British automotive distributor Inchcape reported FY25 pretax profit of £443 million, matching forecasts and rising 13% in constant currency to 80.8 pence per share. The company simultaneously announced a £175 million share buyback, its second in under a year, signaling confidence in cash flow resilience. Revenue fell 2% to £9.1 billion but grew 1% organically, while EBIT margin dipped to 6.2% from 6.3%.

Analysts highlight the buyback's alignment with long-term targets, including 3-5% organic growth and 6% margins, though shares trade at 10x 2026 earnings, suggesting undervaluation. Asia-Pacific revenues plummeted 12%, offsetting gains in Americas (8% organic) and Europe (6% organic). Net debt remained low at £264 million, with leverage at 0.4x.

Jefferies notes the stock's 14% free cash flow yield and 4% dividend yield as attractive despite a 28% price surge in 12 months.