ASX:INV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.1%

INV

0.5%

AU Capital Markets

0.1%

AU Market


1 Year Return

-35.3%

INV

19.9%

AU Capital Markets

11.9%

AU Market

Return vs Industry: INV underperformed the Australian Capital Markets industry which returned 19.9% over the past year.

Return vs Market: INV underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

INVIndustryMarket
7 Day11.1%0.5%0.1%
30 Day22.2%0.9%-1.1%
90 Day46.7%1.1%-1.4%
1 Year-35.3%-35.3%25.3%19.9%18.5%11.9%
3 Year-66.7%-66.7%87.8%62.6%36.4%18.1%
5 Year-38.9%-38.9%185.0%123.8%50.9%16.7%

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?

1.6x

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 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 (1.6x) compared to the AU Capital Markets industry average (2x).


Next Steps

Future Growth

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

6.6%

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?

-2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INV is unprofitable, and losses have increased over the past 5 years at a rate of -2% 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 (-2.9%).


Return on Equity

High ROE: INV has a negative Return on Equity (-23.3%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: INV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: INV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is InvestSMART Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: INV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if INV's debt is covered by short term assets.


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: INV has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: INV has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -121.9% each year


Financial Institutions Analysis

Asset Level: INV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if INV has a sufficient allowance for bad loans.

Low Risk Liabilities: INV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if INV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if INV has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of InvestSMART Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ron Hodge (49yo)

3.7yrs

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 ($USD265.81K) is about average for companies of similar size in the Australian market ($USD260.53K).

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


Management Age and Tenure

1.8yrs

Average Tenure

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


Board Age and Tenure

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: INV's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$6,14722 Oct 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares61,497
Max PriceAU$0.10
BuyAU$15,48517 Oct 19
Kevin Moore
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares155,000
Max PriceAU$0.10
BuyAU$16,58217 Oct 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares165,821
Max PriceAU$0.10
BuyAU$69,29917 Sep 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares923,988
Max PriceAU$0.075
BuyAU$13,48219 Jun 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares152,632
Max PriceAU$0.088
BuyAU$3,75506 Jun 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares39,121
Max PriceAU$0.096
BuyAU$1,21505 Jun 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares12,695
Max PriceAU$0.096
BuyAU$23,89831 May 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares250,000
Max PriceAU$0.096
BuyAU$6,54129 May 19
Peter Hodge
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares69,824
Max PriceAU$0.096
BuyAU$9,11910 May 19
Kevin Moore
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares93,000
Max PriceAU$0.098

Ownership Breakdown


Management Team

  • Alastair Davidson (61yo)

    Head of Funds Management

    • Tenure: 0yrs
    • Compensation: AU$302.64k
  • Nigel Poole

    Chief Technology Officer

    • Tenure: 4.5yrs
    • Compensation: AU$306.60k
  • Ron Hodge (49yo)

    MD, CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$387.17k
  • Nathan Bell

    Head of Research & Portfolio Management

    • Tenure: 0.8yrs
  • Gaurav Sodhi

    Deputy Head of Research

    • Tenure: 0yrs
  • Alan Kohler

    Editor-in-Chief

    • Tenure: 0yrs
  • Andrew Ward

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Catherine Teo

    Company Secretary & General Counsel

    • Tenure: 0.7yrs
  • Evan Lucas

    Chief Market Strategist

    • Tenure: 0yrs

Board Members

  • Michael Shepherd (69yo)

    Lead Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$90.00k
  • Ron Hodge (49yo)

    MD, CEO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$387.17k
  • Paul Clitheroe (64yo)

    Non-Executive Chairman

    • Tenure: 4.9yrs
    • Compensation: AU$109.60k
  • Kevin Moore (55yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$60.00k

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$13.636m
  • Shares outstanding: 136.36m
  • 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 Analysis2019/10/23 10:41
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.