ASX:IPL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with reasonable growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

IPL

0.5%

AU Chemicals

1.9%

AU Market


1 Year Return

-37.7%

IPL

-30.5%

AU Chemicals

-10.0%

AU Market

Return vs Industry: IPL underperformed the Australian Chemicals industry which returned -30.5% over the past year.

Return vs Market: IPL underperformed the Australian Market which returned -10% over the past year.


Shareholder returns

IPLIndustryMarket
7 Day2.4%0.5%1.9%
30 Day0.9%-3.3%-1.9%
90 Day10.4%1.8%3.1%
1 Year-37.1%-37.7%-29.5%-30.5%-6.8%-10.0%
3 Year-38.4%-41.8%-25.0%-29.4%17.5%2.4%
5 Year-40.2%-46.8%-19.1%-28.1%43.6%13.4%

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

Valuation

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

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPL (A$2.13) is trading below our estimate of fair value (A$3.66)

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


Price To Earnings Ratio

PE vs Industry: IPL's PE Ratio (19.6x) is in line with the AU Chemicals industry average.

PE vs Market: IPL is good value based on its PE Ratio (19.6x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: IPL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: IPL is good value based on its PB Ratio (0.7x) compared to the AU Chemicals industry average (3.5x).


Next Steps

Future Growth

How is Incitec Pivot forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPL's forecast earnings growth (25.4% per year) is above the savings rate (2.3%).

Earnings vs Market: IPL's earnings (25.4% per year) are forecast to grow faster than the Australian market (17.1% per year).

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

Revenue vs Market: IPL's revenue (4.6% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: IPL's revenue (4.6% 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 (7.6%).


Next Steps

Past Performance

How has Incitec Pivot performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPL has high quality earnings.

Growing Profit Margin: IPL's current net profit margins (4.3%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: IPL's earnings have declined by 12.2% 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 (-27.6%) over the past year, making it difficult to compare to the Chemicals industry average (-4.5%).


Return on Equity

High ROE: IPL's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Incitec Pivot's financial position?


Financial Position Analysis

Short Term Liabilities: IPL's short term assets (A$1.5B) do not cover its short term liabilities (A$1.6B).

Long Term Liabilities: IPL's short term assets (A$1.5B) do not cover its long term liabilities (A$3.5B).


Debt to Equity History and Analysis

Debt Level: IPL's debt to equity ratio (53.6%) is considered high.

Reducing Debt: IPL's debt to equity ratio has increased from 50.6% to 53.6% over the past 5 years.

Debt Coverage: IPL's debt is well covered by operating cash flow (23.2%).

Interest Coverage: IPL's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.12%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IPL'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 IPL's dividends per share have been stable in the past.

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


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Jeanne Johns (57 yo)

2.83yrs

Tenure

AU$3,208,000

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 ($USD2.26M) is about average for companies of similar size in the Australian market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeanne Johns
MD, CEO & Executive Director2.83yrsAU$3.21m0.032%
A$ 1.3m
Nicholas Stratford
Chief Financial Officer0.17yrAU$1.24m0.0010%
A$ 42.0k
Frank Micallef
Executive Officer0.17yrAU$1.12m0.0051%
A$ 212.8k
Greg Hayne
President of Dyno Nobel Asia Pacific2.67yrsAU$912.00k0.00044%
A$ 18.3k
Tim Wall
President of Global Manufacturing & Corporate HSE1.83yrsAU$1.04mno data
Stephan Titze
President of Incitec Pivot Fertilisers1.67yrsAU$887.75kno data
Robert Rounsley
Chief Technology Officer2.67yrsno datano data
Margot Sharapova
Executive Chief Information Officer1.42yrsno datano data
Chris Opperman
General Manager of Group Finance & Investor Relationsno datano datano data
Tamara Kayser
Group General Counsel1.08yrsno datano data
Stewart Murrihy
Chief Communications Officerno datano datano data
Braden Lusk
President of Dyno Nobel Americas0.17yrno datano data

1.5yrs

Average Tenure

Experienced Management: IPL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeanne Johns
MD, CEO & Executive Director2.83yrsAU$3.21m0.032%
A$ 1.3m
Bruce Brook
Independent Non-Executive Director1.75yrsAU$189.00k0.0017%
A$ 69.0k
Brian Kruger
Independent Non-Executive Chairman1.17yrsAU$320.00k0.0022%
A$ 89.8k
Gregory Robinson
Independent Non-Executive Director0.83yrno data0.0034%
A$ 143.4k
Xiaoling Liu
Independent Non-Executive Director0.83yrno data0.0022%
A$ 91.9k
Rebecca McGrath
Independent Non-Executive Director9yrsAU$245.00k0.0021%
A$ 85.6k

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: IPL'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: 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 21%.


Top Shareholders

Company Information

Incitec Pivot Limited's company bio, 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$4.156b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ICPV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2003
IPLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2003
I5PDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2003
IPLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2003
INCZ.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2015

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 10:33
End of Day Share Price2020/09/29 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.