Intertek (ITRK) AI Stock Analysis

• Market Cap: £7.08B
• Dividend Yield: 3.44%
• Average Volume (3M): 477.00K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.16
• Revenue Growth: 1.14%
• EPS Growth: 17.74%
• Country: UK
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.11
• Shares Outstanding: 153,931,800
• 10 Day Avg. Volume: 426,570
• 30 Day Avg. Volume: 477,003
• PEG Ratio: 1.35
• Price to Book (P/B): 5.43
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 16.48
• 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: £5,828.83
• Price Target Upside: 25.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 5,136.00p ▲(10.31% Upside)

Intertek's strong financial performance and strategic corporate actions, including a substantial share buyback and strategic acquisitions, are key strengths. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is fair, offering a reasonable dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for services, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow management ensures Intertek can fund operations and growth initiatives, enhancing financial resilience and strategic flexibility.

Profitability Margins

High profitability margins reflect operational efficiency and effective cost management, contributing to sustained financial health and competitiveness.

Negative Factors

Moderate Debt Reliance

Moderate reliance on debt could limit financial flexibility and increase risk during economic downturns, impacting long-term financial stability.

Equity Financing

Limited equity financing may constrain growth opportunities and increase reliance on debt, affecting long-term capital structure and financial health.

Debt-to-Equity Ratio

While manageable, the debt-to-equity ratio suggests potential vulnerability to interest rate changes, impacting future financial strategies.

Intertek Business Overview & Revenue Model

Company Description

Intertek Group plc provides quality assurance solutions to various industries in the United Kingdom, the United States, and internationally. It operates in three segments: Products, Trade, and Resources. The Products segment offers assurance, testing, inspection, and certification services (ATIC), including laboratory safety, quality and performance testing, second-party supplier auditing, sustainability analysis, products assurance, vendor compliance, process performance analysis, facility plant and equipment verification, and third party certification. This segment serves a range of industries, including textiles, footwear, toys, hardlines, home appliances, consumer electronics, information and communication technology, automotive, aerospace, lighting, building products, industrial and renewable energy products, food and hospitality, healthcare and beauty, and pharmaceuticals. The Trade segment provides cargo inspection, analytical assessment, calibration, and related research and technical services to the petroleum and biofuels industries; inspection services to governments and regulatory bodies to support trade activities; and analytical and testing services to agricultural trading companies and growers. The Resources segment offers technical inspection, asset integrity management, analytical testing, and ongoing training services for the oil, gas, nuclear, and power industries. This segment also provides a range of ATIC service solutions to the mining and minerals exploration industries covering the resource supply chain from exploration and resource development, through to production, shipping, and commercial settlement. The company also offers cyber security services. Intertek Group plc was founded in 1885 and is based in London, the United Kingdom.

How the Company Makes Money

Intertek generates revenue primarily through its extensive portfolio of services that include testing, inspection, certification, and consulting. The company's revenue model is diversified across several sectors, allowing it to tap into multiple revenue streams. Key revenue streams include fees from testing and inspection services for consumer goods, certification services for products and systems, and consulting for compliance and regulatory requirements. Intertek has established significant partnerships with various industries, enabling it to provide tailored services that meet specific regulatory and quality standards. Additionally, the increasing global focus on sustainability and safety has led to heightened demand for Intertek's services, further contributing to its earnings.

Intertek Financial Statement Overview

Summary

Intertek presents a strong financial profile with consistent revenue growth, healthy profitability margins, and effective cash flow management. The company maintains a balanced leverage, although there is a moderate reliance on debt. Overall, the financial health is robust, positioning Intertek well for future growth.

Income Statement

Intertek shows strong financial performance with consistent revenue growth, reflected by a 1.93% increase from 2023 to 2024. The company also maintains robust profitability margins, with a gross profit margin of 100% due to the equal reporting of gross profit and total revenue, a net profit margin of 10.18% in 2024, and steady EBIT and EBITDA margins at 15.79% and 21.38% respectively. These indicators highlight Intertek's efficiency in generating profits from its revenues, despite industry challenges.

Balance Sheet

Intertek's balance sheet reveals a balanced financial structure with a debt-to-equity ratio of 0.81 in 2024, indicating manageable leverage. The return on equity (ROE) is healthy at 24.64%, showcasing effective use of shareholder funds to generate earnings. However, the equity ratio stands at 38.94%, suggesting a moderate reliance on debt financing. Overall, the balance sheet reflects a stable financial position with room for improvement in equity financing.

Cash Flow

The cash flow statement demonstrates solid cash management with a free cash flow growth rate of 10.53% from 2023 to 2024. The operating cash flow to net income ratio is 1.73, indicating strong cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 1.34 highlights the company's ability to convert earnings into free cash flow effectively. These metrics suggest robust cash flow health, supporting ongoing operations and potential growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40B	3.39B	3.33B	3.19B	2.79B	2.74B
Gross Profit	585.40M	553.90M	1.91B	484.90M	445.40M	399.40M
EBITDA	751.40M	725.30M	678.00M	677.90M	626.90M	601.50M
Net Income	362.00M	345.40M	297.40M	288.80M	288.10M	247.30M
Balance Sheet
Total Assets	3.51B	3.60B	3.54B	3.66B	3.25B	2.62B
Cash, Cash Equivalents and Short-Term Investments	365.30M	343.00M	299.30M	321.60M	265.90M	203.90M
Total Debt	1.45B	1.14B	1.22B	1.38B	1.29B	848.00M
Total Liabilities	2.34B	2.15B	2.18B	2.34B	2.14B	1.61B
Stockholders Equity	1.13B	1.40B	1.32B	1.28B	1.08B	975.00M
Cash Flow
Free Cash Flow	427.70M	462.10M	418.10M	445.60M	454.60M	480.10M
Operating Cash Flow	568.90M	597.10M	535.00M	562.10M	551.70M	559.90M
Investing Cash Flow	-143.80M	-142.20M	-145.10M	-175.50M	-587.90M	-72.70M
Financing Cash Flow	-395.20M	-402.40M	-376.20M	-334.90M	122.80M	-508.90M

Intertek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4656.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITRK, the sentiment is Negative. The current price of 4656 is above the 20-day moving average (MA) of 4568.40, below the 50-day MA of 4748.70, and below the 200-day MA of 4694.84, indicating a neutral trend. The MACD of -22.00 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ITRK.

Intertek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTO	76 Outperform	£2.13B	21.46	20.62%	2.58%	11.42%	-17.18%
RTO	74 Outperform	£11.57B	45.24	5.93%	1.68%	-1.58%	-34.64%
ITRK	74 Outperform	£7.08B	20.46	29.71%	3.44%	1.14%	17.74%
SRP	73 Outperform	£2.77B	58.70	5.21%	1.27%	0.84%	-62.73%
RST	66 Neutral	£362.16M	38.56	4.01%	2.31%	6.90%	145.00%
CPI	64 Neutral	£483.13M	28.36	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Intertek Corporate Events

Intertek Announces Total Voting Rights and Capital Structure

Intertek Group PLC has announced its total voting rights and capital, revealing that it has 153,931,794 ordinary shares in circulation, each carrying voting rights. This disclosure is significant for shareholders as it aids in determining their notification obligations under the FCA’s rules, impacting their engagement and compliance with regulatory requirements.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £58.33 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Completes £350 Million Share Buyback Programme

Intertek Group PLC has completed its Share Buyback Programme, purchasing 29,269 ordinary shares at an average price of 4,631.8128 pence per share. This marks the conclusion of their £350 million buyback initiative, which aimed to enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £58.33 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Executes Share Buyback to Enhance Capital Structure

Intertek Group PLC has executed a share buyback program, purchasing 159,602 of its ordinary shares at prices ranging from 4,614 to 4,666 pence per share. This transaction is part of a broader initiative to repurchase up to £350 million worth of shares, aimed at optimizing the company’s capital structure and potentially enhancing shareholder value. The repurchased shares will be canceled, adjusting the total voting rights in the company, which may impact shareholder notifications under regulatory guidelines.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £58.33 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Executes Share Buyback to Enhance Shareholder Value

Intertek Group PLC has executed a share buyback transaction, purchasing 148,244 ordinary shares as part of its ongoing Share Buyback Programme, which aims to repurchase up to £350 million of shares. This move, authorized by shareholders, will see the purchased shares canceled, impacting the total voting rights and potentially enhancing shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £56.30 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Expands North American Presence with Acquisition of PTL

Intertek has acquired Professional Testing Laboratory, LLC (PTL), a prominent provider of testing services for the flooring industry in the USA. This acquisition enhances Intertek’s Total Quality Assurance business in North America, particularly in the high-growth flooring sector. The integration of PTL’s services is expected to create commercial synergies by expanding offerings to existing clients and leveraging Intertek’s global presence to extend PTL’s services internationally. The acquisition positions Intertek to capitalize on the growing global flooring market, valued at $376 billion and projected to grow at 6.8% annually until 2030.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £6810.00 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Advances Share Buyback Programme

Intertek Group PLC, a company involved in quality assurance services, announced the purchase of 137,412 of its ordinary shares as part of its ongoing Share Buyback Programme. This transaction, conducted through J.P. Morgan Securities plc, aligns with the authority granted by shareholders and aims to cancel the purchased shares, thus adjusting the total voting rights to 154,268,909. The buyback is part of a larger initiative to repurchase up to £350 million of ordinary shares, with 7,124,218 shares already acquired for £334,385,945.20, reflecting the company’s strategic financial management and potential impact on shareholder value.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £6810.00 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Reports Strong Trading Performance and Positive Outlook for 2026

Intertek reported robust trading for July to October 2025, with a year-to-date revenue of £2.85 billion, marking a 4.6% growth. The company highlighted strong like-for-like revenue growth across its divisions, particularly in Consumer Products and Corporate Assurance. Intertek’s strategic focus on innovation and acquisitions in high-growth ATIC segments, along with effective cost controls and productivity improvements, has driven strong margin progression and excellent free cash flow. The company is on track to meet its earnings expectations for 2025 and anticipates continued strong performance in 2026, supported by increasing demand for its industry-leading solutions.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £6810.00 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Expands Central American Presence with Suplilab Acquisition

Intertek Group plc has acquired Suplilab, a prominent Costa Rican provider of food safety and medical device testing services. This acquisition allows Intertek to expand its ATIC (Assurance, Testing, Inspection, and Certification) footprint in Central America, tapping into the region’s fast-growing demand for risk-based quality assurance solutions. Suplilab’s expertise in microbiology, water, and chemistry testing, along with its established market position, will enable Intertek to access new growth opportunities in the high-margin food and medical devices sectors, strengthening its industry presence in Latin America.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £56.30 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek CFO Acquires Shares Through Dividend Reinvestment

Intertek Group PLC announced that Colm Deasy, the company’s Chief Financial Officer and a person discharging managerial responsibilities, acquired 74 ordinary shares as part of a dividend reinvestment scheme. This transaction, conducted on the London Stock Exchange, highlights the company’s ongoing commitment to shareholder value and financial transparency.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £5196.00 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.

Intertek Announces Total Voting Rights and Capital Update

Intertek Group PLC announced that it has 154,406,321 ordinary shares with voting rights admitted to trading, in compliance with the FCA’s Disclosure Guidance and Transparency Rules. This announcement allows shareholders to accurately calculate their interests and obligations in the company, ensuring transparency and regulatory compliance.

The most recent analyst rating on (GB:ITRK) stock is a Buy with a £5196.00 price target. To see the full list of analyst forecasts on Intertek stock, see the GB:ITRK Stock Forecast page.