Investec PLC (GB:INVP)
LSE:INVP
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Investec
(LSE:INVP)
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Rating:68Neutral
Price Target:
686.00 p
▲(23.16% Upside)
Action:ReiteratedDate:12/30/25
The score is held back most by weak cash generation (negative operating and free cash flow) despite solid profitability and an improved leverage profile. Offsetting this, valuation is attractive (low P/E and high yield) and technicals show an established uptrend. Earnings-call guidance and capital returns are supportive, though tempered by profit pressure and macro uncertainty.
Positive Factors
Improved Leverage Profile
A materially lower debt-to-equity in 2025 meaningfully reduces structural funding and solvency risk versus 2024. Sustained lower leverage gives management scope to support lending growth, capital returns and regulatory buffers, enhancing long-term financial flexibility and resilience.
Negative Factors
Persistent Weak Cash Generation
Consistent negative operating and free cash flow over multiple years shows poor cash conversion of accounting profits. This structural shortfall raises reliance on external funding, constrains reinvestment and heightens risk to sustainable dividends or buybacks absent durable improvement in cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage Profile
A materially lower debt-to-equity in 2025 meaningfully reduces structural funding and solvency risk versus 2024. Sustained lower leverage gives management scope to support lending growth, capital returns and regulatory buffers, enhancing long-term financial flexibility and resilience.
Read all positive factors
Investec (INVP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.18B
Dividend Yield6.78%
Average Volume (3M)2.35M
Price to Earnings (P/E)3.3
Beta (1Y)1.34
Revenue Growth-2.34%
EPS Growth2.55%
CountryUK
Employees7,700
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.74
Shares Outstanding645,162,300
10 Day Avg. Volume1,000,288
30 Day Avg. Volume2,345,887
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)0.72
Price to Sales (P/S)2.05
P/FCF Ratio-7.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.9
Revenue Forecast (FY)£2.26B
Investec Business Overview & Revenue Model
Company Description
Investec Group provides various financial products and services in the United Kingdom South Africa, and internationally. The company offers wealth and investment products and services, including portfolio management, discretionary wealth managemen...
How the Company Makes Money
Investec makes money primarily through net interest income, fees and commissions, and investment/treasury-related income generated across its banking and wealth operations.
1) Net interest income (banking): A core earnings driver is the spread be...
Investec Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of the company's performance. Highlights included growth in adjusted earnings per share, strong capital generation, and positive economic developments in South Africa. However, these were countered by challenges such as a decline in adjusted operating profit, economic constraints in the UK, and slower-than-expected progress in the share buyback program.Positive Updates
Adjusted Earnings Per Share Growth
The company reported a growth in adjusted earnings per share of 2.5% to 40.5p, indicating a positive trend in profitability.
Negative Updates
Decline in Adjusted Operating Profit
Pre-provision adjusted operating profit decreased to GBP 527.4 million, affected by lower interest rates impacting net interest income.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted Earnings Per Share Growth
The company reported a growth in adjusted earnings per share of 2.5% to 40.5p, indicating a positive trend in profitability.
Read all positive updates
Company Guidance
The guidance provided in the call highlighted several key financial metrics and strategic initiatives for the business. For the fiscal period, the company reported a 2.5% growth in adjusted earnings per share, reaching 40.5p. The dividend per share declared by the Board was 17.5p, alongside a significant portion of a share buyback program initiated in May. The company demonstrated strong capital generation, enabling reinvestment in business areas like the corporate mid-market and modernization of platforms, while also rewarding shareholders. The return on equity was well within targets, with a notable rise from approximately 14% towards the top end of the 13% to 17% range. Net core loans grew by 8%, and funds under management saw an increase, reflecting robust client activity. The cost-to-income ratio stood at 51.9%, below the indicated range of 52% to 54%, showing efficiency despite ongoing investments in people and technology. The credit loss ratio was 35 basis points, within the target range of 25 to 45 basis points. Additionally, the return on tangible equity was 15.7%, with a 7.4% increase in tangible net asset value per share. Looking forward, the company expects consistent performance in the second half, with a full-year ROE projection of around 13.7%, and continued investment to support growth initiatives and technological advancements.Investec Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.30B | 2.00B | 1.91B | 2.25B | 2.92B | 2.74B |
| Gross Profit | 1.99B | 2.00B | 1.91B | 1.80B | 1.88B | 1.60B |
| EBITDA | 417.24M | 0.00 | 816.98M | 900.84M | 690.59M | 361.62M |
| Net Income | 698.73M | 693.48M | 941.04M | 804.87M | 516.20M | 268.34M |
Balance Sheet | ||||||
| Total Assets | 30.24B | 58.25B | 56.63B | 57.29B | 58.84B | 51.53B |
| Cash, Cash Equivalents and Short-Term Investments | 3.54B | 5.52B | 7.70B | 8.47B | 9.13B | 6.52B |
| Total Debt | 7.70B | 2.80B | 7.73B | 2.89B | 3.36B | 3.37B |
| Total Liabilities | 26.62B | 52.60B | 51.15B | 2.76B | 53.10B | 46.20B |
| Stockholders Equity | 5.30B | 5.66B | 5.47B | 4.88B | 5.20B | 4.76B |
Cash Flow | ||||||
| Free Cash Flow | 621.84M | -584.79M | -1.69B | -2.25B | -2.13B | -219.27M |
| Operating Cash Flow | 252.39M | -567.79M | -1.67B | -2.22B | -2.12B | -205.94M |
| Investing Cash Flow | -2.93B | 11.04M | -209.37M | -13.99M | 35.56M | 1.41M |
| Financing Cash Flow | -656.39M | -559.23M | 1.43B | 1.73B | 4.61B | -548.41M |
Investec Technical Analysis
Positive
557.00
Price Trends
609.73
Positive
584.54
Positive
560.88
Positive
Market Momentum
12.05
Negative
68.25
Neutral
86.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INVP, the sentiment is Positive. The current price of 557 is below the 20-day moving average (MA) of 598.30, below the 50-day MA of 609.73, and below the 200-day MA of 560.88, indicating a bullish trend. The MACD of 12.05 indicates Negative momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 86.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INVP.
Investec Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £290.96M | 6.69 | 23.18% | 3.80% | 9.93% | -15.65% | |
68 Neutral | £11.18B | 3.32 | 12.75% | 6.78% | -2.34% | 2.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | £33.12M | 13.98 | 3.68% | 7.96% | -9.55% | ― | |
58 Neutral | £114.91M | 3.75 | 4.98% | ― | 15.42% | ― | |
51 Neutral | £720.26M | -2.93 | -9.28% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:INVP
Investec
615.00
170.34
38.31%
GB:CBG
Close Brothers Group
482.60
157.20
48.31%
GB:FRP
FRP Advisory Group Plc
116.50
-9.92
-7.85%
GB:CAV
finnCap Group plc
8.85
0.82
10.21%
GB:PEEL
Peel Hunt Limited
98.50
23.50
31.33%
Investec Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Investec to List €500m Callable Senior Notes on London Stock Exchange
Positive
Apr 17, 2026
Investec has published the final terms for a new issuance of EUR 500 million 4.000% Callable Fixed Rate Resettable Senior Notes due 2032, issued under its GBP 6 billion Euro Medium Term Note Programme. The notes are intended to be admitted to the ...
Regulatory Filings and Compliance
Investec Discloses PDMR Share Sale Under Dual-Listing Rules
Neutral
Mar 27, 2026
Investec has disclosed a transaction by a person discharging managerial responsibilities, Ruth Leas, involving an on-market sale of 77,449 Investec plc ordinary shares in London on 27 March 2026. The sale, executed at a volume-weighted average pri...
Business Operations and StrategyStock Buyback
Investec Ramps Up Dual-Listed Share Buyback Programme on JSE
Positive
Mar 26, 2026
Investec has continued executing its previously announced share purchase and buyback programme, acquiring additional Investec plc and Investec Limited ordinary shares on the JSE on 11 March 2026 through Investec Markets Proprietary Limited. The gr...
Stock BuybackRegulatory Filings and Compliance
Investec buys shares to fund 2021 incentive plan
Neutral
Mar 24, 2026
Investec has reported an on-market purchase of 150,000 Investec Limited ordinary shares at an average price of ZAR 128.4852, for a total consideration of about ZAR 19.27 million. The shares were acquired to meet obligations under the Investec Limi...
Business Operations and StrategyStock BuybackDelistings and Listing Changes
Investec steps up preference share buyback as board affirms financial strength
Positive
Mar 20, 2026
Investec Limited has continued its programme to repurchase its non-redeemable, non-cumulative, non-participating preference shares, using excess cash resources to buy back 474,493 shares between 22 January and 18 March 2026. This latest tranche br...
Stock BuybackRegulatory Filings and Compliance
Investec Share Incentive Plan Buys 450,000 Shares on Market
Neutral
Mar 20, 2026
Investec’s share incentive vehicle has been active in the market, purchasing ordinary shares in Investec Limited to meet obligations under the Investec Limited Share Incentive Plan 2021. The transactions, conducted on the open market in Joha...
Business Operations and StrategyStock BuybackFinancial Disclosures
Investec guides resilient FY2026 performance as lending growth and wealth inflows bolster returns
Positive
Mar 19, 2026
Investec expects a resilient performance for the year to 31 March 2026, guiding to modest growth in adjusted, headline and basic earnings per share and a 3% to 5% rise in pre‑provision adjusted operating profit. Group return on equity and re...
Stock BuybackRegulatory Filings and Compliance
Investec Share Incentive Plan Buys 450,000 Shares on Market to Meet Award Obligations
Positive
Mar 17, 2026
Investec has disclosed a series of on‑market share purchases by the Investec Limited Share Incentive Plan 2021 to meet its obligations to plan participants, as required under South African and UK listing and transparency rules. Across three ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Share Plan Buys R59.4m in Stock to Meet Incentive Obligations
Positive
Mar 12, 2026
Investec has disclosed a series of on‑market share purchases by the Investec Limited Share Incentive Plan 2021 to meet commitments to participants in the scheme. The plan acquired a total of 450,000 Investec Limited ordinary shares on the JS...
Business Operations and StrategyStock Buyback
Investec Advances Cross-Market Share Buyback and Capital Management Programme
Positive
Mar 12, 2026
Investec has continued executing its previously announced share purchase and buyback programme, acquiring Investec plc ordinary shares on both the London Stock Exchange and the JSE between 2 and 10 March 2026. The group is treating these acquired ...
Financial DisclosuresRegulatory Filings and Compliance
Investec posts strong Basel III capital and liquidity metrics for December 2025 quarter
Positive
Feb 27, 2026
Investec reported robust regulatory capital ratios across its main banking entities for the quarter ended 31 December 2025, highlighting a solid capital position under the Basel III framework. Common Equity Tier 1 ratios stood at 12.3% for Investe...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares on Market to Fund 2021 Incentive Plan
Neutral
Feb 13, 2026
Investec disclosed that its 2021 Share Incentive Plan acquired 100,000 Investec plc ordinary shares on the market on 10 February 2026 at a price of GBP 6.2498 per share, for a total consideration of GBP 624,984. The purchase, cleared in advance an...
Business Operations and StrategyStock Buyback
Investec Buys 300,000 Shares to Fund 2021 Incentive Plan
Neutral
Feb 10, 2026
Investec has disclosed a series of on-market share purchases undertaken to meet obligations under its 2021 Share Incentive Plan. Across three transactions on 5, 6, and 9 February 2026, the plan acquired a total of 300,000 Investec plc ordinary sha...
Regulatory Filings and Compliance
Investec Discloses Share Sale by Company Secretary After Award Vesting
Neutral
Feb 5, 2026
Investec has disclosed an on-market sale of 11,079 Investec plc ordinary shares by its company secretary, David Miller, following the release of forfeitable share awards. The shares were sold in London on 4 February 2026 at a price of £6.18 p...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares on Market to Fund 2021 Incentive Plans
Neutral
Feb 5, 2026
Investec has disclosed a series of on-market share purchases undertaken to meet obligations under its 2021 Share Incentive Plans for both Investec plc and Investec Limited. On 3 and 4 February 2026, the plc plan acquired a total of 200,000 Investe...
Business Operations and StrategyStock Buyback
Investec Expands Share Buyback With Further PLC and Limited Repurchases
Positive
Feb 5, 2026
Investec has continued executing its previously announced share purchase and buyback programme, acquiring additional Investec plc ordinary shares on both the London Stock Exchange and the Johannesburg Stock Exchange, as well as repurchasing Invest...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.