The Investment (INV) AI Stock Analysis

• Market Cap: £6.15M
• Dividend Yield: N/A
• Average Volume (3M): 5.76K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.05
• Revenue Growth: 109.71%
• EPS Growth: 400.62%
• Country: UK
• Employees: 1
• Sector: Financial
• Sector Strength: 85
• Industry: Asset Management Services
• EPS (TTM): 0.08
• Shares Outstanding: 9,186,025
• 10 Day Avg. Volume: 5,290
• 30 Day Avg. Volume: 5,757
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.61
• Price to Cash Flow (P/CF): -19.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The Investment's stock exhibits strong financial recovery and appealing valuation metrics, particularly with a low P/E ratio and debt-free balance sheet. However, technical analysis indicates bearish trends, and cash flow volatility poses risks. Positive corporate events like the share split and director share acquisition provide additional confidence.

The Investment Business Overview & Revenue Model

Company Description

The Investment (INV) is a leading financial services company specializing in asset management, wealth management, and financial advisory services. With a focus on delivering tailored investment solutions, INV serves a diverse clientele, including individual investors, institutions, and corporations, aiming to optimize their financial portfolios and achieve long-term growth.

How the Company Makes Money

The Investment (INV) generates revenue primarily through management fees charged on assets under management (AUM), performance fees based on investment returns above a specified benchmark, and advisory fees for financial consulting services. Additionally, the company earns income from partnerships with financial institutions, offering co-branded investment products and leveraging shared expertise to expand market reach. INV's earnings are further bolstered by strategic investments in various asset classes, generating interest and dividend income.

The Investment Financial Statement Overview

Summary

The Investment shows strong financial recovery with revenue growth and a robust balance sheet. The absence of debt and high equity ratio underscore financial stability. However, cash flow volatility and fluctuating profitability margins highlight areas for improvement.

Income Statement

The Investment shows a strong recovery with significant revenue growth, notably from 2022 to 2024. The Gross Profit Margin is consistently high, indicating efficient cost management. However, the EBIT and Net Profit Margins have fluctuated, with a notable dip in 2022. Recent improvements in net income suggest a positive trend.

Balance Sheet

The company maintains a solid financial position with zero debt, reflected in a perfect Debt-to-Equity Ratio. The high Equity Ratio indicates strong financial stability. Return on Equity is positive and improving, though it suffered during the low-profit years. The robust stockholders' equity provides a cushion against potential market volatility.

Cash Flow

Cash flow has been volatile, with significant swings in operating cash flow. Despite negative free cash flow in recent years, the company's large cash reserves mitigate immediate liquidity concerns. The Free Cash Flow to Net Income Ratio has been negative, indicating potential issues with cash generation from operations.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.20M	1.18M	146.55K	1.94M	-694.12K
	Gross Profit
1.19M	1.18M	146.55K	1.94M	-694.12K
	EBIT
1.21M	784.22K	-200.26K	1.41M	-998.68K
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
1.01M	739.20K	-248.63K	1.39M	-998.68K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
252.29K	8.28M	678.59K	540.80K	265.05K
	Total Assets
7.59M	16.87M	16.15M	16.55M	15.17M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-252.29K	-8.28M	-678.59K	-540.80K	-265.05K
	Total Liabilities
210.30K	601.16K	106.00K	266.89K	134.07K
	Stockholders Equity
7.38M	16.27M	16.05M	16.28M	15.04M
Cash Flow		Free Cash Flow
-36.73K	-119.24K	-248.63K	98.97K	639.11K
	Operating Cash Flow
-36.73K	-119.24K	-248.63K	98.97K	639.11K
	Investing Cash Flow
2.37M	7.76M	168.19K	319.92K	-575.23K
	Financing Cash Flow
-10.37M	-35.00K	212.56K	-143.16K	-584.58K

The Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INV, the sentiment is Negative. The current price of 67.5 is below the 20-day moving average (MA) of 69.11, below the 50-day MA of 71.19, and below the 200-day MA of 72.89, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INV.

The Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	76 Outperform	£36.86B	8.75	20.99%	1.70%	78.18%	-6.27%
PHNX	64 Neutral	£5.87B	―	-23.36%	9.08%	487.20%	―
Sector *	64 Neutral	$14.30B	10.42	8.63%	4.25%	17.30%	-10.84%
INV	61 Neutral	£6.15M	8.25	10.60%	―	109.71%	400.62%

The Investment Corporate Events

The Investment Company Announces Share Split to Enhance Marketability

The Investment Company plc has announced a share split, approved at the Annual General Meeting, to divide each existing ordinary share into five new ordinary shares. This move aims to enhance share liquidity and marketability, making it more accessible to smaller investors. The share split is contingent upon the new shares being admitted to the Official List of the Financial Conduct Authority and trading on the London Stock Exchange. The transition is expected to be effective from 13 March 2025, with the total number of voting rights in the company adjusting accordingly. This strategic decision reflects the company’s intention to boost investment opportunities and potentially raise additional capital by selling shares from treasury.

The Investment Company plc Director Acquires Shares to Strengthen Market Position

The Investment Company plc announced the acquisition of 4,000 ordinary shares on the market by its director, Mr. Martin H W Perrin. This transaction, conducted at a price of 358p per share, reflects the company’s ongoing strategy to enhance its market position and potentially increase shareholder value. The acquisition may impact the company’s operations by bolstering its asset portfolio and demonstrating confidence in its market prospects.

The Investment Company plc Reports Mixed Half-Year Results Amid Market Challenges

The Investment Company plc’s half-year report reveals a slight decline in net asset value and shareholder funds, with no dividends paid. The change in investment objective and policy, alongside the appointment of Chelverton Asset Management Limited, reflects a strategic shift towards long-term capital growth. Despite initial optimism, economic challenges and tax changes under the new UK government impacted market performance, especially affecting AIM shares due to speculation about inheritance tax relief changes. The company’s performance was mixed, with contributions from certain sectors and companies offset by underperformance in others, notably in the technology sector, which remains a significant focus. Looking ahead, the company anticipates potential market adjustments following recent budget announcements and economic developments.