ASX:IVC

Stock Analysis Report

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Executive Summary

InvoCare Limited provides funeral, cemetery, crematoria, and related services in Australia, New Zealand, and Singapore. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IVC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

IVC

-5.1%

AU Consumer Services

-0.06%

AU Market


1 Year Return

-12.7%

IVC

7.4%

AU Consumer Services

1.0%

AU Market

Return vs Industry: IVC underperformed the Australian Consumer Services industry which returned 7.4% over the past year.

Return vs Market: IVC underperformed the Australian Market which returned 1% over the past year.


Shareholder returns

IVCIndustryMarket
7 Day-1.9%-5.1%-0.06%
30 Day8.7%16.2%9.3%
90 Day15.1%19.5%12.0%
1 Year-10.7%-12.7%10.9%7.4%4.4%1.0%
3 Year-29.5%-34.9%27.1%13.1%23.9%8.5%
5 Year11.6%-3.2%88.5%52.1%60.2%27.7%

Long-Term 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

Valuation

Is InvoCare undervalued compared to its fair value and its price relative to the market?

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IVC (A$11.23) is trading below our estimate of fair value (A$11.25)

Significantly Below Fair Value: IVC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IVC is poor value based on its PE Ratio (281.8x) compared to the AU Consumer Services industry average (27.9x).

PE vs Market: IVC is poor value based on its PE Ratio (281.8x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: IVC is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: IVC is overvalued based on its PB Ratio (2.9x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is InvoCare forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

35.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVC's forecast earnings growth (35.9% per year) is above the savings rate (2.3%).

Earnings vs Market: IVC's earnings (35.9% per year) are forecast to grow faster than the Australian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IVC's revenue (8.2% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: IVC's revenue (8.2% 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 (12.3%).


Next Steps

Past Performance

How has InvoCare performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IVC has a large one-off loss of A$24.8M impacting its June 30 2020 financial results.

Growing Profit Margin: IVC's current net profit margins (1%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: IVC's earnings have declined by 7% per year over the past 5 years.

Accelerating Growth: IVC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IVC had negative earnings growth (-92.2%) over the past year, making it difficult to compare to the Consumer Services industry average (-18.5%).


Return on Equity

High ROE: IVC's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is InvoCare's financial position?


Financial Position Analysis

Short Term Liabilities: IVC's short term assets (A$332.7M) exceed its short term liabilities (A$169.2M).

Long Term Liabilities: IVC's short term assets (A$332.7M) do not cover its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: IVC's debt to equity ratio (45.4%) is considered high.

Reducing Debt: IVC's debt to equity ratio has reduced from 115.5% to 45.4% over the past 5 years.

Debt Coverage: IVC's debt is well covered by operating cash flow (26.3%).

Interest Coverage: IVC's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IVC's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: IVC's dividend (2.58%) is low compared to the top 25% of dividend payers in the Australian market (5.02%).


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 high payout ratio (727.8%), IVC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IVC's dividends in 3 years are forecast to be covered by earnings (82.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Martin Alistair Earp (51 yo)

5.58yrs

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 ($USD751.02K) is about average for companies of similar size in the Australian market ($USD903.34K).

Compensation vs Earnings: Martin Alistair's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Alistair Earp
CEO, MD & Executive Director5.58yrsAU$1.01m0.013%
A$ 206.3k
Damien MacRae
Deputy Chief Executive Officer0.42yrAU$624.37k0.00071%
A$ 11.3k
Adrian Gratwicke
Chief Financial Officer0.33yrno datano data
Heidi Aldred
Company Secretary & Corporate Counsel1.75yrsno datano data
Fergus Kelly
Chief Marketing Officer5.5yrsno datano data
Amanda Tober
Group Executive of Human Resources3.17yrsno datano data
Phillip Friery
1.75yrsno datano data
Graeme Rhind
Chairman of New Zealand9.5yrsno datano data
Victoria Doidge
Chief Customer Officer0.25yrno datano data

1.8yrs

Average Tenure

Experienced Management: IVC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Alistair Earp
CEO, MD & Executive Director5.58yrsAU$1.01m0.013%
A$ 206.3k
Graeme Rhind
Chairman of New Zealand9.5yrsno datano data
Richard Davis
Independent Non-Executive Director8.83yrsAU$138.68k0.11%
A$ 1.8m
Bart Vogel
Independent Chairman2.17yrsAU$277.37k0.014%
A$ 216.5k
Keith Skinner
Independent Non-executive Director2.25yrsAU$150.24k0.0028%
A$ 44.4k
Jacqueline McArthur
Independent Non-Executive Director2.17yrsAU$138.68k0.0032%
A$ 50.1k
Megan Quinn
Independent Non-Executive Director2.17yrsAU$138.68kno data
Robyn Stubbs
Independent Non-Executive Director3.92yrsAU$138.68k0.0056%
A$ 88.4k

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: IVC's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 22.2%.


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$1.585b
  • Shares outstanding: 141.63m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IVCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2003
IVCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 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 va...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 07:02
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.