Inchcape Share Discussion Threads

[mortimer7] 28/3/2023 16:20

Looks like Directors agree with the low price. Two buying at 724p and 709.50p.
Biggish amounts as well £108,000 and £78,000.
Bottom in?

[lawson27] 23/3/2023 11:52

Results hit expectations, drop overdone imo, taken the dip @735

[masurenguy] 03/7/2022 15:56

Midas likes Inchcape !
No position but onto my watchlist.

MIDAS SHARE TIPS: Profit from resilient global car dealer Inchcape

Midas verdict: At the beginning of this year, Inchcape shares were £9.40. Today they are £6.91, even after the recent profits upgrade. The slide reflects wider market worries about economic growth but it does not reflect Inchcape's long-term prospects or its proven resilience over many years. The stock is a buy – and the dividend provides an income kicker too.

[km18] 18/2/2022 18:24

...from last year...

Company overview:
Inchcape is a leading franchised automotive retailer in the UK, partnering with numerous like Audi, BMW, Jaguar, Land Rover, Mercedes-Benz etc. The complete focus on automotive retailing came around 1990. They have over 100 dealerships across the UK with more than 5500 employees. It is operating worldwide with venues in Australasia, Europe and Emerging Markets. Over the past 5 years they have adopted a growth strategy, which has helped them increase the number of markets where they operate from 26 to 34 and add new OEM partners to the portfolio. Their strategy is one of the key success factors, as they provide everything, from brand positioning, product planning, import and logistics, national marketing, parts distribution, new/old vehicles, and financing.
As with many automotive retailers, growth is blended, as they usually expand in new markets through acquisitions of already established chains. INCH is no different, with numerous acquisitions over the past 10 years and a goodwill figure of £119m. It has been significantly reduced since the highs of £500m and at 3% of total assets does not raise any red flags. Growth in revenue is mediocre at 0.004% CAGR, which is mainly due to the unappealing results from 2020 where revenues shrunk from £9.3bn to £6.8bn (bringing the company back to 2015). TTM figures are healthy at £7.75bn and the forecast for this year is in the same region. ROCE was very strong prior to the Covid crisis and seems to be recovering from last year’s negative figure. Moreover, the second-best ROC in the Automotive retailers on Stockopedia and the negative gearing are accompanied by a sumptuous dividend.
 Latest trading update for the third quarter has “increase in FY21 profit expectations” in the headline – what else would an investor look for? Group revenue for the quarter is up by 10% (organic basis) at £1.9bn, as the reported is actually only 2%. Management upgrades the PBT outlook for the year end to “at least £290m. Applying an average tax rate of 26% on this would result in a net profit in the region of £210-220m, which is far ahead of the expected figure on Stockopedia of £192m. Reported EPS based on this figure (keeping in mind the shares ion issue should be the same) would be above the 70p mark which is very close to full recovery of the pre-Covid performance. Outlook is positive, as managements believes the margins would outweigh the negative impact from the supply chain...

...from WealthOracleAM

[tomps2] 09/12/2021 08:57

Andy Brough interview with PIWORLD

Andy Brough mentions Inchcape #INCH in the latest PIWORLD interview at 8m17s

Watch the video here:

Or listen to the Podcast here:

[tole] 04/11/2021 07:23

https://www.directorstalkinterviews.com/inchcape-a-pipeline-of-opportunities-and-upside-analyst-interview/4121031376

[philanderer] 24/10/2021 18:45

Questor: Can 174-year-old Inchcape survive in a market disrupted by Tesla and Carvana?


Questor share tip: You may think the odds are stacked against it but the British firm’s clever business model gives it a bright future

[tole] 27/8/2021 06:30

Thetimes - Tempus BuyInchcapeInchcape gets annoyed if you lump it in with pure-play car salesmen. That's because it sees higher-margin distribution as the bigger prize, dispersing new and used vehicles worldwide on behalf of manufacturers, including Mercedes and Volkswagen, selecting and managing the dealership network under the Inchcape banner.Recovery from the pandemic slump in revenue is coming faster than management expected, partly thanks to some pent-up demand, partly from its ability to increase pricing on new vehicles amid a supply shortage. The market has noticed and the shares have rebounded to their highest level since 2015, or 17 times forecast earnings for this year.A tighter supply from manufacturers could be a challenge during the second half, but it's not stopped the FTSE 250 group raising pre-tax profit guidance for 2021 twice so far this year. The consensus forecast for adjusted pre-tax profits stands at £258 million, more than twice the 2020 level but still 21 per cent below pre-pandemic numbers.Inchcape is looking at two areas for earnings growth. First, by targeting smaller and more fragmented distribution markets, including countries in Latin America and Asia, where it doesn't make economic sense for vehicle manufacturers to set up their own operations. It reckons it can drive up earnings faster, organically and via acquisitions. Second, it wants to gain more of the after-sales market, everything after the sale of a vehicle, from routine servicing to accident repair, finance and insurance via third-party providers.It's a capital-light and cash-generative business, which means there's potential. Over the first six months of the year it churned out £184 million in free cashflow, prompting a £100 million buyback and a reinstated interim dividend at 6.4p a share.Peel Hunt raised its target price on the stock to £10 after the first-half results, against the present share price of 890p. About half of the cost savings made in the depths of the pandemic are expected to stick in the longer term, which bodes well for further gains in profit margin.ADVICE BuyWHY Chance for further re-rating in the shares from high growth distribution markets

[tole] 27/8/2021 06:28

Inchcape is underappreciated, says SVM's VeitchInchcape (INCH) may seem like any other vehicle retailer and distributor but SVM's Neil Veitch says its business model offers long-term growth that is underappreciated by the market.The manager of the £196m SVM UK Opportunities fund flagged the fact that 90% of the group's operating profits come from exclusive distribution agreements it has with auto brands to serve markets in Asia, Australia, Latin America, Africa, and Eastern Europe where countries are too small for manufacturers to set up shop.The latest interim results 'demonstrated continued strong operating performance' as revenues rebounded post-Covid-19 'and margins have benefited from both buoyant customer demand and tight supply'.A new tie-up with Chinese brand Geely 'could offer significant long-term growth opportunities'.'Inchcape currently trades on an estimated full year 2022 price/earnings of 14x...with a net cash position on the balance sheet, Inchcape's differentiation has not been appreciated by the market,' said Veitch.'As the group continues to win distribution contract and demonstrate its ability to generate high levels of case, we expect the stock to outperform.'Shares in Inchcape rose 0.8%, or 7.5p, at 897.5p yesterday. Okay

[sparty1] 10/12/2020 08:57

kendon..

you might want to read the trading update today. And update your crystal ball. :)

[kendonagasaki] 13/11/2020 08:14

There is an recessionary economic tsunami approaching the UK.I doubt INCH will be selling many new cars in the future imo.

[jonandjane1] 13/10/2020 11:29

Strong results from Marshalls, after strong results from Vertu, likely to be similar at Inchcape, retail motor industry trading strong

[grabster] 05/5/2020 15:16

sorry, wrong thread.

[grabster] 05/5/2020 14:21

This morning:

"UK car sales plunge to lowest since 1946 amid coronavirus lockdown"

[kendonagasaki] 20/4/2020 22:57

How does this share price work.?All business shut.All on furlough.All INCH customers have lost their jobs and can't afford the finance?Armageddon awaits!,,,,,,,,,,,

[gozo] 20/4/2020 17:55

....that's over a £1.5 million pound trade!

[gozo] 20/4/2020 16:50

Chunky after hours trade

[essentialinvestor] 07/4/2020 21:25

Inchcape entered the last downturn with about half a billion in net debt,
so given the now much reduced retail side of the business, it's perhaps unlikely we
will see the financial crisis lows of under 70 pence a share imv.

[grabster] 07/4/2020 08:21

It does seem to have become an acceptable action in the current climate. And the rest of their update sounds more solid than many.

[babbler] 07/4/2020 07:37

I'd be shocked if it wasn't

[grabster] 07/4/2020 07:14

Inchcape 17.9p dividend cancelled

[grabster] 06/4/2020 14:45

"New car sales in UK plunge by 44% as coronavirus bites"




"Britain’s new car registrations plummeted by 44% in March, a steeper fall than during the financial crisis, as the coronavirus crisis led to showroom closures and sent sales tumbling.

Sales in March were 203,000 down on the same month a year earlier, according to data released by the industry body, the Society of Motor Manufacturers and Traders (SMMT).

March is traditionally one of the strongest months of the year for new car sales because of the release of new number plates. However, this was the weakest March since the late 90s, when the twice-yearly number plate change was introduced.

Britain’s car industry was already struggling before the pandemic – hit by a combination of falling sales, a shift away from diesel vehicles and Brexit uncertainty."


"Dramatic falls in new car sales have been reported in other European countries that introduced lockdowns earlier than Britain, including Italy, where sales fell 85% in March, France, down 72%, and Spain, which was 69% lower."


"Forecasts suggest the continued closure of car plants across Europe and North America will cost the auto industry more than $100bn (£82bn) in lost revenues if the shutdown lasts until the end of April."

[grabster] 06/4/2020 14:43

"New car sales in UK plunge by 44% as coronavirus bites"




"Britain’s new car registrations plummeted by 44% in March, a steeper fall than during the financial crisis, as the coronavirus crisis led to showroom closures and sent sales tumbling.

Sales in March were 203,000 down on the same month a year earlier, according to data released by the industry body, the Society of Motor Manufacturers and Traders (SMMT).

March is traditionally one of the strongest months of the year for new car sales because of the release of new number plates. However, this was the weakest March since the late 90s, when the twice-yearly number plate change was introduced.

Britain’s car industry was already struggling before the pandemic – hit by a combination of falling sales, a shift away from diesel vehicles and Brexit uncertainty."


"Dramatic falls in new car sales have been reported in other European countries that introduced lockdowns earlier than Britain, including Italy, where sales fell 85% in March, France, down 72%, and Spain, which was 69% lower."


"Forecasts suggest the continued closure of car plants across Europe and North America will cost the auto industry more than $100bn (£82bn) in lost revenues if the shutdown lasts until the end of April."