INVESCO LTD (IVZ) Stock Fundamental Analysis
NYSE:IVZ - New York Stock Exchange, Inc. - BMG491BT1088 - Common Stock - Currency: USD
IVZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. IVZ may be in some trouble as it scores bad on both profitability and health. IVZ may be a bit undervalued, certainly considering the very reasonable score on growth
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
The Return On Assets of IVZ (2.02%) is comparable to the rest of the industry.
The Return On Equity of IVZ (3.86%) is worse than 63.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.56%, IVZ is doing worse than 65.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IVZ is below the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.86% | ||
| ROIC | 2.56% |
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
IVZ has a Profit Margin of 9.27%. This is in the lower half of the industry: IVZ underperforms 63.09% of its industry peers.
In the last couple of years the Profit Margin of IVZ has remained more or less at the same level.
With a Operating Margin value of 14.64%, IVZ is not doing good in the industry: 65.67% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of IVZ has declined.
Looking at the Gross Margin, with a value of 66.83%, IVZ is in the better half of the industry, outperforming 72.53% of the companies in the same industry.
IVZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | 9.27% | ||
| GM | 66.83% |
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
The number of shares outstanding for IVZ has been reduced compared to 1 year ago.
Compared to 5 years ago, IVZ has less shares outstanding
IVZ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.98, 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 0.98, IVZ is in line with its industry, outperforming 51.07% of the companies in the same industry.
IVZ has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as IVZ would need 7.27 years to pay back of all of its debts.
The Debt to FCF ratio of IVZ (7.27) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.54 indicates that IVZ is somewhat dependend on debt financing.
IVZ has a better Debt to Equity ratio (0.54) than 66.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 0.98 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.83 indicates that IVZ may have some problems paying its short term obligations.
IVZ has a worse Current ratio (0.83) than 66.09% of its industry peers.
A Quick Ratio of 0.83 indicates that IVZ may have some problems paying its short term obligations.
The Quick ratio of IVZ (0.83) is worse than 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.34% over the past year.
Measured over the past years, IVZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.57% on average per year.
IVZ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.02%.
The Revenue has been decreasing by -0.17% on average over the past years.
EPS 1Y (TTM)25.34%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%33.33%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%5.27%
3.2 Future
The Earnings Per Share is expected to grow by 7.46% on average over the next years.
Based on estimates for the next years, IVZ will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y-1.33%
EPS Next 2Y3.44%
EPS Next 3Y8.32%
EPS Next 5Y7.46%
Revenue Next Year-0.25%
Revenue Next 2Y1.53%
Revenue Next 3Y2.73%
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.
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
A Price/Earnings ratio of 9.07 indicates a reasonable valuation of IVZ.
IVZ's Price/Earnings ratio is rather cheap when compared to the industry. IVZ is cheaper than 80.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, IVZ is valued rather cheaply.
IVZ is valuated reasonably with a Price/Forward Earnings ratio of 9.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IVZ indicates a rather cheap valuation: IVZ is cheaper than 80.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. IVZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued cheaper than 82.40% of the companies in the same industry.
IVZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IVZ is cheaper than 80.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.44%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.39%, IVZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.00, IVZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of IVZ decreases each year by -2.47%.
IVZ has paid a dividend for at least 10 years, which is 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
107.58% of the earnings are spent on dividend by IVZ. This is not a sustainable payout ratio.
DP107.58%
EPS Next 2Y3.44%
EPS Next 3Y8.32%
16.59
+0.42 (+2.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change1.3%
Ins Owners0.7%
Ins Owner Change2.04%
Market Cap7.43B
Analysts66.32
Price Target15.79 (-4.82%)
Short Float %3.39%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend1.36
Dividend Growth(5Y)-2.47%
DP107.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.27%
Min EPS beat(2)8.99%
Max EPS beat(2)13.56%
EPS beat(4)4
Avg EPS beat(4)8.01%
Min EPS beat(4)1.96%
Max EPS beat(4)13.56%
EPS beat(8)5
Avg EPS beat(8)0.68%
EPS beat(12)7
Avg EPS beat(12)-2.36%
EPS beat(16)10
Avg EPS beat(16)-0.82%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.41%
Revenue beat(4)0
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)-0.41%
Revenue beat(8)0
Avg Revenue beat(8)-2.34%
Revenue beat(12)4
Avg Revenue beat(12)7.76%
Revenue beat(16)8
Avg Revenue beat(16)13.17%
PT rev (1m)2.77%
PT rev (3m)-21.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.61%
EPS NY rev (1m)0.64%
EPS NY rev (3m)-9.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 9.01 | ||
| P/S | 1.21 | ||
| P/FCF | 6.82 | ||
| P/OCF | 6.4 | ||
| P/B | 0.51 | ||
| P/tB | 12.82 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)1.83
EY11.03%
EPS(NY)1.84
Fwd EY11.09%
FCF(TTM)2.43
FCFY14.66%
OCF(TTM)2.59
OCFY15.62%
SpS13.68
BVpS32.84
TBVpS1.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 3.86% | ||
| ROCE | 3.42% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.64% | ||
| ROICexgc | 6.71% | ||
| OM | 14.64% | ||
| PM (TTM) | 9.27% | ||
| GM | 66.83% | ||
| FCFM | 17.78% |
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%
ROICexcg growth 3Y-25.19%
ROICexcg 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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 7.38 | ||
| Cap/Depr | 40.63% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.16% | ||
| Profit Quality | 191.74% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.98 |
F-Score7
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)25.34%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%33.33%
EPS Next Y-1.33%
EPS Next 2Y3.44%
EPS Next 3Y8.32%
EPS Next 5Y7.46%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%5.27%
Revenue Next Year-0.25%
Revenue Next 2Y1.53%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y9.61%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year10.65%
EBIT Next 3Y6.97%
EBIT Next 5Y5.74%
FCF growth 1Y40.86%
FCF growth 3Y4.96%
FCF growth 5Y2.62%
OCF growth 1Y18.38%
OCF growth 3Y3.35%
OCF growth 5Y1.42%