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Intertek
(LSE:ITRK)
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Rating:68Neutral
Price Target:
6,371.00 p
▲(9.00% Upside)
Action:Reiterated
Date:08/30/26
The score is driven by solid underlying financial performance (steady growth and profitability) but tempered by balance-sheet risk from rising debt and lower equity in 2025. Technicals are supportive with price above key moving averages and positive momentum, while valuation is a headwind due to a relatively high P/E despite a moderate dividend yield.
Positive Factors
Recurring, regulation-driven revenue
Intertek’s testing, inspection and certification work is embedded in customers’ compliance and quality processes. Mandatory standards, recurring audits and re-certification cycles can support repeat demand and reduce reliance on one-off projects.
Negative Factors
Rising leverage and weaker equity
A higher debt burden and smaller equity base can increase refinancing and interest-rate sensitivity while limiting strategic flexibility. If the 2025 trajectory persists, more cash may be directed to liabilities rather than growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, regulation-driven revenue
Intertek’s testing, inspection and certification work is embedded in customers’ compliance and quality processes. Mandatory standards, recurring audits and re-certification cycles can support repeat demand and reduce reliance on one-off projects.
Read all positive factors
Intertek (ITRK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.98B
Dividend Yield2.82%
Average Volume (3M)1.04M
Price to Earnings (P/E)28.1
Beta (1Y)1.33
Revenue Growth3.94%
EPS Growth-8.14%
CountryUK
Employees45,425
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.08
Shares Outstanding153,931,800
10 Day Avg. Volume577,949
30 Day Avg. Volume1,037,731
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
£5,925.00Price Target Upside1.37% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.66
Revenue Forecast (FY)£3.61B
Intertek Business Overview & Revenue Model
Company Description
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 Sa...
How the Company Makes Money
Intertek primarily makes money by charging fees for professional services delivered through its global network of laboratories and field operations. Key revenue streams include: (1) Testing services: paid laboratory and technical services that eva...
Intertek Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.53B | 3.43B | 3.39B | 3.33B | 3.19B | 2.79B |
| Gross Profit | 619.40M | 578.00M | 553.90M | 1.91B | 484.90M | 445.40M |
| EBITDA | 827.70M | 786.60M | 725.30M | 678.00M | 677.90M | 626.90M |
| Net Income | 320.10M | 343.50M | 345.40M | 297.40M | 288.80M | 288.10M |
Balance Sheet | ||||||
| Total Assets | 4.01B | 3.76B | 3.60B | 3.54B | 3.66B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 438.60M | 329.20M | 343.00M | 299.30M | 321.60M | 265.90M |
| Total Debt | 1.90B | 1.65B | 1.14B | 1.22B | 1.38B | 1.29B |
| Total Liabilities | 2.91B | 2.63B | 2.15B | 2.18B | 2.34B | 2.14B |
| Stockholders Equity | 1.06B | 1.08B | 1.40B | 1.32B | 1.28B | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 451.20M | 395.60M | 462.10M | 418.10M | 445.60M | 454.60M |
| Operating Cash Flow | 600.60M | 540.10M | 597.10M | 535.00M | 562.10M | 551.70M |
| Investing Cash Flow | -328.50M | -323.40M | -142.20M | -145.10M | -175.50M | -587.90M |
| Financing Cash Flow | -207.70M | -213.20M | -402.40M | -376.20M | -334.90M | 122.80M |
Intertek Technical Analysis
Positive
5845.00
Price Trends
5833.20
Positive
5575.03
Positive
4914.08
Positive
Market Momentum
9.13
Positive
59.98
Neutral
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITRK, the sentiment is Positive. The current price of 5845 is below the 20-day moving average (MA) of 5846.50, above the 50-day MA of 5833.20, and above the 200-day MA of 4914.08, indicating a bullish trend. The MACD of 9.13 indicates Positive momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £8.59B | 23.77 | 5.82% | 2.80% | -0.18% | 39.04% | |
72 Outperform | £2.65B | 32.38 | 15.86% | 2.15% | 10.55% | -19.05% | |
68 Neutral | £8.98B | 28.13 | 29.86% | 2.82% | 3.94% | -8.14% | |
68 Neutral | £2.45B | 16.19 | 17.55% | 1.87% | 1.20% | 221.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | £375.38M | 135.78 | 1.30% | 2.41% | 8.11% | -69.68% | |
42 Neutral | £302.44M | -1.46 | -677.10% | 5.94% | -16.13% | -1315.87% |
* Industrials Sector Average
GB:ITRK
Intertek
5,850.00
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29.63%
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Intertek Corporate Events
Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Intertek shareholders approve EQT-backed cash takeover via scheme
Positive
Aug 6, 2026
Shareholders of Intertek Group PLC have voted in favour of a recommended final cash acquisition by Isotope Bidco Limited, a vehicle indirectly owned by EQT funds alongside minority investors including Luxinva and Mubadala. The deal, structured as ...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Intertek posts strong H1 2026 results and backs EQT takeover offer
Positive
Jul 31, 2026
Intertek reported a strong first half of 2026, with revenue rising 6.1% at constant currency to £1.77bn and like-for-like growth of 4.9% across key divisions including consumer products, corporate assurance, and health and safety. Adjusted op...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Intertek posts strong H1 2026 results and backs EQT takeover offer
Positive
Jul 31, 2026
Intertek reported a strong first half of 2026, with revenue rising 6.1% at constant currency to £1.77bn and like‑for‑like sales up 4.9%, supported by growth in Consumer Products, Corporate Assurance, Health and Safety, and Industr...
Business Operations and StrategyM&A Transactions
Intertek grants EQT more time to decide on £60-a-share takeover bid
Neutral
Jun 11, 2026
Intertek Group has disclosed that private equity firm EQT has been granted more time by the UK Takeover Panel to decide whether to make a formal cash offer for the entire share capital of the company. EQT’s proposal, unchanged at £60 pe...
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.