Ingenta (ING) AI Stock Analysis

• Market Cap: £14.44M
• Dividend Yield: 5.18%
• Average Volume (3M): 64.71K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.45
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 67
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 14,510,195
• 10 Day Avg. Volume: 59,330
• 30 Day Avg. Volume: 64,711
• PEG Ratio: -0.18
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 6.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 113.00p ▼(-0.44% Downside)

The score is driven primarily by strong financial resilience (debt-free balance sheet) and attractive valuation (low P/E and solid yield). These positives are tempered by 2024 margin compression and inconsistent operating cash-flow conversion, while technicals show a strong uptrend but increasingly overbought conditions.

Positive Factors

Debt-free, conservative balance sheet

A debt-free balance sheet and rising equity materially lower financial risk, giving management durable optionality to invest in product development, support customers, or pursue M&A without refinancing pressure. This enhances resilience across economic cycles.

Recurring SaaS/hosted revenue model

A business model anchored in hosted/SaaS and platform fees creates predictable, higher-quality revenue and customer stickiness. Over 2–6 months this supports stable cash flow, easier forecasting, and higher lifetime value versus one-off license sales.

Strong top-line re-acceleration with stable gross margins

Sustained revenue growth paired with stable gross margins indicates healthy unit economics: demand is expanding without eroding core profitability. This combination supports scalable operating leverage as the business grows over the medium term.

Negative Factors

Net margin compression

A large drop in net margin suggests rising costs or deteriorating mix that can persist beyond a single quarter. Margin erosion reduces reinvestment capacity and makes earnings more vulnerable to pricing pressure or higher operating expenses over the medium term.

Inconsistent operating cash-flow conversion

Volatile conversion of profits to operating cash flow signals working-capital swings or timing differences that can undermine reliable free-cash-flow generation. This unpredictability complicates capital allocation and can constrain investment or dividends.

Limited scale / modest capital base

A small employee base and modest equity suggest limited scale versus larger software peers, potentially restricting product R&D, sales reach, and ability to absorb large client churn. Scale constraints can slow market share expansion and amplify customer concentration risk.

Ingenta Business Overview & Revenue Model

Company Description

Ingenta plc, together with its subsidiaries, provides content management, advertising, and commercial enterprise solutions and services in the United Kingdom and internationally. The company offers applications designed to move content forward in marketplace for print and digital products, such as royalties, online sales and marketing, digital and print distribution, product, and subscription management. It also provides suite of content distribution platforms that enable publishers to convert, store, deliver and monetize digital content, including online platforms, semantic enrichment, mobile, e-commerce, and access entitlement services. In addition, the company offers browser-based multimedia advertising solutions comprising of CRM, packages and bundles, finance/credit control, inventory management, and multimedia bookings, as well as provides sales and marketing consulting services. It serves publishers, information providers, academic libraries, and institutions. Ingenta plc was incorporated in 1965 and is based in Oxford, the United Kingdom.

How the Company Makes Money

Ingenta Financial Statement Overview

Summary

Strong 2024 revenue re-acceleration (+36.4% YoY) and a very conservative, debt-free balance sheet support a solid financial profile. Offsetting this, profitability weakened meaningfully in 2024 (net margin ~12.5% vs ~21.2% in 2023) and operating cash flow conversion has been uneven, adding near-term earnings and cash-flow volatility.

Income Statement

Revenue growth re-accelerated strongly in 2024 (+36.4% YoY), but profitability softened versus 2023: net margin fell to ~12.5% from ~21.2%, and operating profitability also stepped down (EBIT margin ~17.9% vs ~18.9%). Gross margin remains healthy and fairly stable (~44%–50% over 2020–2024), supporting solid underlying unit economics, but the sharp drop in net income in 2024 suggests either higher costs or less favorable mix, creating near-term earnings volatility despite the top-line rebound.

Balance Sheet

The balance sheet is very conservatively positioned with zero total debt in 2023 and 2024 (after modest leverage in 2020–2022), which materially lowers financial risk. Equity has grown (to ~£6.4m in 2024 from ~£3.6m in 2020), supporting a stronger capital base. Returns on equity are strong overall (about 20% in 2024 and >40% in several prior years), though the step-down in 2024 reflects the weaker earnings year.

Cash Flow

Cash generation is positive with free cash flow of ~£1.57m in 2024 (up sharply, +50.5% YoY), and free cash flow remains close to net income (about 95% in 2024), indicating earnings quality is generally supported by cash. However, operating cash flow has been inconsistent versus profits (operating cash flow to net income ~0.52 in 2024 and ~0.32 in 2023), pointing to working-capital swings or timing effects that can make near-term cash conversion less predictable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.28M	10.20M	10.82M	10.45M	10.14M	10.18M
Gross Profit	5.17M	4.93M	5.40M	4.69M	4.66M	4.44M
EBITDA	2.47M	1.88M	2.34M	1.93M	1.39M	903.00K
Net Income	1.88M	1.28M	2.30M	1.76M	1.80M	449.00K
Balance Sheet
Total Assets	9.38M	9.57M	9.24M	8.63M	9.30M	8.39M
Cash, Cash Equivalents and Short-Term Investments	3.92M	3.62M	2.68M	2.38M	3.01M	2.32M
Total Debt	0.00	0.00	0.00	192.00K	450.00K	871.00K
Total Liabilities	2.59M	3.15M	3.58M	4.86M	4.58M	4.82M
Stockholders Equity	6.80M	6.42M	5.66M	3.77M	4.72M	3.57M
Cash Flow
Free Cash Flow	1.91M	1.57M	1.05M	2.38M	1.86M	586.00K
Operating Cash Flow	2.02M	1.65M	1.13M	2.42M	1.98M	786.00K
Investing Cash Flow	-112.00K	-84.00K	-80.00K	-45.00K	-119.00K	-200.00K
Financing Cash Flow	-1.00M	-625.00K	-754.00K	-3.00M	-1.18M	-865.00K

Ingenta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ING	77 Outperform	£14.44M	7.79	28.74%	5.18%	―	―
DOTD	73 Outperform	£223.80M	20.22	11.31%	1.68%	6.27%	0.83%
CLBS	62 Neutral	£56.07M	17.95	11.22%	2.44%	-25.63%	-20.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GETB	60 Neutral	£43.09M	257.58	―	―	1.73%	-68.87%
DSG	51 Neutral	£1.74M	56.67	0.89%	―	―	―
PULS	47 Neutral	£59.66M	-8.07	-16.92%	―	-1.09%	-6.65%

Ingenta Corporate Events

Ingenta Posts Solid 2025 Cash Generation and Lifts Dividend as It Invests in Growth

Ingenta reported largely flat revenues of £10.3m for 2025, with adjusted EBITDA of £1.6m coming in ahead of market expectations despite being slightly down year on year, and continued strong cash generation lifting year-end cash to £4.7m with no debt. The company intensified investment in sales and marketing during 2025 to build a longer-term pipeline, including appointing a new marketing director and seeking specialist sales hires, while existing teams work on a growing set of sales opportunities and partnerships. Management highlighted the high level of recurring revenues, further underpinned by another Edify customer going live, as a key support for 2026 performance, noting that profitability growth will depend on the pace of onboarding new customers. Reflecting confidence in its financial position and outlook, the board plans to recommend a 10% increase in the total dividend to 4.5 pence per share for the year, with detailed timings to be announced later.

The most recent analyst rating on (GB:ING) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Ingenta stock, see the GB:ING Stock Forecast page.