy initiated on August 1, 2024, reducing its total shares in issue to 407,654,279. Since the start of the programme, Inchcape has acquired 5,352,853 shares for a total cost of £44,317,884.30, indicating a significant reduction in outstanding shares which could impact shareholder value and market perception.

Inchcape PLC Advances Share Buyback Program
Dec 19, 2024

Inchcape PLC has executed a share buyback program, purchasing 179,956 ordinary shares on December 18, 2024, through Jefferies International Limited. The shares will be canceled to reduce the overall number of shares in issue, aligning with a buyback strategy announced earlier in August 2024. Since the commencement of this program, Inchcape has acquired over 17.6 million shares at a cost of £138.4 million, signaling a move to enhance shareholder value and potentially solidify its market position.

Inchcape Executes Share Buyback to Reduce Share Count
Dec 18, 2024

Inchcape plc has executed a share buyback transaction on 17 December 2024, purchasing 215,118 of its ordinary shares as part of a buyback programme initiated on 1 August 2024. This move aims to cancel the purchased shares, reducing the total number of shares in issue to 395,578,953, reflecting the company’s strategy to enhance shareholder value.

Inchcape Advances Share Buyback Programme with Latest Purchase
Dec 17, 2024

Inchcape plc has executed a share buyback transaction, purchasing 209,309 of its ordinary shares on December 16, 2024, as part of its ongoing share buyback programme. The shares were bought at a volume-weighted average price of 769.33 pence per share and the company plans to cancel these shares to reduce the total number of shares in circulation. This move is part of a broader effort started on August 1, 2024, with 17,213,061 shares purchased so far at a cost of over £135 million, indicating Inchcape’s strategic aim to enhance shareholder value and optimize its capital structure.

Inchcape Advances Share Buyback Program with Recent Purchase
Dec 16, 2024

Inchcape plc has executed a share buyback transaction, purchasing 206,960 ordinary shares at a volume-weighted average price of 779.12 pence per share. This purchase is part of a broader buyback program initiated on 1 August 2024, aiming to optimize the company’s capital structure by reducing the total number of issued shares to 396,003,380. The buyback program reflects Inchcape’s strategic initiative to enhance shareholder value.

Inchcape Advances Share Buyback with Latest Acquisition
Dec 13, 2024

Inchcape plc has executed a share buyback program, purchasing 151,146 ordinary shares at an average price of 780.09p each, with the intention to cancel these shares. This forms part of a larger buyback initiative started in August 2024, in which the company has acquired over 16.7 million shares, aiming to optimize its capital structure and potentially enhance shareholder value.

Inchcape Enhances Shareholder Value Through Share Buyback
Dec 12, 2024

Inchcape plc has executed a share buyback, purchasing 100,449 ordinary shares on December 11, 2024, as part of its ongoing buyback program initiated on August 1, 2024. The company aims to cancel these shares, reducing its total shares in issue to 396,361,486, reflecting its strategic focus on improving shareholder value through capital management.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.