Inchcape INCH.L
United KingdomConsumer Cyclical · Auto & Truck DealershipsLondon Stock Exchange · GBP
9.94 GBP (+54.3%)
9 analysts
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Inchcape is a global automotive distributor operating dealerships and distribution services for premium and volume brands, generating revenue from vehicle sales, aftersales, and financing.
Listed on London Stock Exchange · Symbol INCH.L · LON: INCH · Currency GBP
Key points
from its scores- ✓Attractive valuation9.0
- ✓Attractive dividend8.7
- ✓Good share-price trend7.3
- ✕Fragile balance sheet3.1
- ✕Weak growth3.3
AI analysis
bottom line, main risk, context and newsThe valuation is tempting, but high debt and falling earnings warrant caution until we see improved cash generation and business stabilization.
Inchcape presents a very attractive valuation (P/E 10.22, FCF yield 21.46%) and a solid dividend (yield 5.28%), but its high debt (ND/EBITDA 4.05) and earnings decline (-25.9%) weigh on its financial health and growth, in a rising rate environment that makes financing more expensive.
The main risk is its high leverage (Net Debt/EBITDA of 4.05), which in a rising interest rate environment could significantly increase its financial costs and limit its ability to invest and pay dividends.
Context and risks
Inchcape is a global car distributor with operations in emerging markets, exposing it to currency and regulatory risks. Its high leverage (Net Debt/EBITDA of 4.05) makes it vulnerable to rising interest rates, increasing its financing costs and limiting financial flexibility.
Is Inchcape stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 36% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.2 | 17.8 | −43% |
| EV / EBITDA | 7.9 | 11.2 | −30% |
| Price / book | 2.1 | 2.9 | −28% |
| Price / sales | 0.2 | 1.3 | −82% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 9.0 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 9.94 GBP, +54.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.1 (sector 5.7), Growth 3.3 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 10.2
- Forward P/E
- 6.5
- EV / EBITDA
- 7.9
- Price / book
- 2.1
- Price / sales
- 0.2
- Market cap
- 2.2B GBP
- Enterprise value
- 4.9B GBP
Profitability
- ROE
- 19.4%
- ROA
- 6.0%
- ROIC (approx.)
- 11.7%
- Gross margin
- 16.7%
- Operating margin
- 5.3%
- Net margin
- 2.4%
- Free cash flow
- 468.5M GBP
- FCF yield
- 21.5%
- Cash conversion
- 76%
Solvency
- Total debt
- 3.2B GBP
- Net debt
- 2.5B GBP
- Cash
- 716.0M GBP
- EBITDA
- 620.0M GBP
- Net debt / EBITDA
- 4.05
- Debt / equity
- 272.80
- Current ratio
- 1.03
- Quick ratio
- 0.45
Growth
- Revenue growth
- +9.3%
- Earnings growth
- −25.9%
- EPS (TTM)
- 0.63 GBP
- EPS (forward)
- 1.00 GBP
Dividend
- Dividend yield
- 5.3%
- Payout
- 51.4%
Risk and market
- Beta
- 0.98
- Analyst consensus
- Buy (9)
- Target price
- 9.94 GBP
Recent news
All INCH.L news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Inchcape
Is Inchcape stock cheap or expensive?
On P/E and EV / EBITDA, it trades 36% below the Consumer Cyclical median on average. Valuation score: 9.0 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 9.94 GBP, +54.3% versus the price. This is not investment advice.
What score does Inchcape get on MeridIAn Screener?
It scores 6.1 out of 10, rank 907 of 2,130 (better than 55% of the companies analysed). Its strongest category is Valuation (9.0) and its weakest, Financial health (3.1). Analysis of 08/10/2026.
What is Inchcape's P/E ratio?
Its P/E is 10.2: the share price equals 10.2 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 6.5.
How much is Inchcape worth on the stock market?
Its market capitalisation is 2.2B GBP and its enterprise value, debt included, is 4.9B GBP.
How much debt does Inchcape have?
Its net debt (debt minus cash) is 2.5B GBP. That is 4.05 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Inchcape pay a dividend?
Yes: its dividend yield is 5.28% and it pays out 51% of its earnings.
How has Inchcape stock performed over the last year?
It has fallen 10.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 8.95 GBP. Past performance does not guarantee future results.
What do analysts think of Inchcape?
9 analysts cover it; their average recommendation is “Buy” and their average target is 9.94 GBP (+54.3% versus the price). It is an estimate, not market data.