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1. Company Snapshot

1.a. Company Description

Inchcape plc operates as an automotive distributor and retailer.The company engages in the distribution, sales, and marketing of new and used cars, and parts.It also provides aftersales service and body shop repairs; and finance and insurance products and services.


The company operates in the Asia Pacific, the United Kingdom, rest of Europe, the Americas, and Africa.Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on INCH

Inchcape plc's recent performance was driven by a strong earnings preview, with analysts expecting a solid Q2 2024 report. The company's intrinsic calculation suggests it is 36% undervalued, with a projected fair value of £10.84. Additionally, Inchcape's dividend stock status provides stability and income potential for investors, making it an attractive option in uncertain economic conditions. The company's ability to navigate global market volatility and commodity price fluctuations is also a positive factor.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Why The Narrative Around Inchcape Is Shifting After Analyst Upgrades and Growth Signals

Nov -23

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Is There An Opportunity With Inchcape plc's (LON:INCH) 41% Undervaluation?

Oct -28

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The Trend Of High Returns At Inchcape (LON:INCH) Has Us Very Interested

Aug -19

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Inchcape First Half 2025 Earnings: EPS: UK£0.32 (vs UK£0.28 in 1H 2024)

Jul -31

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Top UK Dividend Stocks To Consider In July 2025

Jul -07

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Top UK Dividend Stocks To Consider In June 2025

Jun -06

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Stocks to watch this week: Broadcom, Lululemon, British American Tobacco, Dr Martens and Rémy Cointreau

May -30

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An Intrinsic Calculation For Inchcape plc (LON:INCH) Suggests It's 36% Undervalued

May -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Distribution

Expected Growth: 4.6%

Inchcape plc's 4.6% distribution growth is driven by strong demand for premium vehicles, expansion in emerging markets, and strategic acquisitions. Additionally, the company's diversified revenue streams, including aftersales and fleet solutions, contribute to its growth momentum. Furthermore, Inchcape's focus on digital transformation and operational efficiencies also support its growth trajectory.

Retail

Expected Growth: 4.83%

Inchcape plc's Retail segment growth of 4.83% is driven by increasing demand for premium vehicles, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, improved customer experience, and cost savings initiatives have contributed to the growth. Furthermore, the segment has benefited from favorable market conditions, including low interest rates and government incentives for eco-friendly vehicles.

7. Detailed Products

Distribution

Inchcape plc provides distribution services to various automotive brands, managing the entire value chain from importation to delivery of vehicles to dealerships.

Retail

Inchcape operates a network of retail dealerships, offering a range of vehicles from various manufacturers, as well as after-sales services and financing options.

Fleet Solutions

Inchcape provides fleet management services to corporate clients, including vehicle procurement, fleet management, and remarketing.

Aftersales

Inchcape offers a range of aftersales services, including vehicle servicing, repair, and maintenance, as well as parts and accessories sales.

8. Inchcape plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Inchcape plc operates in the automotive industry, where substitutes are limited. However, the rise of electric vehicles and alternative modes of transportation could pose a threat to the company's business.

Bargaining Power Of Customers

Inchcape plc's customers are largely individual consumers and small businesses, which limits their bargaining power. The company's diversified revenue streams also reduce its dependence on any single customer.

Bargaining Power Of Suppliers

Inchcape plc relies on a few large suppliers for its automotive products, giving them some bargaining power. However, the company's scale and diversification help to mitigate this risk.

Threat Of New Entrants

The automotive industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to Inchcape plc's business.

Intensity Of Rivalry

The automotive industry is highly competitive, with many established players competing for market share. Inchcape plc must continually innovate and improve its offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.11%
Debt Cost 8.34%
Equity Weight 31.89%
Equity Cost 9.89%
WACC 8.84%
Leverage 213.54%

11. Quality Control: Inchcape plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Inchcape

A-Score: 5.5/10

Value: 7.2

Growth: 5.9

Quality: 4.4

Yield: 6.2

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
D'Ieteren

A-Score: 5.4/10

Value: 5.1

Growth: 8.7

Quality: 4.4

Yield: 5.6

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Taylor Wimpey

A-Score: 4.7/10

Value: 4.4

Growth: 1.6

Quality: 5.1

Yield: 8.8

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.63$

Current Price

7.63$

Potential

-0.00%

Expected Cash-Flows