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Investec PLC (GB:INVP)
LSE:INVP

Investec (INVP) AI Stock Analysis

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GB:INVP

Investec

(LSE:INVP)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
600.00p
▲(7.72% Upside)
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
Strong Financial Performance
Investec's strong financial performance, with improved earnings per share and return on equity, indicates effective management and operational efficiency, supporting long-term growth.
Growth in Key Business Areas
The significant growth in funds under management and loan books suggests a robust business model and expanding market presence, enhancing Investec's competitive position.
Dividend Increase
The increase in dividends reflects strong cash generation and commitment to shareholder returns, indicating financial health and confidence in future earnings.
Negative Factors
Cost and Margin Pressures
Rising costs, particularly in the UK, could pressure margins and profitability, challenging Investec's ability to maintain cost efficiency and competitive pricing.
Credit Loss Ratio
An elevated credit loss ratio suggests increased risk in loan portfolios, potentially impacting future earnings and requiring cautious risk management.
Market Challenges in UK
Decreased operating profit in the UK highlights market-specific challenges, which may hinder growth and require strategic adjustments to improve performance.

Investec (INVP) vs. iShares MSCI United Kingdom ETF (EWC)

Investec Business Overview & Revenue Model

Company DescriptionInvestec 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 management, financial planning, stockbroking/execution, pensions and retirement, and investment advisory services for private clients, charities, pension funds and trusts. It also provides specialist banking products and services comprising private banking products, such as lending, savings, foreign exchange, private capital, and transactional banking services; corporate and investment banking products, including lending, advisory, hedging, cash deposits and savings, and equity placement services to government, institutions, corporates, and intermediaries. Investec Group was founded in 1974 and is based in Sandton, South Africa.
How the Company Makes MoneyInvestec generates revenue primarily through its Specialist Banking and Wealth & Investment divisions. The Specialist Banking division earns money from lending activities, including interest income from loans and advances to clients, as well as fees and commissions from transactional banking, treasury, and trading services. The Wealth & Investment division generates revenue through management fees charged on assets under management, financial planning services, and performance-related fees. Additionally, Investec benefits from strategic partnerships and collaborations that enhance its service offerings and expand its client base. The company's profitability is also influenced by market conditions, regulatory environments, and economic factors in its operating regions.

Investec Earnings Call Summary

Earnings Call Date:Nov 20, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:May 14, 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.
Q2-2026 Updates
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.
Strong Capital Position
Capital generation remained robust, enabling reinvestment in the business and shareholder distributions, including a dividend per share of 17.5p and a significant share buyback program.
South Africa Economic Improvement
Positive economic indicators in South Africa, including a credit rating upgrade and removal from the FATF grey list, contributing to a more favorable business environment.
Increase in Tangible Net Asset Value
The company saw an increase in tangible net asset value per share of 7.4%, showcasing strong asset management.
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.
UK Economic Constraints
The UK economy remains constrained with a high level of uncertainty, affecting the company's operations and growth in this region.
Slow Progress in Share Buyback Program
The progress on the share buyback program has been slower than anticipated, with only about half executed by the time of reporting.
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
Investec's financial performance is mixed. Strong profitability metrics are offset by a decline in revenue and concerning cash flow metrics, with negative operating and free cash flows indicating potential liquidity issues.
Income Statement
68
Positive
Investec shows a mixed performance in its income statement. The gross profit margin is strong at approximately 253% for 2024, indicating efficient cost management. However, the total revenue has decreased by 15.1% compared to the previous year, reflecting challenges in revenue generation. Net profit margin improved to 49.2% in 2024 from 35.8% in 2023, showing enhanced profitability. The EBIT margin is also robust at 98.2%, reflecting effective operational management.
Balance Sheet
72
Positive
The debt-to-equity ratio stands at 1.41 in 2024, indicating moderate leverage. Stockholders' equity increased by 12.1% from 2023 to 2024, enhancing the equity base. However, the equity ratio is relatively low at 9.7%, suggesting high reliance on liabilities. Return on equity improved to 17.2% in 2024, demonstrating better profitability on equity capital.
Cash Flow
38
Negative
Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in 2024. Free cash flow growth rate is negative, indicating potential liquidity issues. Operating cash flow to net income ratio is negative, highlighting difficulties in converting profits to cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.33B2.00B1.91B2.25B2.92B2.74B
Gross Profit994.95M2.00B1.91B1.80B1.88B1.60B
EBITDA417.24M0.00816.98M900.84M690.59M361.62M
Net Income665.71M693.48M941.04M804.87M516.20M268.34M
Balance Sheet
Total Assets30.24B58.25B56.63B57.29B58.84B51.53B
Cash, Cash Equivalents and Short-Term Investments3.54B5.52B7.70B8.47B9.13B6.52B
Total Debt7.70B2.80B7.73B2.89B3.36B3.37B
Total Liabilities26.62B52.60B51.15B2.76B53.10B46.20B
Stockholders Equity5.30B5.66B5.47B4.88B5.20B4.76B
Cash Flow
Free Cash Flow621.84M-584.79M-1.69B-2.25B-2.13B-219.27M
Operating Cash Flow252.39M-567.79M-1.67B-2.22B-2.12B-205.94M
Investing Cash Flow-2.93B11.04M-209.37M-13.99M35.56M1.41M
Financing Cash Flow-656.39M-559.23M1.43B1.73B4.61B-548.41M

Investec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price557.00
Price Trends
50DMA
545.66
Positive
100DMA
546.13
Positive
200DMA
512.31
Positive
Market Momentum
MACD
11.59
Negative
RSI
70.18
Negative
STOCH
97.41
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 558.25, above the 50-day MA of 545.66, and above the 200-day MA of 512.31, indicating a bullish trend. The MACD of 11.59 indicates Negative momentum. The RSI at 70.18 is Negative, neither overbought nor oversold. The STOCH value of 97.41 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£334.67M14.5324.30%3.80%9.93%-15.65%
68
Neutral
£10.61B7.8412.21%6.78%-2.34%2.55%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
60
Neutral
£36.87M22.913.69%7.96%-9.55%
58
Neutral
£124.25M25.064.84%15.42%
51
Neutral
$751.40M-7.53-9.28%-15.79%-211.91%
48
Neutral
£9.90M
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:INVP
Investec
582.50
67.93
13.20%
GB:CBG
Close Brothers Group
503.50
259.70
106.52%
GB:WHI
WH Ireland Group plc
4.25
1.50
54.55%
GB:FRP
FRP Advisory Group Plc
134.00
0.24
0.18%
GB:CAV
finnCap Group plc
9.85
0.37
3.90%
GB:PEEL
Peel Hunt Limited
106.50
12.50
13.30%

Investec Corporate Events

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Investec Secures FCA Approval for £6bn Euro Medium Term Note Programme Prospectus
Positive
Jan 12, 2026

Investec plc has received approval from the UK Financial Conduct Authority for its base prospectus relating to a £6 billion Euro Medium Term Note programme, which has now been made available to investors and submitted to the FCA’s National Storage Mechanism for inspection. The approval and publication of this base prospectus underpin Investec’s ability to tap the debt capital markets efficiently, providing funding flexibility to support its banking operations and growth plans while signalling continued engagement with international fixed-income investors.

The most recent analyst rating on (GB:INVP) stock is a Hold with a £617.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyStock Buyback
Investec Steps Up Dual-Listed Share Buybacks Across LSE and JSE
Positive
Jan 8, 2026

Investec Limited has continued executing its share purchase and buyback programme launched in August 2025, acquiring Investec plc ordinary shares on both the London Stock Exchange and Johannesburg Stock Exchange, as well as repurchasing Investec Limited ordinary shares on the JSE. Between 17 and 23 December 2025, the group bought a total of 1,041,315 Investec plc shares across the LSE and JSE, which it intends to treat as treasury shares in its consolidated financial statements, and repurchased 631,750 Investec Limited shares on the JSE that will be cancelled and reinstated as authorised but unissued share capital, signalling ongoing capital management and balance-sheet optimisation efforts that may support earnings per share and shareholder returns.

The most recent analyst rating on (GB:INVP) stock is a Hold with a £600.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
Investec Share Incentive Plan Buys ZAR 33m of Own Shares on Market
Neutral
Dec 23, 2025

Investec has disclosed a series of on-market share purchases by the Investec Limited Share Incentive Plan 2021, undertaken to meet its obligations to plan participants in line with regulatory requirements in South Africa and the UK. Between 18 and 22 December 2025, the plan acquired a total of 274,163 Investec Limited ordinary shares on the JSE for an aggregate consideration of just over ZAR 33 million, with prior clearance obtained, underscoring the group’s ongoing use of equity-based remuneration and its associated demand for its own shares in the market.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Investec Share Incentive Plan Buys 300,000 Shares to Settle Award Obligations
Neutral
Dec 18, 2025

Investec has disclosed a series of on-market purchases of its Investec Limited ordinary shares by the Investec Limited Share Incentive Plan 2021 to meet obligations to participants in the plan. Between 12 and 17 December 2025, the plan acquired a total of 300,000 shares in three tranches of 100,000 each, at prices ranging from ZAR 117.8166 to ZAR 119.6471, for an aggregate consideration of just over ZAR 35.6 million. The transactions, which received prior clearance and were announced in accordance with JSE and UK disclosure requirements, underline Investec’s ongoing use of equity-based incentives and its active management of share-based remuneration structures for employees.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyStock Buyback
Investec Steps Up Dual-Listed Share Buybacks on LSE and JSE
Positive
Dec 18, 2025

Investec Limited has continued executing its previously announced share purchase and buyback programme, acquiring Investec plc ordinary shares on both the London Stock Exchange and Johannesburg Stock Exchange between 11 and 16 December 2025. Over this period, the company bought 1,046,635 plc shares in London at an average price of GBP 5.2640 and 300,000 plc shares in Johannesburg at an average price of R118.3715, intending to treat these shares as if they were treasury shares in the group’s consolidated annual financial statements. Since the programme’s start on 20 August 2025, Investec Limited has accumulated more than 5.0 million plc shares in London and about 3.9 million plc shares in Johannesburg, signalling an ongoing commitment to capital management and potential enhancement of earnings per share. In parallel, Investec Limited repurchased 304,950 of its own ordinary shares on the JSE at an average price of R118.1209, bringing total Limited-share repurchases since August to over 2.5 million shares; these shares will be cancelled and reinstated as authorised but unissued capital, effectively reducing the number of shares in issue and potentially supporting shareholder value over time.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Regulatory Filings and Compliance
Investec Discloses PDMR Share Transactions Following Vesting of Awards
Neutral
Dec 15, 2025

Investec has announced transactions involving the sale of ordinary shares by persons discharging managerial responsibilities (PDMRs) in both Investec plc and Investec Limited. The transactions, which were conducted on the London Stock Exchange, involved the sale of shares following the vesting of conditional share awards from previous periods. This disclosure is in compliance with the Market Abuse Regulation and the JSE Listings Requirements, ensuring transparency and adherence to regulatory standards.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Stock Buyback
Investec Acquires 300,000 Shares for Incentive Plan
Neutral
Dec 12, 2025

Investec has disclosed the on-market purchase of 300,000 of its ordinary shares over three consecutive days in December 2025, as part of its Share Incentive Plan 2021. This move, involving transactions valued at over ZAR 35 million, reflects the company’s efforts to meet its obligations to participants in the plan, potentially impacting its share liquidity and market perception.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyStock Buyback
Investec Limited Initiates Preference Shares Repurchase Program
Neutral
Dec 10, 2025

Investec Limited has announced the commencement of a repurchase program for its non-redeemable, non-cumulative, non-participating preference shares. The company plans to repurchase up to 20% of these shares, with the process beginning on December 11, 2025. The repurchased shares will be cancelled and revert to authorized but unissued status. This move is in compliance with JSE Listings Requirements and aims to optimize the company’s capital structure. The repurchase will be conducted through the JSE’s order book without prior arrangements with counterparties, and may be discontinued at any time.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Regulatory Filings and Compliance
Investec Discloses Share Acquisitions Under Incentive Plan
Neutral
Dec 9, 2025

Investec has disclosed recent transactions under its Share Incentive Plan 2021, involving the acquisition of a total of 189,667 Investec Limited ordinary shares on the market. These transactions, conducted on December 4 and 5, 2025, were made to fulfill the Plan’s obligations to participants, with a total value of approximately ZAR 22.54 million. This activity highlights Investec’s ongoing efforts to manage its share incentive obligations, potentially impacting its stock liquidity and market perception.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
Investec Discloses Share Acquisitions for Incentive Plan
Neutral
Dec 4, 2025

Investec has disclosed recent transactions involving the acquisition of its own shares as part of the Investec Limited Share Incentive Plan 2021. The company purchased a total of 250,000 shares on the market between December 1 and December 3, 2025, with a total transaction value of approximately ZAR 29.67 million. These transactions are part of the company’s obligations to meet the requirements of the plan and have been conducted with prior clearance, reflecting Investec’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Investec Releases Interim Financial Report for H2 2025
Neutral
Nov 28, 2025

Investec has released its unaudited consolidated interim financial report for the six months ending 30 September 2025. This disclosure is part of their dual-listed company structure obligations, impacting stakeholders by providing insights into the company’s financial performance and compliance with regulatory requirements.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyStock Buyback
Investec Enhances Capital Structure with Share Buyback Program
Positive
Nov 27, 2025

Investec Limited has announced the purchase of ordinary shares of Investec PLC and the repurchase of its own ordinary shares as part of a share buyback program initiated in August 2025. The company acquired 804,882 shares of Investec PLC on the LSE and 485,811 shares on the JSE, while also repurchasing 321,635 of its own shares on the JSE. The shares purchased from Investec PLC will be treated as treasury shares, while the repurchased Investec Limited shares will be cancelled and reinstated as authorized but unissued shares. This strategic move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Investec Reports Resilient Half-Year Results Amid Economic Challenges
Positive
Nov 20, 2025

Investec has reported a resilient financial performance for the six months ending September 2025, with a 2.5% increase in adjusted earnings per share despite challenging macroeconomic conditions. The company has returned approximately £376 million to shareholders and is advancing its strategy to enhance its service offerings and expand its mid-market corporate initiatives. Key financial metrics indicate stable revenue supported by client acquisition and lending growth, though impacted by lower interest rates. The company maintains a strong capital position and is committed to optimizing shareholder returns while navigating economic uncertainties.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Dividends
Investec Updates Preference Share Dividend Announcements
Positive
Nov 10, 2025

Investec has announced amendments to its preference share dividends for both Investec Limited and Investec plc, with updated listing codes and entity identifiers. The company declared several preference dividends for the period from April to September 2025, detailing the gross and net dividend amounts for shareholders, along with the relevant trading and payment dates. This announcement reflects Investec’s ongoing commitment to providing returns to its shareholders and maintaining transparency in its financial operations.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

Dividends
Investec Declares Dividends for Preference Shares Across UK and South Africa
Positive
Nov 10, 2025

Investec has announced the declaration of dividends for its preference shares, impacting both its UK and South African shareholders. The dividends, declared from income reserves for the period from April to September 2025, reflect the company’s commitment to providing returns to its investors. These announcements are significant for stakeholders as they highlight Investec’s financial health and its ability to generate income for distribution, which may influence investor confidence and market positioning.

The most recent analyst rating on (GB:INVP) stock is a Buy with a £660.00 price target. To see the full list of analyst forecasts on Investec stock, see the GB:INVP Stock Forecast page.

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.Date of analysis: Dec 30, 2025