Invesco (IVZ) AI Stock Analysis

• Market Cap: $10.30B
• Dividend Yield: 3.08%
• Average Volume (3M): 5.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 6.64%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.62
• Shares Outstanding: 443,673,770
• 10 Day Avg. Volume: 5,103,103
• 30 Day Avg. Volume: 5,162,536
• PEG Ratio: 0.18
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 8.23
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 13.40
• 1Y Price Target: $30.22
• Price Target Upside: 30.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.67
• Revenue Forecast (FY): $5.27B

• Rating: 66 Neutral
• Price Target: $25.00 ▲(7.71% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven primarily by solid cash-flow durability and improved leverage, alongside a constructive technical trend. It is held back by inconsistent profitability (including a TTM net loss) and limited valuation clarity from a negative P/E, while the latest earnings-call excerpt is positive but lacks quantitative guidance; the share repurchase is a modest additional support.

Positive Factors

Free cash flow generation

Consistent and improving operating and free cash flow in the TTM provides durable internal funding for operations, reinvestment, and capital returns. Strong FCF reduces reliance on external financing, supports strategic initiatives and buybacks, and underpins long-term financial flexibility.

Improved leverage / balance sheet

A marked reduction in leverage to near zero materially lowers financial risk and interest burden, increasing capacity for opportunistic investments, M&A, or shareholder returns. Improved balance-sheet flexibility strengthens resilience to market stress and supports multi‑year strategic execution.

Diversified asset-management franchise

A broad product set (active, passive, alternatives, ETFs) and global distribution across retail and institutional channels creates stable, diversified fee streams. Scale and multi-channel reach enhance client retention and competitive placement, helping sustain revenues over market cycles.

Negative Factors

Inconsistent profitability

Volatile bottom-line performance, with swings between profit and loss, undermines predictability of retained earnings and capital allocation. Persistent profitability instability can limit sustained dividend capacity, complicate long-term planning, and raise execution risk for strategic initiatives.

Revenue sensitivity to asset markets

Business model dependence on AUM makes revenue structurally cyclical: adverse markets or outflows directly reduce fee income. Even with diversification, market-driven AUM swings can compress margins and cash generation, challenging consistent growth and complicating multi‑period forecasting.

Limited quantitative disclosure from management

Management's qualitative messaging without numeric guidance reduces visibility into targets and pacing of strategic initiatives. For investors assessing execution of transformation or capital plans, the lack of quantified milestones increases uncertainty about timing and impact of claimed improvements.

Invesco Business Overview & Revenue Model

Company Description

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.

How the Company Makes Money

Invesco primarily makes money by charging fees for managing client assets and providing investment-related services. Its main revenue streams include: (1) Investment management fees: Recurring fees calculated as a percentage of assets under management (AUM) across its products (mutual funds, ETFs, institutional mandates, and advisory accounts). Fee levels vary by product type (e.g., generally lower-fee passive/index ETFs versus higher-fee active, multi-asset, or alternative strategies) and by client/channel mix. Because fees are tied to AUM, revenue is influenced by market performance (which changes asset values), net client flows (subscriptions/redemptions), and product mix. (2) Service and distribution-related revenues: Invesco earns certain servicing/administration and related revenues associated with its investment products and client relationships; if specific subcomponents or amounts are not publicly available here, they are null. (3) Performance-related fees: For certain strategies (more commonly in alternative or institutional mandates), the firm may earn incentive/performance fees when returns exceed agreed benchmarks or hurdles; the availability and magnitude of these fees can be variable and market-dependent. (4) Other revenues: Invesco may generate ancillary income such as technology, administrative, or other non-management-fee revenues; if specific details are not available here, they are null. Key factors contributing to earnings include the scale of AUM, the stability of long-term client assets, the growth and retention of ETF and active product franchises, operating leverage (spreading fixed costs over a larger asset base), and distribution reach through relationships with financial advisors, broker-dealers, retirement platforms, banks, and institutional consultants. Significant partnerships, if any, are null.

Invesco Financial Statement Overview

Summary

Strong and improving operating/free cash flow is a key positive, and leverage appears meaningfully improved in TTM. Offsetting this, profitability has been inconsistent with a return to a net loss in TTM, keeping overall financial quality in the middle range.

Income Statement

Revenue has been relatively steady with a modest rebound in 2024 (annual) and slight growth in TTM (Trailing-Twelve-Months). Profitability, however, has been volatile: the company swung from losses in 2023 (annual) to solid profitability in 2024, then back to a net loss in TTM, despite still showing healthy gross profit and EBITDA margins. Overall, the income profile shows resilience in top-line and operating earnings capacity, but inconsistent bottom-line performance elevates risk.

Balance Sheet

Leverage improved meaningfully versus prior years: debt-to-equity moved from roughly 0.5–0.6 (2020–2024 annual) to 0.0 in TTM (Trailing-Twelve-Months), alongside a still-substantial equity base. Return on equity has been positive in most years (strong in 2021, modest in 2022–2024), but turned negative in 2023 and remains only moderate in TTM, reflecting earnings instability. Balance sheet strength appears improved on leverage, though returns are not consistently strong.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are strong in TTM (Trailing-Twelve-Months) and improved versus 2024 (annual), with positive free cash flow growth in TTM. Free cash flow has consistently tracked net income reasonably well across years, indicating earnings are generally supported by cash generation. The main weakness is year-to-year volatility (notably weaker cash flow in 2022), but the recent trajectory is favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.38B	6.07B	5.72B	6.05B	6.89B
Gross Profit	2.75B	2.03B	2.01B	2.44B	2.83B
EBITDA	1.38B	1.24B	1.13B	1.53B	2.80B
Net Income	-281.70M	774.80M	-96.90M	920.70M	1.63B
Balance Sheet
Total Assets	27.09B	27.01B	28.93B	29.76B	32.69B
Cash, Cash Equivalents and Short-Term Investments	1.98B	1.50B	1.93B	1.43B	2.15B
Total Debt	10.12B	7.55B	9.04B	8.56B	9.71B
Total Liabilities	14.09B	11.34B	13.02B	12.91B	16.01B
Stockholders Equity	12.23B	14.56B	14.60B	15.21B	15.50B
Cash Flow
Free Cash Flow	1.44B	1.12B	1.14B	510.30M	969.30M
Operating Cash Flow	1.53B	1.19B	1.30B	703.20M	1.08B
Investing Cash Flow	-974.40M	68.40M	-244.30M	-375.60M	-847.90M
Financing Cash Flow	-149.50M	-1.66B	-585.40M	-966.90M	117.30M

Invesco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Negative. The current price of 23.21 is below the 20-day moving average (MA) of 24.55, below the 50-day MA of 26.24, and above the 200-day MA of 22.64, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 39.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IVZ.

Invesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JHG	83 Outperform	$7.77B	4.52	16.35%	3.34%	14.48%	34.97%
AB	78 Outperform	$3.42B	12.97	18.76%	8.93%	―	-12.92%
SEIC	73 Outperform	$9.51B	14.01	30.29%	1.18%	9.33%	33.17%
AMG	72 Outperform	$7.42B	11.47	22.04%	0.01%	1.08%	8.24%
BEN	69 Neutral	$12.22B	12.10	5.06%	5.33%	2.31%	5.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IVZ	66 Neutral	$10.30B	-42.08	-2.06%	3.08%	6.64%	―