ASX:IGL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

IGL

-3.4%

AU Media

1.7%

AU Market


1 Year Return

-5.9%

IGL

-19.8%

AU Media

10.3%

AU Market

Return vs Industry: IGL exceeded the Australian Media industry which returned -19.8% over the past year.

Return vs Market: IGL underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

IGLIndustryMarket
7 Day-0.3%-3.4%1.7%
30 Day-0.3%-8.4%-0.4%
90 Day-5.0%-13.5%-0.1%
1 Year1.3%-5.9%-16.0%-19.8%16.7%10.3%
3 Year15.7%-6.3%4.8%-16.8%36.7%18.4%
5 Yearn/a-8.5%-36.6%50.9%16.9%

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

Undervalued: IGL (A$2) is trading below our estimate of fair value (A$4.14)

Significantly Undervalued: 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 (9.4x) compared to the Media industry average (16.5x).

PE vs Market: IGL is good value based on its PE Ratio (9.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: IGL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: IGL is overvalued based on its PB Ratio (1.4x) compared to the AU Media industry average (1.3x).


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGL's forecast earnings growth (10% per year) is above the savings rate (2.3%).

Earnings vs Market: IGL's earnings (10% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: IGL's revenue (2.2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: IGL's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IGL's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has IVE Group performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History


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 -13.9%.


Return on Equity

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


Return on Assets

ROA vs Industry: IGL has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: IGL has significantly improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (A$137.6M)

Long Term Liabilities: IGL's short term assets (218.1M) exceeds its long term liabilities (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 1.380690x debt).


Next Steps

Dividend

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

8.17%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%2.5%markettop25%5.6%industryaverage5.4%forecastin3Years9.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IGL's dividend (8.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: IGL's dividend (8.17%) is in the top 25% of dividend payers in the Australian market (5.56%)

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 (67% 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?

0.9yrs

Average management tenure


CEO

Matt Aitken 0

0.2yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: IGL's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

Experienced Board: IGL's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$3,278,40717 Oct 19
Anthony Kieran Young
EntityIndividual
Shares1,504,136
Max PriceAU$2.21
BuyAU$010 Sep 19
Stragic Value Pty Ltd
EntityCompany
Shares157,500
Max PriceAU$2.17
BuyAU$21,22910 Sep 19
Exldata Pty. Ltd.
EntityCompany
Shares9,920
Max PriceAU$2.14
SellAU$5,506,04029 Aug 19
Regal Funds Management Pty Limited
EntityCompany
Shares2,504,691
Max PriceAU$2.26
BuyAU$1,972,28029 Aug 19
Regal Funds Management Pty Limited
EntityCompany
Shares968,291
Max PriceAU$2.05
SellAU$4,027,52305 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,905,898
Max PriceAU$2.11
BuyAU$2,909,77605 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,429,858
Max PriceAU$2.04
BuyAU$4,689,83428 Jun 19
Regal Funds Management Pty Limited
EntityCompany
Shares2,344,918
Max PriceAU$2.00
BuyAU$14,758,10327 Jun 19
Regal Funds Management Pty Limited
EntityCompany
Shares7,095,406
Max PriceAU$2.08
SellAU$3,674,17523 Jun 19
FIL Limited
EntityCompany
Shares1,749,607
Max PriceAU$2.10
SellAU$3,485,77207 Jun 19
FIL Limited
EntityCompany
Shares1,543,060
Max PriceAU$2.26
BuyAU$36,21105 Mar 19
IFM Investors Pty Ltd
EntityCompany
Shares15,800
Max PriceAU$2.29
BuyAU$1,480,07105 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares692,781
Max PriceAU$2.14
BuyAU$1,100,05405 Mar 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares523,908
Max PriceAU$2.10
SellAU$1,094,41128 Feb 19
FIL Limited
EntityCompany
Shares505,702
Max PriceAU$2.27
BuyAU$4,179,53528 Feb 19
FIL Limited
EntityCompany
Shares1,917,286
Max PriceAU$2.27
SellAU$223,60427 Feb 19
Ross Burney
EntityIndividual
Shares100,000
Max PriceAU$2.27
SellAU$147,81427 Feb 19
Skye Burney
EntityIndividual
Shares64,958
Max PriceAU$2.31
SellAU$195,60627 Feb 19
Taverners J Pty Ltd
EntityCompany
Shares86,170
Max PriceAU$2.27
BuyAU$19,99919 Feb 19
IFM Investors Pty Ltd
EntityCompany
Shares8,928
Max PriceAU$2.24
BuyAU$83,71722 Jan 19
IFM Investors Pty Ltd
EntityCompany
Shares39,865
Max PriceAU$2.10
SellAU$1,025,00005 Dec 18
Anthony Kieran Young
EntityIndividual
Shares500,000
Max PriceAU$2.05
BuyAU$005 Dec 18
Anthony Kieran Young
EntityIndividual
Shares447,120
Max PriceAU$2.24
BuyAU$005 Dec 18
Exldata Pty. Ltd.
EntityCompany
Shares853,063
Max PriceAU$2.25
BuyAU$1,025,00005 Dec 18
Anthony Kieran Young
EntityIndividual
Shares500,000
Max PriceAU$2.05

Ownership Breakdown


Management Team

  • Cliff Brigstocke

    Chief Executive Officer of Blue Star Group

    • Tenure: 0yrs
  • Geoff Selig

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$1.15m
  • Paul Selig

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$330.00k
  • Warwick Hay

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: AU$627.97k
  • Darren Dunkley

    CFO & Company Secretary

    • Tenure: 7.8yrs
    • Compensation: AU$509.73k
  • Matt Aitken

    Chief Executive Officer

    • Tenure: 0.2yrs
    • Compensation: AU$616.73k
  • Glen Draper

    Chief Executive Officer of IVEO

    • Tenure: 6.8yrs
  • Keith Elliott

    Chief Executive Officer of Pareto Phone

    • Tenure: 1.2yrs
  • Naomi Dolmatoff

    Company Secretary

    • Tenure: 0.6yrs
  • Rob Draper

    Chief Marketing Officer

    • Tenure: 0.3yrs

Board Members

  • James Scott Todd

    • Tenure: 4.3yrs
    • Compensation: AU$105.04k
  • Sandra Hook

    • Tenure: 3.3yrs
    • Compensation: AU$105.01k
  • Gavin Bell

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$105.01k
  • Geoff Selig

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$1.15m
  • Paul Selig

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$330.00k
  • Carole Campbell (56yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • 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$299.379m
  • 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 personalize ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:40
End of Day Share Price2019/10/18 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.