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Invesco (IVZ)
NYSE:IVZ
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Invesco
(NYSE:IVZ)
71Outperform
Positive Factors
Capital Management
IVZ will repurchase $1B of its $4B preferreds and could eventually repurchase the remaining $3B.
Organic Growth
IVZ reported its strongest organic growth rate since 1Q22 and is expected to rank #1 among public peers.
Strategic Partnerships
Invesco and Barings announced a new strategic product and distribution partnership agreement with a focus on private credit.
Negative Factors
Earnings Potential
Despite the 1Q upside surprise, full-year EPS estimates remain unchanged at $1.80 for 2025, $1.95 for 2026, and $2.25 for 2027, reflecting relatively little upside potential.
Fee Rate Decline
IVZ's fee rate is expected to continue declining due to a high composition of inflows into low fee products.
Revenue Compression
The ongoing mix shifts toward lower-fee products suggest more compression for revenue growth.
Invesco (IVZ) vs. S&P 500 (SPY)
Market Cap
$6.24B
Dividend Yield5.89%
Average Volume (3M)6.81M
Price to Earnings (P/E)11.2
Beta (1Y)1.27
Revenue Growth4.92%
EPS GrowthN/A
CountryUS
Employees8,508
SectorFinancial
Sector Strength85
IndustryAsset Management
Share Statistics
EPS (TTM)1.25
Shares Outstanding447,836,400
10 Day Avg. Volume7,092,154
30 Day Avg. Volume6,812,082
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.13
Price to Cash Flow (P/CF)5.40
P/FCF Ratio5.50
Enterprise Value/Market Cap2.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.67
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.33Price Target Upside9.97% Upside
Rating ConsensusHold
Number of Analyst Covering12
Invesco Business Overview & Revenue Model
Company DescriptionInvesco 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 MoneyInvesco makes money primarily through management fees charged on its assets under management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the type of investment product and market conditions. The company also earns performance fees, which are additional charges based on the investment returns above a certain benchmark. Invesco's revenue streams are further diversified by its product offerings, including mutual funds, ETFs, and other investment vehicles. Significant partnerships with financial advisors and institutional clients enhance its distribution network, contributing to the growth of assets under management and, consequently, its earnings. Additionally, Invesco leverages its global presence to tap into various markets, enhancing its revenue potential through geographic diversification.
Invesco Financial Statement Overview
Summary
Invesco shows resilience with a return to positive net income in 2024, strong cash flow generation, and no debt. However, challenges include revenue volatility and asset decline, requiring careful management for sustained growth.Income Statement
Invesco demonstrated a solid income statement performance with a significant turnaround in net income, going from a loss in 2023 to a positive net income in 2024. The gross profit margin is strong as gross profit equals total revenue, indicating no cost of goods sold. Revenue growth is moderate, with a 6.13% increase from 2023 to 2024. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency. However, the decline in total revenue from 2021 to 2023 indicates potential revenue volatility challenges.75
Positive
Balance Sheet
The balance sheet of Invesco shows a healthy equity position with no total debt in 2024, marking a significant improvement from previous years. The equity ratio stands strong at 53.89%, indicating a solid financial foundation. However, the decline in total assets from 2020 to 2024 and fluctuating stockholder's equity pose potential long-term challenges.70
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow generation with a stable operating cash flow. The free cash flow growth rate from 2023 to 2024 is commendable, contributing to financial flexibility. The operating cash flow to net income ratio is nearly 1, showcasing efficient conversion of income to cash. Despite the positive cash flow position, the decline in cash and short-term investments suggests a need for prudent liquidity management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.07B | 5.72B | 6.05B | 6.89B | 6.15B | Gross Profit |
| 6.07B | 2.01B | 4.32B | 4.98B | 4.34B | EBIT |
| 832.10M | 835.70M | 1.32B | 2.53B | 1.39B | EBITDA |
| 1.24B | 1.02B | 1.32B | 1.93B | 1.59B | Net Income Common Stockholders |
| 774.80M | -96.90M | 920.70M | 1.63B | 761.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.50B | 1.93B | 1.43B | 2.15B | 1.71B | Total Assets |
| 27.01B | 28.93B | 29.76B | 32.69B | 36.50B | Total Debt |
| 7.55B | 9.04B | 8.08B | 9.42B | 8.80B | Net Debt |
| 6.05B | 7.11B | 6.64B | 7.27B | 7.09B | Total Liabilities |
| 11.34B | 13.02B | 12.91B | 16.01B | 21.48B | Stockholders Equity |
| 14.56B | 14.60B | 15.21B | 15.50B | 14.36B |
| Cash Flow | Free Cash Flow | |||
| 1.12B | 1.14B | 503.30M | 969.30M | 1.12B | Operating Cash Flow |
| 1.19B | 1.30B | 696.20M | 1.08B | 1.23B | Investing Cash Flow |
| 68.40M | -244.30M | -368.60M | -847.90M | -865.10M | Financing Cash Flow |
| -1.66B | -585.40M | -966.90M | 117.30M | -285.90M |
Invesco Technical Analysis
Neutral
13.94
Price Trends
15.17
Negative
16.42
Negative
16.56
Negative
Market Momentum
-0.43
Negative
49.28
Neutral
83.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Neutral. The current price of 13.94 is above the 20-day moving average (MA) of 13.48, below the 50-day MA of 15.17, and below the 200-day MA of 16.56, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 83.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IVZ.
Invesco Risk Analysis
Invesco disclosed 43 risk factors in its most recent earnings report. Invesco reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Invesco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.22B | 12.95 | 8.74% | 4.75% | 18.85% | 7.96% | |
76 Outperform | $4.28B | 10.43 | 20.69% | 8.66% | ― | 53.17% | |
71 Outperform | $6.24B | 11.16 | 5.50% | 5.89% | 4.92% | ― | |
67 Neutral | $154.99B | 35.12 | 34.07% | 2.97% | 24.92% | 16.65% | |
66 Neutral | $25.22B | 9.81 | 11.21% | 3.32% | 16.34% | 66.71% | |
65 Neutral | $4.68B | 10.76 | 14.75% | 0.02% | -6.77% | -14.55% | |
63 Neutral | $12.38B | 9.57 | 7.87% | 79.17% | 12.62% | -4.94% |
* Financial Sector Average
Performance Comparison
IVZ
Invesco
13.94
0.44
3.26%
AMG
Affiliated Managers
163.16
7.10
4.55%
AB
AllianceBernstein
38.67
8.15
26.70%
STT
State Street
87.57
17.52
25.01%
BX
Blackstone Group
133.58
20.02
17.63%
JHG
Janus Henderson Group
33.16
3.19
10.64%
Invesco Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 11.88%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
Invesco Ltd. demonstrated strong growth and strategic initiatives in the first quarter, marked by significant net asset inflows, a beneficial partnership with MassMutual and Barings, and increased dividend payouts. However, challenges such as volatility in global markets, outflows in fundamental equities, and pressure on operating expenses moderated the overall positive sentiment.Q1-2025 Updates
Positive Updates
Strong Growth in Net Asset Inflows
Invesco Ltd. generated $17.6 billion in long-term net asset inflows, achieving a 5.3% annualized growth rate. This contributed to an 18% increase in adjusted operating income and a 330 basis point expansion in operating margins compared to the same quarter last year.
Strategic Partnership with MassMutual and Barings
Invesco Ltd. announced a new strategic product distribution partnership with MassMutual and Barings, including a $1 billion repurchase of preferred stock. This partnership is focused on delivering private credit-oriented income solutions to US wealth management clients, supported by MassMutual's initial investment of $650 million.
Record ETF Growth
Invesco Ltd.'s global ETF and index platform recorded 13% annualized organic growth in the first quarter. The QQQM ETF achieved near-record flows of $4 billion, and net new ETF flows in EMEA amounted to $8 billion.
Successful Preferred Stock Repurchase
Invesco Ltd. reached an agreement with MassMutual to repurchase $1 billion of preferred stock, providing balance sheet flexibility and anticipated EPS accretion of $0.13 on a run-rate basis once loans are repaid.
Dividend Increase
Invesco Ltd. announced an increase in its quarterly common stock dividend from $0.205 to $0.21 per share, reflecting strong cash position and cash flow.
Negative Updates
Decline in Fundamental Equities
The firm experienced net outflows of $7 billion in fundamental equities, particularly in the US region, although offset by inflows in EMEA and Asia Pacific regions.
Volatility Impacting Markets
Global financial markets have experienced increased volatility, which has tempered ETF demand and caused a shift towards more cautious asset allocation among investors.
Challenges in Operating Expenses
Despite efforts to manage operating expenses, there is increased difficulty in providing specific guidance due to recent market volatility. Seasonal compensation expenses were higher, and ongoing implementation of the Alpha platform incurs additional costs.
Company Guidance
During the first quarter earnings call for Invesco Ltd., the company reported robust financial performance and strategic initiatives. The quarter saw $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate. Adjusted operating income increased by 18%, with operating margins expanding by over 330 basis points compared to the same quarter last year. Invesco Ltd. also announced a significant new strategic product distribution partnership with MassMutual, entailing a $650 million seed investment, and a $1 billion repurchase of preferred stock to enhance balance sheet flexibility. The partnership with Barings aims to deliver private credit-oriented income solutions to U.S. wealth management clients. The company highlighted its geographic diversity and local presence across the Americas, EMEA, and Asia Pacific, which contributed to $15 billion in net long-term inflows from Asia Pacific and EMEA regions. Furthermore, despite market volatility, Invesco Ltd.'s global ETF and index platform recorded 13% annualized organic growth. The company also increased its quarterly common stock dividend and emphasized disciplined expense management to navigate the uncertain market environment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.