CHIA:IFL

Stock Analysis Report

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Executive Summary

IOOF Holdings Ltd provides financial advice, portfolio management and administration, and investment management services in Australia. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has IOOF Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.8%

IFL

-4.7%

AU Capital Markets

-3.9%

AU Market


1 Year Return

-60.6%

IFL

-4.9%

AU Capital Markets

-9.6%

AU Market

Return vs Industry: IFL underperformed the Australian Capital Markets industry which returned -4.9% over the past year.

Return vs Market: IFL underperformed the Australian Market which returned -9.6% over the past year.


Shareholder returns

IFLIndustryMarket
7 Day-8.8%-4.7%-3.9%
30 Day-6.7%3.3%1.8%
90 Day-35.8%0.8%1.7%
1 Year-57.8%-60.6%-1.4%-4.9%-6.4%-9.6%
3 Year-67.1%-73.0%26.7%10.9%12.3%-1.9%
5 Year-58.0%-69.2%59.8%26.7%40.0%11.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFL (A$2.92) is trading below our estimate of fair value (A$3.45)

Significantly Below Fair Value: IFL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IFL is good value based on its PE Ratio (17.9x) compared to the AU Capital Markets industry average (23x).

PE vs Market: IFL is good value based on its PE Ratio (17.9x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: IFL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: IFL is good value based on its PB Ratio (0.6x) compared to the AU Capital Markets industry average (1.2x).


Next Steps

Future Growth

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

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFL's forecast earnings growth (30.6% per year) is above the savings rate (2.3%).

Earnings vs Market: IFL's earnings (30.6% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IFL's revenue is expected to decline over the next 3 years (-14.4% per year).

High Growth Revenue: IFL's revenue is forecast to decline over the next 3 years (-14.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFL's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has IOOF Holdings performed over the past 5 years?

-33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFL has a large one-off loss of A$44.7M impacting its June 30 2020 financial results.

Growing Profit Margin: IFL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IFL's earnings have declined by 33.6% per year over the past 5 years.

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

Earnings vs Industry: IFL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (-7.9%).


Return on Equity

High ROE: IFL's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is IOOF Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IFL's short term assets (A$1.9B) exceed its short term liabilities (A$1.5B).

Long Term Liabilities: IFL's short term assets (A$1.9B) exceed its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: IFL's debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: IFL's debt to equity ratio has increased from 15% to 26.3% over the past 5 years.

Debt Coverage: IFL's debt is well covered by operating cash flow (31.8%).

Interest Coverage: IFL's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

What is IOOF Holdings's current dividend yield, its reliability and sustainability?

9.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFL's dividend (9.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: IFL's dividend (9.42%) is in the top 25% of dividend payers in the Australian market (5.53%)


Stability and Growth of Payments

Stable Dividend: IFL's dividend payments have been volatile in the past 10 years.

Growing Dividend: IFL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (168.4%), IFL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFL's dividends in 3 years are forecast to be covered by earnings (73.3% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Renato Mota

1.83yrs

Tenure

AU$1,487,455

Compensation

Mr. Renato Mota B.Bus (EcoFin), B.Com (Hons), has been the Chief Executive Officer and Director of IOOF Holdings Ltd. since June 25, 2019 and served as its Managing Director until 2020. Mr. Mota joined IOO ...


CEO Compensation Analysis

Compensation vs Market: Renato's total compensation ($USD1.05M) is about average for companies of similar size in the Australian market ($USD1.33M).

Compensation vs Earnings: Renato's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Renato Mota
CEO & Director1.83yrsAU$1.49m0.054%
A$ 1.0m
David Chalmers
Chief Financial Officer0.58yrAU$721.46kno data
Frank Lombardo
Chief Operating Officer0.58yrAU$777.48k0.0029%
A$ 55.7k
Dan Farmer
Chief Investment Officer3.25yrsAU$700.16k0.0022%
A$ 41.7k
Mark Oliver
Chief Distribution Officer0.58yrAU$530.37kno data
Lorna Stewart
Chief Risk Officer0.25yrAU$553.72kno data
Darren Whereat
Chief Advice Officer0.58yrAU$514.32kno data
Martin Breckon
Head of Technical Services3.25yrsno datano data
Sharam Hekmat
Chief Information Officer3.75yrsno datano data
Lawrence Hastings
Chief Legal Officer0.75yrno datano data
Melissa Walls
Chief People Officerno datano datano data
Stanley Yeo
Deputy Chief Investment Officer & Portfolio Manager of Strategy10.42yrsno datano data

0.8yrs

Average Tenure

Experienced Management: IFL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Renato Mota
CEO & Director1.83yrsAU$1.49m0.054%
A$ 1.0m
Karl Morris
Executive Chairman of Ord Minnett Groupno dataAU$1.45mno data
Elizabeth Flynn
Independent Non-Executive Director5yrsAU$170.00k0.0076%
A$ 143.2k
Allan Griffiths
Independent Non-Executive Chairman1.83yrsAU$285.00k0.015%
A$ 292.0k
Michelle Somerville
Independent Non-Executive Director1yrAU$124.23kno data
John Selak
Independent Non Executive Director4yrsAU$170.00k0.022%
A$ 423.4k
Andrew Bloore
Independent Non-Executive Director1yrAU$166.64k0.0027%
A$ 50.2k

1.5yrs

Average Tenure

Experienced Board: IFL's board of directors are not considered experienced ( 1.5 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: IFL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 85.4%.


Top Shareholders

Company Information

IOOF Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IOOF Holdings Ltd
  • Ticker: IFL
  • Exchange: CHIA
  • Founded: 1846
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$1.894b
  • Shares outstanding: 648.53m
  • Website: https://www.ioof.com.au

Number of Employees


Location

  • IOOF Holdings Ltd
  • 161 Collins Street
  • Level 6
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOOF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2003
IFLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2003
IFLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2003
IOOF.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2014

Biography

IOOF Holdings Ltd provides financial advice, portfolio management and administration, and investment management services in Australia. It offers financial planning advice and stockbroking services, such as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:36
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.