Intertek Group PLC
🇬🇧 ITRK.LSE · London · GB0031638363
Industrials
GBX 3736.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
17.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 3736.00 ÷ 216.04 = 17.3
TTM period through: 2025-12-31
Forward P/E (estimated): 13.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 17.3
Yield (Fwd)
4.42%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.44%
Net Debt/EBITDA (TTM)
1.7x
Latest quarter: 3.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
76.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 73.4%
Cash Flow Payout (TTM): 46.7%
FCF Coverage (TTM): 1.57x
ROE
28.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
9.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Intertek Group is a high-quality global leader in the Testing, Inspection, and Certification (TIC) oligopoly, offering highly reliable cash flows and an attractive 4.4% dividend yield. Trading at 3,736 GBX, below our monopoly fair value upper bound of 3,888 GBX, the stock provides an attractive entry point for dividend investors following a recent market overreaction. With a forward P/E of 13x and exceptionally strong cash flow coverage, this remains worth considering for new positions.
Sector Context
Intertek is a global leader in the Testing, Inspection, and Certification (TIC) sector, providing essential quality assurance services across diverse industries to ensure products meet regulatory standards. The TIC industry operates as a natural oligopoly characterized by high barriers to entry, strict regulatory requirements, and highly recurring revenues, making it exceptionally resilient and well-suited for long-term dividend investing.
Temporary Opportunity Identified
Stock price has recently faced downward pressure hitting new 12-month lows despite the company reporting record profits and an upgraded growth outlook, largely driven by broader market anxiety over geopolitical tensions and inflation.
📊 Strategy Analysis
- • Trading at 3,736 GBX, below our monopoly fair value bound of 3,888 GBX, with a Forward P/E of 12.96x that sits well within the optimal 8-15x range.
- • Highly reliable 4.44% dividend yield backed by 10 years of uninterrupted growth and an exceptionally safe cash flow payout ratio of 46.7%.
- • Deep competitive moat in the essential regulatory-driven Testing, Inspection, and Certification (TIC) oligopoly, translating to an outstanding ROE of 28.2%.
- • Recent stock price weakness despite reporting record profits and upgraded growth outlooks indicates a temporary, market-driven opportunity.
⚠ What to Watch
- • The trailing P/E of 17.29x sits slightly above the preferred 15x threshold, though this premium is historically justified by the company's oligopoly position.
- • Reported TTM earnings payout ratio is distorted at 142.7%, meaning investors must rely on the underlying free cash flow coverage (1.57x) to confirm dividend safety.
- • Broader macroeconomic uncertainties and supply chain disruptions linked to geopolitical tensions could temporarily pressure testing volumes in consumer product segments.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.