ITRK:LSEIntertek Group plc Analysis
Data as of 2026-05-21 - not real-time
£5,479.05
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Intertek trades at 5,479 GBp, comfortably above its 20‑day SMA (5,128) and 50‑day SMA (4,423), while the 200‑day SMA (4,606) signals a long‑term uptrend. Momentum indicators are bullish – the MACD line sits above its signal line (+5.8 histogram) and the RSI is at 68, hinting at near‑term strength but also approaching overbought levels. The stock offers a solid 3.0% dividend yield with a payout ratio of 74%, supported by a ROE of 28% and free cash flow generation, yet its DCF fair value of ~2,443 GBp suggests the market price is significantly overvalued. Recent news shows the board rejected an EQT takeover bid, underscoring confidence in independent growth and removing short‑term acquisition risk.
Overall, the blend of strong cash generation, attractive yield, and defensive beta (0.5) is tempered by high valuation metrics, elevated 30‑day volatility (≈55%) and a sizeable debt load, implying a cautious but opportunistic stance.
Overall, the blend of strong cash generation, attractive yield, and defensive beta (0.5) is tempered by high valuation metrics, elevated 30‑day volatility (≈55%) and a sizeable debt load, implying a cautious but opportunistic stance.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 7/10
Key Factors
- Bullish MACD and price above short‑term SMAs
- RSI nearing overbought territory
- Recent rejection of takeover reduces near‑term upside
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong dividend yield and cash flow coverage
- Robust ROE and operating margins
- Forward PE of 19x indicating earnings growth potential
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Diversified global client base across regulated industries
- Consistent revenue growth and high gross margin
- Management confidence in independent growth trajectory
Key Metrics & Analysis
Financial Health
Revenue Growth2.00%
Profit Margin10.01%
P/E Ratio25.4
ROE28.24%
ROA9.94%
Debt/Equity146.18
P/B Ratio7.8
Op. Cash Flow£536.5M
Free Cash Flow£362.3M
Industry P/E29.5
Technical Analysis
TrendNeutral
RSI67.7
Support£4,553.00
Resistance£5,722.41
MA 20£5,128.40
MA 50£4,423.03
MA 200£4,605.83
MACDBullish
VolumeIncreasing
Fear & Greed Index90.59
Valuation
Fair Value£2,443.48
Target Price£5,675.00
Upside/Downside3.58%
GradeOvervalued
TypeBlend
Dividend Yield3.02%
Risk Assessment
Beta0.51
Volatility55.38%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.