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InvoCare

ASX:IVC
Snowflake Description

High growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IVC
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

InvoCare Limited provides funeral, cemetery, crematoria, and related services in Australia, New Zealand, and Singapore. The last earnings update was 149 days ago. More info.


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IVC Share Price and Events
7 Day Returns
-2.6%
ASX:IVC
-1.1%
AU Consumer Services
0%
AU Market
1 Year Returns
16.9%
ASX:IVC
33.1%
AU Consumer Services
4.8%
AU Market
IVC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
InvoCare (IVC) -2.6% -0.6% 7.9% 16.9% 13.4% 53.3%
AU Consumer Services -1.1% -0.8% 10.3% 33.1% 4.5% -22.4%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • IVC underperformed the Consumer Services industry which returned 33.1% over the past year.
  • IVC outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
IVC
Industry
5yr Volatility vs Market

IVC Value

 Is InvoCare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of InvoCare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for InvoCare.

ASX:IVC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:IVC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.741 (1 + (1- 30%) (22%))
0.903
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.903 * 5.96%)
7.69%

Discounted Cash Flow Calculation for ASX:IVC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for InvoCare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:IVC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.69%)
2020 46.75 Analyst x2 43.41
2021 69.75 Analyst x2 60.14
2022 89.53 Est @ 28.35% 71.68
2023 107.91 Est @ 20.54% 80.23
2024 124.18 Est @ 15.07% 85.72
2025 138.14 Est @ 11.24% 88.55
2026 149.97 Est @ 8.56% 89.27
2027 160.00 Est @ 6.69% 88.43
2028 168.60 Est @ 5.38% 86.53
2029 176.11 Est @ 4.46% 83.93
Present value of next 10 years cash flows A$777.90
ASX:IVC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$176.11 × (1 + 2.31%) ÷ (7.69% – 2.31%)
A$3,348.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,348.61 ÷ (1 + 7.69%)10
A$1,595.85
ASX:IVC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$777.90 + A$1,595.85
A$2,373.75
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,373.75 / 115.04
A$20.63
ASX:IVC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$20.63
Current discount Discount to share price of A$16.20
= -1 x (A$16.20 - A$20.63) / A$20.63
21.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price InvoCare is available for.
Intrinsic value
21%
Share price is A$16.2 vs Future cash flow value of A$20.63
Current Discount Checks
For InvoCare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • InvoCare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • InvoCare's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for InvoCare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are InvoCare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:IVC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.38
ASX:IVC Share Price ** ASX (2019-07-19) in AUD A$16.2
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 16.83x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of InvoCare.

ASX:IVC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:IVC Share Price ÷ EPS (both in AUD)

= 16.2 ÷ 0.38

42.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InvoCare is overvalued based on earnings compared to the AU Consumer Services industry average.
  • InvoCare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does InvoCare's expected growth come at a high price?
Raw Data
ASX:IVC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
20.3%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Consumer Services Companies 1.83x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:IVC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.83x ÷ 20.3%

2.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InvoCare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on InvoCare's assets?
Raw Data
ASX:IVC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.59
ASX:IVC Share Price * ASX (2019-07-19) in AUD A$16.2
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 1.98x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:IVC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:IVC Share Price ÷ Book Value per Share (both in AUD)

= 16.2 ÷ 1.59

10.18x

* Primary Listing of InvoCare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InvoCare is overvalued based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess InvoCare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. InvoCare has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IVC Future Performance

 How is InvoCare expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is InvoCare expected to grow at an attractive rate?
  • InvoCare's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • InvoCare's earnings growth is expected to exceed the Australia market average.
  • InvoCare's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:IVC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:IVC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 20.3%
ASX:IVC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 7.1%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 21.4%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 12.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:IVC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:IVC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 597 110 79 4
2020-12-31 561 98 69 5
2019-12-31 525 84 62 5
ASX:IVC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 481 48 41
2018-09-30 475 53 59
2018-06-30 470 58 77
2018-03-31 468 67 87
2017-12-31 466 76 97
2017-09-30 465 81 91
2017-06-30 464 87 85
2017-03-31 463 82 78
2016-12-31 461 78 71
2016-09-30 457 70 68
2016-06-30 453 62 64
2016-03-31 450 63 60

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • InvoCare's earnings are expected to grow significantly at over 20% yearly.
  • InvoCare's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:IVC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from InvoCare Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IVC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.70 0.75 0.65 3.00
2020-12-31 0.61 0.65 0.54 4.00
2019-12-31 0.55 0.60 0.50 4.00
ASX:IVC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.38
2018-09-30 0.54
2018-06-30 0.70
2018-03-31 0.79
2017-12-31 0.89
2017-09-30 0.83
2017-06-30 0.77
2017-03-31 0.71
2016-12-31 0.65
2016-09-30 0.62
2016-06-30 0.59
2016-03-31 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • InvoCare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess InvoCare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
InvoCare has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IVC Past Performance

  How has InvoCare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare InvoCare's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • InvoCare's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • InvoCare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • InvoCare's 1-year earnings growth is negative, it can't be compared to the AU Consumer Services industry average.
Earnings and Revenue History
InvoCare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from InvoCare Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:IVC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 480.80 41.22 218.01
2018-09-30 475.46 58.89 213.08
2018-06-30 470.12 76.56 208.14
2018-03-31 468.04 87.00 207.12
2017-12-31 465.96 97.44 206.10
2017-09-30 465.22 91.16 205.32
2017-06-30 464.48 84.88 204.54
2017-03-31 462.66 77.91 204.08
2016-12-31 460.83 70.95 203.62
2016-09-30 457.08 67.57 202.59
2016-06-30 453.33 64.19 201.55
2016-03-31 449.63 59.52 198.79
2015-12-31 445.94 54.84 196.03
2015-09-30 439.26 53.50 192.19
2015-06-30 432.58 52.17 188.36
2015-03-31 426.39 53.34 184.31
2014-12-31 420.20 54.52 180.26
2014-09-30 412.42 51.37 176.16
2014-06-30 404.64 48.22 172.06
2014-03-31 398.41 48.55 169.55
2013-12-31 392.19 48.87 167.04
2013-09-30 388.30 47.24 165.73
2013-06-30 384.42 45.62 164.42
2013-03-31 379.96 45.05 160.75
2012-12-31 375.50 44.48 157.08
2012-09-30 368.97 38.67 153.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst InvoCare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • InvoCare used its assets less efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • InvoCare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess InvoCare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
InvoCare has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IVC Health

 How is InvoCare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up InvoCare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • InvoCare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • InvoCare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of InvoCare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from InvoCare Company Filings, last reported 6 months ago.

ASX:IVC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 174.69 410.04 14.78
2018-09-30 174.69 410.04 14.78
2018-06-30 167.06 329.65 11.42
2018-03-31 167.06 329.65 11.42
2017-12-31 282.42 245.08 15.53
2017-09-30 282.42 245.08 15.53
2017-06-30 247.40 255.75 16.73
2017-03-31 247.40 255.75 16.73
2016-12-31 234.21 237.20 11.53
2016-09-30 234.21 237.20 11.53
2016-06-30 207.67 256.23 12.55
2016-03-31 207.67 256.23 12.55
2015-12-31 203.44 234.96 8.68
2015-09-30 203.44 234.96 8.68
2015-06-30 180.78 246.86 14.36
2015-03-31 180.78 246.86 14.36
2014-12-31 187.96 235.26 10.49
2014-09-30 187.96 235.26 10.49
2014-06-30 170.49 243.42 14.93
2014-03-31 170.49 243.42 14.93
2013-12-31 170.70 229.73 8.90
2013-09-30 170.70 229.73 8.90
2013-06-30 155.25 237.32 6.65
2013-03-31 155.25 237.32 6.65
2012-12-31 151.89 232.59 6.08
2012-09-30 151.89 232.59 6.08
  • InvoCare's level of debt (234.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (134.7% vs 234.7% today).
  • Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5x coverage).
X
Financial health checks
We assess InvoCare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. InvoCare has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IVC Dividends

 What is InvoCare's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.28%
Current annual income from InvoCare dividends. Estimated to be 2.89% next year.
If you bought A$2,000 of InvoCare shares you are expected to receive A$46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • InvoCare's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • InvoCare's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:IVC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:IVC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.58 1.00
2022-12-31 0.55 1.00
2021-12-31 0.51 6.00
2020-12-31 0.46 8.00
2019-12-31 0.42 8.00
ASX:IVC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.370 2.445
2018-08-15 0.450 3.787
2018-02-19 0.460 3.450
2017-08-15 0.440 2.738
2017-02-22 0.425 2.948
2016-10-03 0.393 2.955
2016-02-15 0.380 2.929
2015-08-17 0.365 3.194
2015-02-16 0.365 2.786
2014-02-19 0.345 3.096
2013-02-18 0.340 3.088
2012-08-16 0.313 3.546
2012-02-21 0.298 3.671
2011-02-21 0.283 3.922
2010-08-19 0.268 3.868
2010-02-17 0.253 4.156
2009-08-20 0.245 4.168
2009-02-19 0.235 4.476
2008-08-21 0.230 4.656

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of InvoCare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess InvoCare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can InvoCare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. InvoCare has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IVC Management

 What is the CEO of InvoCare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Alistair Earp
COMPENSATION A$1,098,888
AGE 50
TENURE AS CEO 4.2 years
CEO Bio

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 Living Villages Pty Limited and served as its Acting Chief Executive Officer of CLFM since September 2009. He served as Global Chief Executive Officer of Century Campus Housing Management L.P. Mr. Earp served as an Acting Chief Executive Officer of Campus Living Villages Pty Limited since September 2009. He served as the Chief Executive Officer of SWW Energy Limited (alternate name, Australian Biodiesel Group Limited) from April 30, 2007 to November 30, 2007 and also served as its Interim Chief Operating Officer since August 2006. He has extensive experience in managing businesses and project development. He worked for Transfield Holdings for 12 years, occupying a number of operational roles including General Manager of Airtrain and Business Development Manager for Airport Link, as well as working in the business development team on a range of projects. He also worked for an English based consultancy firm that specialized in providing advice for large infrastructure projects, with a focus on public private partnerships. He advised bidders for privately financed toll roads and rail franchises under the privatization of the UK railways (National Express, Virgin Rail, Midland Mainline). He served as the Chief Scientist at the Department of Transport, providing assistance with restructuring the Department’s research programs to encourage increased private sector involvement in Government research projects. He has been Executive Director at InvoCare Limited since April 13, 2015. Mr. Earp holds an MBA from the Australian Graduate School of Management, a Masters in Traffic Engineering and a degree in Transportation Management and Planning.

CEO Compensation
  • Martin Alistair's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Martin Alistair's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the InvoCare management team in years:

2.6
Average Tenure
  • The tenure for the InvoCare management team is about average.
Management Team

Martin Alistair Earp

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
AGE
50
TENURE
4.2 yrs

Josée Lemoine

TITLE
Chief Financial Officer
COMPENSATION
A$600K
TENURE
2.8 yrs

Graeme Rhind

TITLE
Chairman of New Zealand
TENURE
2.4 yrs

Damien MacRae

TITLE
Chief Operating Officer of Australia & New Zealand
COMPENSATION
A$736K
TENURE
1.4 yrs

Leng Wee

TITLE
Chief Executive Officer of Singapore Casket Company
COMPENSATION
A$451K
TENURE
11.5 yrs

Keiron Humbler

TITLE
Group Executive of Business Operations
TENURE
3.3 yrs

Fergus Kelly

TITLE
Chief Marketing Officer
TENURE
4.1 yrs

Amanda Tober

TITLE
Group Executive of People & Culture
TENURE
1.8 yrs

Phillip Friery

TITLE
TENURE
0.3 yrs

Heidi Aldred

TITLE
Company Secretary
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the InvoCare board of directors in years:

1.7
Average Tenure
55
Average Age
  • The average tenure for the InvoCare board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bart Vogel

TITLE
Chairman
COMPENSATION
A$173K
AGE
62
TENURE
0.8 yrs

Martin Alistair Earp

TITLE
CEO, MD & Executive Director
COMPENSATION
A$1M
AGE
50
TENURE
4.3 yrs

Graeme Rhind

TITLE
Chairman of New Zealand
TENURE
8.1 yrs

Richard Davis

TITLE
Non-Executive Director
COMPENSATION
A$139K
AGE
64
TENURE
7.4 yrs

Keith Skinner

TITLE
Independent Non-executive Director
COMPENSATION
A$50K
AGE
66
TENURE
0.8 yrs

Robyn Stubbs

TITLE
Independent Non-Executive Director
COMPENSATION
A$139K
AGE
55
TENURE
2.5 yrs

Megan Quinn

TITLE
Independent Non-Executive Director
COMPENSATION
A$35K
AGE
54
TENURE
0.8 yrs

Jackie McArthur

TITLE
Independent Non-Executive Director
COMPENSATION
A$35K
AGE
48
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by InvoCare individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
06. Jun 19 Buy Jacqueline McArthur Individual 03. Jun 19 03. Jun 19 2,000 A$15.52 A$31,040
09. Apr 19 Buy Jacqueline McArthur Individual 04. Apr 19 04. Apr 19 2,000 A$14.45 A$28,900
05. Apr 19 Buy Keith Skinner Individual 04. Apr 19 04. Apr 19 1,084 A$13.85 A$15,013
01. Apr 19 Sell Richard Davis Individual 01. Apr 19 01. Apr 19 -10,000 A$14.05 A$-140,500
18. Mar 19 Sell Richard Davis Individual 12. Mar 19 13. Mar 19 -50,000 A$13.80 A$-690,000
14. Mar 19 Sell Macquarie Investment Management Australia Limited Company 04. Mar 19 04. Mar 19 -1,817 A$14.85 A$-26,982
14. Mar 19 Buy Macquarie Investment Management Australia Limited Company 14. Feb 19 07. Mar 19 54,794 A$14.41 A$0
14. Mar 19 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 14. Feb 19 11. Mar 19 -207,963 A$14.96 A$0
14. Mar 19 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 14. Feb 19 11. Mar 19 259,072 A$14.96 A$0
14. Mar 19 Sell Macquarie Investment Management Limited Company 14. Feb 19 07. Mar 19 -19,032 A$14.97 A$0
14. Mar 19 Buy Macquarie Investment Management Limited Company 15. Feb 19 11. Mar 19 15,021 A$14.88 A$0
12. Mar 19 Buy Realindex Investments Pty Limited Company 04. Dec 18 27. Feb 19 90,518 A$11.32 A$1,024,743
12. Mar 19 Sell Colonial First State Asset Management (Australia) Limited Company 29. Nov 18 27. Feb 19 -7,932 A$11.98 A$-95,059
12. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 23. Nov 18 07. Mar 19 616,400 A$11.92 A$7,333,787
18. Feb 19 Sell Macquarie Investment Management Limited Company 15. Oct 18 13. Feb 19 -40,481 A$12.79 A$0
18. Feb 19 Buy Macquarie Investment Management Limited Company 15. Oct 18 12. Feb 19 51,492 A$12.82 A$0
18. Feb 19 Sell Macquarie Investment Management Australia Limited Company 20. Dec 18 31. Dec 18 -7,678 A$10.61 A$0
18. Feb 19 Buy Macquarie Investment Management Australia Limited Company 31. Oct 18 31. Jan 19 93,719 A$11.91 A$0
18. Feb 19 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 15. Oct 18 13. Feb 19 -396,984 A$12.85 A$0
18. Feb 19 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 15. Oct 18 13. Feb 19 697,624 A$12.81 A$0
23. Nov 18 Buy Realindex Investments Pty Limited Company 23. Jul 18 19. Nov 18 258,784 A$12.21 A$3,160,480
23. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 30. Jul 18 22. Nov 18 1,772,395 A$12.28 A$21,558,442
09. Sep 18 Sell Richard Davis Individual 06. Sep 18 06. Sep 18 -40,000 A$12.65 A$-506,000
27. Aug 18 Buy Bart Vogel Individual 27. Aug 18 27. Aug 18 2,965 A$12.58 A$37,300
20. Aug 18 Sell AustralianSuper Pty Ltd Company 09. Mar 18 15. Aug 18 -2,636,241 A$14.59 A$-38,462,757
20. Aug 18 Buy AustralianSuper Pty Ltd Company 08. Mar 18 10. Aug 18 1,478,192 A$14.41 A$21,306,015
31. Jul 18 Sell Macquarie Investment Management Australia Limited Company 16. Jul 18 26. Jul 18 -7,025 A$14.12 A$0
31. Jul 18 Buy Macquarie Investment Management Australia Limited Company 17. Jul 18 26. Jul 18 12,283 A$14.15 A$0
31. Jul 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 16. Jul 18 26. Jul 18 -19,524 A$14.20 A$0
31. Jul 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 16. Jul 18 26. Jul 18 20,555 A$14.18 A$0
X
Management checks
We assess InvoCare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. InvoCare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IVC News

Simply Wall St News

If You Had Bought InvoCare (ASX:IVC) Shares Five Years Ago You'd Have Made 60%

For example, long term InvoCare Limited (ASX:IVC) shareholders have enjoyed a 60% share price rise over the last half decade, well in excess of the market return of around 13% (not including dividends). … During five years of share price growth, InvoCare actually saw its EPS drop 3.3% per year. … We note that for InvoCare the TSR over the last 5 years was 86%, which is better than the share price return mentioned above.

Simply Wall St -

Will InvoCare Limited's (ASX:IVC) Earnings Grow In The Year Ahead?

Since InvoCare Limited (ASX:IVC) released its earnings in December 2018, analyst consensus outlook appear cautiously optimistic, as a 44% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 9.6%. … To understand the overall trajectory of IVC's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … ASX:IVC Past and Future Earnings, June 27th 2019 By 2022, IVC's earnings should reach AU$73m, from current levels of AU$41m, resulting in an annual growth rate of 18%.

Simply Wall St -

InvoCare Limited (ASX:IVC): What Does The Future Look Like?

Since InvoCare Limited (ASX:IVC) released its earnings in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 44% next year against the past 5-year average growth rate of 9.6%. … To understand the overall trajectory of IVC's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … ASX:IVC Past and Future Earnings, June 27th 2019 By 2022, IVC's earnings should reach AU$73m, from current levels of AU$41m, resulting in an annual growth rate of 18%.

Simply Wall St -

Should We Be Delighted With InvoCare Limited's (ASX:IVC) ROE Of 24%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for InvoCare: 24% = AU$41m ÷ AU$175m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Here's What InvoCare Limited's (ASX:IVC) P/E Is Telling Us

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for InvoCare: P/E of 40.21 = A$15.21 ÷ A$0.38 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each A$1 of company earnings. … ASX:IVC Price Estimation Relative to Market, June 3rd 2019 InvoCare's P/E tells us that market participants think the company will perform better than its industry peers, going forward.

Simply Wall St -

What Kind Of Shareholder Owns Most InvoCare Limited (ASX:IVC) Stock?

View our latest analysis for InvoCare ASX:IVC Ownership Summary, May 24th 2019 What Does The Institutional Ownership Tell Us About InvoCare? … We can see that InvoCare does have institutional investors; and they hold 27% of the stock. … General Public Ownership The general public, who are mostly retail investors, collectively hold 70% of InvoCare shares.

Simply Wall St -

Is There An Opportunity With InvoCare Limited's (ASX:IVC) 33% Undervaluation?

Today we will run through one way of estimating the intrinsic value of InvoCare Limited (ASX:IVC) by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$37.23 A$35.87 A$71.63 A$103.11 A$135.55 A$166.33 A$193.93 A$217.80 A$238.07 A$255.24 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Est @ 43.94% Est @ 31.45% Est @ 22.71% Est @ 16.59% Est @ 12.31% Est @ 9.31% Est @ 7.21% Present Value (A$, Millions) Discounted @ 8.66% A$34.26 A$30.37 A$55.83 A$73.95 A$89.46 A$101.03 A$108.40 A$112.03 A$112.70 A$111.19 Present Value of 10-year Cash Flow (PVCF)= A$829.22m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … ASX:IVC Intrinsic value, May 16th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

InvoCare Limited (ASX:IVC): Can Growth Justify Its May Share Price?

InvoCare Limited (ASX:IVC) is considered a high-growth stock, but its last closing price of A$15.32 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … InvoCare is poised for significantly high earnings growth in the near future

Simply Wall St -

Investors In InvoCare Limited (ASX:IVC) Should Consider This, First

Today we'll take a closer look at InvoCare Limited (ASX:IVC) from a dividend investor's perspective. Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth.. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Did InvoCare Limited (ASX:IVC) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in InvoCare Limited (ASX:IVC). … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. … Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price.

Simply Wall St -

IVC Company Info

Description

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.

Details
Name: InvoCare Limited
IVC
Exchange: ASX
Founded: 2001
A$1,863,600,582
115,037,073
Website: http://www.invocare.com.au
Address: InvoCare Limited
40 Miller Street,
Level 2,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IVC Ordinary Shares Australian Securities Exchange AU AUD 04. Dec 2003
CHIA IVC Ordinary Shares Chi-X Australia AU AUD 04. Dec 2003
Number of employees
Current staff
Staff numbers
1,798
InvoCare employees.
Industry
Specialized Consumer Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:34
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.