InvoCare
Market Cap
AU$1.5b
Last Updated
2020/06/06 10:38 UTC
Data Sources
Company Financials +
Executive Summary
InvoCare Limited provides funeral, cemetery, crematoria, and related services in Australia, New Zealand, and Singapore.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
Similar Companies
Share Price & News
How has InvoCare's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IVC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.7%
IVC
-0.9%
AU Consumer Services
4.0%
AU Market
1 Year Return
-26.0%
IVC
-23.2%
AU Consumer Services
-7.0%
AU Market
Return vs Industry: IVC underperformed the Australian Consumer Services industry which returned -23.2% over the past year.
Return vs Market: IVC underperformed the Australian Market which returned -7% over the past year.
Shareholder returns
| IVC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -0.9% | 4.0% |
| 30 Day | 7.2% | 11.6% | 12.2% |
| 90 Day | -19.2% | -12.8% | -2.5% |
| 1 Year | -23.9%-26.0% | -19.4%-23.2% | -3.1%-7.0% |
| 3 Year | -16.2%-23.2% | 3.3%-9.9% | 19.0%3.3% |
| 5 Year | 1.5%-12.7% | -41.7%-54.9% | 33.9%5.0% |
Price Volatility Vs. Market
How volatile is InvoCare's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is InvoCare Limited (ASX:IVC) A High Quality Stock To Own?2 weeks ago | Simply Wall St
Why InvoCare Limited (ASX:IVC) Could Be Worth Watching4 weeks ago | Simply Wall St
Is InvoCare Limited (ASX:IVC) An Attractive Dividend Stock?Valuation
Is InvoCare undervalued compared to its fair value and its price relative to the market?
41.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IVC (A$11.19) is trading below our estimate of fair value (A$19.1)
Significantly Below Fair Value: IVC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IVC is poor value based on its PE Ratio (20x) compared to the Consumer Services industry average (15.2x).
PE vs Market: IVC is poor value based on its PE Ratio (20x) compared to the Australian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: IVC is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: IVC is overvalued based on its PB Ratio (4.4x) compared to the AU Consumer Services industry average (1.3x).
Next Steps
Future Growth
How is InvoCare forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
10.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IVC's forecast earnings growth (10.3% per year) is above the savings rate (2.3%).
Earnings vs Market: IVC's earnings (10.3% per year) are forecast to grow slower than the Australian market (15% per year).
High Growth Earnings: IVC's earnings are forecast to grow, but not significantly.
Revenue vs Market: IVC's revenue (5.1% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: IVC's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IVC's Return on Equity is forecast to be low in 3 years time (14.2%).
Next Steps
Past Performance
How has InvoCare performed over the past 5 years?
2.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IVC has high quality earnings.
Growing Profit Margin: IVC's current net profit margins (12.8%) are higher than last year (8.6%).
Past Earnings Growth Analysis
Earnings Trend: IVC's earnings have grown by 2.6% per year over the past 5 years.
Accelerating Growth: IVC's earnings growth over the past year (54.5%) exceeds its 5-year average (2.6% per year).
Earnings vs Industry: IVC earnings growth over the past year (54.5%) exceeded the Consumer Services industry -1.1%.
Return on Equity
High ROE: Whilst IVC's Return on Equity (21.51%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is InvoCare's financial position?
Financial Position Analysis
Short Term Liabilities: IVC's short term assets (A$189.7M) exceed its short term liabilities (A$174.0M).
Long Term Liabilities: IVC's short term assets (A$189.7M) do not cover its long term liabilities (A$1.1B).
Debt to Equity History and Analysis
Debt Level: IVC's debt to equity ratio (121.7%) is considered high.
Reducing Debt: IVC's debt to equity ratio has increased from 112.5% to 121.7% over the past 5 years.
Debt Coverage: IVC's debt is not well covered by operating cash flow (17.7%).
Interest Coverage: IVC's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Next Steps
Dividend
What is InvoCare's current dividend yield, its reliability and sustainability?
3.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IVC's dividend (3.66%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: IVC's dividend (3.66%) is low compared to the top 25% of dividend payers in the Australian market (6.45%).
Stability and Growth of Payments
Stable Dividend: IVC's dividend payments have been volatile in the past 10 years.
Growing Dividend: IVC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.3%), IVC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IVC's dividends in 3 years are forecast to be covered by earnings (82.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Martin Alistair Earp (50yo)
5.08yrs
Tenure
AU$1,009,139
Compensation
Mr. Martin Alistair John Earp, MSc, BSc (Hons), MBA, has been Chief Executive Officer and Managing Director of InvoCare Limited since May 1, 2015. Mr. Earp served as the Chief Executive Officer of Campus L ...
CEO Compensation Analysis
Compensation vs Market: Martin Alistair's total compensation ($USD705.00K) is below average for companies of similar size in the Australian market ($USD1.06M).
Compensation vs Earnings: Martin Alistair's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 5.08yrs | AU$1.01m | 0.013% A$200.1k | |
| Chief Financial Officer | 3.75yrs | AU$434.66k | 0.00072% A$10.9k | |
| Chief Operating Officer | 2.33yrs | AU$624.37k | 0.00074% A$11.2k | |
| Company Secretary & Corporate Counsel | 1.25yrs | no data | no data | |
| Chief Marketing Officer | 5yrs | no data | no data | |
| Group Executive of People & Culture | 2.67yrs | no data | no data | |
| 1.25yrs | no data | no data | ||
| Chairman of New Zealand | 9yrs | no data | no data |
3.0yrs
Average Tenure
Experienced Management: IVC's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 5.08yrs | AU$1.01m | 0.013% A$200.1k | |
| Chairman of New Zealand | 9yrs | no data | no data | |
| Independent Non-Executive Director | 8.33yrs | AU$138.68k | 0.12% A$1.8m | |
| Independent Chairman | 1.67yrs | AU$277.37k | 0.014% A$212.7k | |
| Independent Non-executive Director | 1.75yrs | AU$150.24k | 0.0029% A$44.5k | |
| Independent Non-Executive Director | 1.67yrs | AU$138.68k | 0.0033% A$50.1k | |
| Independent Non-Executive Director | 1.67yrs | AU$138.68k | no data | |
| Independent Non-Executive Director | 3.42yrs | AU$138.68k | 0.0059% A$88.5k |
2.6yrs
Average Tenure
55yo
Average Age
Experienced Board: IVC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IVC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17%.
Top Shareholders
Company Information
InvoCare Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: InvoCare Limited
- Ticker: IVC
- Exchange: ASX
- Founded: 2001
- Industry: Specialized Consumer Services
- Sector: Consumer Services
- Market Cap: AU$1.513b
- Shares outstanding: 135.19m
- Website: https://www.invocare.com.au
Number of Employees
Location
- InvoCare Limited
- 40 Miller Street
- Level 2
- North Sydney
- New South Wales
- 2060
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IVC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2003 |
| IVC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2003 |
Biography
InvoCare Limited provides funeral, cemetery, crematoria, and related services in Australia, New Zealand, and Singapore. The company operates 290 funeral locations, and 16 cemeteries and crematoria under various brands. It also offers HeavenAddress, an online memorial community service; LifeArt coffins; and Guardian Plan, a prepaid funeral plan. In addition, the company operates MyGriefAssist, an online grief resource Website; and MyMemorial, a Website that provides range of cremation and burial memorial options, as well as provides digital funeral planning services under the Funeral Planner brand name. InvoCare Limited was incorporated in 2001 and is headquartered in North Sydney, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 10:38 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.