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Investec
(LSE:INVP)
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Rating:68Neutral
Price Target:
687.00 p
â–²(8.36% 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
£12.15B
Dividend Yield5.78%
Average Volume (3M)2.35M
Price to Earnings (P/E)8.4
Beta (1Y)1.34
Revenue Growth-3.55%
EPS Growth5.64%
CountryUK
Employees7,700
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.77
Shares Outstanding696,082,640
10 Day Avg. Volume1,000,288
30 Day Avg. Volume2,345,887
Financial Highlights & Ratios
PEG Ratio1.36
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)0.86
Revenue Forecast (FY)£2.37B
Investec Business Overview & Revenue Model
Company Description
Established in 1974 and headquartered in Sandton, South Africa, Investec Group is a global financial services firm providing a comprehensive suite of products across the United Kingdom, South Africa, and various international regions. The company'...
How the Company Makes Money
Investec primarily makes money by earning (1) interest income and (2) fee/commission income from providing banking and wealth/investment services.
1) Net interest income (lending and banking activities): Investec earns interest on loans and other...
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 | 844.31M | 896.24M | 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
634.00
Price Trends
629.38
Positive
619.91
Positive
597.92
Positive
Market Momentum
12.95
Negative
66.97
Neutral
92.68
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 634 is below the 20-day moving average (MA) of 636.07, above the 50-day MA of 629.38, and above the 200-day MA of 597.92, indicating a bullish trend. The MACD of 12.95 indicates Negative momentum. The RSI at 66.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.68 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | £280.45M | 10.80 | 24.47% | 4.78% | 16.29% | 15.37% | |
68 Neutral | £12.15B | 8.43 | 13.48% | 5.91% | -3.55% | 5.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £113.16M | 7.72 | 14.26% | 5.05% | 57.11% | ― | |
60 Neutral | £34.90M | 54.41 | 1.45% | 8.42% | 2.19% | -26.09% | |
47 Neutral | £635.90M | -12.16 | -2.03% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:INVP
Investec
672.00
164.42
32.39%
GB:CBG
Close Brothers Group
432.60
-100.40
-18.84%
GB:FRP
FRP Advisory Group Plc
119.00
-2.92
-2.40%
GB:CAV
finnCap Group plc
10.00
-1.58
-13.64%
GB:PEEL
Peel Hunt Limited
96.50
3.55
3.82%
Investec Corporate Events
Stock BuybackRegulatory Filings and Compliance
Investec Discloses Share Purchases for 2021 Incentive Plans
Neutral
Jul 29, 2026
Investec has disclosed on-market share acquisitions undertaken to meet obligations under its 2021 share incentive plans for employees. The transactions form part of regulatory requirements under the JSE Listings Requirements and the FCA’s di...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares to Fund 2021 Incentive Plans
Positive
Jul 27, 2026
Investec, the dual-listed banking and investment group with primary operations in South Africa and the U.K., continues to leverage broad exchange listings to support its international growth strategy. Its structured share incentive plans are a cor...
Business Operations and StrategyRegulatory Filings and Compliance
Investec discloses share purchases to fund 2021 incentive plans
Neutral
Jul 22, 2026
Investec has reported a series of on-market share acquisitions undertaken to meet obligations under its 2021 Share Incentive Plans for participants in both Investec Limited and Investec plc. The transactions, executed on 17, 20 and 21 July 2026, i...
Stock BuybackRegulatory Filings and Compliance
Investec buys shares to fund 2021 incentive plans across dual listings
Neutral
Jul 17, 2026
Investec has disclosed a series of on-market share purchases undertaken to meet obligations under its 2021 Share Incentive Plans for employees of both Investec plc and Investec Limited. The transactions, executed between 13 and 16 July 2026, form ...
Business Operations and StrategyRegulatory Filings and Compliance
Investec Executives Exercise Share Awards and Sell Stakes Under 2021 Incentive Plan
Neutral
Jul 14, 2026
Investec has disclosed a series of transactions in Investec Limited ordinary shares by persons discharging managerial responsibilities, in line with Johannesburg and London market regulations. The announcements concern exercises and subsequent sal...
Business Operations and StrategyRegulatory Filings and Compliance
Investec discloses major share purchases for 2021 incentive plans
Neutral
Jul 14, 2026
Investec has disclosed a series of on-market share acquisitions undertaken to meet obligations under its 2021 Share Incentive Plans for Investec Limited and Investec plc. The transactions, carried out between 8 and 10 July 2026 in Johannesburg and...
Business Operations and StrategyStock Buyback
Investec buys over ZAR 61m in shares for 2021 incentive plan
Neutral
Jul 9, 2026
Investec has executed a series of on-market purchases of its Investec Limited ordinary shares to meet obligations under its 2021 Share Incentive Plan. The transactions, carried out between 6 and 8 July 2026, reflect the ongoing funding of employee...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Investec Adds Seasoned Non-Executives Ahead of AGM
Positive
Jul 7, 2026
Investec has strengthened its boards by appointing David Duffy and Ingrid Johnson as independent non-executive directors of Investec plc and Investec Limited, effective 14 July 2026. Both bring extensive international experience in banking, insura...
Other
Fitch lifts Investec’s South African national ratings to AAA(zaf) after sovereign upgrade
Positive
Jul 6, 2026
Investec has disclosed that Fitch Ratings has revised the National Long-Term Ratings of Investec Limited and Investec Bank Limited to AAA(zaf) from AA+(zaf), while affirming their National Short-Term Ratings at F1+(zaf). The outlook on the entitie...
Business Operations and StrategyRegulatory Filings and Compliance
Investec Publishes Annual B-BBEE Compliance Report
Neutral
Jun 30, 2026
Investec Limited has released its annual Broad-Based Black Economic Empowerment compliance report, in line with South African legislation and the requirements of the Johannesburg Stock Exchange. The disclosure underscores the group’s adheren...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Investec sets August AGM, releases 2026 annual report with unchanged results
Neutral
Jun 23, 2026
Investec has scheduled its 2026 annual general meetings for 6 August 2026, to be held as combined electronic and physical sessions in London and Sandton under its dual-listed company structure. The group has also confirmed the record and trading d...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares to Fund 2021 Incentive Plans
Neutral
Jun 18, 2026
Investec has executed on-market purchases of its own shares to meet obligations under its 2021 share incentive plans for employees and participants. The transactions, conducted under regulatory clearance, involved significant acquisitions of Inves...
Executive/Board ChangesRegulatory Filings and Compliance
Investec executives exercise share appreciation rights and sell shares under 2021 incentive plan
Neutral
Jun 18, 2026
Investec has disclosed transactions by senior personnel involving the exercise of share appreciation rights and subsequent share sales under the Investec Limited Share Incentive Plan 2021. Director of a major subsidiary, Rupesh Govan, and a person...
Business Operations and Strategy
Fitch upgrades Investec credit ratings after South Africa sovereign lift
Positive
Jun 17, 2026
Investec has disclosed that Fitch Ratings upgraded the Long-Term Issuer Default Ratings of Investec Limited and Investec Bank Limited to BB from BB minus, with viability ratings lifted to bb from bb minus. The outlook on the long-term ratings is s...
Regulatory Filings and Compliance
Investec PDMR Sells Shares Following Release of Forfeitable Awards
Neutral
Jun 17, 2026
Investec disclosed a transaction in which a person discharging managerial responsibilities, Lourens Janse Van Rensburg, executed an on-market sale of Investec Limited ordinary shares in Johannesburg following the release of forfeitable share award...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec buys shares on market to fund 2021 incentive plan
Neutral
Jun 12, 2026
Investec has executed a series of on-market purchases of its Investec Limited ordinary shares to meet obligations under the Investec Limited Share Incentive Plan 2021. Between 9 and 11 June 2026, the plan vehicle acquired a total of 236,796 shares...
Executive/Board Changes
Investec Restructures Executive Long-Term Incentive Into Share Appreciation Rights
Neutral
Jun 10, 2026
Investec has updated the market on the structure of a previously announced long-term incentive award granted to senior executive and person discharging managerial responsibilities, Lourens Janse van Rensburg. Under the Investec Limited Share Incen...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Investec Bolsters Board Governance With Appointment of Nkululeko Sowazi
Positive
Jun 9, 2026
Investec has strengthened its governance framework by appointing experienced business leader Nkululeko Sowazi as an independent non-executive director to the boards of Investec plc and Investec Limited, effective 8 June 2026. The move aligns with ...
Regulatory Filings and Compliance
Investec discloses PDMR share sales following release of forfeitable awards
Neutral
Jun 4, 2026
Investec has disclosed a series of on-market sales of Investec Limited ordinary shares by person discharging managerial responsibilities Joubert Hay, following the release of forfeitable share awards. The transactions, all executed in Johannesburg...
Regulatory Filings and Compliance
Investec Discloses PDMR Share Transactions Linked to Award Vesting
Neutral
Jun 2, 2026
Investec has reported a series of transactions in its London-listed ordinary shares by person discharging managerial responsibilities (PDMR) Lesley-Anne Gatter, relating to the vesting of conditional share awards granted in prior periods. The disc...
Regulatory Filings and Compliance
Investec executives sell shares to cover tax on forfeitable awards
Neutral
May 29, 2026
Investec has disclosed a series of on-market sales of Investec plc ordinary shares by its co-chief executive Fani Titi, director Nishlan Samujh, and several persons discharging managerial responsibilities, including Lesley-Anne Gatter, Mark Currie...
Executive/Board Changes
Investec Tightens Performance Link on Executive Share Awards
Neutral
May 29, 2026
Investec has granted new share-based awards to group chief executive Fani Titi and finance director Nishlan Samujh under its 2021 Share Incentive Plan, comprising nil-cost forfeitable shares as the upfront element of their short-term incentives an...
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...
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.