Intertek Group (ITRK.L), the 2nd largest business services company by market capitalisation in the United Kingdom, rose GBX9.0 (or 0.5%) to close at GBX1,796.0, ending a three-day streak of losses. Compared with the FTSE 100 index, which fell 4.4 points (or 0.1%) on the day, this was a relative price change of 0.6%. The volume was 0.6 times average trading of 281,605 shares.
PRICE VOLUME DYNAMICS
Volatility: the stock traded between an intraday low of GBX1,782.0 and a high of GBX1,806.0. The price range has expanded in the last two days (from GBX22.0 two days ago to GBX24.0 today) which, accompanied by a price rise, is a bullish signal.
Moving average price (MAP) [with equal weightage to prices at close]: the price to 200-day MAP ratio is 1.0. The 200-day MAP has decreased to GBX1,801.95. A decrease is a bearish indicator.
Exponential Moving Average Price (EMAP) [with higher weightage to recent prices]: the price to 50-day EMAP ratio is 0.99. The 50-day EMAP has decreased to GBX1,815.374. A decrease is a bearish indicator.
Moving Average Convergence Divergence (MACD): the MACD indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is negative suggesting a bearish signal.
Relativities: today its percentile rank in the United Kingdom market was 66. In the United Kingdom market of 743 stocks traded today, the stock has a 6-month relative strength of 21 indicating it is trailing 79.0% of the market.
Volume and turnover period: there were 177,174 shares worth GBP3.2 million (US$5.2 million) traded. The turnover rate in the 12 months to date was 44.2% (or a turnover period of 2 years 3 months).
% Discount to high: the last price is at a discount of 12.1% to the 12-month high of GBX2,043.70 three months ago on 03 Dec, 2010.
% Premium to low: the last price is at a premium of 13.9% to the 12-month low of GBX1,577.0 seven months ago on 30 Jul, 2010.
Volume weighted price (VWP): the price is at a premium of 1.7% to the 1-month volume weighted average price (VWP) of GBX1,765.786. In the past year the premium has been greater than 1.7% just nine times, suggesting a topish level and cautious buying at the current price.
Falls to Rises: In the last three months the number of falls outnumbered rises 36:26 or 1.38:1.
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PRICE PERFORMANCE RANK IN INDICES AND SECTORS
The stock is in 3 indices and 2 sectors.
The stock's rise went against the trend set by the following index and sectors:
Business Services sector of 35 stocks traded today, which was down 6.3 points or 0.1% to 5,805.0,
FTSE 100 index of 101 stocks traded today, which was down 4.4 points or 0.1% to 6,083.0,
The Total United Kingdom Market of 743 stocks traded today, which was down 2.5 points or 0.04% to 6,154.2
RELATIVE VALUATION INDICATORS [RVI]
Intertek Group vs Business Services sector [Business Services sector average in Brackets]
Better than sector average: Return on Equity of 36.5% [16.3%], rank 88 out of 771; Return on Assets of 12.9% [4.2%], rank 120 out of 740; P/E of 23.2 [27.49], rank 474 out of 696.
Trailing one week: the stock fell three times (60% of the time), rose once (20% of the time) and was untraded once (20% of the time). The volume was 0.7 times average trading of 1,408,025 shares. The value of GBX1,000 invested a week ago is GBX989 [vs GBX1,010 for the FTSE 100 index], for a capital loss of GBX11(or loss of 1.1%).
Trailing one month: the stock fell twelve times (52% of the time), rose ten times (43% of the time) and was untraded once (4% of the time). The volume was 0.9 times average trading of 6,195,310 shares. The value of GBX1,000 invested a month ago is GBX1,006 [vs GBX1,004 for the FTSE 100 index], for a capital gain of GBX6(or rise of 0.6%).
Annual Report for the year ended December 31, 2009 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: net profit growth 21.04% to GBP123.7m ($US198.5m); EPS growth 20.34% to 71.0 British penny ($US1.14); interest cover up 8.15% to 7.7; a track record of profits in 3 of the last 3 years; total liabilities to EBITDA down 28.4% to 2.4: this compares favourably with the Joseph Piotroski benchmark of <5; total liabilities to operating cash flow ratio of 3.0 also compares favourably with the Joseph Piotroski benchmark of <4, it had improved by 38.9% from the previous year.; total liabilities to total assets down 11.8% to 0.6; current ratio up 3.56% to 1.6; Working capital to total assets up 7.35% to 15.7%; EBIT to total assets up 21.01% to 20.3%; Sales to total assets up 23.72% to 1.3.
Unfavourable Changes: EBIT Margin down 2.19% to 15.7%; total number of shares outstanding up 0.44% to 158,400,000; Retained earnings to total assets down 3.26% to 4.2%.
Major Common Size Ratios: total non-current assets to total assets down from 57.69% to 57.36%; total current assets to total assets up from 42.31% to 42.64%; intangibles to total assets up from 30.99% to 31.87%; current debtors to total assets down from 29.64% to 27.81%; fixed assets to total assets down from 24.47% to 23.1%; cost of goods sold to sales down from 78.98% to 78.02%; EBITDA to Sales down from 20.67% to 20.58%; EBITD to Sales down from 19.71% to 19.54%; EBIT to Sales down from 16.06% to 15.71%; profit before tax to sales down from 13.81% to 13.67%.
Intertek Group vs Business Services sector [Business Services sector Total in Brackets]
Net Profit of GBX12.4 billion (US$200.4 million) [12.5% of aggregate sector net profit of GBX98.7 billion; up from 9.9% in the previous year.]
EBIT of GBX19.4 billion (US$314.9 million) [11.0% of aggregate sector EBIT of GBX175.9 billion; up from 8.5% in the previous year.]
Earnings: the earnings yield of 4.3% is 1.2 times the 10-year bond yield of 3.5%.
P/E/G: based on the year-on-year growth in trailing 12 months EPS of 20.3% the P/E/G is 1.1.
EPS growth: The implied future growth rate of earnings per share required to justify the current Price Earnings Multiple of 23.2 on trailing twelve months is 5.0%, based on a formula devised by Benjamin Graham. This is lower than the year-on-year growth rate in eps of 20.3%, suggesting the stock may be undervalued.
P/S: the price/sales ratio is 2.3.
Interest cover: interest cover defined by EBIT/I is 7.7 times. This indicates it is less leveraged.
Based on 159,548,000 issued equity shares the market capitalisation is GBP2.9 billion (US$4.6 billion). It is United Kingdom's 9th largest Business Services company by assets.
Intertek Group plc is engaged in testing, inspection and certification of products and commodities. The Company's services cover the whole supply chain, including the sourcing of raw materials, product design, manufacturing processes, compliance certifications and performance testing of the end product. It has six divisions: oil, chemical and agri; consumer goods; commercial and electrical; analytical services; industrial services, and minerals. It has more than 25,000 employees, more than 1,000 labs and offices, in more than 100 countries throughout the world to serve the customers. In April 2010, it acquired the Regulatory and Safety Testing businesses of Ciba Expert Services from BASF SE. In May 2010, it acquired Norca Ingenieria de Calidad S.L. In June 2010, the Company acquired Expertises Technologies & Services Analyses S.A.
BUSINESS NEWS ROUND UP
The last 5 company announcements are:
January 12: Intertek Group: Acquisition
[News Story] Intertek Group plc (Intertek), the leading international provider of quality and safety services to a wide range of industries, announces that it has acquired American Analytical Chemistry Laboratories Corp. (AAC Labs), a business that provides laboratory-based food testing in the United States.The privately owned company was purchased on 31 December 2010, for a cash consideration of USD 6.9 million (GBP 4.5 million).
September 16: Intertek Helps Companies Meet Requirements of Approaching December 1, 2010 Deadline for EU CLP Regulation
Intertek (www.intertek.com), the leading provider of quality and safety services to a wide range of industries, provides comprehensive solutions to assist companies in complying with the European Union's Classification, Labelling, and Packaging Regulation (CLP), REACH, and GHS regulatory requirements.The CLP Regulation requires manufacturers, importers, and downstream users to classify, label, and package substances and mixtures within scope before placing them on the EU market.
September 03: Australian Wool Innovation Grants Woolmark Authorisation to Intertek's Gurgaon Textile Testing
Gurgaon, Delhi, India - Intertek, a leading provider of quality and safety solutions to a wide range of industries worldwide, is now authorised by Australian Wool Innovation Limited (AWI) to conduct Woolmark testing of apparel textile products. AWI presented the authorisation certificate to Mr. David Horlock, Global VP-Audits & Inspection, Intertek and Mr. Dilip Gianchandani, Regional Director, Consumer Goods-Intertek today at the AWI office in Delhi.
September 03: Intertek Launches iPhone Apps for Consumer Goods Compliance Industry
Oak Brook, IL - Intertek, a leading provider of quality and safety solutions serving a wide range of industries around the world, has launched two iPhone(Registered) mobile digital device applications (apps) in response to growing demand for instant access to key industry information by consumer goods testing, inspection and compliance professionals.
September 01: Intertek Solutions Assist Use of Nanotechnology in Product R&D
New services to support fast-growing use of nanomaterials and nanotech in multiple industriesIntertek (www.intertek.com), the leading provider of quality and safety services to a wide range of industries, expands its portfolio by offering solutions to help businesses bring nanotechnology-based materials and products to the marketplace.
Currency Conversion: Pence Sterling GBX1= US$0.0162 [or US$1=GBX61.73]; Against the US$ the GBX added 62.11 basis points (or 0.6%) for the day; added 1.2% for the week; increased 1.2% for the month; climbed 6.6% in the past year. Great Britain Pound [GBP] 1 = GBX100.