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IVC

InvoCareASX:IVC Stock Report

Last Price

AU$10.94

Market Cap

AU$1.6b

7D

-1.3%

1Y

-5.0%

Updated

21 Jan, 2022

Data

Company Financials +
IVC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends2/6

IVC Stock Overview

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

InvoCare Competitors

Propel Funeral Partners

ASX:PFP

AU$524.9m

Service Corporation International

NYSE:SCI

US$10.4b

Carriage Services

NYSE:CSV

US$873.9m

Lungyen Life Service

TPEX:5530

NT$18.2b

Price History & Performance

Summary of all time highs, changes and price drops for InvoCare
Historical stock prices
Current Share PriceAU$10.94
52 Week HighAU$12.88
52 Week LowAU$9.65
Beta0.72
1 Month Change-4.45%
3 Month Change-6.18%
1 Year Change-5.04%
3 Year Change-10.11%
5 Year Change-18.60%
Change since IPO481.91%

Recent News & Updates

Jan 06
InvoCare (ASX:IVC) Will Want To Turn Around Its Return Trends

InvoCare (ASX:IVC) Will Want To Turn Around Its Return Trends

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

Nov 04
InvoCare Limited (ASX:IVC) Shares Could Be 24% Below Their Intrinsic Value Estimate

InvoCare Limited (ASX:IVC) Shares Could Be 24% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of InvoCare Limited ( ASX:IVC ) by estimating the...

Sep 20
Is InvoCare (ASX:IVC) A Risky Investment?

Is InvoCare (ASX:IVC) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

IVCAU Consumer ServicesAU Market
7D-1.3%1.6%-0.5%
1Y-5.0%34.2%8.4%

Return vs Industry: IVC underperformed the Australian Consumer Services industry which returned 34.2% over the past year.

Return vs Market: IVC underperformed the Australian Market which returned 8.4% over the past year.

Price Volatility

Is IVC's price volatile compared to industry and market?
IVC volatility
IVC Average Weekly Movement2.8%
Consumer Services Industry Average Movement5.3%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

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

FoundedEmployeesCEOWebsite
2001n/aOlivier Chretienhttps://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 18 cemeteries and crematoria that offers burial, memorialization, 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 CapAU$1.56b
Earnings (TTM)AU$52.62m
Revenue (TTM)AU$508.18m

29.7x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IVC income statement (TTM)
RevenueAU$508.18m
Cost of RevenueAU$125.50m
Gross ProfitAU$382.68m
ExpensesAU$330.06m
EarningsAU$52.62m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 27, 2022

Earnings per share (EPS)0.37
Gross Margin75.30%
Net Profit Margin10.35%
Debt/Equity Ratio43.5%

How did IVC perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IVC (A$10.94) is trading below our estimate of fair value (A$16.53)

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 (29.7x) compared to the Australian Consumer Services industry average (24.6x).

PE vs Market: IVC is poor value based on its PE Ratio (29.7x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: IVC is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: IVC is overvalued based on its PB Ratio (2.8x) compared to the AU Consumer Services industry average (2.7x).


Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVC's forecast earnings growth (9.8% per year) is above the savings rate (1.9%).

Earnings vs Market: IVC's earnings (9.8% per year) are forecast to grow slower than the Australian market (11.1% per year).

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

Revenue vs Market: IVC's revenue (7.1% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: IVC's revenue (7.1% 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 (10.7%).


Past Performance

How has InvoCare performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IVC has high quality earnings.

Growing Profit Margin: IVC's current net profit margins (10.4%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: IVC's earnings have declined by 25.3% per year over the past 5 years.

Accelerating Growth: IVC's earnings growth over the past year (1028.2%) exceeds its 5-year average (-25.3% per year).

Earnings vs Industry: IVC earnings growth over the past year (1028.2%) exceeded the Consumer Services industry 35.9%.


Return on Equity

High ROE: IVC's Return on Equity (9.3%) is considered low.


Financial Health

How is InvoCare's financial position?


Financial Position Analysis

Short Term Liabilities: IVC's short term assets (A$292.3M) exceed its short term liabilities (A$180.1M).

Long Term Liabilities: IVC's short term assets (A$292.3M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: IVC's net debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: IVC's debt to equity ratio has reduced from 123.1% to 43.5% over the past 5 years.

Debt Coverage: IVC's debt is well covered by operating cash flow (31.1%).

Interest Coverage: IVC's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IVC's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: IVC's dividend (1.51%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), IVC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IVC's dividends in 3 years are forecast to be covered by earnings (78.5% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Olivier Chretien (54 yo)

1

Tenure

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...


Leadership Team

Experienced Management: IVC's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: IVC's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

InvoCare Limited's 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
  • Implied Market Cap: AU$1.564b
  • Shares outstanding: 142.93m
  • Website: https://www.invocare.com.au

Number of Employees


Location

  • InvoCare Limited
  • 40 Mount Street
  • Level 5
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:39
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.