Incitec Pivot Limited manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, Canada, Turkey, and internationally. More Details
Good value with mediocre balance sheet.
Share Price & News
How has Incitec Pivot's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IPL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: IPL's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: IPL exceeded the Australian Chemicals industry which returned -4.3% over the past year.
Return vs Market: IPL exceeded the Australian Market which returned 26.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Incitec Pivot's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StWe Think Incitec Pivot (ASX:IPL) Is Taking Some Risk With Its Debt
2 weeks ago | Simply Wall StIncitec Pivot Limited's (ASX:IPL) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
4 weeks ago | Simply Wall StWho Has Been Buying Incitec Pivot Limited (ASX:IPL) Shares?
Is Incitec Pivot undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IPL (A$2.75) is trading below our estimate of fair value (A$5.7)
Significantly Below Fair Value: IPL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IPL is good value based on its PE Ratio (54.9x) compared to the Australian Chemicals industry average (55.1x).
PE vs Market: IPL is poor value based on its PE Ratio (54.9x) compared to the Australian market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: IPL is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: IPL is good value based on its PB Ratio (1x) compared to the AU Chemicals industry average (3.1x).
How is Incitec Pivot forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IPL's forecast earnings growth (17.9% per year) is above the savings rate (1.9%).
Earnings vs Market: IPL's earnings (17.9% per year) are forecast to grow faster than the Australian market (13.2% per year).
High Growth Earnings: IPL's earnings are forecast to grow, but not significantly.
Revenue vs Market: IPL's revenue (1.5% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: IPL's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IPL's Return on Equity is forecast to be low in 3 years time (7.8%).
How has Incitec Pivot performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IPL has a large one-off loss of A$56.5M impacting its March 31 2021 financial results.
Growing Profit Margin: IPL's current net profit margins (2.5%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: IPL's earnings have declined by 12.6% per year over the past 5 years.
Accelerating Growth: IPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IPL had negative earnings growth (-45.6%) over the past year, making it difficult to compare to the Chemicals industry average (-45.6%).
Return on Equity
High ROE: IPL's Return on Equity (1.8%) is considered low.
How is Incitec Pivot's financial position?
Financial Position Analysis
Short Term Liabilities: IPL's short term assets (A$1.3B) exceed its short term liabilities (A$1.2B).
Long Term Liabilities: IPL's short term assets (A$1.3B) do not cover its long term liabilities (A$2.4B).
Debt to Equity History and Analysis
Debt Level: IPL's debt to equity ratio (31%) is considered satisfactory.
Reducing Debt: IPL's debt to equity ratio has reduced from 50.2% to 31% over the past 5 years.
Debt Coverage: IPL's debt is not well covered by operating cash flow (18.1%).
Interest Coverage: IPL's interest payments on its debt are not well covered by EBIT (2.2x coverage).
What is Incitec Pivot current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IPL's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.96%).
High Dividend: IPL's dividend (0.73%) is low compared to the top 25% of dividend payers in the Australian market (4.96%).
Stability and Growth of Payments
Stable Dividend: IPL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: IPL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: IPL is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of IPL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeanne Johns (58 yo)
Ms. Jeanne M. Johns, B.S. Chemical Engineering, magna cum laude has been Managing Director and Chief Executive Officer of Incitec Pivot Limited since November 15, 2017. Ms. Johns served as the Head of Safe...
CEO Compensation Analysis
Compensation vs Market: Jeanne's total compensation ($USD2.04M) is about average for companies of similar size in the Australian market ($USD1.70M).
Compensation vs Earnings: Jeanne's compensation has been consistent with company performance over the past year.
Experienced Management: IPL's management team is considered experienced (2.5 years average tenure).
Experienced Board: IPL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Incitec Pivot Limited's company bio, employee growth, exchange listings and data sources
- Name: Incitec Pivot Limited
- Ticker: IPL
- Exchange: ASX
- Founded: 1831
- Industry: Diversified Chemicals
- Sector: Materials
- Market Cap: AU$5.341b
- Shares outstanding: 1.94b
- Website: https://www.incitecpivot.com.au
Number of Employees
- Incitec Pivot Limited
- 28 Freshwater Place
- Level 8
Incitec Pivot Limited manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, Canada, Turkey, and internationally. The company manufacture...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/05 15:39|
|End of Day Share Price||2021/08/05 00:00|
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.