INVESCO LTD (IVZ) Stock Fundamental Analysis
USA - NYSE:IVZ - BMG491BT1088 - Common Stock
24.04 USD
+0.43 (+1.82%)
24.01 USD
-0.03 (-0.12%)
We assign a fundamental rating of 4 out of 10 to IVZ. IVZ was compared to 238 industry peers in the Capital Markets industry. IVZ may be in some trouble as it scores bad on both profitability and health. IVZ has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years IVZ had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.48%, IVZ is not doing good in the industry: 60.34% of the companies in the same industry are doing better.
The Return On Equity of IVZ (3.05%) is worse than 68.35% of its industry peers.
IVZ has a worse Return On Invested Capital (2.57%) than 63.29% of its industry peers.
IVZ had an Average Return On Invested Capital over the past 3 years of 2.89%. This is below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 3.05% | ||
| ROIC | 2.57% |
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 worse Profit Margin (6.87%) than 64.56% of its industry peers.
IVZ's Profit Margin has been stable in the last couple of years.
The Operating Margin of IVZ (14.69%) is worse than 64.56% of its industry peers.
IVZ's Operating Margin has declined in the last couple of years.
IVZ's Gross Margin of 66.91% is fine compared to the rest of the industry. IVZ outperforms 74.68% 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 | 14.69% | ||
| PM (TTM) | 6.87% | ||
| GM | 66.91% |
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
IVZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IVZ has an improved debt to assets ratio.
2.2 Solvency
IVZ has an Altman-Z score of 1.07. 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 (1.07) which is in line with its industry peers.
The Debt to FCF ratio of IVZ is 7.50, which is on the high side as it means it would take IVZ, 7.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.50, IVZ is in line with its industry, outperforming 59.07% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that IVZ is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.62, IVZ is doing good in the industry, outperforming 63.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 1.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.78 indicates that IVZ may have some problems paying its short term obligations.
IVZ has a worse Current ratio (0.78) than 63.71% of its industry peers.
IVZ has a Quick Ratio of 0.78. 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 (0.78) than 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
IVZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.39%, which is quite good.
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 5.83%.
IVZ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.17% yearly.
EPS 1Y (TTM)11.39%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%-16.28%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
IVZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y5%
EPS Next 2Y15.61%
EPS Next 3Y14.42%
EPS Next 5Y9.33%
Revenue Next Year4.24%
Revenue Next 2Y7.01%
Revenue Next 3Y6.65%
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
Based on the Price/Earnings ratio of 13.66, the valuation of IVZ can be described as correct.
IVZ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.86. IVZ is valued rather cheaply when compared to this.
IVZ is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
69.62% of the companies in the same industry are more expensive than IVZ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.32. IVZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued a bit cheaper than the industry average as 78.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IVZ is valued a bit cheaper than the industry average as 73.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IVZ's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y15.61%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
IVZ has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.41, IVZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, IVZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
IVZ pays out 144.24% of its income as dividend. This is not a sustainable payout ratio.
DP144.24%
EPS Next 2Y15.61%
EPS Next 3Y14.42%
24.04
+0.43 (+1.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners94.95%
Inst Owner Change0.59%
Ins Owners0.69%
Ins Owner Change0.37%
Market Cap10.72B
Analysts68.89
Price Target23.74 (-1.25%)
Short Float %3.74%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.36
Dividend Growth(5Y)-2.47%
DP144.24%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-12.91%
Max EPS beat(2)13.56%
EPS beat(4)3
Avg EPS beat(4)2.9%
Min EPS beat(4)-12.91%
Max EPS beat(4)13.56%
EPS beat(8)5
Avg EPS beat(8)1.85%
EPS beat(12)7
Avg EPS beat(12)-1.34%
EPS beat(16)9
Avg EPS beat(16)-2.23%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)-0.41%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)3
Avg Revenue beat(12)5.64%
Revenue beat(16)7
Avg Revenue beat(16)11.12%
PT rev (1m)0.59%
PT rev (3m)49.76%
EPS NQ rev (1m)-1.91%
EPS NQ rev (3m)15.06%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)6.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.26%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)4.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 10.46 | ||
| P/S | 1.74 | ||
| P/FCF | 9.27 | ||
| P/OCF | 8.8 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.03 |
EPS(TTM)1.76
EY7.32%
EPS(NY)2.3
Fwd EY9.56%
FCF(TTM)2.59
FCFY10.79%
OCF(TTM)2.73
OCFY11.37%
SpS13.8
BVpS31.11
TBVpS-1.03
PEG (NY)2.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 3.05% | ||
| ROCE | 3.43% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.66% | ||
| ROICexgc | 6.86% | ||
| OM | 14.69% | ||
| PM (TTM) | 6.87% | ||
| GM | 66.91% | ||
| FCFM | 18.79% |
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-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 8.08 | ||
| Cap/Depr | 36.71% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.53% | ||
| Profit Quality | 273.42% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.07 |
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)11.39%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%-16.28%
EPS Next Y5%
EPS Next 2Y15.61%
EPS Next 3Y14.42%
EPS Next 5Y9.33%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%1.73%
Revenue Next Year4.24%
Revenue Next 2Y7.01%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
EBIT growth 1Y10.11%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year16.45%
EBIT Next 3Y13.36%
EBIT Next 5Y7.53%
FCF growth 1Y19.54%
FCF growth 3Y4.96%
FCF growth 5Y2.62%
OCF growth 1Y2.58%
OCF growth 3Y3.35%
OCF growth 5Y1.42%