Intertek Group PLC (GB:ITRK)
LSE:ITRK
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Intertek
(LSE:ITRK)
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Rating:65Neutral
Price Target:
3,892.00 p
▲(4.18% Upside)
Action:DowngradedDate:03/05/26
The score reflects strong underlying business quality (steady growth, solid margins, and positive free cash flow) and supportive valuation (low P/E and ~4% yield). These positives are tempered by clear technical weakness (trading well below key moving averages with negative MACD) and rising balance-sheet/cash-flow risk signals in 2025, despite constructive 2026 guidance.
Positive Factors
Resilient TIC business model
Intertek’s core testing, inspection and certification model is fundamentally recurring and regulatory-driven across diversified end markets. That creates predictable fee-based revenue, repeat client relationships and resilient demand that supports steady top-line growth and long-term margin visibility.
Negative Factors
Rising leverage trajectory
A notable rise in debt coupled with declining equity reduces balance-sheet flexibility and increases sensitivity to higher interest costs or weaker cash flow. Sustained higher leverage would constrain strategic choices (buybacks, M&A, reinvestment) and increase refinancing risk through cyclical periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient TIC business model
Intertek’s core testing, inspection and certification model is fundamentally recurring and regulatory-driven across diversified end markets. That creates predictable fee-based revenue, repeat client relationships and resilient demand that supports steady top-line growth and long-term margin visibility.
Read all positive factors
Intertek (ITRK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.74B
Dividend Yield3.44%
Average Volume (3M)477.00K
Price to Earnings (P/E)21.2
Beta (1Y)1.36
Revenue Growth1.14%
EPS Growth17.74%
CountryUK
Employees45,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.45
Shares Outstanding153,931,800
10 Day Avg. Volume426,570
30 Day Avg. Volume477,003
Financial Highlights & Ratios
PEG Ratio11.35
Price to Book (P/B)6.73
Price to Sales (P/S)2.12
P/FCF Ratio18.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,387.00Price Target Upside44.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.67
Revenue Forecast (FY)£3.60B
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, test...
How the Company Makes Money
Intertek makes money primarily by charging fees for business-to-business Testing, Inspection and Certification (TIC) services delivered through contracts and project engagements. Key revenue streams include: (1) Testing services: laboratory and te...
Intertek Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive performance: robust underlying profitability with double-digit EPS growth, margin expansion (+90bps), high ROIC (~21%), accretive M&A and clear medium-term targets (mid-single-digit organic growth, 18.5%+ margin). Key weaknesses include weaker free cash flow versus 2024, FX headwinds, and a material slowdown in the World of Energy (notably Transportation Technology and CEA) which pressured late‑2025 performance and contributed to higher restructuring activity. Management provided confident 2026 guidance and reiterated disciplined capital allocation and M&A focus.Positive Updates
Strong earnings and margin progression
Diluted EPS of 253.5p, up 10.1% at constant currency (5.4% at actual rates); operating margin 18.1%, up 90 basis points year-on-year; operating profit GBP 620m, up 9.3% at constant currency.
Negative Updates
Free cash flow and operating cash from operations softer than prior peak
Adjusted cash from operations GBP 762m and adjusted free cash flow GBP 352m — both down from 2024 peak. Decline attributed to translation impact, lower working capital change versus prior year, higher interest and borrowing costs, higher cash tax outflow and higher CapEx.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong earnings and margin progression
Diluted EPS of 253.5p, up 10.1% at constant currency (5.4% at actual rates); operating margin 18.1%, up 90 basis points year-on-year; operating profit GBP 620m, up 9.3% at constant currency.
Read all positive updates
Company Guidance
Management guided to mid-single-digit like‑for‑like revenue growth for 2026 (group), with division callouts of high‑single‑digit LFL for Corporate Assurance, mid‑single‑digit LFL for Consumer Products and Industry & Infrastructure, and low‑single‑digit LFL for Health & Safety and World of Energy; they expect further margin progression (targeting 18.5%+), strong earnings growth and continued strong free cash flow/cash conversion discipline, plan GBP 150–160m of CapEx, expect net finance costs of GBP 71–72m (ex‑FX), an effective tax rate of 25.5–26.5%, minority interest of GBP 21–22m, and financial net debt of GBP 930–980m prior to material FX/M&A, with a net‑debt/EBITDA leverage target of 1.3–1.8x (currently ~1.3x), a ~65% dividend payout policy and the company noting the recent average sterling rate is broadly neutral at the revenue and operating level.Intertek Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.43B | 3.39B | 3.33B | 3.19B | 2.79B |
| Gross Profit | 583.70M | 553.90M | 1.91B | 484.90M | 445.40M |
| EBITDA | 786.60M | 725.30M | 678.00M | 677.90M | 626.90M |
| Net Income | 343.50M | 345.40M | 297.40M | 288.80M | 288.10M |
Balance Sheet | |||||
| Total Assets | 3.76B | 3.60B | 3.54B | 3.66B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 329.20M | 343.00M | 299.30M | 321.60M | 265.90M |
| Total Debt | 1.65B | 1.14B | 1.22B | 1.38B | 1.29B |
| Total Liabilities | 2.63B | 2.15B | 2.18B | 2.34B | 2.14B |
| Stockholders Equity | 1.08B | 1.40B | 1.32B | 1.28B | 1.08B |
Cash Flow | |||||
| Free Cash Flow | 395.60M | 462.10M | 418.10M | 445.60M | 454.60M |
| Operating Cash Flow | 540.10M | 597.10M | 535.00M | 562.10M | 551.70M |
| Investing Cash Flow | -323.40M | -142.20M | -145.10M | -175.50M | -587.90M |
| Financing Cash Flow | -213.20M | -402.40M | -376.20M | -334.90M | 122.80M |
Intertek Technical Analysis
Neutral
3736.00
Price Trends
4165.52
Negative
4406.14
Negative
4588.09
Negative
Market Momentum
-148.27
Negative
41.75
Neutral
76.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITRK, the sentiment is Neutral. The current price of 3736 is above the 20-day moving average (MA) of 3723.50, below the 50-day MA of 4165.52, and below the 200-day MA of 4588.09, indicating a neutral trend. The MACD of -148.27 indicates Negative momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ITRK.
Intertek Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.90B | 19.41 | 16.69% | 1.27% | 0.84% | -62.73% | |
76 Outperform | £2.18B | 13.52 | 20.41% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £5.74B | 21.21 | 31.07% | 3.44% | 1.14% | 17.74% | |
65 Neutral | £12.27B | 31.67 | 6.51% | 1.68% | -1.58% | -34.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | £327.41M | 275.23 | 0.58% | 2.31% | 6.90% | 145.00% | |
41 Neutral | £328.67M | -2.81 | -142.88% | ― | -4.87% | ― |
* Industrials Sector Average
GB:ITRK
Intertek
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-8.11%
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Intertek Corporate Events
Business Operations and StrategyExecutive/Board Changes
Intertek Reshapes Finance Leadership as CFO Deasy Moves to Asia Pacific Role
Positive
Mar 26, 2026
Intertek has announced a senior leadership reshuffle, with current Group Chief Financial Officer Colm Deasy moving into an operational position as Executive Vice President Asia Pacific, based in Vietnam, effective 10 April 2026. He will step down ...
Executive/Board Changes
Intertek awards deferred share rights to CEO and CFO under long-term incentive plan
Neutral
Mar 25, 2026
Intertek has granted Chief Executive Officer André Lacroix and Chief Financial Officer Colm Deasy new rights to acquire ordinary shares under its 2021 Long Term Incentive Plan, awarding 15,642 and 7,386 deferred shares respectively, at an ave...
Financial DisclosuresRegulatory Filings and Compliance
Intertek Files 2025 Annual Report and Accounts for Investor Access
Neutral
Mar 20, 2026
Intertek Group plc has published and posted its Annual Report and Accounts 2025 to shareholders and submitted the document to the UK Listing Authority’s National Storage Mechanism. The report is now accessible via the company’s investo...
Regulatory Filings and Compliance
Intertek Discloses Share Purchase by Non-Executive Director Kawal Preet
Positive
Mar 16, 2026
Intertek disclosed that Non-Executive Director and PDMR Kawal Preet acquired 160 ordinary shares in the company on 16 March 2026 at a price of £37.10 per share on the London Stock Exchange. Following the transaction, Preet’s total share...
Regulatory Filings and Compliance
Intertek Directors Boost Holdings in Routine Share Fee Transactions
Positive
Mar 16, 2026
Intertek has disclosed routine share purchases by its chairman and non‑executive directors under the company’s fee structure, with 10 board members acquiring a combined 1,864 ordinary shares. The transactions, executed on 13 March on t...
Regulatory Filings and Compliance
Intertek Executives Boost Holdings After 2021 LTIP Share Vesting
Neutral
Mar 16, 2026
Intertek has disclosed share transactions by its chief executive André Lacroix and chief financial officer Colm Deasy following the vesting of awards under the company’s 2021 Long Term Incentive Plan. The vesting resulted in both execut...
Executive/Board Changes
Intertek Chairman Andrew Martin to Chair SSP Group Board
Neutral
Mar 5, 2026
Intertek Group plc, a major Total Quality Assurance provider, supports global industries with a wide network of laboratories and offices in more than 100 countries. The company specializes in Assurance, Testing, Inspection and Certification, aimin...
Regulatory Filings and Compliance
Intertek Discloses Director Share Purchase Under Market Abuse Rules
Positive
Mar 4, 2026
Intertek Group plc has disclosed that non-executive director and PDMR Robin Freestone purchased 2,455 ordinary shares in the company on 3 March 2026 at a price of £40.51429 per share. The transaction was executed on the London Stock Exchange&...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Intertek Delivers Record 2025 Earnings and Raises Growth Guidance for 2026
Positive
Mar 3, 2026
Intertek reported 2025 revenue of £3.43bn, up 4.3% at constant currency, with like‑for‑like growth across most divisions and an adjusted operating margin rising to 18.1%. Adjusted operating profit increased 9.3% at constant curren...
Business Operations and StrategyM&A Transactions
Intertek ETL Buys Colombia’s QTEST to Boost Latin American Growth
Positive
Feb 27, 2026
Intertek’s electrical division, Intertek ETL, is acquiring Colombian electrical testing and certification specialist QTEST to deepen its presence in Colombia and bolster its scale across Latin America. QTEST, founded in 2006 in Medellín...
Business Operations and StrategyM&A Transactions
Intertek buys AePVI to boost high-speed solar inspection capabilities
Positive
Feb 17, 2026
Intertek has strengthened its position in the solar quality assurance market with the acquisition of Aerial PV Inspection GmbH, a German specialist in high-speed drone-based inspection and diagnostic solutions for large solar photovoltaic systems....
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.