IVC AU

Invocare Ltd

Healthcare


Presented:04/11/2018
Price:A$12.45
Cap:$0.00B
Current Price:A$12.67
Cap:$1.42B

Presented

Date04/11/2018
PriceA$12.45
Market Cap$0.00B
Ent Value$0.00B
P/E Ratio14.05x
Book ValueA$2.56
Div Yield4.31%
Shares O/S0.00M
Ave Daily Vol504,888
Short IntN/A

Current

PriceA$12.67
Market Cap$1.42B
InvoCare Ltd. provides funeral services. It owns and operates funeral homes, cemeteries and crematoria in Australia, New Zealand and Singapore. The company operates funeral homes under brand names White Lady Funerals and Simplicity Funerals. It serves the funeral, cemetery and memorialisation industries. InvoCare was founded in 2001 and is headquartered in North Sydney, Australia.

Publicly traded companies mentioned herein: InvoCare Ltd (IVC AU)

Highlights

InvoCare is a death care company operating in Australia and New Zealand. The presenter is short the stock (IVC AU; “IVC”) due to concerns including rich valuation, accounting and earnings quality issues, as well as overall competitive dynamics in its core markets. The company has launched a $200MM “Protect and Grow” plan to drive growth, but with the stock trading at $12.50 (please note, all $ = AUD) he sees a favorable risk/reward set-up. The presenter’s base case model pegs IVC’s fair value at $6.80 (17x $0.40 of FCF/share).

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Idea Discussion

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