Investec PLC (GB:INVP)
LSE:INVP
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Investec
(LSE:INVP)
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Rating:68Neutral
Price Target:
687.00 p
▲(23.34% Upside)
Action:Reiterated
Date:05/26/26
The score is held back primarily by weak cash generation (persistent negative operating and free cash flow) and leverage volatility despite solid reported profitability. Offsetting this, technicals are supportive with the stock above key moving averages, valuation is very compelling (low P/E and high dividend yield), and the earnings call was net positive with steady execution and clear ROE targets albeit with near-term margin and cost headwinds.
Positive Factors
Improving profitability
Reported earnings growth and rising operating profit demonstrate durable underlying earnings power across banking and wealth lines. This strengthens the group's ability to fund dividends, buybacks and strategic investment, supporting medium‑term return targets despite revenue volatility.
Negative Factors
Persistent negative cash flow
Chronic negative operating and free cash flow limits internal funding for growth, dividends and debt reduction. Reliance on external funding or capital actions increases refinancing and execution risk, undermining resilience if market access or conditions deteriorate over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Reported earnings growth and rising operating profit demonstrate durable underlying earnings power across banking and wealth lines. This strengthens the group's ability to fund dividends, buybacks and strategic investment, supporting medium‑term return targets despite revenue volatility.
Read all positive factors
Investec (INVP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.67B
Dividend Yield6.78%
Average Volume (3M)2.35M
Price to Earnings (P/E)7.6
Beta (1Y)1.35
Revenue Growth-3.55%
EPS Growth4.97%
CountryUK
Employees7,700
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.77
Shares Outstanding645,162,300
10 Day Avg. Volume1,000,288
30 Day Avg. Volume2,345,887
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)0.89
Price to Sales (P/S)1.03
P/FCF Ratio0.00
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)0.88
Revenue Forecast (FY)£2.31B
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:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call portrayed a cautiously positive picture: the group delivered resilient results (EPS +4.8%, revenue +4.2%, operating profit +3.4%), strong wealth flows and completed shareholder returns actions, while pressing ahead with a material multi-year investment program intended to drive an earnings and returns inflection from FY2028. Near-term headwinds include NII pressure, higher operating costs from expensed investments, geopolitical and UK political uncertainty, and a gradual path to ROE targets. On balance the positives around growth in FUM, fee income expansion, solid asset quality and clear investment milestones outweigh the short-term profitability drag and uncertainty.Positive Updates
Adjusted EPS and Operating Profit Growth
Adjusted earnings per share increased by 4.8%. Adjusted operating profit rose 3.4% from GBP 920m to GBP 951m, supported by total revenue growth of 4.2%.
Negative Updates
Net Interest Income Pressure
Net interest income fell 1.6% as reducing interest rates and lower endowment earnings weighed on NII and structural margins remain under pressure in a competitive market.
Read all updates
Q4-2026 Updates
Positive
Negative
Adjusted EPS and Operating Profit Growth
Adjusted earnings per share increased by 4.8%. Adjusted operating profit rose 3.4% from GBP 920m to GBP 951m, supported by total revenue growth of 4.2%.
Read all positive updates
Company Guidance
Management guided FY27 ROE of 13–14% (FY28 13.8–14.2%) on a path to long‑term targets of 16% ROE and 18% ROTE by FY2030, and reiterated a cost‑to‑income band of 52–54% (C/I 52.9% this year) and a credit‑loss‑ratio target range of 25–45bps (group CLR 36bps; SA CLR 14bps); they said the current defensive capital posture will continue (UK CET1 ~13%, SA CET1 ~13.6%). Management expects the heavy technology and platform investment program (GBP246m IT spend this year, ~20% of costs; GBP20.5m software capitalised; GBP282m total platform investment 2025–28; cloud modernisation 58%) to peak now and begin to drive an earnings/returns inflection from 2028. Near‑term operational context and disclosed metrics include adjusted operating profit GBP951m (+3.4%), total revenue +4.2%, non‑interest income +13.6%, adjusted EPS +4.8%, tangible NAV 553.1p (+9.2%), total dividend 38.5p (+5.5%), completed share buyback ~GBP110m (850.3m shares outstanding, pro‑forma ~840m), and private‑client ambitions (SA clients 128k → target ~250k; SA private‑client profit ZAR3.5bn → ZAR6.5bn by 2030; UK private‑client op profit GBP32m → GBP57m; UK loan book +~GBP3.3bn by 2030).Investec Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.73B | 2.00B | 1.91B | 2.25B | 2.92B |
| Gross Profit | 2.06B | 2.00B | 1.91B | 1.80B | 1.88B |
| EBITDA | 810.93M | 0.00 | 816.98M | 900.84M | 690.59M |
| Net Income | 726.22M | 693.48M | 941.04M | 804.87M | 516.20M |
Balance Sheet | |||||
| Total Assets | 63.83B | 58.25B | 56.63B | 57.29B | 58.84B |
| Cash, Cash Equivalents and Short-Term Investments | 5.51B | 5.52B | 7.70B | 8.47B | 9.13B |
| Total Debt | 7.99B | 2.80B | 7.73B | 2.89B | 3.36B |
| Total Liabilities | 58.37B | 52.60B | 51.15B | 2.76B | 53.10B |
| Stockholders Equity | 5.47B | 5.66B | 5.47B | 4.88B | 5.20B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -584.79M | -1.69B | -2.25B | -2.13B |
| Operating Cash Flow | -381.38M | -567.79M | -1.67B | -2.22B | -2.12B |
| Investing Cash Flow | -34.40M | 11.04M | -209.37M | -13.99M | 35.56M |
| Financing Cash Flow | -685.98M | -559.23M | 1.43B | 1.73B | 4.61B |
Investec Technical Analysis
Positive
557.00
Price Trends
611.89
Positive
609.95
Positive
576.11
Positive
Market Momentum
7.54
Negative
64.78
Neutral
90.60
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 620.38, below the 50-day MA of 611.89, and below the 200-day MA of 576.11, indicating a bullish trend. The MACD of 7.54 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 90.60 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 | £277.23M | 12.04 | 23.18% | 3.80% | 9.93% | -15.65% | |
68 Neutral | £11.67B | 7.62 | 13.48% | 6.78% | -3.55% | 4.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | £32.75M | 20.36 | 3.68% | 7.96% | -9.55% | ― | |
58 Neutral | £113.16M | 23.98 | 4.98% | ― | 15.42% | ― | |
51 Neutral | £676.68M | -22.60 | -9.28% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:INVP
Investec
652.50
158.44
32.07%
GB:CBG
Close Brothers Group
460.80
127.20
38.13%
GB:FRP
FRP Advisory Group Plc
111.00
-13.81
-11.06%
GB:CAV
finnCap Group plc
8.75
-2.08
-19.21%
GB:PEEL
Peel Hunt Limited
97.50
17.00
21.12%
Investec Corporate Events
Regulatory Filings and Compliance
Investec Discloses Executive Share Deals Across Dual Listings
Neutral
May 28, 2026
Investec has reported several director and senior manager share dealings in both Investec Limited and Investec plc on 26 May 2026, in line with disclosure rules in Johannesburg and London. The transactions include on-market sales of ordinary share...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Investec Announces Chair Succession and Board Refresh Ahead of 2026 AGMs
Positive
May 21, 2026
Investec has announced a series of board changes as part of its orderly succession planning and ongoing refresh of its governance structures. Group Chair Philip Hourquebie will step down from the boards of Investec plc and Investec Limited, as wel...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Investec posts resilient 2026 results as it ramps up growth and sustainability drive
Positive
May 21, 2026
Investec reported unaudited combined results for the year to 31 March 2026 showing resilient growth despite a tougher macro backdrop, with revenue up 4.2% to £2.28 billion and adjusted earnings per share rising 4.8% to 82.9p. Net core loans g...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Investec lifts earnings, loans and payouts as it doubles down on growth and sustainability
Positive
May 21, 2026
Investec reported a resilient performance for the year to 31 March 2026, with revenue up 4.2% to £2.28bn, adjusted operating profit rising 3.4% to £951m and adjusted earnings per share increasing 4.8% to 82.9p, despite a slight dip in re...
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 ...
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.