International Personal Finance PLC

International Personal Finance PLC maintains a capital structure characterized by significant leverage, with long-term debt of £640.3 million against total equity of £546.0 million, resulting in a debt-to-equity ratio of 1.17. The company reports a current ratio of 3.83, indicating strong short-term liquidity coverage despite the high debt load. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on external financing or asset liquidation for longer-term obligations. The market capitalization stands at £55.3 billion, implying a substantial premium over the book value of equity.

Profitability metrics reveal a gross profit of £666.8 million on revenue of £737.5 million, yielding a gross margin of approximately 90.4%. Operating income is £85.9 million, leading to a net income of £54.2 million. The return on equity (ROE) is 9.93%, and the return on assets (ROA) is 4.05%. These returns are generated against a backdrop of high valuation multiples, with a price-to-earnings ratio of 1,020.63 and an EV/EBITDA of 651.44, indicating that the market is pricing in significant future growth or asset value not currently reflected in earnings.

The company’s revenue mix is not detailed in the available segment data, preventing a granular analysis of product or service concentration. Similarly, geographic exposure is not specified in the provided data, leaving the regional distribution of the £737.5 million revenue unknown. The absence of segment and geographic breakdowns limits the ability to assess concentration risk or regional economic sensitivity.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to evaluate the consistency or acceleration of the company’s financial performance. The current snapshot shows a single period of revenue generation, but the directionality of growth remains unverified by the provided data.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash after debt subtraction. The high valuation multiples present a significant downside risk if earnings do not expand to justify the current price. The debt-to-equity ratio of 1.17 suggests moderate financial leverage, which could amplify volatility in interest rate environments.

Recent observations indicate analyst consensus with a mean price target of £195.00, a median of £195.00, a high of £205.00, and a low of £185.00. The mean recommendation is 2.50, with one strong-buy rating and no buy or hold ratings recorded. This suggests a cautious but slightly positive sentiment among analysts, with the current market price of £248.50 trading significantly above the mean target.

Revenue grew at a 7.7% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Operating income surged 15.5% year-over-year to £85.9 million, indicating improved core operational profitability.

Net income CAGR of 6.6% over four years suggests underlying earnings growth potential despite recent declines.

Gross profit reached £666.8 million in FY2026, maintaining a strong margin base relative to total revenue.

Dilution risk is assessed as low, suggesting current capital structure stability for existing shareholders.

Net income fell 11.0% year-over-year to £54.2 million, marking a significant deterioration in bottom-line performance.

Credit risk is flagged as high, posing substantial potential for future loan losses and capital erosion.

Net margin of 7.35% sits in the bottom quartile of the Consumer Finance cohort, indicating weak profitability.

Revenue £737.5M, +1,5% YoY; Operating income +15,5% YoY.

• ▍Revenue £737.5M, +1,5% YoY
• ▍Operating income +15,5% YoY
• ▍Net income −11,0% YoY
• ▍Free cash flow −47,7% YoY
• ▍Net margin 7.3%

Revenue £726.3M, −5,4% YoY; Operating income −13,5% YoY.

• ▍Revenue £726.3M, −5,4% YoY
• ▍Operating income −13,5% YoY
• ▍Net income +26,9% YoY
• ▍Free cash flow +26,8% YoY
• ▍Net margin 8.4%

Revenue £767.8M, +18,9% YoY; Operating income +8,9% YoY.

• ▍Revenue £767.8M, +18,9% YoY
• ▍Operating income +8,9% YoY
• ▍Net income −15,5% YoY
• ▍Free cash flow −19,8% YoY
• ▍Net margin 6.3%

Revenue £645.5M, +17,6% YoY; Operating income +14,3% YoY.

• ▍Revenue £645.5M, +17,6% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +35,6% YoY
• ▍Free cash flow −17,7% YoY
• ▍Net margin 8.8%

Revenue £548.7M; Operating income £69.1M.

• ▍Revenue £548.7M
• ▍Operating income £69.1M
• ▍Net margin 7.6%