The Investment (INV) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: -87.43%
• EPS Growth: -107.41%
• Country: UK
• Employees: 1
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 9,186,025
• 10 Day Avg. Volume: 2,745
• 30 Day Avg. Volume: 1,536
• PEG Ratio: 0.00
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 4.09
• P/FCF Ratio: -134.13
• 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: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ―

The Investment Company's stock score reflects strong financial health with high profitability and a robust balance sheet. However, negative cash flows and recent bearish technical indicators pose challenges. The valuation is attractive with a low P/E ratio, and positive corporate events are expected to boost market confidence.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt and high equity provides financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

High Profitability

High profitability indicates efficient operations and strong cost management, which can sustain competitive advantages and support reinvestment into growth initiatives.

Share Split to Enhance Marketability

The share split aims to enhance liquidity and marketability, making shares more accessible to smaller investors, potentially increasing investor base and capital raising opportunities.

Negative Factors

Negative Cash Flows

Negative cash flows indicate challenges in converting income into cash, which can strain liquidity and limit the ability to fund operations and growth without external financing.

Revenue Volatility

Volatile revenue growth can create uncertainty in financial planning and may affect the company's ability to consistently invest in strategic initiatives and maintain investor confidence.

Market Challenges

Economic challenges and tax changes can impact market performance, especially in key sectors, potentially affecting the company's strategic objectives and financial outcomes.

The Investment Business Overview & Revenue Model

Company Description

The Investment Company plc is a closed-ended balanced fund launched and managed Fiske Plc. The fund invests in the public equity and fixed income markets across the United Kingdom. It primarily invests in a portfolio of equities, preference shares, loans, stocks, and long-term debentures. The Investment Co. plc was formed in 1868 and is domiciled in the United Kingdom.

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 Company shows strong profitability with a high net profit margin and efficient cost management. The balance sheet is robust with zero debt and high equity, but challenges are evident in revenue volatility and negative cash flows.

Income Statement

The company demonstrated strong profitability with a high net profit margin of 80.1% for TTM (Trailing-Twelve-Months). Revenue growth has been volatile, with significant fluctuations over the years. In recent periods, the revenue has decreased from the previous year, indicating potential challenges in revenue generation. The gross profit margin remains high at 100%, which is typical for asset management firms. However, the high EBIT margin of 100% for TTM suggests efficient cost management.

Balance Sheet

The balance sheet is robust, characterized by zero debt and a high equity ratio of 98.3% for TTM, indicating strong financial health and minimal leverage. The return on equity is strong at 10.1% for TTM, showcasing the company's ability to generate profit from shareholders' equity. However, the significant decrease in total assets over the years might indicate strategic divestments or market challenges.

Cash Flow

Cash flow management appears to be challenging, with negative operating and free cash flows for TTM. The operating cash flow to net income ratio is negative, indicating potential issues in converting income into cash. Despite these challenges, the company has managed to maintain a positive investing cash flow, suggesting reinvestment strategies to support long-term growth.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.40M	1.21M	1.18M	155.36K	1.94M	-573.00K
Gross Profit	924.75K	1.21M	1.18M	146.55K	-40.65K	-694.00K
EBITDA	819.18K	1.02M	784.22K	-209.07K	1.41M	0.00
Net Income	740.63K	1.01M	739.20K	-248.63K	1.39M	-999.00K
Balance Sheet
Total Assets	7.48M	7.59M	16.87M	16.15M	16.55M	15.17M
Cash, Cash Equivalents and Short-Term Investments	425.30K	252.29K	8.28M	678.59K	540.80K	265.05K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	123.46K	210.30K	601.16K	106.00K	266.89K	134.07K
Stockholders Equity	7.36M	7.38M	16.27M	16.05M	16.28M	15.04M
Cash Flow
Free Cash Flow	-46.74K	-36.73K	-119.24K	-248.63K	98.97K	639.11K
Operating Cash Flow	-46.74K	-36.73K	-119.24K	-248.63K	98.97K	639.11K
Investing Cash Flow	104.00K	2.37M	7.76M	168.19K	319.92K	-575.23K
Financing Cash Flow	0.00	-10.37M	-35.00K	212.56K	-143.16K	-584.58K

The Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INV, the sentiment is Positive. The current price of 70 is above the 20-day moving average (MA) of 69.23, above the 50-day MA of 67.30, and above the 200-day MA of 64.28, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 81.82 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INV.

The Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDR	77 Outperform	£7.00B	19.72	8.30%	5.37%	4.78%	-4.86%
RAT	76 Outperform	£2.27B	36.18	4.75%	4.91%	14.05%	-3.07%
BRK	72 Outperform	£247.04M	24.26	7.58%	5.14%	-13.29%	63.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AJB	65 Neutral	£1.85B	18.02	49.89%	2.43%	17.97%	25.51%
INV	63 Neutral	―	-89.74	-0.97%	―	-87.43%	-107.41%
MNG	61 Neutral	£7.34B	-125.77	-1.53%	7.09%	9.86%	-134.41%

The Investment Corporate Events

The Investment Company PLC Explores Strategic Options Amid Market Challenges

The Investment Company PLC is reviewing strategic options due to its small size and the discount at which its shares are trading relative to net asset value. The Board is considering various paths, including changes in investment management, selling treasury shares, or potentially winding up the company to return capital to shareholders.