Investec (INVR) AI Stock Analysis

• Market Cap: £9.45B
• Dividend Yield: 9.44%
• Average Volume (3M): 2.98K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 1,300
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 2,754,587
• 10 Day Avg. Volume: 2,868
• 30 Day Avg. Volume: 2,985
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

Investec's overall score reflects strong revenue growth and profitability, balanced by operational inefficiencies and cash flow issues. Technical indicators show strong momentum but suggest caution due to overbought conditions. The absence of valuation metrics limits a full assessment, but the company's growth trajectory is a positive factor.

Investec Business Overview & Revenue Model

Company Description

Investec plc, a specialist bank and wealth manager, provides various financial products and services in the United Kingdom and internationally. It offers wealth and investment services, such as investments and savings, financial planning, and pensions and retirement services to private clients, professional advisors, charities, and trusts. The company also provides specialist banking products and services comprising private banking services, including lending, private capital, transactional banking, savings, and foreign exchange; corporate and investment banking services, such as lending, advisory, and treasury and risk management solutions, as well as institutional research, sales, and trading; and principal investments, property investment, and fund management solutions to high net worth and high income private clients, as well as corporate, private equity, government, and institutional clients. In addition, it offers nominee, leasing, debt issuance, property, financing, shipping, investment management, corporate secretary, insurance, merchant banking and stock broking, aircraft leasing, and retail credit services. The company was founded in 1974 and is headquartered in London, the United Kingdom. Investec plc is a subsidiary of Investec Group.

How the Company Makes Money

Investec generates revenue through a diversified model comprising three primary streams. Firstly, its Specialist Banking division earns income from interest on loans and advances, fees, and commissions for services such as advisory, asset financing, and treasury operations. Secondly, the Wealth & Investment division accrues fees for managing client portfolios, advisory services, and performance-based incentives. Lastly, the Asset Management segment collects management and performance fees from institutional and retail clients investing in a range of assets. Investec's earnings are bolstered by strategic partnerships and a robust client network, capitalizing on market opportunities and geographic presence in key financial hubs.

Investec Financial Statement Overview

Summary

Investec shows strong revenue and profit growth with high gross margins, indicating financial health. However, operational inefficiencies and cash flow constraints present potential risks. The company maintains moderate leverage, common in the industry, while a decline in free cash flow raises concerns about liquidity.

Income Statement

Investec demonstrates strong revenue growth with a 132% increase from the previous year. The gross profit margin is notably high at 465%, indicating exceptional profitability relative to revenue. However, EBITDA margin is negative, suggesting issues with operational efficiency or high depreciation/amortization costs. Overall, the income statement reflects strong top-line growth but mixed operational performance.

Balance Sheet

The debt-to-equity ratio is 1.41, showing moderate leverage which is typical in capital markets. The equity ratio is 9.67%, indicating a lower proportion of equity financing. Return on equity is robust at 17.19%, reflecting efficient use of equity capital. The balance sheet shows a healthy equity position with moderate leverage, aligning with industry norms.

Cash Flow

There is a significant decline in free cash flow growth rate, which dropped by 88.29% from the previous year. The operating cash flow to net income ratio is 0.14, indicating low cash conversion from earnings. Free cash flow to net income ratio is 0.12, suggesting limited cash availability for reinvestment or returns to shareholders. The cash flow statement indicates challenges in maintaining cash generation relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.04B	4.35B	2.92B	2.74B	1.78B
Gross Profit	1.99B	2.25B	1.91B	1.60B	865.25M
EBITDA	804.33M	996.62M	721.99M	356.12M	0.00
Net Income	941.04M	804.87M	516.20M	268.34M	645.52M
Balance Sheet
Total Assets	56.63B	57.29B	58.89B	51.45B	50.56B
Cash, Cash Equivalents and Short-Term Investments	6.97B	6.29B	6.84B	4.37B	3.98B
Total Debt	7.73B	8.17B	8.17B	7.51B	9.03B
Total Liabilities	51.74B	52.36B	53.56B	46.47B	45.96B
Stockholders Equity	5.47B	4.48B	4.79B	4.41B	4.03B
Cash Flow
Free Cash Flow	112.47M	960.40M	1.28B	-386.64M	1.71B
Operating Cash Flow	131.45M	990.74M	1.29B	-373.31M	1.75B
Investing Cash Flow	-209.37M	-3.23B	-3.42B	700.94M	-5.58B
Financing Cash Flow	-372.06M	1.78B	4.64B	-1.08B	3.45B

Investec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 630.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INVR, the sentiment is Negative. The current price of 630 is below the 20-day moving average (MA) of 631.25, below the 50-day MA of 642.66, and above the 200-day MA of 587.16, indicating a neutral trend. The MACD of -2.84 indicates Negative momentum. The RSI at 21.60 is Positive, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INVR.

Investec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPH	78 Outperform	£1.76B	19.33	37.13%	0.35%	18.79%	4.95%
IGG	76 Outperform	£3.96B	10.70	20.39%	4.09%	9.46%	32.24%
PLUS	73 Outperform	£2.20B	10.77	42.26%	5.58%	1.09%	4.88%
TCAP	71 Outperform	£1.98B	11.71	8.74%	5.78%	5.77%	81.14%
Sector *	68 Neutral	$17.55B	11.64	10.40%	3.85%	9.71%	1.93%
INVR	67 Neutral	£9.45B	―		9.44%	―	―
INVP	62 Neutral	£9.45B	7.27	12.42%	10.46%	2.66%	―