ASX:IGL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

IGL

-2.5%

AU Media

-0.1%

AU Market


1 Year Return

-59.9%

IGL

-61.2%

AU Media

-12.0%

AU Market

Return vs Industry: IGL matched the Australian Media industry which returned -60.1% over the past year.

Return vs Market: IGL underperformed the Australian Market which returned -10.5% over the past year.


Shareholder returns

IGLIndustryMarket
7 Day-5.2%-2.5%-0.1%
30 Day-32.4%-15.9%-1.3%
90 Day55.2%13.5%11.8%
1 Year-58.4%-59.9%-53.2%-61.2%-8.4%-12.0%
3 Year-55.7%-63.0%-45.7%-60.0%17.0%1.5%
5 Yearn/a-30.6%-54.6%29.6%1.6%

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$0.82) is trading below our estimate of fair value (A$3.76)

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 (4.8x) compared to the Media industry average (16.2x).

PE vs Market: IGL is good value based on its PE Ratio (4.8x) compared to the Australian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: IGL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: IGL is good value based on its PB Ratio (0.6x) compared to the AU Media industry average (1x).


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGL's forecast earnings growth (21.5% per year) is above the savings rate (2.3%).

Earnings vs Market: IGL's earnings (21.5% per year) are forecast to grow faster than the Australian market (15.7% per year).

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

Revenue vs Market: IGL's revenue (3.9% per year) is forecast to grow slower than the Australian market (4.4% per year).

High Growth Revenue: IGL's revenue (3.9% 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 (15.1%).


Next Steps

Past Performance

How has IVE Group performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGL has high quality earnings.

Growing Profit Margin: IGL's current net profit margins (3.6%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: IGL's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: IGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IGL had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Media industry average (-47.8%).


Return on Equity

High ROE: IGL's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is IVE Group's financial position?


Financial Position Analysis

Short Term Liabilities: IGL's short term assets (A$206.0M) exceed its short term liabilities (A$141.3M).

Long Term Liabilities: IGL's short term assets (A$206.0M) do not cover its long term liabilities (A$273.0M).


Debt to Equity History and Analysis

Debt Level: IGL's debt to equity ratio (80.8%) is considered high.

Reducing Debt: IGL's debt to equity ratio has increased from 37.8% to 80.8% over the past 5 years.

Debt Coverage: IGL's debt is well covered by operating cash flow (29.6%).

Interest Coverage: IGL's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

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

15.04%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: IGL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IGL'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?

1.9yrs

Average management tenure


CEO

Matt Aitken

0.92

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 ($USD430.05K) is above average for companies of similar size in the Australian market ($USD263.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoff Selig
Executive Chairman5.08yrsAU$1.15m8.72% A$11.0m
Matthew Aitken
Chief Executive Officer0.92yrAU$616.73kno data
Darren Dunkley
Chief Financial Officer8.5yrsAU$509.73k0.032% A$40.8k
Paul Selig
Executive Director5.08yrsAU$330.00kno data
Rob Draper
Chief Marketing Officer1.08yrsno datano data
Glen Draper
Chief Executive Officer of Integrated Marketing & Creative Services7.5yrsno datano data
Clifford Douglas Brigstocke
Chief Executive Officer of Production & Distributionno datano datano data
Keith Elliott
Chief Executive Officer of Pareto Phone1.92yrsno datano data
Naomi Dolmatoff
Company Secretary1.33yrsno datano data
Sean Smith
Chief Executive Officer of Data-Driven Communicationsno datano datano data

1.9yrs

Average Tenure

Experienced Management: IGL's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Geoff Selig
Executive Chairman5.08yrsAU$1.15m8.72% A$11.0m
Paul Selig
Executive Director5.08yrsAU$330.00kno data
James Scott Todd
Independent Non-Executive Director5.08yrsAU$105.04k0.083% A$104.0k
Sandra Hook
Independent Non-Executive Director4.08yrsAU$105.01k0.0087% A$11.0k
Gavin Bell
Independent Non-Executive Director4.67yrsAU$105.01kno data
Carole Campbell
Independent Non-Executive Director1.67yrsAU$64.48k0.034% A$42.5k

4.9yrs

Average Tenure

Experienced Board: IGL's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IGL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$125.976m
  • 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 Analysis2020/07/08 10:36
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
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.