INVESCO LTD (IVZ) Stock Fundamental Analysis
USA - NYSE:IVZ - BMG491BT1088 - Common Stock
22.44 USD
-1.08 (-4.59%)
22.5 USD
+0.06 (+0.27%)
Overall IVZ gets a fundamental rating of 4 out of 10. We evaluated IVZ against 237 industry peers in the Capital Markets industry. While IVZ is still in line with the averages on profitability rating, there are concerns on its financial health. IVZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IVZ had positive earnings in the past year.
In the past year IVZ had a positive cash flow from operations.
IVZ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IVZ had a positive operating cash flow.
1.2 Ratios
IVZ has a Return On Assets of 2.35%. This is comparable to the rest of the industry: IVZ outperforms 46.84% of its industry peers.
IVZ has a Return On Equity of 4.78%. This is in the lower half of the industry: IVZ underperforms 60.76% of its industry peers.
IVZ's Return On Invested Capital of 3.09% is in line compared to the rest of the industry. IVZ outperforms 43.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IVZ is below the industry average of 7.11%.
The last Return On Invested Capital (3.09%) for IVZ is above the 3 year average (2.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 4.78% | ||
| ROIC | 3.09% |
ROA(3y)1.05%
ROA(5y)1.77%
ROE(3y)1.97%
ROE(5y)3.71%
ROIC(3y)2.89%
ROIC(5y)3.4%
1.3 Margins
The Profit Margin of IVZ (10.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IVZ has remained more or less at the same level.
The Operating Margin of IVZ (17.11%) is comparable to the rest of the industry.
IVZ's Operating Margin has declined in the last couple of years.
IVZ has a Gross Margin of 66.64%. This is in the better half of the industry: IVZ outperforms 74.68% of its industry peers.
IVZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.11% | ||
| PM (TTM) | 10.65% | ||
| GM | 66.64% |
OM growth 3Y-18.12%
OM growth 5Y-10.75%
PM growth 3Y-24%
PM growth 5Y-0.8%
GM growth 3Y-1.08%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
Compared to 1 year ago, IVZ has less shares outstanding
The number of shares outstanding for IVZ has been reduced compared to 5 years ago.
Compared to 1 year ago, IVZ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that IVZ is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.11, IVZ is in line with its industry, outperforming 58.23% of the companies in the same industry.
The Debt to FCF ratio of IVZ is 6.27, which is on the high side as it means it would take IVZ, 6.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.27, IVZ is doing good in the industry, outperforming 68.35% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that IVZ is somewhat dependend on debt financing.
IVZ's Debt to Equity ratio of 0.60 is fine compared to the rest of the industry. IVZ outperforms 62.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 1.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
IVZ has a Current Ratio of 0.75. 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's Current ratio of 0.75 is on the low side compared to the rest of the industry. IVZ is outperformed by 67.93% of its industry peers.
IVZ has a Quick Ratio of 0.75. 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 worse Quick ratio (0.75) than 67.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.57% over the past year.
The Earnings Per Share has been decreasing by -7.57% on average over the past years.
The Revenue has been growing slightly by 6.64% in the past year.
The Revenue has been decreasing by -0.17% on average over the past years.
EPS 1Y (TTM)15.57%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%38.64%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%7.43%
3.2 Future
The Earnings Per Share is expected to grow by 15.17% on average over the next years. This is quite good.
Based on estimates for the next years, IVZ will show a small growth in Revenue. The Revenue will grow by 7.02% on average per year.
EPS Next Y14.83%
EPS Next 2Y21.53%
EPS Next 3Y18.86%
EPS Next 5Y15.17%
Revenue Next Year5.14%
Revenue Next 2Y8.14%
Revenue Next 3Y7.02%
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.
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
The Price/Earnings ratio is 11.63, which indicates a very decent valuation of IVZ.
The rest of the industry has a similar Price/Earnings ratio as IVZ.
IVZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 8.83, the valuation of IVZ can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IVZ indicates a somewhat cheap valuation: IVZ is cheaper than 74.68% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. IVZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
79.32% of the companies in the same industry are more expensive than IVZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IVZ is valued a bit cheaper than 75.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.51 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IVZ's earnings are expected to grow with 18.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y21.53%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
IVZ has a Yearly Dividend Yield of 3.50%.
Compared to an average industry Dividend Yield of 8.48, IVZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, IVZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of IVZ decreases each year by -2.47%.
IVZ has been paying a dividend for at least 10 years, so it has a reliable track record.
IVZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.47%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
88.94% of the earnings are spent on dividend by IVZ. This is not a sustainable payout ratio.
DP88.94%
EPS Next 2Y21.53%
EPS Next 3Y18.86%
22.44
-1.08 (-4.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners94.95%
Inst Owner Change-3.79%
Ins Owners0.69%
Ins Owner Change-2.47%
Market Cap10.01B
Revenue(TTM)6.28B
Net Income(TTM)668.90M
Analysts69.47
Price Target25.85 (15.2%)
Short Float %3.81%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend1.36
Dividend Growth(5Y)-2.47%
DP88.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.27%
Min EPS beat(2)-12.91%
Max EPS beat(2)33.45%
EPS beat(4)3
Avg EPS beat(4)10.77%
Min EPS beat(4)-12.91%
Max EPS beat(4)33.45%
EPS beat(8)6
Avg EPS beat(8)6.33%
EPS beat(12)8
Avg EPS beat(12)2.97%
EPS beat(16)9
Avg EPS beat(16)-0.41%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-1.91%
Revenue beat(12)3
Avg Revenue beat(12)3.37%
Revenue beat(16)7
Avg Revenue beat(16)9.27%
PT rev (1m)8.91%
PT rev (3m)9.98%
EPS NQ rev (1m)2.93%
EPS NQ rev (3m)9.86%
EPS NY rev (1m)9.36%
EPS NY rev (3m)11.79%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)4.34%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 8.83 | ||
| P/S | 1.59 | ||
| P/FCF | 7.51 | ||
| P/OCF | 7.22 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)1.93
EY8.6%
EPS(NY)2.54
Fwd EY11.32%
FCF(TTM)2.99
FCFY13.32%
OCF(TTM)3.11
OCFY13.85%
SpS14.08
BVpS31.41
TBVpS-0.42
PEG (NY)0.78
PEG (5Y)N/A
Graham Number36.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 4.78% | ||
| ROCE | 4.12% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.09% | ||
| ROICexgc | 7.66% | ||
| OM | 17.11% | ||
| PM (TTM) | 10.65% | ||
| GM | 66.64% | ||
| FCFM | 21.23% |
ROA(3y)1.05%
ROA(5y)1.77%
ROE(3y)1.97%
ROE(5y)3.71%
ROIC(3y)2.89%
ROIC(5y)3.4%
ROICexc(3y)3.03%
ROICexc(5y)3.59%
ROICexgc(3y)8.77%
ROICexgc(5y)19673%
ROCE(3y)3.86%
ROCE(5y)4.54%
ROICexgc growth 3Y-25.19%
ROICexgc growth 5YN/A
ROICexc growth 3Y-18.39%
ROICexc growth 5Y-10.34%
OM growth 3Y-18.12%
OM growth 5Y-10.75%
PM growth 3Y-24%
PM growth 5Y-0.8%
GM growth 3Y-1.08%
GM growth 5Y-0.72%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.27 | ||
| Debt/EBITDA | 6.75 | ||
| Cap/Depr | 32.76% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.97% | ||
| Profit Quality | 199.25% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.11 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)75.71%
Cap/Depr(5y)67.33%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.57%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%38.64%
EPS Next Y14.83%
EPS Next 2Y21.53%
EPS Next 3Y18.86%
EPS Next 5Y15.17%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%7.43%
Revenue Next Year5.14%
Revenue Next 2Y8.14%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
EBIT growth 1Y54.81%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year16.45%
EBIT Next 3Y13.36%
EBIT Next 5Y9.47%
FCF growth 1Y56.27%
FCF growth 3Y4.96%
FCF growth 5Y2.62%
OCF growth 1Y32.05%
OCF growth 3Y3.35%
OCF growth 5Y1.42%
INVESCO LTD / IVZ FAQ
What is the fundamental rating for IVZ stock?
ChartMill assigns a fundamental rating of 4 / 10 to IVZ.
What is the valuation status for IVZ stock?
ChartMill assigns a valuation rating of 6 / 10 to INVESCO LTD (IVZ). This can be considered as Fairly Valued.
What is the profitability of IVZ stock?
INVESCO LTD (IVZ) has a profitability rating of 4 / 10.
What are the PE and PB ratios of INVESCO LTD (IVZ) stock?
The Price/Earnings (PE) ratio for INVESCO LTD (IVZ) is 11.63 and the Price/Book (PB) ratio is 0.71.
How sustainable is the dividend of INVESCO LTD (IVZ) stock?
The dividend rating of INVESCO LTD (IVZ) is 3 / 10 and the dividend payout ratio is 88.94%.