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Inchcape
(LSE:INCH)
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Rating:71Outperform
Price Target:
912.00 p
▲(10.48% Upside)
Action:Reiterated
Date:07/29/26
The score is driven mainly by solid financial quality (profitable operations and strong free cash flow) and constructive price trend (trading above key moving averages). Valuation is supportive with a modest P/E and attractive dividend yield. The main offset is elevated execution risk from APAC underperformance and restructuring headwinds highlighted on the earnings call.
Positive Factors
Consistent free cash flow generation
Sustained, high-quality free cash flow (2025 FCF 340M; FCF ~88% of net income) provides durable internal funding for operations, capex, dividends and buybacks. Strong cash conversion supports financial flexibility through cycles and funds strategic actions without reliance on equity issuance.
Negative Factors
APAC structural underperformance (Australia)
Rapid EV adoption, fuel/supply shocks and mix shifts in Australia caused substantial volume and margin deterioration in APAC. Management expects a multi-period recovery, making APAC a medium-term drag on group margins and revenue until market dynamics and contract rebalancing stabilise.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent free cash flow generation
Sustained, high-quality free cash flow (2025 FCF 340M; FCF ~88% of net income) provides durable internal funding for operations, capex, dividends and buybacks. Strong cash conversion supports financial flexibility through cycles and funds strategic actions without reliance on equity issuance.
Read all positive factors
Inchcape (INCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.92B
Dividend Yield3.85%
Average Volume (3M)903.86K
Price to Earnings (P/E)12.9
Beta (1Y)0.94
Revenue Growth7.27%
EPS Growth-39.82%
CountryUK
Employees16,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.65
Shares Outstanding349,151,060
10 Day Avg. Volume974,639
30 Day Avg. Volume903,860
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)2.29
Price to Sales (P/S)0.32
P/FCF Ratio8.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,071.40Price Target Upside29.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.89
Revenue Forecast (FY)£9.75B
Inchcape Business Overview & Revenue Model
Company Description
Inchcape Plc engages in the provision of automotive services and other related products. It operates through the Distribution and Retail segment. The Distribution segment is involved in exclusive distribution, sales, and marketing activities of ne...
How the Company Makes Money
Inchcape primarily makes money by acting as a distributor and retailer for automotive manufacturers (OEMs). A key revenue stream is vehicle sales, where it earns revenue from selling new vehicles (and, where applicable, used vehicles) through its ...
Inchcape Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call balanced clear evidence of execution and financial strength (9% reported revenue growth, strong Americas and Europe & Africa performance, robust free cash flow and an increased GBP 250m buyback) against notable operational challenges in APAC—particularly Australia—where volumes, margins and contract rationalisation have driven restructuring charges. Management reiterated medium-term targets (>10% EPS CAGR, ~6% operating margin, strong free cash flow) and outlined decisive portfolio and cost actions to address underperformance. Given the breadth of growth drivers, cash generation and continued capital returns, but acknowledging material short‑term APAC headwinds and one-off restructuring costs, the overall tone is constructive with risks concentrated in APAC that management aims to address.Positive Updates
Top-line Growth
Group revenue of GBP 4.7bn, reported revenue growth 9% (7% constant currency) including organic revenue growth of 5%; group volumes grew ~9% (organic).
Negative Updates
Group Margin Contraction
Adjusted operating margin declined 40 basis points to 5.3% year-on-year, reflecting weakness in APAC that offset gains in other regions.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth
Group revenue of GBP 4.7bn, reported revenue growth 9% (7% constant currency) including organic revenue growth of 5%; group volumes grew ~9% (organic).
Read all positive updates
Company Guidance
Management reiterated medium‑term guidance of greater than 10% EPS CAGR to end‑2030 and a target to generate GBP 2.5bn of free cash flow to 2030, with medium‑term aims of c.6% operating margin and 100% free‑cash‑flow conversion. For FY2026 they expect organic volume growth at the top end of their 3–5% guidance, operating margins circa 6% and free‑cash‑flow conversion of over 100%, with a half‑2 weighting (H1 distributed 180,000 vehicles; H2 expected ~200,000 vehicles, c.+20,000 uplift). H1 metrics referenced included revenues of GBP 4.7bn (reported +9%, +7% cc; organic revenue +5%), adjusted operating margin 5.3% (down 40bps), operating profit GBP 248m (flat), adjusted PBT GBP 188m (down 10% cc), adjusted EPS 35.5p (flat), free cash flow GBP 84m (65% conversion in H1; LTM FCF GBP 327m, 112% conversion) and closing leverage 0.5x EBITDA (vs self‑mandated ceiling 1x). Capital allocation commitments were maintained: dividend policy of 40% of basic EPS with an interim 10.8p (+14%), and the share buyback increased from GBP 175m to GBP 250m (program to complete by end‑Feb 2027; c. GBP 167m executed to date).Inchcape Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
60
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.50B | 9.10B | 9.26B | 11.45B | 8.13B | 6.90B |
| Gross Profit | 1.51B | 1.43B | 1.61B | 1.94B | 1.21B | 951.50M |
| EBITDA | 616.00M | 670.00M | 740.00M | 744.00M | 492.10M | 287.40M |
| Net Income | 232.00M | 272.00M | 421.00M | 270.00M | 245.30M | 117.00M |
Balance Sheet | ||||||
| Total Assets | 5.99B | 5.85B | 5.64B | 7.14B | 6.96B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 716.00M | 657.00M | 549.00M | 689.00M | 1.06B | 596.60M |
| Total Debt | 1.39B | 1.26B | 1.04B | 1.73B | 3.36B | 541.70M |
| Total Liabilities | 4.80B | 4.51B | 4.16B | 5.52B | 5.40B | 2.43B |
| Stockholders Equity | 1.11B | 1.26B | 1.38B | 1.52B | 1.53B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 356.00M | 340.00M | 507.00M | 500.00M | 425.00M | 312.40M |
| Operating Cash Flow | 403.00M | 387.00M | 586.00M | 593.00M | 493.50M | 377.00M |
| Investing Cash Flow | -65.00M | -49.00M | 328.00M | -195.00M | -475.40M | 14.40M |
| Financing Cash Flow | -406.00M | -470.00M | -890.00M | -934.00M | 366.50M | -213.90M |
Inchcape Technical Analysis
Positive
825.50
Price Trends
798.02
Positive
790.66
Positive
775.16
Positive
Market Momentum
13.22
Negative
64.27
Neutral
51.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INCH, the sentiment is Positive. The current price of 825.5 is above the 20-day moving average (MA) of 810.22, above the 50-day MA of 798.02, and above the 200-day MA of 775.16, indicating a bullish trend. The MACD of 13.22 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 51.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INCH.
Inchcape Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.92B | 12.90 | 19.59% | 3.91% | 7.27% | -39.82% | |
70 Outperform | £529.44M | 16.09 | 6.52% | 3.73% | 5.04% | ― | |
68 Neutral | £39.01M | 6.13 | 28.74% | ― | -7.10% | -6.32% | |
65 Neutral | £247.33M | 17.88 | 4.05% | 2.59% | 1.47% | -15.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | £95.20M | 18.05 | 22.27% | 1.86% | 8.14% | 81.96% | |
45 Neutral | £10.91M | -8.51 | -4.30% | 2.25% | -1.74% | -830.03% |
* Consumer Cyclical Sector Average
GB:INCH
Inchcape
837.50
203.63
32.13%
GB:CFYN
Caffyns
400.00
-87.80
-18.00%
GB:HFD
Halfords
246.00
111.77
83.26%
GB:MOTR
Motorpoint
126.00
-54.86
-30.33%
GB:VTU
Vertu Motors
83.90
24.30
40.76%
GB:CTA
CT Automotive Group Plc
37.20
-5.30
-12.47%
Inchcape Corporate Events
Regulatory Filings and Compliance
Inchcape Discloses Share Purchase by Non-Executive Director Tracy Clarke
Positive
Jul 29, 2026
Inchcape plc disclosed that non-executive director Tracy Clarke has purchased 3,029 ordinary shares in the company. The shares, each with a nominal value of 10 pence, were acquired on 28 July 2026 at a price of £8.18952 per share via the Lond...
Business Operations and StrategyStock BuybackFinancial Disclosures
Inchcape boosts share buyback to £250m in show of confidence
Positive
Jul 28, 2026
Inchcape plc has expanded its ongoing share buyback, raising the programme from £175 million to up to £250 million, under a non-discretionary agreement with UBS AG London Branch. The increase, authorised by shareholders at the May 2026 A...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Inchcape lifts buyback and backs double-digit EPS growth as H1 revenues rise
Positive
Jul 28, 2026
Inchcape reported a 9% rise in first-half 2026 revenues to £4.7bn and 9% volume growth, driven by recent distribution contract wins and supportive market conditions, while adjusted operating profit was broadly flat and margins slipped to 5.3%...
Business Operations and StrategyStock Buyback
Inchcape Advances Share Buyback, Cancels Additional Shares
Positive
Jul 27, 2026
Inchcape plc has continued its previously announced share buyback programme, repurchasing 171,334 ordinary shares between 20 July and 24 July 2026 through UBS across several trading venues, at prices broadly in the high-700p to low-800p range. The...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Reaches £69.5m
Positive
Jul 20, 2026
Inchcape plc has continued to execute its previously announced share buyback programme, repurchasing 88,245 ordinary shares between 13 and 17 July 2026 through UBS AG’s London Branch at volume-weighted average prices ranging from about 774p ...
Business Operations and StrategyStock Buyback
Inchcape Advances Share Buyback, Cancels Additional Shares
Positive
Jul 13, 2026
Inchcape plc has continued to execute its previously announced share buyback programme, purchasing 567,548 ordinary shares between 6 and 10 July 2026 through UBS at prices mostly in the mid- to high-700 pence range. The company plans to cancel all...
Business Operations and StrategyStock Buyback
Inchcape Advances £64m Share Buyback, Cuts Share Count Further
Positive
Jul 6, 2026
Inchcape plc has continued to execute its share buyback programme, repurchasing 570,421 ordinary shares between 29 June and 3 July 2026 through UBS AG London Branch. The company intends to cancel all of these shares rather than hold them in treasu...
Regulatory Filings and Compliance
Inchcape Confirms Total Voting Rights and Share Capital Structure
Neutral
Jun 30, 2026
Inchcape plc has confirmed that as of 30 June 2026 its issued share capital stands at 350,755,693 ordinary shares of 10 pence each, with every share carrying one voting right. The company holds no shares in treasury, meaning all issued shares are ...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Programme Reaches £60m
Positive
Jun 29, 2026
Inchcape plc has continued its previously announced share buyback programme, repurchasing 726,814 ordinary shares between 22 and 26 June 2026 through UBS AG’s London branch. The company intends to cancel all of these shares rather than hold ...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Programme Passes £54m
Positive
Jun 22, 2026
Inchcape has continued its previously announced share buyback programme, repurchasing 617,040 ordinary shares between 15 and 19 June 2026 through UBS at volume-weighted average prices ranging from about 808p to 829p. The company plans to cancel th...
DividendsRegulatory Filings and Compliance
Inchcape CFO Increases Stake Through Dividend Reinvestment
Positive
Jun 17, 2026
Inchcape plc disclosed that its Group Chief Financial Officer, Adrian Lewis, purchased 89 ordinary shares via the company’s Dividend Reinvestment Plan in connection with the 2025 final dividend. The transaction, executed on 15 June 2026 on t...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares in Ongoing £45.8m Buyback
Positive
Jun 8, 2026
Inchcape plc has repurchased 694,145 ordinary shares between 1 and 5 June 2026 as part of its ongoing share buyback programme conducted through UBS AG’s London branch. The company said the shares, bought at volume-weighted average prices ran...
Regulatory Filings and Compliance
Inchcape Updates Share Capital and Voting Rights for Disclosure Calculations
Neutral
Jun 1, 2026
Inchcape plc has confirmed that as of 31 May 2026 its issued share capital consists of 353,375,020 ordinary shares of 10 pence each, with every share carrying one vote and no shares held in treasury. The company noted that this total share count s...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Nears 5 Million Mark
Positive
Jun 1, 2026
Inchcape plc has continued its previously announced share buyback programme, repurchasing 177,262 ordinary shares between 26 and 29 May 2026 via UBS AG’s London branch. The company intends to cancel these shares rather than hold them in trea...
Regulatory Filings and Compliance
Inchcape Discloses Share Dealings by Senior Executive Under Performance Plan
Neutral
May 27, 2026
Inchcape has disclosed a transaction by Group General Counsel and Chief Sustainability Officer Rajvi Kothari-Barr involving ordinary shares under the company’s 2023 Performance Share Plan. Kothari-Barr exercised 6,237 performance share award...
Business Operations and Strategy
Inchcape’s 2025 Sustainability Report Showcases Progress in Low-Carbon Mobility
Positive
May 27, 2026
Inchcape has released its 2025 Sustainability Report, underscoring the distributor’s role in supporting the global transition to new energy vehicles and ensuring that less-developed markets are not left behind. The report frames sustainabili...
Business Operations and StrategyStock Buyback
Inchcape Advances £38.6m Buyback With Further Share Cancellations
Positive
May 26, 2026
Inchcape has continued executing its share buyback programme, repurchasing 269,608 ordinary shares between 18 and 22 May 2026 through UBS at volume‑weighted average prices mostly in the low‑to‑mid 800 pence range. The company pla...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Inchcape to Boost Bulgarian Presence With Acquisition of Mercedes-Benz Distributor Silver Star
Positive
May 22, 2026
Inchcape has agreed to acquire Silver Star, the official distributor of Mercedes-Benz passenger vehicles and Daimler trucks and buses in Bulgaria, further cementing a distribution partnership with Mercedes-Benz that began in 2019 and now spans all...
Executive/Board Changes
Inchcape grants 2026 performance and retention share awards to senior executives
Neutral
May 18, 2026
Inchcape plc has granted new awards of ordinary shares under its 2026 Performance Share Plan and its Recruitment and Retention Plan to several senior executives, including regional CEOs, the Group CFO, the Chief Commercial Officer and the Chief Pe...
Business Operations and StrategyStock Buyback
Inchcape Cancels New Tranche of Buybacks, Shrinking Share Base
Positive
May 18, 2026
Inchcape has repurchased 677,109 ordinary shares between 11 and 15 May 2026 as part of its ongoing share buyback programme, with prices ranging around the low-800 pence level. The company intends to cancel these shares rather than hold them in tre...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Inchcape Wins Strong Shareholder Backing for All AGM Resolutions
Positive
May 14, 2026
Inchcape plc reported that all resolutions put to shareholders at its Annual General Meeting in London on 14 May 2026 were approved by poll. The meeting, which represented roughly 89% of the company’s issued share capital, endorsed the compa...
Business Operations and StrategyStock Buyback
Inchcape Advances Share Buyback, Cancels Additional 452,000 Shares
Positive
May 11, 2026
Inchcape plc has continued its share buyback programme, repurchasing 452,015 ordinary shares between 5 May and 8 May 2026 through UBS AG London Branch and planning to cancel all of them. The company said these purchases, made across several tradin...
Executive/Board ChangesRegulatory Filings and Compliance
Inchcape Discloses Share Award Exercise and Sale by Americas CEO
Neutral
May 7, 2026
Inchcape has disclosed that Mike Bowers, its CEO Americas and a person discharging managerial responsibilities, exercised share awards under the company’s 2023 Performance Share Plan and Co-Investment Plan, receiving a total of 76,220 ordina...
Executive/Board ChangesRegulatory Filings and Compliance
Inchcape Executives Exercise Share Awards and Sell Portions to Cover Tax
Neutral
May 5, 2026
Inchcape has disclosed a series of equity transactions by senior executives involving the exercise and partial sale of awards under its 2023 Performance Share Plan and Co-Investment Plan. CEO Europe Africa Glafkos Persianis, Chief People Officer ...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Programme Advances
Positive
May 5, 2026
Inchcape plc has continued to execute its share buyback programme, repurchasing 105,630 ordinary shares between 27 April and 1 May 2026 through UBS AG London Branch. The company stated that all of these shares will be cancelled rather than held in...
Regulatory Filings and Compliance
Inchcape Updates Market on Total Voting Rights and Share Capital
Neutral
Apr 30, 2026
Inchcape plc has confirmed that as of 30 April 2026 its issued share capital stands at 354,844,341 ordinary shares of 10 pence each, with every share carrying one vote and no shares held in treasury. This clarification sets the reference point for...
Business Operations and StrategyStock BuybackFinancial Disclosures
Inchcape posts solid Q1 and reaffirms 2026 guidance as new contracts and buyback drive growth
Positive
Apr 30, 2026
Inchcape reported first-quarter 2026 trading in line with management expectations, with organic revenue up 6% and reported revenue up 8% to £2.3bn, driven by recent distribution contract wins, market share gains and 9% volume growth that outp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.