INVESCO LTD (IVZ) Stock Fundamental Analysis
NYSE:IVZ - New York Stock Exchange, Inc. - BMG491BT1088 - Common Stock - Currency: USD
Overall IVZ gets a fundamental rating of 4 out of 10. We evaluated IVZ against 228 industry peers in the Capital Markets industry. Both the profitability and financial health of IVZ have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on IVZ.
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.
Each year in the past 5 years IVZ had a positive operating cash flow.
1.2 Ratios
IVZ has a Return On Assets (1.99%) which is in line with its industry peers.
IVZ has a worse Return On Equity (3.70%) than 66.23% of its industry peers.
IVZ's Return On Invested Capital of 2.52% is on the low side compared to the rest of the industry. IVZ is outperformed by 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IVZ is below the industry average of 7.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 3.7% | ||
| ROIC | 2.52% |
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 (8.87%) is worse than 66.23% of 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 worse Operating Margin (13.72%) than 67.54% of its industry peers.
In the last couple of years the Operating Margin of IVZ has declined.
IVZ's Gross Margin of 66.61% is fine compared to the rest of the industry. IVZ outperforms 73.25% of its industry peers.
IVZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.72% | ||
| PM (TTM) | 8.87% | ||
| GM | 66.61% |
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
IVZ has less shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 0.94, we must say that IVZ is in the distress zone and has some risk of bankruptcy.
IVZ has a Altman-Z score of 0.94. This is comparable to the rest of the industry: IVZ outperforms 53.95% of its industry peers.
The Debt to FCF ratio of IVZ is 6.33, which is on the high side as it means it would take IVZ, 6.33 years of fcf income to pay off all of its debts.
IVZ has a better Debt to FCF ratio (6.33) than 62.28% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that IVZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.49, IVZ is doing good in the industry, outperforming 69.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 0.94 |
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 has a Current ratio of 0.75. This is in the lower half of the industry: IVZ underperforms 66.23% of its industry peers.
A Quick Ratio of 0.75 indicates that IVZ may have some problems paying its short term obligations.
The Quick ratio of IVZ (0.75) is worse than 65.79% 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 13.91%, which is quite good.
IVZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.57% yearly.
Looking at the last year, IVZ shows a small growth in Revenue. The Revenue has grown by 6.13% in the last year.
The Revenue has been decreasing by -0.17% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.74% on average over the next years.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y1%
EPS Next 2Y5.61%
EPS Next 3Y8.7%
EPS Next 5Y6.74%
Revenue Next Year3.94%
Revenue Next 2Y4.35%
Revenue Next 3Y4.5%
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 7.44 indicates a rather cheap valuation of IVZ.
IVZ's Price/Earnings ratio is rather cheap when compared to the industry. IVZ is cheaper than 83.33% of the companies in the same industry.
IVZ is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.37, the valuation of IVZ can be described as very cheap.
85.53% of the companies in the same industry are more expensive than IVZ, based on the Price/Forward Earnings ratio.
IVZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 7.37 |
4.2 Price Multiples
IVZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IVZ is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IVZ is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.11 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.41
PEG (5Y)N/A
EPS Next 2Y5.61%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
IVZ has a Yearly Dividend Yield of 6.41%, which is a nice return.
The stock price of IVZ dropped by -25.58% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
IVZ's Dividend Yield is comparable with the industry average which is at 8.65.
Compared to an average S&P500 Dividend Yield of 2.52, IVZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
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
IVZ pays out 113.07% of its income as dividend. This is not a sustainable payout ratio.
DP113.07%
EPS Next 2Y5.61%
EPS Next 3Y8.7%
12.8
+0.16 (+1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.57%
Inst Owner Change0.12%
Ins Owners0.68%
Ins Owner Change0.69%
Market Cap5.73B
Analysts67.37
Price Target19.55 (52.73%)
Short Float %3.08%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
Yearly Dividend1.36
Dividend Growth(5Y)-2.47%
DP113.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.47%
Min EPS beat(2)1.96%
Max EPS beat(2)8.99%
EPS beat(4)3
Avg EPS beat(4)0.06%
Min EPS beat(4)-18.24%
Max EPS beat(4)8.99%
EPS beat(8)5
Avg EPS beat(8)-0.63%
EPS beat(12)6
Avg EPS beat(12)-4.4%
EPS beat(16)10
Avg EPS beat(16)-1.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.41%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-0.41%
Revenue beat(8)1
Avg Revenue beat(8)1.26%
Revenue beat(12)5
Avg Revenue beat(12)9.97%
Revenue beat(16)9
Avg Revenue beat(16)15.35%
PT rev (1m)-3.91%
PT rev (3m)-0.09%
EPS NQ rev (1m)-4.81%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)-8.35%
EPS NY rev (3m)-8.85%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-1.24%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 7.37 | ||
| P/S | 0.94 | ||
| P/FCF | 5.11 | ||
| P/OCF | 4.82 | ||
| P/B | 0.39 | ||
| P/tB | 11.64 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)1.72
EY13.44%
EPS(NY)1.74
Fwd EY13.57%
FCF(TTM)2.5
FCFY19.55%
OCF(TTM)2.66
OCFY20.76%
SpS13.55
BVpS32.51
TBVpS1.1
PEG (NY)7.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 3.7% | ||
| ROCE | 3.37% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 7.31% | ||
| OM | 13.72% | ||
| PM (TTM) | 8.87% | ||
| GM | 66.61% | ||
| FCFM | 18.48% |
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 | 0.49 | ||
| Debt/FCF | 6.33 | ||
| Debt/EBITDA | 7.01 | ||
| Cap/Depr | 38.47% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 15.52 | ||
| Cash Conversion | 117.62% | ||
| Profit Quality | 208.35% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 0.94 |
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)13.91%
EPS 3Y-17.74%
EPS 5Y-7.57%
EPS Q2Q%10.64%
EPS Next Y1%
EPS Next 2Y5.61%
EPS Next 3Y8.7%
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 Year3.94%
Revenue Next 2Y4.35%
Revenue Next 3Y4.5%
Revenue Next 5YN/A
EBIT growth 1Y-2.76%
EBIT growth 3Y-21.53%
EBIT growth 5Y-10.89%
EBIT Next Year17.18%
EBIT Next 3Y11.79%
EBIT Next 5Y3.45%
FCF growth 1Y-1.37%
FCF growth 3Y4.96%
FCF growth 5Y2.62%
OCF growth 1Y-8.52%
OCF growth 3Y3.35%
OCF growth 5Y1.42%