Intertek Group (ITRK.L)
Industrials · LSE · UK
Fundamentals
Valuation and ratings
Intertek Group trades at £58.15, which is 60% above the £23.24 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 63 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 26.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Intertek Group
Intertek Group plc provides quality assurance solutions to various industries in the United Kingdom, the United States, China, Australia, and internationally. It operates through five segments: Consumer Products, Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy. The company offers quality assurance, testing, inspection, and certification services, including laboratory safety, quality and performance testing, accredited third-party management systems auditing and certification, technical inspection, second-party supplier auditing and supply chain solutions, sustainability data verification, process performance analysis and training, food safety testing, hygiene and safety audits, advisory and consulting, and validation services, as well as hardware, software, and cyber security solutions. It also provides asset performance management, analytical testing, non-destructive and materials testing, engineering, cargo and inventory inspection, analytical assessment, calibration, supply-chain traceability, and related research and technical services, as well as support services in product development, regulatory authorization, chemical testing, and production. The company 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, oil and gas, petrochemical, minerals, exploration, ore and mining, building and construction, solar energy, energy storage, green hydrogen, petroleum and biofuels, agricultural supply chain, food, transportation, chemicals and pharma, and healthcare, as well as governments, regulatory bodies, and exporters and importers to support trade compliance. The company was founded in 1885 and is based in London, the United Kingdom.
ITRK.L passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Intertek Group (ITRK.L) undervalued?
Against our discounted cash flow estimate of £23.24, ITRK.L at £58.15 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ITRK.L's P/E ratio?
ITRK.L trades at 26.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.