INVESCO LTD (IVZ) Stock Fundamental Analysis
NYSE:IVZ - New York Stock Exchange, Inc. - BMG491BT1088 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IVZ. IVZ was compared to 225 industry peers in the Capital Markets industry. Both the profitability and financial health of IVZ have multiple concerns. IVZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year IVZ was profitable.
IVZ had a positive operating cash flow in the past year.
Of the past 5 years IVZ 4 years were profitable.
IVZ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of IVZ (-1.50%) is worse than 83.11% of its industry peers.
With a Return On Equity value of -2.80%, IVZ is not doing good in the industry: 79.91% of the companies in the same industry are doing better.
IVZ has a worse Return On Invested Capital (2.06%) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.8% | ||
| ROIC | 2.06% |
ROA(3y)1.05%
ROA(5y)1.77%
ROE(3y)1.97%
ROE(5y)3.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IVZ's Profit Margin has been stable in the last couple of years.
IVZ has a worse Operating Margin (11.78%) than 68.95% of its industry peers.
In the last couple of years the Operating Margin of IVZ has declined.
IVZ has a Gross Margin of 66.74%. This is in the better half of the industry: IVZ outperforms 71.69% 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 | 11.78% | ||
| PM (TTM) | N/A | ||
| GM | 66.74% |
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.
The debt/assets ratio for IVZ has been reduced compared to a year ago.
2.2 Solvency
IVZ has an Altman-Z score of 0.99. This is a bad value and indicates that IVZ is not financially healthy and even has some risk of bankruptcy.
IVZ's Altman-Z score of 0.99 is in line compared to the rest of the industry. IVZ outperforms 51.60% of its industry peers.
The Debt to FCF ratio of IVZ is 5.07, which is a neutral value as it means it would take IVZ, 5.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.07, IVZ is doing good in the industry, outperforming 63.01% of the companies in the same industry.
IVZ has a Debt/Equity ratio of 0.51. This is a neutral value indicating IVZ is somewhat dependend on debt financing.
The Debt to Equity ratio of IVZ (0.51) is better than 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 0.99 |
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.
Looking at the Current ratio, with a value of 0.75, IVZ is doing worse than 64.38% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that IVZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, IVZ is doing worse than 63.93% of the companies in the same industry.
| 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 13.91%, which is quite good.
The Earnings Per Share has been decreasing by -7.57% on average over the past years.
Looking at the last year, IVZ shows a small growth in Revenue. The Revenue has grown by 6.13% in the last 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)13.91%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%10.64%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%10.64%
3.2 Future
IVZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
IVZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
EPS Next Y10.2%
EPS Next 2Y10.63%
EPS Next 3Y12.81%
EPS Next 5Y6.74%
Revenue Next Year5.25%
Revenue Next 2Y5.09%
Revenue Next 3Y5.03%
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 10.11, the valuation of IVZ can be described as reasonable.
Based on the Price/Earnings ratio, IVZ is valued a bit cheaper than 69.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.98, IVZ is valued rather cheaply.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of IVZ.
Based on the Price/Forward Earnings ratio, IVZ is valued a bit cheaper than 75.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. IVZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IVZ is valued a bit cheaper than 78.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IVZ is valued cheaper than 83.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.3 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
IVZ's 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 12.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y10.63%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, IVZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.75, IVZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of IVZ has a limited annual growth rate of 1.50%.
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)1.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
IVZ has negative earnings and hence a negative payout ratio. The dividend may be in danger.
IVZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-146.45%
EPS Next 2Y10.63%
EPS Next 3Y12.81%
17.39
+0.18 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.57%
Inst Owner Change3.53%
Ins Owners0.68%
Ins Owner Change-0.13%
Market Cap7.79B
Analysts66.67
Price Target20.35 (17.02%)
Short Float %3.33%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend1.32
Dividend Growth(5Y)1.5%
DP-146.45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.75%
Min EPS beat(2)1.96%
Max EPS beat(2)7.53%
EPS beat(4)3
Avg EPS beat(4)1.89%
Min EPS beat(4)-18.24%
Max EPS beat(4)16.32%
EPS beat(8)5
Avg EPS beat(8)-0.93%
EPS beat(12)6
Avg EPS beat(12)-4.14%
EPS beat(16)10
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-3.47%
Min Revenue beat(4)-7.11%
Max Revenue beat(4)-1.23%
Revenue beat(8)2
Avg Revenue beat(8)5.23%
Revenue beat(12)6
Avg Revenue beat(12)12.47%
Revenue beat(16)10
Avg Revenue beat(16)17.91%
PT rev (1m)8.45%
PT rev (3m)3.53%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)1.85%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.17 | ||
| P/S | 1.32 | ||
| P/FCF | 5.3 | ||
| P/OCF | 4.91 | ||
| P/B | 0.53 | ||
| P/tB | 37.6 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)1.72
EY9.89%
EPS(NY)1.9
Fwd EY10.9%
FCF(TTM)3.28
FCFY18.88%
OCF(TTM)3.54
OCFY20.38%
SpS13.14
BVpS32.93
TBVpS0.46
PEG (NY)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.8% | ||
| ROCE | 2.76% | ||
| ROIC | 2.06% | ||
| ROICexc | 2.15% | ||
| ROICexgc | 6.67% | ||
| OM | 11.78% | ||
| PM (TTM) | N/A | ||
| GM | 66.74% | ||
| FCFM | 24.99% |
ROA(3y)1.05%
ROA(5y)1.77%
ROE(3y)1.97%
ROE(5y)3.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 8.51 | ||
| Cap/Depr | 63.99% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 181.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 0.99 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.91%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%10.64%
EPS Next Y10.2%
EPS Next 2Y10.63%
EPS Next 3Y12.81%
EPS Next 5Y6.74%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y-4.17%
Revenue growth 5Y-0.17%
Sales Q2Q%10.64%
Revenue Next Year5.25%
Revenue Next 2Y5.09%
Revenue Next 3Y5.03%
Revenue Next 5YN/A
EBIT growth 1Y-24.13%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year19.53%
EBIT Next 3Y10.73%
EBIT Next 5Y3.45%
FCF growth 1Y72.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.18%
OCF growth 3YN/A
OCF growth 5YN/A