NYSE:IVC

Stock Analysis Report

Executive Summary

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-8.0%

IVC

-0.7%

US Medical Equipment

0.4%

US Market


1 Year Return

-49.2%

IVC

17.1%

US Medical Equipment

11.4%

US Market

Return vs Industry: IVC underperformed the US Medical Equipment industry which returned 17.1% over the past year.

Return vs Market: IVC underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

IVCIndustryMarket
7 Day-8.0%-0.7%0.4%
30 Day-14.8%-3.0%0.3%
90 Day46.3%-2.6%-1.2%
1 Year-48.7%-49.2%18.1%17.1%13.9%11.4%
3 Year-33.6%-34.7%76.6%71.2%47.2%37.6%
5 Year-56.2%-57.1%118.1%94.3%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: IVC ($6.6) is trading above our estimate of fair value ($0.25)

Significantly Below Fair Value: IVC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IVC is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: IVC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IVC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IVC is good value based on its PB Ratio (0.7x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Invacare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

113.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IVC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IVC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IVC's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IVC's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IVC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Invacare performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IVC is unprofitable, and losses have increased over the past 5 years at a rate of -1% per year.

Accelerating Growth: Unable to compare IVC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IVC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: IVC has a negative Return on Equity (-12.01%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: IVC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: IVC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Invacare's financial position?


Financial Position Analysis

Short Term Liabilities: IVC's short term assets ($368.0M) exceeds its short term liabilities ($193.9M)

Long Term Liabilities: IVC's short term assets (368.0M) exceeds its long term liabilities (341.8M)


Debt to Equity History and Analysis

Debt Level: IVC's debt to equity ratio (70.3%) is considered high

Reducing Debt: IVC's debt to equity ratio has increased from 8.7% to 70.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IVC's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IVC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: IVC has sufficient cash runway for 2.572627 years if free cash flow continues to grow at historical rates of 4.1% each year.


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IVC's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: IVC's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: IVC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: IVC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: IVC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IVC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Matt Monaghan (51yo)

4.5yrs

Tenure

US$5,325,390

Compensation

Mr. Mathew E. Monaghan, also known as Matt, has been the Chief Executive Officer and President of Invacare Corporation since April 01, 2015 and has been its Chairman of the Board since May 14, 2015. Mr. Mo ...


CEO Compensation Analysis

Compensation vs. Market: Matt's total compensation ($USD5.33M) is above average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

2.4yrs

Average Tenure

52yo

Average Age

Experienced Management: IVC's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

56yo

Average Age

Experienced Board: IVC's board of directors are considered experienced (3.4 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

BuyUS$35,90020 Nov 18
Kathleen Leneghan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares6,500
Max PriceUS$5.52
BuyUS$48,81419 Nov 18
Clifford Nastas
EntityIndividual
Shares9,000
Max PriceUS$5.42
BuyUS$99,84709 Nov 18
Matthew Monaghan
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares13,750
Max PriceUS$7.26

Ownership Breakdown


Management Team

  • Matt Monaghan (51yo)

    Chairman

    • Tenure: 4.5yrs
    • Compensation: US$5.33m
  • Anthony LaPlaca (61yo)

    Senior VP

    • Tenure: 10.8yrs
    • Compensation: US$816.09k
  • Ralf Ledda (51yo)

    Senior VP & GM of EMEA

    • Tenure: 2.9yrs
    • Compensation: US$848.30k
  • Kathleen Leneghan (56yo)

    Senior VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$1.19m
  • Darcie Karol (52yo)

    Senior Vice President of Human Resources

    • Tenure: 1.3yrs
    • Compensation: US$472.46k
  • Lois Lee

    Director of Treasury and Investor Relations

    • Tenure: 0yrs
  • Joost Beltman

    Vice President of Sales & Marketing for North America

    • Tenure: 0.3yrs

Board Members

  • C. Harris (63yo)

    Lead Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$207.66k
  • Diana Ferguson (55yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$110.50k
  • Susan Alexander (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$187.66k
  • Baiju Shah (47yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$192.66k
  • Matt Monaghan (51yo)

    Chairman

    • Tenure: 4.5yrs
    • Compensation: US$5.33m
  • Julie Beck (57yo)

    Director

    • Tenure: 0.08yrs
  • Marc Gibeley (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$177.66k
  • Petra Danielsohn-Weil (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$136.37k

Company Information

Invacare Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Invacare Corporation
  • Ticker: IVC
  • Exchange: NYSE
  • Founded: 1885
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$222.247m
  • Shares outstanding: 33.67m
  • Website: https://www.invacare.com

Number of Employees


Location

  • Invacare Corporation
  • One Invacare Way
  • Elyria
  • Ohio
  • 44035
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IVCNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 1984
IV3DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1984

Biography

Invacare Corporation, together with its subsidiaries, designs, manufactures, distributes, and exports medical equipment for use in home health care, retail, and extended care markets worldwide. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:42
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.