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Inchcape
(LSE:INCH)
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Rating:71Outperform
Price Target:
706.00 p
▼(-13.95% Downside)
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
Revenue Growth and Regional Momentum
Broad revenue growth, supported by strong Americas performance and gains across Europe and Africa, demonstrates market expansion beyond a single geography. Regional diversification can improve resilience, while higher volumes provide operating leverage and support sustained earnings growth over the next several quarters.
Negative Factors
Structural APAC Underperformance
APAC weakness is material because it combines lower volumes with substantial margin erosion rather than a small isolated shortfall. Continued regional underperformance could dilute group profitability, consume management attention and make medium-term targets harder to achieve until the portfolio is reshaped.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Regional Momentum
Broad revenue growth, supported by strong Americas performance and gains across Europe and Africa, demonstrates market expansion beyond a single geography. Regional diversification can improve resilience, while higher volumes provide operating leverage and support sustained earnings growth over the next several quarters.
Read all positive factors
Inchcape (INCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.15B
Dividend Yield5.26%
Average Volume (3M)1.13M
Price to Earnings (P/E)9.8
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 Outstanding336,808,870
10 Day Avg. Volume1,071,256
30 Day Avg. Volume1,125,851
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
£918.20Price Target Upside11.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.86
Revenue Forecast (FY)£9.84B
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 makes money primarily by acting as a distribution partner for automotive OEMs (vehicle manufacturers) and by selling vehicles and related services to end customers. A core revenue stream comes from its distribution operations: Inchcape im...
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
Negative
820.50
Price Trends
768.50
Negative
783.53
Negative
786.50
Negative
Market Momentum
-33.42
Positive
31.92
Neutral
51.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INCH, the sentiment is Negative. The current price of 820.5 is above the 20-day moving average (MA) of 692.65, above the 50-day MA of 768.50, and above the 200-day MA of 786.50, indicating a bearish trend. The MACD of -33.42 indicates Positive momentum. The RSI at 31.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £2.15B | 9.83 | 19.59% | 5.26% | 7.27% | -39.82% | |
65 Neutral | £573.02M | 17.42 | 6.52% | 3.42% | 5.04% | ― | |
65 Neutral | £262.05M | 14.69 | 5.00% | 2.36% | 2.90% | 15.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £14.35M | 2.98 | 20.83% | ― | 4.04% | -25.71% | |
54 Neutral | £112.26M | 21.28 | 22.27% | 1.55% | 8.14% | 81.96% | |
46 Neutral | £13.23M | -10.32 | -4.30% | 2.06% | -1.74% | -830.03% |
* Consumer Cyclical Sector Average
GB:INCH
Inchcape
639.00
-95.71
-13.03%
GB:CFYN
Caffyns
485.00
-2.80
-0.57%
GB:HFD
Halfords
263.00
118.55
82.07%
GB:MOTR
Motorpoint
141.50
-14.79
-9.46%
GB:VTU
Vertu Motors
86.80
26.32
43.52%
GB:CTA
CT Automotive Group Plc
19.50
-13.50
-40.91%
Inchcape Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Inchcape trims margin outlook but Q3 revenue grows on Americas and Europe strength
Positive
Oct 22, 2026
Inchcape plc is a global automotive distributor headquartered in London, operating across six continents and specialising in smaller, complex and lower-motorisation markets. It delivers integrated distribution services for mobility partners, from ...
Business Operations and StrategyStock Buyback
Inchcape Advances £167.9m Share Buyback With Fresh Repurchases
Positive
Oct 19, 2026
Inchcape plc has continued its previously announced share buyback programme, repurchasing 781,004 ordinary shares between 12 and 16 October 2026 through UBS AG London Branch. The shares, bought at prices ranging roughly between 665p and 684p, will...
Business Operations and StrategyStock Buyback
Inchcape Cancels Additional Shares Under £162m Buyback Programme
Positive
Oct 12, 2026
Inchcape plc has continued to execute its previously announced share buyback programme, repurchasing 2,384,525 ordinary shares between 5 and 9 October 2026 via UBS across several trading venues. The company intends to cancel all of these shares, r...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Hits £146.5m
Positive
Oct 5, 2026
Inchcape has repurchased 1,719,469 of its own ordinary shares between 28 September and 2 October 2026 under its ongoing share buyback programme conducted through UBS AG London Branch. The company intends to cancel all of these shares, reducing the...
Business Operations and StrategyM&A Transactions
Inchcape buys Volvo and Jaguar Land Rover operations in Peru and Costa Rica
Positive
Oct 1, 2026
Inchcape plc, the independent automotive distributor, has agreed to acquire Volvo operations in Peru and Costa Rica and a Jaguar Land Rover business in Peru from Automotores Gildemeister. The bolt-on deals expand Inchcape’s mobility offering...
Business Operations and StrategyM&A Transactions
Inchcape expands Americas footprint with Volvo and JLR acquisitions
Positive
Oct 1, 2026
Inchcape has agreed to acquire Volvo operations in Peru and Costa Rica and Jaguar Land Rover operations in Peru from Automotores Gildemeister. The bolt-on deals, which generated about £48.7 million in revenue in FY2025 and include five retail...
Regulatory Filings and Compliance
Inchcape Updates Share Capital and Voting Rights for Regulatory Transparency
Neutral
Sep 30, 2026
Inchcape plc has reported that, as of 30 September 2026, its issued share capital consists of 341,287,962 ordinary shares of 10 pence each, with every share carrying one voting right and none held in treasury. This disclosure clarifies the total n...
Regulatory Filings and Compliance
Inchcape Discloses Share Sale by Europe & Africa CEO
Neutral
Sep 29, 2026
Inchcape plc has disclosed a market transaction by Glafkos Persianis, CEO for Europe and Africa and a person discharging managerial responsibilities. The filing reports that Persianis conducted a disposal of ordinary Inchcape shares on the London ...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares After £133m Buyback Drive
Positive
Sep 28, 2026
Inchcape plc has repurchased 1,389,789 ordinary shares during 21–25 September 2026 under its ongoing share buyback programme, paying volume‑weighted average prices ranging from about 780p to 807p per share across multiple trading venue...
Business Operations and StrategyExecutive/Board Changes
Inchcape Grants SAYE Share Options to Senior Executives
Positive
Sep 25, 2026
Inchcape plc has granted share options to senior executives under its Save As You Earn (SAYE) employee share scheme. The options relate to ordinary shares of 10 pence each at an exercise price of £6.75.The grants were made to Chief Commercial...
Business Operations and StrategyExecutive/Board Changes
Inchcape Director Alison Platt Appointed to HSBC Board
Positive
Sep 25, 2026
Inchcape plc has announced that its Senior Independent Director, Alison Platt, will join HSBC Holdings plc as a non-executive director from 1 October 2026. The appointment links Inchcape’s board with one of the world’s largest banking ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Inchcape Grants 2026 Executive Share Awards Under Approved Remuneration Plans
Positive
Sep 22, 2026
Inchcape plc is a global automotive distribution and retail group, listed in London, that focuses on selling and servicing vehicles through manufacturer partnerships across multiple regions, including Asia-Pacific. The company relies on performanc...
Business Operations and StrategyStock Buyback
Inchcape Continues Share Buyback, Cancels Over 1.1 Million Shares
Positive
Sep 21, 2026
Inchcape plc has continued its previously announced share buyback programme, purchasing 1,131,887 ordinary shares between 14 and 18 September 2026 via UBS AG London Branch. The shares were bought across multiple trading venues at volume-weighted a...
Business Operations and Strategy
Inchcape Plans Investor Webinar to Spotlight Growth Strategy
Positive
Sep 17, 2026
Inchcape plc has scheduled the next edition of its “In the Driving Seat” investor and analyst webinar for Thursday 19 November 2026, running from 2.00pm to 4.00pm UK time, with a recording and transcript to be made available on the com...
DividendsRegulatory Filings and Compliance
Inchcape CFO Reinvests Dividend in Share Purchase Under DRIP
Positive
Sep 15, 2026
Inchcape disclosed that Group Chief Financial Officer Adrian Lewis purchased ordinary shares under the company’s Dividend Reinvestment Plan tied to the 2026 interim dividend. The transaction, executed on the London Stock Exchange on 14 Septe...
Business Operations and StrategyStock Buyback
Inchcape Cuts Share Count Further Under £113m Buyback Programme
Positive
Sep 14, 2026
Inchcape has continued to execute its share buyback programme, purchasing 1,288,766 ordinary shares between 7 and 11 September 2026 via UBS AG London Branch. The company plans to cancel all of these shares, reducing its share count and potentially...
Business Operations and StrategyStock BuybackFinancial Disclosures
Inchcape Advances £102.8m Share Buyback, Cuts Share Count
Positive
Sep 7, 2026
Inchcape has continued to execute its share buyback programme, repurchasing 525,653 ordinary shares between 1 and 4 September 2026 through UBS at volume‑weighted average prices in the mid‑840s pence range. The company intends to cancel...
Regulatory Filings and Compliance
Inchcape Confirms Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2026
Inchcape plc reported that, as of 31 August 2026, its issued share capital comprises 346,142,094 ordinary shares of 10p each, with every share carrying one vote and no shares held in treasury. This confirmation of total voting rights provides a cl...
Business Operations and StrategyStock BuybackFinancial Disclosures
Inchcape Advances Share Buyback, Cancels Over 12 Million Shares Since March
Positive
Sep 1, 2026
Inchcape has continued its previously announced share buyback programme, repurchasing 351,822 ordinary shares between 24 and 28 August 2026 via UBS at volume-weighted average prices ranging from about 824p to 842p. The company plans to cancel thes...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares as Buyback Programme Passes £95m
Positive
Aug 24, 2026
Inchcape has continued executing its previously announced share buyback programme, purchasing 836,381 ordinary shares between 17 and 21 August 2026 via UBS across several trading venues at volume-weighted average prices around the low-820 pence ra...
Executive/Board ChangesRegulatory Filings and Compliance
Inchcape Executive Exercises Share Awards and Sells Portion to Cover Tax
Neutral
Aug 17, 2026
Inchcape plc disclosed that Phil Jenkins, CEO APAC and Chief MA Officer, exercised share awards under the company’s 2023 Performance Share Plan and Co-Investment Plan, receiving a total of 47,880 ordinary shares at no cost. As part of the tr...
Business Operations and StrategyStock Buyback
Inchcape Cancels Further Shares Under £88.6m Buyback Programme
Positive
Aug 17, 2026
Inchcape plc has continued its share buyback programme, repurchasing 1,215,485 ordinary shares between 10 and 14 August 2026 through UBS AG’s London branch at volume‑weighted average prices ranging from about 821p to 836p. The latest t...
Stock BuybackFinancial Disclosures
Inchcape Advances Share Buyback with Further 717,000-Share Purchase
Positive
Aug 10, 2026
Inchcape plc has continued executing its share buyback programme, purchasing 717,411 ordinary shares between 3 August and 7 August 2026 through UBS AG London Branch. The shares, bought at volume-weighted average prices around the low-830 pence ran...
Other
Inchcape CCO Exercises Share Awards and Sells Stock to Cover Tax
Neutral
Aug 4, 2026
Inchcape plc has disclosed a share transaction involving Chief Commercial Officer Romeo Lacerda, who exercised awards under the company’s 2023 Performance Share Plan and 2023 Co-Investment Plan. The awards were settled in ordinary shares of ...
Business Operations and StrategyStock Buyback
Inchcape Cuts Share Count with Latest Buyback Tranche
Positive
Aug 3, 2026
Inchcape plc has repurchased 207,075 ordinary shares between 27 July and 31 July 2026 as part of its ongoing share buyback programme, executed through UBS AG’s London branch. The company plans to cancel these shares rather than hold them in ...
Regulatory Filings and Compliance
Inchcape Confirms Total Voting Rights and Share Capital Structure
Neutral
Jul 31, 2026
Inchcape plc has confirmed that as of 31 July 2026 its issued share capital consists of 349,151,070 ordinary shares of 10 pence each, with every share carrying one vote and no shares held in treasury. The disclosure clarifies the total voting righ...
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...
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.