INVESCO LTD (IVZ)
BMG491BT1088 - Common Stock
Overall IVZ gets a fundamental rating of 4 out of 10. We evaluated IVZ against 222 industry peers in the Capital Markets industry. Both the profitability and financial health of IVZ have multiple concerns. IVZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year IVZ was profitable.
In the past year IVZ had a positive cash flow from operations.
IVZ had positive earnings in 4 of the past 5 years.
In the past 5 years IVZ always reported a positive cash flow from operatings.
1.2 Ratios
IVZ's Return On Assets of -1.20% is on the low side compared to the rest of the industry. IVZ is outperformed by 81.48% of its industry peers.
Looking at the Return On Equity, with a value of -2.32%, IVZ is doing worse than 79.17% of the companies in the same industry.
The Return On Invested Capital of IVZ (2.31%) is worse than 68.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IVZ is below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.2% | ||
| ROE | -2.32% | ||
| ROIC | 2.31% |
ROA(3y)1.8%
ROA(5y)1.66%
ROE(3y)3.73%
ROE(5y)3.79%
ROIC(3y)3.52%
ROIC(5y)3.73%
1.3 Margins
IVZ has a Operating Margin of 14.16%. This is in the lower half of the industry: IVZ underperforms 67.13% of its industry peers.
IVZ's Operating Margin has declined in the last couple of years.
IVZ has a better Gross Margin (67.54%) than 66.20% of its industry peers.
IVZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.16% | ||
| PM (TTM) | N/A | ||
| GM | 67.54% |
OM growth 3Y-11.2%
OM growth 5Y-9.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
IVZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IVZ has more shares outstanding
The debt/assets ratio for IVZ is higher compared to a year ago.
2.2 Solvency
IVZ has an Altman-Z score of 0.98. This is a bad value and indicates that IVZ is not financially healthy and even has some risk of bankruptcy.
IVZ has a Altman-Z score of 0.98. This is comparable to the rest of the industry: IVZ outperforms 52.31% of its industry peers.
IVZ has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as IVZ would need 7.20 years to pay back of all of its debts.
IVZ has a Debt to FCF ratio (7.20) which is comparable to the rest of the industry.
IVZ has a Debt/Equity ratio of 0.59. This is a neutral value indicating IVZ is somewhat dependend on debt financing.
IVZ has a Debt to Equity ratio of 0.59. This is in the better half of the industry: IVZ outperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 0.98 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IVZ has a Current Ratio of 0.90. This is a bad value and indicates that IVZ is not financially healthy enough and could expect problems in meeting its short term obligations.
IVZ has a Current ratio (0.90) which is in line with its industry peers.
A Quick Ratio of 0.90 indicates that IVZ may have some problems paying its short term obligations.
IVZ has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
IVZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.27%, which is quite good.
IVZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.08% yearly.
Looking at the last year, IVZ shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
The Revenue has been growing slightly by 1.47% on average over the past years.
EPS 1Y (TTM)11.27%
EPS 3Y-8.01%
EPS 5Y-9.08%
EPS Q2Q%38.71%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y-2.38%
Revenue growth 5Y1.47%
Sales Q2Q%-0.45%
3.2 Future
Based on estimates for the next years, IVZ will show a small growth in Earnings Per Share. The EPS will grow by 5.78% on average per year.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y8.73%
EPS Next 2Y10.86%
EPS Next 3Y11.08%
EPS Next 5Y5.78%
Revenue Next Year0.59%
Revenue Next 2Y2.67%
Revenue Next 3Y2.66%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IVZ is valuated reasonably with a Price/Earnings ratio of 11.03.
IVZ's Price/Earnings ratio is a bit cheaper when compared to the industry. IVZ is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, IVZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.39, the valuation of IVZ can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IVZ is valued a bit cheaper than 71.30% of the companies in the same industry.
IVZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
IVZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IVZ is cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.54 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
IVZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y10.86%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.95%, IVZ is a good candidate for dividend investing.
IVZ's Dividend Yield is comparable with the industry average which is at 7.46.
Compared to an average S&P500 Dividend Yield of 2.30, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
The dividend of IVZ has a limited annual growth rate of 1.50%.
IVZ has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IVZ decreased in the last 3 years.
Dividend Growth(5Y)1.5%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IVZ has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of IVZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-177.7%
EPS Next 2Y10.86%
EPS Next 3Y11.08%
INVESCO LTD
NYSE:IVZ (7/26/2024, 7:04:00 PM)
After market: 17.42 0 (0%)17.42
+0.31 (+1.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 9.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.2% | ||
| ROE | -2.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.16% | ||
| PM (TTM) | N/A | ||
| GM | 67.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.27%
EPS 3Y-8.01%
EPS 5Y
EPS Q2Q%
EPS Next Y8.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.11%
Revenue growth 3Y-2.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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FCF growth 3Y
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