ASX:INV

Stock Analysis Report

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Executive Summary

InvestSMART Group Limited provides financial services and products under general advice to retail investors in Australia.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has InvestSMART Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

INV

1.0%

AU Capital Markets

1.4%

AU Market


1 Year Return

-7.4%

INV

5.3%

AU Capital Markets

-4.5%

AU Market

Return vs Industry: INV underperformed the Australian Capital Markets industry which returned 5.3% over the past year.

Return vs Market: INV underperformed the Australian Market which returned -4.5% over the past year.


Shareholder returns

INVIndustryMarket
7 Day0%1.0%1.4%
30 Day0%1.5%1.7%
90 Day8.7%16.1%14.7%
1 Year-7.4%-7.4%9.3%5.3%-0.8%-4.5%
3 Year-72.7%-72.7%55.4%36.7%19.6%4.1%
5 Year-71.7%-71.7%112.7%67.6%45.4%14.4%

Price Volatility Vs. Market

How volatile is InvestSMART Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

1.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate INV's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate INV's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: INV is unprofitable, so we can't compare its PE Ratio to the AU Capital Markets industry average.

PE vs Market: INV is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INV is good value based on its PB Ratio (1.2x) compared to the AU Capital Markets industry average (1.9x).


Next Steps

Future Growth

How is InvestSMART Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.6%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as InvestSMART Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has InvestSMART Group performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INV is currently unprofitable.

Growing Profit Margin: INV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INV is unprofitable, but has reduced losses over the past 5 years at a rate of 4.9% per year.

Accelerating Growth: Unable to compare INV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: INV is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (5.8%).


Return on Equity

High ROE: INV has a negative Return on Equity (-20.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is InvestSMART Group's financial position?


Financial Position Analysis

Short Term Liabilities: INV's short term assets (A$7.9M) exceed its short term liabilities (A$2.1M).

Long Term Liabilities: INV's short term assets (A$7.9M) exceed its long term liabilities (A$3.0M).


Debt to Equity History and Analysis

Debt Level: INV is debt free.

Reducing Debt: INV has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable INV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: INV is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 5.8% per year.


Next Steps

Dividend

What is InvestSMART Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INV's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Ron Hodge (50 yo)

4.5yrs

Tenure

AU$387,174

Compensation

Mr. Peter Ronald Hodge, also known as Ron, B.Com, B.Econ, MSc. Info Tech, GAICD, SF FIN has been the Chief Executive Officer and Managing Director at InvestSMART Group Limited since February 24, 2016 and h ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD277.50K) is about average for companies of similar size in the Australian market ($USD267.73K).

Compensation vs Earnings: Ron's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Hodge
MD, CEO & Executive Director4.5yrsAU$387.17k6.27%
A$ 637.2k
Nigel Poole
Chief Technology Officer5.33yrsAU$306.60k3.29%
A$ 335.0k
Alastair Davidson
Head of Funds Managementno dataAU$302.64k3.54%
A$ 359.6k
Andrew Ward
Chief Financial Officer2.67yrsno datano data
Catherine Teo
Company Secretary & General Counsel1.5yrsno datano data
Alan Kohler
Editor-in-Chiefno datano datano data
Evan Lucas
Chief Market Strategistno datano datano data
Nathan Bell
Head of Research & Portfolio Management1.58yrsno datano data
Gaurav Sodhi
Deputy Head of Researchno datano datano data

2.7yrs

Average Tenure

Experienced Management: INV's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Hodge
MD, CEO & Executive Director4.5yrsAU$387.17k6.27%
A$ 637.2k
Michael Shepherd
Lead Independent Non-Executive Directorno dataAU$90.00k0.44%
A$ 45.0k
Paul Clitheroe
Independent Non-Executive Chairman5.75yrsAU$109.60k3.69%
A$ 375.0k
Kevin Moore
Independent Non-Executive Director2.67yrsAU$60.00k0.41%
A$ 42.0k

4.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: INV's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INV 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

InvestSMART Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InvestSMART Group Limited
  • Ticker: INV
  • Exchange: ASX
  • Founded: 1999
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$10.169m
  • Shares outstanding: 135.59m
  • Website: https://www.investsmart.com.au

Location

  • InvestSMART Group Limited
  • 37 York Street
  • Level 9
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2014

Biography

InvestSMART Group Limited provides financial services and products under general advice to retail investors in Australia. It primarily offers wealth and funds management, and personal insurance services. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:08
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.