ASX:IGL

Stock Analysis Report

Executive Summary

IVE Group Limited engages in the marketing, communications, and print businesses in Australia.

Rewards

Trading at 62.4% below its fair value

Earnings are forecast to grow 11.86% per year

Earnings grew by 21.7% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has IVE Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IGL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

IGL

0.2%

AU Media

0.1%

AU Market


1 Year Return

8.2%

IGL

5.8%

AU Media

19.5%

AU Market

Return vs Industry: IGL exceeded the Australian Media industry which returned 6.3% over the past year.

Return vs Market: IGL underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

IGLIndustryMarket
7 Day-2.1%0.2%0.1%
30 Day-2.1%4.0%4.0%
90 Day17.9%7.2%4.8%
1 Year16.5%8.2%10.9%5.8%24.9%19.5%
3 Year23.2%0.4%6.2%-9.6%39.7%20.9%
5 Yearn/a-1.0%-27.8%59.0%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is IVE Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGL (A$2.5) is trading below our estimate of fair value (A$6.65)

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


Price To Earnings Ratio

PE vs Industry: IGL is good value based on its PE Ratio (11.8x) compared to the Media industry average (17.1x).

PE vs Market: IGL is good value based on its PE Ratio (11.8x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: IGL is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: IGL is overvalued based on its PB Ratio (1.8x) compared to the AU Media industry average (1.4x).


Next Steps

Future Growth

How is IVE Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGL's forecast earnings growth (11.9% per year) is above the savings rate (1.1%).

Earnings vs Market: IGL's earnings (11.9% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: IGL's revenue (8.4% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: IGL's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGL's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

  • Explore growth companies in the Media industry.

Past Performance

How has IVE Group performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGL has high quality earnings.

Growing Profit Margin: IGL's current net profit margins (4.3%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: IGL's earnings have grown significantly by 39.4% per year over the past 5 years.

Accelerating Growth: IGL's earnings growth over the past year (21.7%) is below its 5-year average (39.4% per year).

Earnings vs Industry: IGL earnings growth over the past year (21.7%) exceeded the Media industry -30.9%.


Return on Equity

High ROE: IGL's Return on Equity (15.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IVE Group's financial position?


Financial Position Analysis

Short Term Liabilities: IGL's short term assets (A$218.1M) exceed its short term liabilities (A$137.6M).

Long Term Liabilities: IGL's short term assets (A$218.1M) exceed its long term liabilities (A$187.1M).


Debt to Equity History and Analysis

Debt Level: IGL's debt to equity ratio (76.8%) is considered high.

Reducing Debt: IGL's debt to equity ratio has increased from 24.8% to 76.8% over the past 5 years.

Debt Coverage: IGL's debt is well covered by operating cash flow (30%).

Interest Coverage: IGL's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: IGL has a high level of physical assets or inventory.

Debt Coverage by Assets: IGL's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is IVE Group's current dividend yield, its reliability and sustainability?

6.88%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%2.3%markettop25%5.5%industryaverage5.3%forecastin3Years7.9%

Current dividend yield vs market & industry

Notable Dividend: IGL's dividend (6.52%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: IGL's dividend (6.52%) is in the top 25% of dividend payers in the Australian market (5.47%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IGL has been paying a dividend for less than 10 years.

Growing Dividend: IGL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.1%), IGL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IGL's dividends in 3 years are forecast to be covered by earnings (66.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Matt Aitken 0

0.4yrs

Tenure

AU$616,730

Compensation

Mr. Matthew Aitken, also known as Matt, has been Chief Executive Officer of IVE Group Limited since August 5, 2019. He served as the Chief Operating Officer at IVE Group Limited since August 2014 until 201 ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD425.62K) is about average for companies of similar size in the Australian market ($USD509.47K).

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


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: IGL's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

Experienced Board: IGL's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


Management Team

  • Cliff Brigstocke

    Chief Executive Officer of Blue Star Group

    • Geoff Selig

      Executive Chairman

      • Tenure: 4.6yrs
      • Compensation: AU$1.15m
    • Paul Selig

      Executive Director

      • Tenure: 4.6yrs
      • Compensation: AU$330.00k
    • Warwick Hay

      Executive Officer

      • Tenure: 0.4yrs
      • Compensation: AU$627.97k
    • Darren Dunkley

      CFO & Company Secretary

      • Tenure: 8yrs
      • Compensation: AU$509.73k
    • Matt Aitken

      Chief Executive Officer

      • Tenure: 0.4yrs
      • Compensation: AU$616.73k
    • Glen Draper

      Chief Executive Officer of IVEO

      • Tenure: 7yrs
    • Keith Elliott

      Chief Executive Officer of Pareto Phone

      • Tenure: 1.4yrs
    • Naomi Dolmatoff

      Company Secretary

      • Tenure: 0.8yrs
    • Rob Draper

      Chief Marketing Officer

      • Tenure: 0.6yrs

    Board Members

    • James Scott Todd

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: AU$105.04k
    • Sandra Hook

      Independent Non-Executive Director

      • Tenure: 3.6yrs
      • Compensation: AU$105.01k
    • Gavin Bell

      Independent Non-Executive Director

      • Tenure: 4.2yrs
      • Compensation: AU$105.01k
    • Geoff Selig

      Executive Chairman

      • Tenure: 4.6yrs
      • Compensation: AU$1.15m
    • Paul Selig

      Executive Director

      • Tenure: 4.6yrs
      • Compensation: AU$330.00k
    • Carole Campbell (56yo)

      Independent Non-Executive Director

      • Tenure: 1.2yrs
      • Compensation: AU$64.48k

    Company Information

    IVE Group Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: IVE Group Limited
    • Ticker: IGL
    • Exchange: ASX
    • Founded: 1921
    • Industry: Advertising
    • Sector: Media
    • Market Cap: AU$364.590m
    • Shares outstanding: 148.21m
    • Website: https://www.ivegroup.com.au

    Number of Employees


    Location

    • IVE Group Limited
    • Building B
    • 350 Parramatta Road
    • Homebush
    • New South Wales
    • 2140
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    IGLASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDDec 2015
    IGLCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDDec 2015

    Biography

    IVE Group Limited engages in the marketing, communications, and print businesses in Australia. The company offers conceptual and creative design across print, mobile, and interactive media; and personalized communications, including marketing automation, marketing mail, publication mail, e-communications, multi-channel solutions, and call center services. It also prints catalogues, magazines, marketing, and corporate communications materials and stationery; and manufactures point of sale display material and large format banners for retail applications. In addition, the company offers data analytics, customer experience strategy, and CRM; and outsourced communication solutions for large organizations, such development of customized multi-channel management models covering creative and digital services, supply chain optimization, inventory management, warehousing, and logistics. It serves various industry sectors comprising financial services, publishing, retail, communications, property, clubs and associations, not-for-profit, utilities, manufacturing, education, and government. The company was founded in 1921 and is based in Homebush, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 10:48
    End of Day Share Price2020/01/28 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    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.