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IPL

Incitec PivotASX:IPL Stock Report

Market Cap

AU$5.9b

7D

-1.5%

1Y

36.2%

Updated

30 Nov, 2021

Data

Company Financials +
IPL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends2/6

IPL Stock Overview

Incitec Pivot Limited manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, Canada, Turkey, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Incitec Pivot
Historical stock prices
Current Share PriceAU$3.20
52 Week HighAU$3.67
52 Week LowAU$2.21
Beta1
1 Month Change7.02%
3 Month Change18.08%
1 Year Change36.17%
3 Year Change-15.34%
5 Year Change-4.48%
Change since IPO340.77%

Recent News & Updates

Oct 04
Is There Now An Opportunity In Incitec Pivot Limited (ASX:IPL)?

Is There Now An Opportunity In Incitec Pivot Limited (ASX:IPL)?

Incitec Pivot Limited ( ASX:IPL ), is not the largest company out there, but it received a lot of attention from a...

Sep 20
Is There An Opportunity With Incitec Pivot Limited's (ASX:IPL) 50% Undervaluation?

Is There An Opportunity With Incitec Pivot Limited's (ASX:IPL) 50% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Incitec Pivot Limited ( ASX:IPL ) by taking the...

Sep 08
Returns On Capital Signal Difficult Times Ahead For Incitec Pivot (ASX:IPL)

Returns On Capital Signal Difficult Times Ahead For Incitec Pivot (ASX:IPL)

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Shareholder Returns

IPLAU ChemicalsAU Market
7D-1.5%-5.9%-2.3%
1Y36.2%9.1%11.4%

Return vs Industry: IPL exceeded the Australian Chemicals industry which returned 9.1% over the past year.

Return vs Market: IPL exceeded the Australian Market which returned 11.4% over the past year.

Price Volatility

Is IPL's price volatile compared to industry and market?
IPL volatility
IPL Average Weekly Movement3.5%
Chemicals Industry Average Movement8.9%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

Stable Share Price: IPL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IPL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18315,000Jeanne Johnshttps://www.incitecpivot.com.au

Incitec Pivot Limited manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, Canada, Turkey, and internationally. The company manufactures and distributes fertilizers, including di/mono-ammonium phosphate, ammonia, granulated ammonium sulphate, urea, and single super phosphate, as well as imports and sells fertilizers. It also manufactures and sells industrial explosives, such as ammonium nitrate and related products and services to the mining, quarrying, and construction industries; and manufactures, imports, and sells industrial chemicals to the agriculture and specialist industries.

Incitec Pivot Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
IPL income statement (TTM)
RevenueAU$4.38b
Cost of RevenueAU$2.43b
Gross ProfitAU$1.95b
ExpensesAU$1.80b
EarningsAU$149.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0
Gross Margin44.42%
Net Profit Margin3.40%
Debt/Equity Ratio31.1%

How did IPL perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

121%

Payout Ratio

Does IPL pay a reliable dividends?

See IPL dividend history and benchmarks
When do you need to buy IPL by to receive an upcoming dividend?
Incitec Pivot dividend dates
Ex Dividend DateDec 01 2021
Dividend Pay DateDec 16 2021
Days until Ex dividend0 days
Days until Dividend pay date15 days

Does IPL pay a reliable dividends?

See IPL dividend history and benchmarks

Valuation

Is Incitec Pivot undervalued compared to its fair value and its price relative to the market?

45.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPL (A$3.2) is trading below our estimate of fair value (A$5.89)

Significantly Below Fair Value: IPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate IPL's PE Ratio to determine if it is good value compared to the Australian Chemicals industry average.

PE vs Market: Insufficient data to calculate IPL's PE Ratio to determine if it is good value compared to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: Insufficient data to calculate IPL's PB Ratio to determine if it is good value.


Future Growth

How is Incitec Pivot forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPL's forecast earnings growth (15.2% per year) is above the savings rate (1.9%).

Earnings vs Market: IPL's earnings (15.2% per year) are forecast to grow faster than the Australian market (11.8% per year).

High Growth Earnings: IPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: IPL's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: IPL's revenue is forecast to decline over the next 3 years (-0.1% 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 (6.6%).


Past Performance

How has Incitec Pivot performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPL has a large one-off loss of A$270.2M impacting its September 30 2021 financial results.

Growing Profit Margin: IPL's current net profit margins (3.4%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: IPL's earnings have declined by 13.2% per year over the past 5 years.

Accelerating Growth: IPL's earnings growth over the past year (20.8%) exceeds its 5-year average (-13.2% per year).

Earnings vs Industry: IPL earnings growth over the past year (20.8%) exceeded the Chemicals industry -51.9%.


Return on Equity

High ROE: IPL's Return on Equity (2.8%) is considered low.


Financial Health

How is Incitec Pivot's financial position?


Financial Position Analysis

Short Term Liabilities: IPL's short term assets (A$1.8B) exceed its short term liabilities (A$1.5B).

Long Term Liabilities: IPL's short term assets (A$1.8B) do not cover its long term liabilities (A$2.5B).


Debt to Equity History and Analysis

Debt Level: IPL's net debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: IPL's debt to equity ratio has reduced from 50% to 31.1% over the past 5 years.

Debt Coverage: IPL's debt is well covered by operating cash flow (39%).

Interest Coverage: IPL's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Incitec Pivot current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPL's dividend (2.91%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: IPL's dividend (2.91%) is low compared to the top 25% of dividend payers in the Australian market (5.64%).


Stability and Growth of Payments

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

Growing Dividend: IPL's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.1%), IPL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IPL's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jeanne Johns (58 yo)

4yrs

Tenure

AU$4,232,000

Compensation

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 ($USD3.01M) is above average for companies of similar size in the Australian market ($USD1.70M).

Compensation vs Earnings: Jeanne's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: IPL's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: IPL's board of directors are not considered experienced ( 2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Incitec Pivot Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Incitec Pivot Limited
  • Ticker: IPL
  • Exchange: ASX
  • Founded: 1831
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: AU$5.943b
  • Shares outstanding: 1.94b
  • Website: https://www.incitecpivot.com.au

Number of Employees


Location

  • Incitec Pivot Limited
  • 28 Freshwater Place
  • Level 8
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 09:18
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.