INVESCO LTD (IVZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IVZ - BMG491BT1088 - Common Stock
28.25 USD
+0.09 (+0.32%)
28.2 USD
-0.05 (-0.18%)
We assign a fundamental rating of 4 out of 10 to IVZ. IVZ was compared to 235 industry peers in the Capital Markets industry. There are concerns on the financial health of IVZ while its profitability can be described as average. IVZ has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years IVZ 4 years were profitable.
Each year in the past 5 years IVZ had a positive operating cash flow.
1.2 Ratios
IVZ's Return On Assets of 2.35% is in line compared to the rest of the industry. IVZ outperforms 50.64% of its industry peers.
IVZ has a worse Return On Equity (4.78%) than 60.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.09%, IVZ is in line with its industry, outperforming 44.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IVZ is below the industry average of 7.14%.
The 3 year average ROIC (2.89%) for IVZ is below the current ROIC(3.09%), indicating increased profibility in the last year.
| 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
IVZ has a Profit Margin (10.65%) which is in line with its industry peers.
In the last couple of years the Profit Margin of IVZ has remained more or less at the same level.
IVZ has a Operating Margin of 17.11%. This is comparable to the rest of the industry: IVZ outperforms 41.70% of its industry peers.
IVZ's Operating Margin has declined in the last couple of years.
IVZ's Gross Margin of 66.64% is fine compared to the rest of the industry. IVZ outperforms 75.32% 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 | 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
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 1.19. This is a bad value and indicates that IVZ is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, IVZ is in the better half of the industry, outperforming 60.85% 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.
IVZ's Debt to FCF ratio of 6.27 is fine compared to the rest of the industry. IVZ outperforms 66.38% of its industry peers.
IVZ has a Debt/Equity ratio of 0.60. This is a neutral value indicating 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 64.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 1.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.75 indicates that IVZ may have some problems paying its short term obligations.
IVZ has a Current ratio of 0.75. This is in the lower half of the industry: IVZ underperforms 65.11% of its industry peers.
A Quick Ratio of 0.75 indicates that IVZ may have some problems paying its short term obligations.
IVZ has a worse Quick ratio (0.75) than 64.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
IVZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.57%, which is quite good.
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.
Measured over the past years, IVZ shows a decrease in Revenue. The Revenue has been decreasing by -0.17% on average per year.
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
IVZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.17% yearly.
IVZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.61% yearly.
EPS Next Y16.22%
EPS Next 2Y21.98%
EPS Next 3Y19.44%
EPS Next 5Y15.17%
Revenue Next Year5.52%
Revenue Next 2Y9.01%
Revenue Next 3Y7.61%
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
A Price/Earnings ratio of 14.64 indicates a correct valuation of IVZ.
IVZ's Price/Earnings ratio is in line with the industry average.
IVZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.04 indicates a reasonable valuation of IVZ.
IVZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IVZ is cheaper than 66.81% of the companies in the same industry.
IVZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued a bit cheaper than the industry average as 77.45% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IVZ indicates a somewhat cheap valuation: IVZ is cheaper than 78.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 16.87 |
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 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y21.98%
EPS Next 3Y19.44%
5. Dividend
5.1 Amount
IVZ has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, IVZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 2Y21.98%
EPS Next 3Y19.44%
28.25
+0.09 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners95.04%
Inst Owner Change0%
Ins Owners0.65%
Ins Owner Change-2.12%
Market Cap12.57B
Revenue(TTM)6.28B
Net Income(TTM)668.90M
Analysts70
Price Target28.05 (-0.71%)
Short Float %3.81%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.36
Dividend Growth(5Y)-2.47%
DP88.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)4.69%
PT rev (3m)18.16%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)10.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 11.04 | ||
| P/S | 2 | ||
| P/FCF | 9.43 | ||
| P/OCF | 9.07 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.87 |
EPS(TTM)1.93
EY6.83%
EPS(NY)2.56
Fwd EY9.06%
FCF(TTM)2.99
FCFY10.6%
OCF(TTM)3.12
OCFY11.03%
SpS14.11
BVpS31.47
TBVpS-0.42
PEG (NY)0.9
PEG (5Y)N/A
Graham Number36.97
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 | 1.19 |
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 Y16.22%
EPS Next 2Y21.98%
EPS Next 3Y19.44%
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 Year5.52%
Revenue Next 2Y9.01%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
EBIT growth 1Y54.81%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year18.43%
EBIT Next 3Y16.94%
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 of INVESCO LTD (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.
Can you provide the expected EPS growth for IVZ stock?
The Earnings per Share (EPS) of INVESCO LTD (IVZ) is expected to grow by 16.22% in the next year.
Can you provide the dividend sustainability for IVZ stock?
The dividend rating of INVESCO LTD (IVZ) is 4 / 10 and the dividend payout ratio is 88.94%.