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.


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

IVCIndustryMarket
7 Day-1.7%-0.9%4.0%
30 Day7.2%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 Year1.5%-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

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

NamePositionTenureCompensationOwnership
Martin Alistair Earp
CEO, MD & Executive Director5.08yrsAU$1.01m0.013% A$200.1k
Josée Lemoine
Chief Financial Officer3.75yrsAU$434.66k0.00072% A$10.9k
Damien MacRae
Chief Operating Officer2.33yrsAU$624.37k0.00074% A$11.2k
Heidi Aldred
Company Secretary & Corporate Counsel1.25yrsno datano data
Fergus Kelly
Chief Marketing Officer5yrsno datano data
Amanda Tober
Group Executive of People & Culture2.67yrsno datano data
Phillip Friery
1.25yrsno datano data
Graeme Rhind
Chairman of New Zealand9yrsno datano data

3.0yrs

Average Tenure

Experienced Management: IVC's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Alistair Earp
CEO, MD & Executive Director5.08yrsAU$1.01m0.013% A$200.1k
Graeme Rhind
Chairman of New Zealand9yrsno datano data
Richard Davis
Independent Non-Executive Director8.33yrsAU$138.68k0.12% A$1.8m
Bart Vogel
Independent Chairman1.67yrsAU$277.37k0.014% A$212.7k
Keith Skinner
Independent Non-executive Director1.75yrsAU$150.24k0.0029% A$44.5k
Jacqueline McArthur
Independent Non-Executive Director1.67yrsAU$138.68k0.0033% A$50.1k
Megan Quinn
Independent Non-Executive Director1.67yrsAU$138.68kno data
Robyn Stubbs
Independent Non-Executive Director3.42yrsAU$138.68k0.0059% 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 10:38
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.