Latest news with #InstoneRealEstateGroup
Yahoo
09-08-2025
- Business
- Yahoo
Instone Real Estate Group Reports Second Quarter 2025 Earnings
Instone Real Estate Group (ETR:INS) Second Quarter 2025 Results Key Financial Results Revenue: €126.0k (down 7.3% from 2Q 2024). Net income: €9.7k (down 11% from 2Q 2024). Profit margin: 7.7% (down from 8.0% in 2Q 2024). The decrease in margin was driven by lower revenue. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Instone Real Estate Group Earnings Insights Looking ahead, revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 19% decline forecast for the Real Estate industry in Germany. Performance of the German Real Estate industry. The company's shares are up 4.9% from a week ago. Risk Analysis We should say that we've discovered 1 warning sign for Instone Real Estate Group that you should be aware of before investing here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-06-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Instone Real Estate Group SE (ETR:INS)
Instone Real Estate Group's estimated fair value is €8.64 based on 2 Stage Free Cash Flow to Equity Instone Real Estate Group's €9.65 share price indicates it is trading at similar levels as its fair value estimate The €10.88 analyst price target for INS is 26% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Instone Real Estate Group SE (ETR:INS) by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €42.7m €19.2m €55.0m €41.9m €35.1m €31.3m €29.0m €27.6m €26.8m €26.4m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ -23.68% Est @ -16.19% Est @ -10.95% Est @ -7.29% Est @ -4.72% Est @ -2.92% Est @ -1.67% Present Value (€, Millions) Discounted @ 8.9% €39.2 €16.2 €42.6 €29.9 €23.0 €18.8 €16.0 €14.0 €12.5 €11.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €223m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €26m× (1 + 1.3%) ÷ (8.9%– 1.3%) = €352m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €352m÷ ( 1 + 8.9%)10= €151m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €374m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of €9.7, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Instone Real Estate Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.753. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Instone Real Estate Group Strength Earnings growth over the past year exceeded the industry. Debt is well covered by cash flow. Dividends are covered by earnings and cash flows. Weakness Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Real Estate market. Opportunity Annual earnings are forecast to grow faster than the German market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Instone Real Estate Group, we've compiled three fundamental aspects you should consider: Risks: You should be aware of the 1 warning sign for Instone Real Estate Group we've uncovered before considering an investment in the company. Future Earnings: How does INS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Business Insider
26-06-2025
- Business
- Business Insider
Kepler Capital Sticks to Their Buy Rating for Instone Real Estate Group (0ZQ7)
In a report released on June 24, Thomas Neuhold from Kepler Capital maintained a Buy rating on Instone Real Estate Group (0ZQ7 – Research Report), with a price target of €18.00. The company's shares closed last Monday at €9.63. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Neuhold covers the Real Estate sector, focusing on stocks such as Vonovia, Deutsche Euroshop, and Instone Real Estate Group. According to TipRanks, Neuhold has an average return of 5.1% and a 57.14% success rate on recommended stocks. Currently, the analyst consensus on Instone Real Estate Group is a Moderate Buy with an average price target of €18.00. The company has a one-year high of €10.08 and a one-year low of €7.17. Currently, Instone Real Estate Group has an average volume of 2,414.
Yahoo
16-05-2025
- Business
- Yahoo
Solid Earnings May Not Tell The Whole Story For Instone Real Estate Group (ETR:INS)
Following the solid earnings report from Instone Real Estate Group SE (ETR:INS), the market responded by bidding up the stock price. While the profit numbers were good, our analysis has found some concerning factors that shareholders should be aware of. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to March 2025, Instone Real Estate Group had an accrual ratio of -0.11. That indicates that its free cash flow was a fair bit more than its statutory profit. To wit, it produced free cash flow of €113m during the period, dwarfing its reported profit of €35.9m. Instone Real Estate Group did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. Check out our latest analysis for Instone Real Estate Group That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. While the accrual ratio might bode well, we also note that Instone Real Estate Group's profit was boosted by unusual items worth €4.4m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is). In conclusion, Instone Real Estate Group's accrual ratio suggests its statutory earnings are of good quality, but on the other hand the profits were boosted by unusual items. Given the contrasting considerations, we don't have a strong view as to whether Instone Real Estate Group's profits are an apt reflection of its underlying potential for profit. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 1 warning sign with Instone Real Estate Group, and understanding it should be part of your investment process. In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Instone Real Estate Group First Quarter 2025 Earnings: EPS: €0.23 (vs €0.19 in 1Q 2024)
Revenue: €79.8m (down 26% from 1Q 2024). Net income: €10.1m (up 20% from 1Q 2024). Profit margin: 13% (up from 7.8% in 1Q 2024). The increase in margin was driven by lower expenses. EPS: €0.23 (up from €0.19 in 1Q 2024). Our free stock report includes 1 warning sign investors should be aware of before investing in Instone Real Estate Group. Read for free now. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 20% decline forecast for the Real Estate industry in Germany. Performance of the German Real Estate industry. The company's shares are up 6.1% from a week ago. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Instone Real Estate Group, and understanding it should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
