A Business at a Glance
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ITEM 1. BUSINESS. Inspired Entertainment, Inc. (the “Company”, “Inspired”, “we” or “us”) is a global gaming technology company, supplying content, platform and other products and services to licensed online and land-based lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our customers operating digital channels, and, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks for our customers operating land-based venues.
| Metric | TTM | FY2021 | FY2020 | FY2019 | FY2017 | FY2015 |
|---|---|---|---|---|---|---|
| Revenue | 294M | 209M | 200M | 153M | 123M | - |
| Net Income | 70M | -37M | -32M | -41M | -49M | -3.5M |
| EPS | $2.42 | $-1.60 | $-1.45 | $-1.88 | $-2.68 | $-1.27 |
| Free Cash Flow | 32M | -5.4M | 38M | 20M | 3.1M | -867K |
| ROIC | 165.4% | 2.8% | 3.3% | -6.1% | -9.9% | -70.5% |
| Gross Margin | - | 83.6% | 84.9% | 83.4% | 87.1% | - |
| Debt/Equity | 0.00 | -3.96 | -2.93 | -4.56 | -49.55 | 1.09 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 34M | 6.0M | 6.4M | -13M | -12M | -3.5M |
| Operating Margin | 11.4% | 2.9% | 3.2% | -8.5% | -9.7% | - |
| ROE | 0.0% | - | - | - | - | -70.5% |
| Shares Outstanding | 27M | 23M | 22M | 22M | 18M | 10M |
| Metric | 2015 | 2017 | 2019 | |||
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| Revenue | N/A | 123M | 153M | 200M | 209M | 294M |
| Gross Margin | N/A | 87.1% | 83.4% | 84.9% | 83.6% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | -3.5M | -12M | -13M | 6.4M | 6.0M | 34M |
| Op. Margin | N/A | -9.7% | -8.5% | 3.2% | 2.9% | 11.4% |
| Net Income | -3.5M | -49M | -41M | -32M | -37M | 70M |
| Net Margin | N/A | -40.1% | -26.8% | -16.2% | -17.6% | 23.9% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||
| ROIC | -70.5% | -9.9% | -6.1% | 3.3% | 2.8% | 165.4% |
| ROE | -70.5% | N/A | N/A | N/A | N/A | 0.0% |
| ROA | -4.4% | -22.4% | -12.6% | -10.0% | -11.2% | 15.3% |
| Cash Flow | ||||||
| Op. Cash Flow | -867K | 18M | 31M | 53M | 6.2M | 54M |
| Free Cash Flow | -867K | 3.1M | 20M | 38M | -5.4M | 32M |
| Owner Earnings | -867K | -20M | -20M | -4.2M | -54M | -6.4M |
| CapEx | 0 | 15M | 11M | 15M | 12M | 22M |
| Maint. CapEx | 0 | 34M | 42M | 52M | 47M | 47M |
| Growth CapEx | N/A | 0 | 0 | 0 | 0 | 0 |
| D&A | 0 | 34M | 42M | 52M | 47M | 47M |
| CapEx/OCF | N/A | 82.8% | 34.2% | 29.1% | 187.1% | 40.7% |
| Capital Allocation | ||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | N/A | 4.2M | 9.0M | 4.8M | 13M | 13M |
| Debt Repayment | 0 | 3.2M | 144M | 4.2M | 321M | 321M |
| Balance Sheet | ||||||
| Net Debt | N/A | 123M | 273M | 298M | 309M | 321M |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | N/A | 115M | 271M | 298M | 309M | 309M |
| Debt/Equity | 1.09 | -49.55 | -4.56 | -2.93 | -3.96 | 0.00 |
| Interest Coverage | N/A | -0.4 | -0.5 | 0.2 | 0.1 | 0.1 |
| Equity | 5.0M | -2.3M | -59M | -102M | -78M | -2.2M |
| Total Assets | 80M | 219M | 327M | 324M | 332M | 459M |
| Total Liabilities | 5.4M | 221M | 387M | 426M | 410M | 461M |
| Intangibles | N/A | 47M | 81M | 84M | 83M | 83M |
| Retained Earnings | -3.7M | -379M | -425M | -457M | -494M | -494M |
| Working Capital | -2.3M | 2.0M | 7.2M | 14M | 45M | 45M |
| Current Assets | 319K | 63M | 95M | 109M | 126M | 126M |
| Current Liabilities | 2.6M | 61M | 88M | 95M | 82M | 82M |
| Per Share Data | ||||||
| EPS | -1.27 | -2.68 | -1.88 | -1.45 | -1.60 | 2.42 |
| Owner EPS | -0.09 | -1.08 | -0.93 | -0.19 | -2.35 | -0.24 |
| Book Value | 0.50 | -0.13 | -2.71 | -4.55 | -3.40 | -0.08 |
| Cash Flow/Share | -0.09 | 1.00 | 1.40 | 2.37 | 0.27 | 4.36 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 10.0M | 18.3M | 21.9M | 22.3M | 22.9M | 26.9M |
| Valuation | ||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | 2.9 |
| P/FCF | N/A | 57.0 | 7.5 | 4.0 | N/A | 5.9 |
| EV/EBIT | N/A | N/A | N/A | 70.1 | 99.5 | 15.1 |
| Price/Book | 19.6 | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | N/A | 1.6 | 1.0 | 0.5 | 1.2 | 0.6 |
| FCF Yield | -0.9% | 1.8% | 13.4% | 24.8% | -1.9% | 16.9% |
| Market Cap | 98M | 179M | 151M | 151M | 288M | 189M |
| Avg. Price | 9.65 | 10.60 | 7.23 | 4.21 | 10.63 | 7.01 |
| Year-End Price | 9.80 | 9.75 | 6.90 | 6.76 | 12.56 | 7.01 |
Inspired Entertainment, Inc. passes 2 of 9 quality checks, indicating weak fundamentals.
Inspired Entertainment, Inc. trades at 2.9x trailing earnings, compared to its 15-year median P/E of 15.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 5.9x vs a median of 7.5x. The company's 5-year average gross margin is 84.8%. At current prices, the estimated annualized return to fair value is -3.0%.
Inspired Entertainment, Inc. (INSE) has a current P/E ratio of 2.9, compared to its historical median P/E of 15.0. The stock is currently considered Cheap based on its historical valuation range.
Inspired Entertainment, Inc. (INSE) has a 5-year average return on invested capital (ROIC) of -16.1%. This is below average and may indicate limited pricing power.
Inspired Entertainment, Inc. (INSE) has a market capitalization of $189M. It is classified as a small-cap stock.
Inspired Entertainment, Inc. (INSE) does not currently pay a regular dividend.
Based on historical P/E analysis, Inspired Entertainment, Inc. (INSE) appears cheap. The current P/E of 2.9 is 81% below its historical median of 15.0. The estimated fair value CAGR (P/E method) is -2.6%.
Inspired Entertainment, Inc. (INSE) operates in the Services-Prepackaged Software industry, within the Technology sector.
Inspired Entertainment, Inc. (INSE) reported annual revenue of $209 million in its most recent fiscal year, based on SEC EDGAR filings.
Inspired Entertainment, Inc. (INSE) has a net profit margin of -17.6%. The company is currently unprofitable.
Inspired Entertainment, Inc. (INSE) generated $-5 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Inspired Entertainment, Inc. (INSE) reported earnings per share (EPS) of $-1.60 in its most recent fiscal year.
Inspired Entertainment, Inc. (INSE) has a 5-year average gross margin of 84.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 5 years of financial data for Inspired Entertainment, Inc. (INSE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Inspired Entertainment, Inc. (INSE) has a book value per share of $-3.40, based on its most recent annual SEC filing.