ASX:IPL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with moderate 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


Market Performance


7 Day Return

0%

IPL

-0.3%

AU Chemicals

1.0%

AU Market


1 Year Return

-11.0%

IPL

8.9%

AU Chemicals

6.9%

AU Market

IPL underperformed the Chemicals industry which returned 8.9% over the past year.

IPL underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

IPLIndustryMarket
7 Day0%-0.3%1.0%
30 Day8.4%5.5%4.2%
90 Day2.7%4.2%1.6%
1 Year-9.2%-11.0%11.9%8.9%13.0%6.9%
3 Year32.4%23.1%33.7%23.1%39.6%20.9%
5 Year45.3%26.2%52.0%29.4%52.8%18.7%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Incitec Pivot's share price is below the future cash flow value, and at a moderate discount (> 20%).

Incitec Pivot's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Incitec Pivot is good value based on earnings compared to the AU Chemicals industry average.

Incitec Pivot is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Incitec Pivot is good value based on expected growth next year.


Price Based on Value of Assets

Incitec Pivot is good value based on assets compared to the AU Chemicals industry average.


Next Steps

Future Growth

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

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Incitec Pivot's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Incitec Pivot's earnings are expected to grow significantly at over 20% yearly.

Incitec Pivot's revenue growth is positive but not above the Australia market average.

Incitec Pivot's earnings growth is expected to exceed the Australia market average.

Incitec Pivot's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Incitec Pivot is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Incitec Pivot performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Incitec Pivot's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Incitec Pivot's 1-year earnings growth exceeds its 5-year average (39% vs -9.1%)

Incitec Pivot's earnings growth has exceeded the Global Chemicals industry average in the past year (39% vs 1.8%).


Return on Equity

Incitec Pivot has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Incitec Pivot used its assets less efficiently than the AU Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Incitec Pivot's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Incitec Pivot's financial position?


Financial Position Analysis

Incitec Pivot's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Incitec Pivot's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Incitec Pivot's level of debt (54.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.9% vs 54.7% today).

Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Incitec Pivot's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Incitec Pivot's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jeanne Johns (56yo)

1.8yrs

Tenure

AU$3,865,573

Compensation

Ms. Jeanne M. Johns, B.S. Chemical Engineering, magna cum laude has been a Managing Director & Chief Executive Officer of Incitec Pivot Limited since November 15, 2017. Ms. Johns served as the Head of Safe ...


CEO Compensation Analysis

Jeanne's remuneration is about average for companies of similar size in Australia.

Insufficient data for Jeanne to compare compensation growth.


Management Age and Tenure

1.8yrs

Average Tenure

The average tenure for the Incitec Pivot management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

The average tenure for the Incitec Pivot board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Incitec Pivot individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$155,89910 Sep 19
BlackRock, Inc.
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SellAU$37,99410 Sep 19
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Perpetual Limited
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Max PriceAU$3.06
BuyAU$811,48221 Jul 19
BlackRock, Inc.
EntityCompany
Shares919,138
Max PriceAU$3.42
BuyAU$498,72718 Jul 19
Jeanne Johns
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares158,090
Max PriceAU$3.17
SellAU$72,872,78009 Jul 19
Perpetual Limited
EntityCompany
Shares21,657,967
Max PriceAU$3.36
SellAU$134,557,16308 Jul 19
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Shares39,682,595
Max PriceAU$3.39
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Max PriceAU$3.31
SellAU$027 Jun 19
BlackRock, Inc.
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Shares12,681,054
Max PriceAU$3.75
BuyAU$121,30427 Jun 19
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Max PriceAU$3.75
BuyAU$56,746,17915 May 19
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Max PriceAU$3.27
SellAU$2,827,70615 May 19
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EntityCompany
Shares902,300
Max PriceAU$3.13
SellAU$46,098,28713 May 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares12,519,207
Max PriceAU$3.68
BuyAU$18,017,96513 May 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares5,192,795
Max PriceAU$3.47
BuyAU$3,593,74213 May 19
Schroder Investment Management North America Inc.
EntityCompany
Shares1,019,826
Max PriceAU$3.52
BuyAU$69,206,93113 May 19
Schroder Investment Management Limited
EntityCompany
Shares19,516,413
Max PriceAU$3.72
SellAU$10,920,25113 May 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares3,132,993
Max PriceAU$3.49
BuyAU$40,929,22613 May 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares11,069,123
Max PriceAU$3.70
SellAU$2,320,51513 May 19
Schroder Investment Management North America Inc.
EntityCompany
Shares588,421
Max PriceAU$3.94
SellAU$32,974,92713 May 19
Schroder Investment Management Limited
EntityCompany
Shares9,004,402
Max PriceAU$3.77
BuyAU$89,759,71225 Mar 19
Harris Associates L.P.
EntityCompany
Shares27,117,500
Max PriceAU$3.34
SellAU$45,191,68825 Mar 19
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Max PriceAU$3.95
BuyAU$57,632,32315 Feb 19
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SellAU$478,93015 Feb 19
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Max PriceAU$3.31
BuyAU$162,556,33706 Feb 19
PI Investment Management Limited
EntityCompany
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Max PriceAU$3.66
SellAU$123,977,92206 Feb 19
PI Investment Management Limited
EntityCompany
Shares31,144,637
Max PriceAU$3.98
BuyAU$99,88628 Dec 18
Paul Brasher
EntityIndividual
Shares31,236
Max PriceAU$3.20
BuyAU$4,630,97306 Dec 18
BlackRock, Inc.
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Max PriceAU$3.89
SellAU$1,446,17903 Dec 18
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Max PriceAU$3.79
BuyAU$173,32303 Dec 18
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Max PriceAU$3.81
BuyAU$85,85426 Nov 18
BlackRock, Inc.
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Shares6,426,485
Max PriceAU$4.23
SellAU$64,814,03818 Nov 18
Harris Associates L.P.
EntityCompany
Shares16,387,850
Max PriceAU$3.96
SellAU$78,506,81921 Oct 18
Harris Associates L.P.
EntityCompany
Shares19,078,556.8
Max PriceAU$4.64
BuyAU$12,031,03221 Oct 18
Harris Associates L.P.
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Shares3,214,100
Max PriceAU$3.74

Ownership Breakdown


Management Team

  • Frank Micallef

    Chief Financial Officer

    • Tenure: 9.9yrs
    • Compensation: AU$2.43m
  • Elizabeth Hunter

    Chief Human Resources Officer

    • Tenure: 5.9yrs
    • Compensation: AU$887.11k
  • Jeanne Johns (56yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: AU$3.87m
  • Stewart Murrihy

    Chief Communications Officer

    • Tenure: 0yrs
  • Nick Stratford

    President of Dyno Nobel Americas

    • Tenure: 2.2yrs
    • Compensation: AU$2.11m
  • Greg Hayne

    President of Dyno Nobel Asia Pacific

    • Tenure: 1.7yrs
    • Compensation: AU$1.12m
  • Rob Rounsley

    Chief Technology Development Officer

    • Tenure: 1.7yrs
  • Chris Opperman

    General Manager of Group Finance & Investor Relations

    • Tenure: 0yrs
  • Tamara Kayser

    Group General Counsel

    • Tenure: 0.08yrs
  • Margot Sharapova

    Executive Chief Information Officer

    • Tenure: 0.4yrs

Board Members

  • Bruce Brook (64yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Brian Kruger (57yo)

    Chairman

    • Tenure: 0.2yrs
    • Compensation: AU$237.00k
  • Kathryn Fagg (58yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$231.00k
  • Joe Breunig (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$225.00k
  • Jeanne Johns (56yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: AU$3.87m
  • Rebecca McGrath (54yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: AU$245.00k

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: 1919
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: AU$5.572b
  • Shares outstanding: 1.61b
  • 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, an industrial chemicals company, manufactures, trades in, and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, Canada, Turkey ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:31
End of Day Share Price2019/09/20 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.