I have just taken a quick look at Instem (INS) as it’s shareprice has doubled this year. This is about the only analysis I have seen and it is only a screen!
It might be the Halma of biotech software companies, as it is a serial acquirer of companies in its own area of expertise. Here are the results of a cursory scan - I apologise if it is all old news, but the company seems slightly obscure.
Market cap £180m
PE 42.7 (3 year average 16.2)
Earnings yield 2.3% (3 year average 6.4)
ROCE 10.4% (3 year average 5.4)
CROCI 17.6% (3 year average 6.1)
EBIT margin 11.5% (3 year average 4.4)
FCF conversion 130% (3 year average 36. 8)
£15.4m share issue in 2020
Cash at 30/6/21 £17.9m and debt £2.4m
Last 4 years EPS
4, 8.7, (5.7), 11.6 wonder what happened in 2020?
(1.5), 3.2, 19.1, 24.9
Piotroski 5, so dead average
5 year CAGR share price 30.1%
Institutional shareholders ~ 40%, incl Liontrust, Gresham House, Standard Life Aberdeen, Nova Life Sciences, Eiffel, Chelverton, Lombard Odier
Directors have ~ 10%
Clearly a company on an arc of improvement in its financial metrics but the share price has raced ahead. It produces cash. It might be worth a deeper dive.
Has anyone else dabbled here? Could it be a 100 bagger?