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Invesco Ltd. (IVZ)
:IVZ
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Invesco
(NYSE:IVZ)72Outperform
Positive Factors
Earnings
Adjusted EPS of $0.52 exceeded the estimate of $0.46 and consensus of $0.47.
Organic Growth
IVZ reported its strongest organic growth rate since 1Q22 and is expected to rank #1 among public peers.
Profit Growth
Operating leverage and capital management are expected to enhance IVZ's profit growth trajectory.
Negative Factors
Fee Rate
IVZ's fee rate is expected to continue declining due to a high composition of inflows into low-fee products.
Product Mix
The mix shifts toward low- and no-fee products continued.
Revenue Growth
The ongoing mix shifts toward lower-fee products suggest more compression for revenue growth.
Invesco (IVZ) vs. S&P 500 (SPY)
Market Cap
$7.16B
Dividend Yield4.89%
Average Volume (3M)4.57M
Price to Earnings (P/E)13.6
Beta (1Y)1.25
Revenue Growth3.97%
EPS GrowthN/A
CountryUS
Employees8,489
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)1.18
Shares Outstanding447,601,800
10 Day Avg. Volume4,122,504
30 Day Avg. Volume4,567,860
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.24
Price to Cash Flow (P/CF)5.90
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.95Price Target Upside24.69% Upside
Rating ConsensusHold
Number of Analyst Covering15
Invesco Business Overview & Revenue Model
Company DescriptionInvesco Ltd. is a global independent investment management company headquartered in Atlanta, Georgia. The company operates in the financial services sector and offers a broad range of investment products and solutions to institutions and individual investors worldwide. Invesco provides a diversified set of offerings including mutual funds, exchange-traded funds (ETFs), unit trusts, and retirement plans, aiming to help clients achieve their financial objectives through active and passive management strategies.
How the Company Makes MoneyInvesco makes money primarily through management fees charged on its assets under management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the type of investment product and market conditions. The company also earns performance fees, which are additional charges based on the investment returns above a certain benchmark. Invesco's revenue streams are further diversified by its product offerings, including mutual funds, ETFs, and other investment vehicles. Significant partnerships with financial advisors and institutional clients enhance its distribution network, contributing to the growth of assets under management and, consequently, its earnings. Additionally, Invesco leverages its global presence to tap into various markets, enhancing its revenue potential through geographic diversification.
Invesco Financial Statement Overview
Summary
Invesco's financials show resilience with improved net income and strong cash flow generation. The absence of debt enhances its balance sheet, but revenue volatility and asset decline pose risks.Income Statement
Invesco demonstrated a solid income statement performance with a significant turnaround in net income, going from a loss in 2023 to a positive net income in 2024. The gross profit margin is strong as gross profit equals total revenue, indicating no cost of goods sold. Revenue growth is moderate, with a 6.13% increase from 2023 to 2024. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency. However, the decline in total revenue from 2021 to 2023 indicates potential revenue volatility challenges.75
Positive
Balance Sheet
The balance sheet of Invesco shows a healthy equity position with no total debt in 2024, marking a significant improvement from previous years. The equity ratio stands strong at 53.89%, indicating a solid financial foundation. However, the decline in total assets from 2020 to 2024 and fluctuating stockholder's equity pose potential long-term challenges.70
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow generation with a stable operating cash flow. The free cash flow growth rate from 2023 to 2024 is commendable, contributing to financial flexibility. The operating cash flow to net income ratio is nearly 1, showcasing efficient conversion of income to cash. Despite the positive cash flow position, the decline in cash and short-term investments suggests a need for prudent liquidity management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.07B | 5.72B | 6.05B | 6.89B | 6.15B | Gross Profit |
| 6.07B | 2.01B | 4.32B | 4.98B | 4.34B | EBIT |
| 832.10M | 835.70M | 1.32B | 2.53B | 1.39B | EBITDA |
| 1.24B | 1.02B | 1.32B | 1.93B | 1.59B | Net Income Common Stockholders |
| 774.80M | -96.90M | 920.70M | 1.63B | 761.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.50B | 1.93B | 1.43B | 2.15B | 1.71B | Total Assets |
| 27.01B | 28.93B | 29.76B | 32.69B | 36.50B | Total Debt |
| 7.55B | 9.04B | 8.08B | 9.42B | 8.80B | Net Debt |
| 6.05B | 7.11B | 6.64B | 7.27B | 7.09B | Total Liabilities |
| 11.34B | 13.02B | 12.91B | 16.01B | 21.48B | Stockholders Equity |
| 14.56B | 14.60B | 15.21B | 15.50B | 14.36B |
| Cash Flow | Free Cash Flow | |||
| 1.12B | 1.14B | 503.30M | 969.30M | 1.12B | Operating Cash Flow |
| 1.19B | 1.30B | 696.20M | 1.08B | 1.23B | Investing Cash Flow |
| 68.40M | -244.30M | -368.60M | -847.90M | -865.10M | Financing Cash Flow |
| -1.66B | -585.40M | -966.90M | 117.30M | -285.90M |
Invesco Technical Analysis
Negative
16.00
Price Trends
17.58
Negative
17.59
Negative
16.62
Negative
Market Momentum
-0.31
Positive
29.47
Positive
11.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Negative. The current price of 16 is below the 20-day moving average (MA) of 17.89, below the 50-day MA of 17.58, and below the 200-day MA of 16.62, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of 11.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IVZ.
Invesco Risk Analysis
Invesco disclosed 41 risk factors in its most recent earnings report. Invesco reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Invesco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $150.05B | 23.01 | 14.60% | 2.11% | 12.15% | 15.17% | |
72 Outperform | $7.16B | 13.59 | 5.32% | 4.89% | 3.97% | ― | |
71 Outperform | $21.57B | 11.28 | 15.88% | 2.72% | 29.42% | 92.95% | |
70 Outperform | $22.29B | 10.93 | 19.76% | 4.77% | 9.80% | 17.87% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
64 Neutral | $10.28B | 30.00 | 3.03% | 6.30% | 9.48% | -65.57% | |
63 Neutral | $4.72B | 10.67 | 15.29% | 0.02% | -6.77% | -14.55% |
* Financial Sector Average
Performance Comparison
IVZ
Invesco
16.00
1.00
6.67%
AMG
Affiliated Managers
161.23
2.27
1.43%
BLK
BlackRock
951.79
135.72
16.63%
BEN
Franklin Resources
19.56
-6.77
-25.71%
TROW
T Rowe Price
100.10
-11.92
-10.64%
NTRS
Northern
104.37
25.78
32.80%
Invesco Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -8.83% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
Invesco demonstrated strong financial performance in 2024 with record inflows, improved operating margins, and growth in key markets like Asia-Pacific. However, challenges remain with outflows in specific product areas and ongoing implementation costs for the Alpha platform.Highlights
Strong Long-term Net Inflows
Invesco achieved strong long-term net inflows of $65 billion, representing a 5% organic growth rate in 2024.
Increased Operating Income and Margins
Operating income increased to $1.4 billion with an improved operating margin of over 31% for the year and 34% for the fourth quarter.
ETF and Index Platform Growth
The ETF and Index platforms experienced organic long-term flows of $30 billion, marking a 25% annualized organic growth rate.
Growth in Asia-Pacific
The Asia-Pacific region generated 10% organic growth, marking its best year since 2021, with positive net long-term inflows of $3.5 billion.
Balance Sheet Strengthening
Invesco ended the year with a net cash position of nearly $100 million and reduced debt, with a leverage ratio of 0.25 excluding preferred stock.
Lowlights
Stable Value Product Outflows
There were modest net long-term outflows in fundamental fixed income, primarily driven by stable value products due to the current rate environment.
Continued Pressure on Fundamental Equity Flows
Fundamental equity flows remain below long-term expectations, with net outflows of around $2 billion per quarter.
Implementation Costs for Alpha Platform
Alpha platform implementation costs are expected to continue at $10 million to $15 million per quarter through 2025.
Company Guidance
During Invesco's fourth quarter earnings call for fiscal year 2024, the company reported significant progress on key financial metrics. The firm achieved long-term net inflows of $65 billion, representing a 5% organic growth rate, and increased operating income to $1.4 billion. Operating leverage improved by over 100 basis points, with operating margins reaching 31% for the year and 34% for the fourth quarter. Invesco's ETF and index platforms generated $30 billion in organic long-term flows, a 25% annualized growth rate. Geographically, net long-term flows remained positive across all regions, with Asia-Pacific achieving 10% organic growth. The firm ended the year with nearly $100 million in net cash, having returned 54% of earnings to shareholders through buybacks and dividends. Additionally, the company reduced debt and improved operating leverage, while maintaining a focus on strengthening its balance sheet.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.