International Distributions Services (IDS) AI Stock Analysis

• Market Cap: $3.48B
• Dividend Yield: 0.52%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.67
• Revenue Growth: 9.05%
• EPS Growth: N/A
• Country: UK
• Employees: 163,255
• Sector: Industrials
• Sector Strength: 66
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.26
• Shares Outstanding: 958,293,460
• 10 Day Avg. Volume: 1,551,221
• 30 Day Avg. Volume: 2,546,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.27
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 360.95p
• Price Target Upside: -0.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

International Distributions Services reflects a moderate investment opportunity. The company's financial recovery is promising, though operational and cash flow challenges persist. Technically, the stock lacks strong momentum, and valuation suggests it is fairly priced. The absence of earnings call insights and corporate events does not significantly alter the stock's moderate outlook.

International Distributions Services Business Overview & Revenue Model

Company Description

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, sole-traders, small and medium-sized enterprises, large businesses, retailers, and access operators. It operates in Italy, France, Spain, Germany, Croatia, the Czech Republic, Hungary, the United Kingdom, the United States, Romania, Slovakia, Slovenia, Austria, Belgium, Canada, China, Denmark, Finland, Ireland, the Netherlands, and Portugal. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.

How the Company Makes Money

IDS generates revenue through multiple streams, primarily by offering logistics and supply chain services to businesses across different sectors. The company's key revenue streams include freight forwarding fees, warehousing and storage charges, and transportation and delivery services. Additionally, IDS may engage in strategic partnerships with e-commerce platforms and retailers to provide integrated logistics solutions, enhancing its service offerings and expanding its customer base. Revenue growth is also driven by the company's investment in technology to improve operational efficiency and customer satisfaction, as well as its ability to adapt to changing market demands and emerging logistics trends.

International Distributions Services Financial Statement Overview

Summary

International Distributions Services has demonstrated recovery in profitability, yet faces challenges in operational efficiency and cash generation. The balance sheet remains fairly solid, but improvements in cash flow and operational margins are necessary to ensure sustained growth and financial health.

Income Statement

The company has shown a strong recovery in net income, moving from a significant loss to a positive income in the latest reporting year. Revenue growth was steady at 5.28%, indicating a return to growth trajectory. Gross profit margin improved significantly, but EBIT and EBITDA margins remain relatively low, pointing to operational efficiency challenges.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.84, maintaining stability. The equity ratio remains relatively strong at 39.42%, suggesting a solid capital structure. However, the decrease in stockholders' equity over the years raises potential concerns about long-term sustainability.

Cash Flow

The cash flow statements show a decline in free cash flow, with negative values in the latest year, indicating challenges in cash generation. Operating cash flow to net income ratio is positive but lower than desired, suggesting limited cash flow efficiency. Overall, cash flow management needs improvement.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
12.68B	12.04B	12.71B	12.64B	10.84B
	Gross Profit
4.99B	1.18B	2.02B	2.14B	1.45B
	EBIT
163.00M	-135.00M	658.00M	721.00M	197.40M
	EBITDA
713.00M	4.00M	1.27B	1.35B	769.00M
	Net Income Common Stockholders
54.00M	-873.00M	612.00M	620.00M	161.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.25B	921.00M	1.34B	1.57B	1.67B
	Total Assets
8.99B	8.82B	10.74B	9.98B	11.02B
	Total Debt
2.96B	2.40B	2.27B	2.05B	2.82B
	Net Debt
1.93B	1.50B	1.08B	478.00M	1.18B
	Total Liabilities
5.45B	5.01B	5.41B	5.18B	5.40B
	Stockholders Equity
3.54B	3.80B	5.33B	4.80B	5.62B
Cash Flow		Free Cash Flow
-170.00M	-89.00M	510.00M	770.00M	542.00M
	Operating Cash Flow
215.00M	332.00M	1.11B	1.12B	884.00M
	Investing Cash Flow
-370.00M	-345.00M	-768.00M	-302.00M	-280.00M
	Financing Cash Flow
328.00M	-331.00M	-776.00M	-887.00M	775.00M

International Distributions Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 363.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IDS, the sentiment is Neutral. The current price of 363.2 is above the 20-day moving average (MA) of 363.17, below the 50-day MA of 364.31, and above the 200-day MA of 348.65, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IDS.

International Distributions Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LLOY	74 Outperform	£44.32B	11.67	9.84%	3.95%	31.97%	-21.96%
VOD	72 Outperform	£18.29B	9.03	4.36%	7.75%	-27.41%	-76.23%
DLG	68 Neutral	£3.70B	25.38	5.97%	2.10%	26.11%	-29.43%
BT.A	66 Neutral	£16.17B	21.11	5.85%	4.89%	-0.75%	-58.92%
Sector *	62 Neutral	$8.06B	13.61	3.91%	3.11%	3.80%	-14.06%
IDS	61 Neutral	$3.48B	13.79	7.58%	0.52%	9.05%	―

International Distributions Services Corporate Events

Morgan Stanley Increases Stake in International Distribution Services

Morgan Stanley has increased its voting rights in International Distribution Services PLC to 8.027976% as of February 25, 2025. This change in voting rights reflects a slight increase from the previous position and indicates Morgan Stanley’s continued interest and influence in the company, potentially impacting future strategic decisions and stakeholder interests.

Morgan Stanley Increases Stake in International Distribution Services

Morgan Stanley has increased its voting rights in International Distribution Services PLC to 8.020871% as of February 24, 2025, marking a slight rise from its previous position. This change in holdings could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and operations.

Morgan Stanley Adjusts Voting Rights in International Distribution Services PLC

Morgan Stanley has adjusted its voting rights in International Distribution Services PLC, reducing its direct and indirect voting rights to a total of 7.996656% as of February 19, 2025. This change in holdings may impact the company’s shareholder dynamics, potentially influencing its strategic decisions and stakeholder relationships.

Morgan Stanley Increases Stake in International Distribution Services

Morgan Stanley recently increased its voting rights in International Distribution Services PLC to 8.049627%, marking an acquisition of additional shares. This change in holdings could impact the company’s governance and influence its strategic decisions, with potential implications for stakeholders’ interests and the company’s market positioning.

Shift in Voting Rights at International Distribution Services PLC

International Distribution Services PLC, a UK-based company, has been notified of a change in voting rights due to Morgan Stanley’s acquisition or disposal of shares. This notification reflects a decrease in Morgan Stanley’s voting rights in the company from 8.186471% to 7.713804%, indicating a shift in shareholding dynamics that may influence the company’s governance and decision-making processes.

Norges Bank Increases Stake in International Distributions Services PLC

International Distributions Services PLC, a UK-based company, has been notified of a change in ownership of voting rights by Norges Bank. Norges Bank, based in Oslo, Norway, has increased its stake to 3.173% of the voting rights in International Distributions Services PLC as of January 22, 2025. This increase in voting rights from a previous position of 2.998% could potentially influence company decisions and strategies, impacting shareholders and the company’s market position.

Michael Findlay Appointed Chair-Designate of Hays plc

International Distribution Services plc announced the appointment of Michael Findlay, a Non-Executive Director of the company, as a Non-Executive Director and Chair-designate of Hays plc. Findlay will join the Hays plc Board on January 20, 2025, and assume the role of Non-Executive Chair on May 1, 2025.

International Distribution Services Reports Strong Q3 Performance

International Distribution Services plc reported a successful third quarter, highlighting strong operational performance, particularly during the Christmas period, with Royal Mail on track to achieve adjusted operating profit for the fiscal year 2024-25. The company noted a significant increase in tracked parcel volumes and improvements in operational efficiency, which are pivotal in its turnaround strategy following previous losses. GLS also performed well, especially in Spain and Poland, despite challenges in Italy and Germany, contributing to overall parcel volume and revenue growth. The strategic initiatives, including automation and network expansion, are expected to strengthen IDS’s market position amidst a difficult economic environment.

Morgan Stanley Expands Stake in International Distributions Services PLC

Morgan Stanley has increased its holdings in International Distributions Services PLC, crossing the 8% threshold in voting rights. This acquisition of voting rights signifies a strengthened position for Morgan Stanley within the company, which could have implications for both the company’s strategic direction and its stakeholders.