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: General
• Sector Strength: N/A
• 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: 0.78
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 106.24
• P/FCF Ratio: -23.33
• 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: 47 Neutral
• Price Target: 69.00p ▼(-4.17% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by weak and unreliable operating performance and cash generation (sharp recent revenue/earnings decline and sustained negative cash flow), partially offset by a conservatively positioned, debt-free balance sheet. Technicals are modestly supportive, but valuation remains challenged due to negative earnings.

Positive Factors

Conservative, debt-free balance sheet

A debt-free, conservatively positioned balance sheet provides durable financial flexibility and lowers insolvency risk. Over 2-6 months this buffer supports operations through cyclical revenue weakness, funds strategic initiatives without external financing, and preserves optionality for recovery.

Large equity base

A sizable equity base increases the company's capacity to absorb losses and finance shortfalls internally. This structural capital strength reduces reliance on markets during stress, enabling the firm to maintain operations, invest selectively, and pursue restructuring or growth without urgent external capital.

Proven prior profitability

Historic profitable periods show the underlying business model can deliver margins and earnings when revenue conditions normalize. This indicates operational levers and cost structures exist to return to profitability, informing medium-term recovery prospects if revenue stabilizes.

Negative Factors

Weak cash generation

Sustained negative operating and free cash flow materially weakens financial durability. Over several quarters this erodes liquidity, forces use of equity buffers, and may constrain investment or require external funding, impairing the firm's ability to execute strategic plans sustainably.

Severe recent revenue collapse

A ~94% revenue drop and return to losses indicate structural demand or execution problems rather than transient seasonality. Such a collapse damages pricing power, customer relationships and fixed-cost absorption, making margin recovery and predictable cash conversion significantly harder in the medium term.

Unstable operating performance

Marked volatility in operating results and earnings undermines forecasting and strategic planning. For investors and management this unpredictability raises execution risk, complicates resource allocation, and reduces confidence in sustained returns absent clear structural fixes to revenue and cash conversion.

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

Mixed and unstable fundamentals. The balance sheet is strong with no debt and solid equity (78), but operating results deteriorated sharply in the latest period with a major revenue drop and a return to losses (income statement 28). Cash generation is a key weakness with negative operating and free cash flow in 2022–2025 (cash flow 22), raising concerns about earnings quality and sustainability.

Income Statement

Performance has been highly volatile. After strong profitability in 2023–2024 (healthy profit margins and positive earnings), the latest annual period (2025) shows a sharp reversal with a steep revenue decline (down ~94%) and a return to sizable losses, pushing margins deeply negative. While the business has demonstrated it can be profitable, the most recent collapse in revenue and earnings materially weakens confidence in near-term earnings power and stability.

Balance Sheet

The balance sheet appears conservatively positioned with no debt reported across periods and a large equity base relative to assets, which reduces financial risk and provides flexibility. However, returns on equity have been inconsistent—positive in 2021, 2023, and 2024 but negative in 2020, 2022, and 2025—highlighting that the strong capital position has not translated into steady shareholder returns.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative in 2022–2025, including meaningful outflows in 2025, despite profits in 2023–2024. Only 2020 and 2021 show positive cash flow. This pattern suggests earnings quality and cash conversion have been unreliable, increasing the risk that the company may need to rely on its balance sheet to fund operations during weaker periods.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	54.90K	1.21M	1.18M	155.36K	1.94M
Gross Profit	54.90K	1.21M	1.18M	146.55K	-40.65K
EBITDA	-70.42K	1.02M	784.22K	-209.07K	1.41M
Net Income	-71.47K	1.01M	739.20K	-248.63K	1.39M
Balance Sheet
Total Assets	7.43M	7.59M	16.87M	16.15M	16.55M
Cash, Cash Equivalents and Short-Term Investments	584.18K	252.29K	8.28M	678.59K	540.80K
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	112.84K	210.30K	601.16K	106.00K	266.89K
Stockholders Equity	7.31M	7.38M	16.27M	16.05M	16.28M
Cash Flow
Free Cash Flow	-250.04K	-36.73K	-119.24K	-248.63K	98.97K
Operating Cash Flow	-250.04K	-36.73K	-119.24K	-248.63K	98.97K
Investing Cash Flow	581.92K	2.37M	7.76M	168.19K	319.92K
Financing Cash Flow	0.00	-10.37M	-35.00K	212.56K	-143.16K

The Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 72 is above the 20-day moving average (MA) of 70.21, above the 50-day MA of 69.30, and above the 200-day MA of 65.12, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 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	£9.09B	17.21	8.30%	5.37%	4.78%	-4.86%
RAT	76 Outperform	£2.22B	35.36	4.75%	4.91%	14.05%	-3.07%
BRK	72 Outperform	£249.35M	37.74	7.58%	5.14%	-13.29%	63.87%
AJB	65 Neutral	£1.65B	16.14	49.89%	2.43%	17.97%	25.51%
MNG	61 Neutral	£7.40B	-129.51	-1.53%	7.09%	9.86%	-134.41%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
INV	47 Neutral	―	-35.45	-0.97%	―	-87.43%	-107.41%

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.