InvoCare (ASX:IVC) - Share price, News & Analysis

IVC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	4/6
Dividends	1/6

IVC Stock Overview

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

Rewards

Trading at 32.6% below our estimate of its fair value

Revenue is forecast to grow 5.86% per year

Became profitable this year

Risk Analysis

IVC passed our risk checks.

InvoCare Competitors

Shine Justice

ASX:SHJ

AU$189.0m

SILK Laser Australia

ASX:SLA

AU$133.6m

Slater and Gordon

ASX:SGH

AU$84.0m

Mayfield Childcare

ASX:MFD

AU$87.3m

Price History & Performance

Summary of all time highs, changes and price drops for InvoCare
Historical stock prices
Current Share Price	AU$12.09
52 Week High	AU$13.19
52 Week Low	AU$10.03
Beta	0.65
1 Month Change	-0.66%
3 Month Change	-3.59%
1 Year Change	20.06%
3 Year Change	-22.80%
5 Year Change	-19.18%
Change since IPO	543.09%

Recent News & Updates

Mar 07

InvoCare (ASX:IVC) Takes On Some Risk With Its Use Of Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

	IVC	AU Consumer Services	AU Market
7D	0%	1.4%	1.1%
1Y	20.1%	9.3%	1.5%

Return vs Industry: IVC exceeded the Australian Consumer Services industry which returned 9.3% over the past year.

Return vs Market: IVC exceeded the Australian Market which returned 1.5% over the past year.

Price Volatility

Is IVC's price volatile compared to industry and market?
IVC volatility
IVC Average Weekly Movement	3.0%
Consumer Services Industry Average Movement	6.8%
Market Average Movement	9.5%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

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.

About the Company

Founded	Employees	CEO	Website
2001	n/a	Olivier Chretien	https://www.invocare.com.au

InvoCare Limited provides funeral, cemetery, crematoria, and related services in Australia, New Zealand, and Singapore. The company operates approximately 290 funeral home locations, and 17 cemeteries and crematoria that offers burial, memorial parks, and cremation services. It also offers pet cremation services under the Patch & Purr, Pets in Peace, Family Pet Care, and the Lanswood and Edenhill brands; and LifeArt coffins.

InvoCare Fundamentals Summary

How do InvoCare's earnings and revenue compare to its market cap?
IVC fundamental statistics
Market Cap	AU$1.73b
Earnings (TTM)	AU$80.16m
Revenue (TTM)	AU$532.45m

21.6x

P/E Ratio

3.2x

P/S Ratio

Is IVC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IVC income statement (TTM)
Revenue	AU$532.45m
Cost of Revenue	AU$128.83m
Gross Profit	AU$403.63m
Other Expenses	AU$323.47m
Earnings	AU$80.16m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 29, 2022

Earnings per share (EPS)	0.56
Gross Margin	75.81%
Net Profit Margin	15.05%
Debt/Equity Ratio	32.5%

How did IVC perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

37%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVC's forecast earnings growth (1% per year) is below the savings rate (1.8%).

Earnings vs Market: IVC's earnings (1% per year) are forecast to grow slower than the Australian market (6.2% per year).

High Growth Earnings: IVC's earnings are forecast to grow, but not significantly.

Revenue vs Market: IVC's revenue (5.9% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: IVC's revenue (5.9% 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 (11.6%).

Past Performance

How has InvoCare performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IVC has high quality earnings.

Growing Profit Margin: IVC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: IVC's earnings have declined by 19.8% per year over the past 5 years.

Accelerating Growth: IVC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IVC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (29.1%).

Return on Equity

High ROE: IVC's Return on Equity (13.8%) is considered low.

Financial Health

How is InvoCare's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IVC's short term assets (A$219.3M) exceed its short term liabilities (A$197.6M).

Long Term Liabilities: IVC's short term assets (A$219.3M) do not cover its long term liabilities (A$978.6M).

Debt to Equity History and Analysis

Debt Level: IVC's net debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: IVC's debt to equity ratio has reduced from 101.3% to 32.5% over the past 5 years.

Debt Coverage: IVC's debt is well covered by operating cash flow (41.1%).

Interest Coverage: IVC's interest payments on its debt are not well covered by EBIT (2.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IVC's dividend (1.9%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.55%).

High Dividend: IVC's dividend (1.9%) is low compared to the top 25% of dividend payers in the Australian market (6.11%).

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 fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.4%), IVC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (218.7%), IVC's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure

CEO

Olivier Chretien (54 yo)

1.33yrs

Tenure

AU$2,095,114

Compensation

Mr. Olivier J. Chretien, MBA MEng GAICD, serves as Chief Executive Officer and Managing Director at InvoCare Limited since January 1, 2021 and serves as its Director since January 4, 2021. He was Group Chi...

CEO Compensation Analysis

Compensation vs Market: Olivier's total compensation ($USD1.47M) is about average for companies of similar size in the Australian market ($USD1.38M).

Compensation vs Earnings: Insufficient data to compare Olivier's compensation with company performance.

Leadership Team

Experienced Management: IVC's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: IVC's board of directors are considered experienced (3.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: IVC insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31