INVESCO LTD (IVZ)
BMG491BT1088 - Common Stock
We assign a fundamental rating of 4 out of 10 to IVZ. IVZ was compared to 220 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
IVZ had positive earnings in the past year.
IVZ had a positive operating cash flow in the past year.
IVZ had positive earnings in 4 of the past 5 years.
IVZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.24%, IVZ is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
The Return On Equity of IVZ (-2.31%) is worse than 78.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.41%, IVZ is doing worse than 66.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IVZ is significantly below the industry average of 17.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.24% | ||
| ROE | -2.31% | ||
| ROIC | 2.41% |
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
With a Operating Margin value of 14.12%, IVZ is not doing good in the industry: 66.36% of the companies in the same industry are doing better.
IVZ's Operating Margin has declined in the last couple of years.
IVZ has a better Gross Margin (67.20%) than 65.90% of its industry peers.
In the last couple of years the Gross Margin of IVZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.12% | ||
| PM (TTM) | N/A | ||
| GM | 67.2% |
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
The number of shares outstanding for IVZ has been reduced compared to 1 year ago.
The number of shares outstanding for IVZ has been increased compared to 5 years ago.
Compared to 1 year ago, IVZ has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that IVZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IVZ (0.99) is comparable to the rest of the industry.
IVZ has a debt to FCF ratio of 5.50. This is a neutral value as IVZ would need 5.50 years to pay back of all of its debts.
IVZ has a better Debt to FCF ratio (5.50) than 62.21% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that IVZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, IVZ is in the better half of the industry, outperforming 68.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 0.99 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.80 indicates that IVZ may have some problems paying its short term obligations.
The Current ratio of IVZ (0.80) is worse than 64.06% of its industry peers.
A Quick Ratio of 0.80 indicates that IVZ may have some problems paying its short term obligations.
The Quick ratio of IVZ (0.80) is worse than 63.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.27% over the past year.
Measured over the past years, IVZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.08% on average per year.
IVZ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.11%.
Measured over the past years, IVZ shows a small growth in Revenue. The Revenue has been growing by 1.47% on average per year.
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
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
The Revenue is expected to grow by 2.71% on average over the next years.
EPS Next Y8.53%
EPS Next 2Y9.9%
EPS Next 3Y10.98%
EPS Next 5Y5.78%
Revenue Next Year-0.16%
Revenue Next 2Y2.04%
Revenue Next 3Y2.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.96, the valuation of IVZ can be described as reasonable.
Based on the Price/Earnings ratio, IVZ is valued a bit cheaper than 69.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.65, IVZ is valued rather cheaply.
A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of IVZ.
Based on the Price/Forward Earnings ratio, IVZ is valued a bit cheaper than 72.35% of the companies in the same industry.
IVZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued a bit cheaper than the industry average as 77.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IVZ indicates a rather cheap valuation: IVZ is cheaper than 82.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 13.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y9.9%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.01%, IVZ is a good candidate for dividend investing.
IVZ's Dividend Yield is comparable with the industry average which is at 8.86.
Compared to an average S&P500 Dividend Yield of 2.26, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
5.2 History
The dividend of IVZ has a limited annual growth rate of 1.50%.
IVZ has been paying a dividend for at least 10 years, so it has 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-178.08%
EPS Next 2Y9.9%
EPS Next 3Y10.98%
INVESCO LTD
NYSE:IVZ (9/6/2024, 8:22:19 PM)
After market: 15.74 0 (0%)15.74
-0.63 (-3.85%)
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 Cap7.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.63 | ||
| 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)1.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.24% | ||
| ROE | -2.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.12% | ||
| PM (TTM) | N/A | ||
| GM | 67.2% | ||
| 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 | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| 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 Y8.53%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y