Invesco (IVZ) AI Stock Analysis

• Market Cap: $7.42B
• Dividend Yield: 5.06%
• Average Volume (3M): 4.87M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.22
• Revenue Growth: 5.69%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.44
• Shares Outstanding: 447,556,270
• 10 Day Avg. Volume: 4,852,120
• 30 Day Avg. Volume: 4,873,666
• PEG Ratio: 1.41
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.13
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.62
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $15.16
• Price Target Upside: -8.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $19.00 ▲(14.53%Upside)

Invesco's overall stock score is driven by strong financial performance and strategic initiatives highlighted in the earnings call. The company's attractive valuation and dividend yield further enhance its appeal. However, technical indicators suggest caution due to potential overbought conditions, and revenue volatility remains a risk.

Positive Factors

International Client Stability

No 'anti' rhetoric or significant reallocation away from U.S.-based managers has been reported, reflecting stability in international client relationships.

Mandate Wins and Diversification

IVZ's diversification strategy and success in winning mandates are seen as important advantages.

Strategic Partnerships

Invesco and Barings announced a new strategic product and distribution partnership agreement with a focus on private credit.

Negative Factors

Earnings Projections

Lower management fees contribute to a decrease in earnings projections.

Fee Compression

Ongoing fee rate decline and mix shifts toward lower-fee products suggest more compression for the future.

Macro Challenges

Decreasing EPS and price objective due to a negative macro set-up, driven by a higher tax rate and reduced management fees and non-operating income.

Invesco Business Overview & Revenue Model

Company Description

Invesco Ltd. (IVZ) is a global independent investment management company headquartered in Atlanta, Georgia. The company operates in the financial services sector, primarily focusing on providing a diverse range of investment solutions and services to clients worldwide. Invesco offers a wide array of products, including mutual funds, exchange-traded funds (ETFs), unit trusts, and investment management services across various asset classes, including equities, fixed income, and alternative investments.

How the Company Makes Money

Invesco generates revenue primarily through management fees, performance fees, and service fees associated with its investment products and services. The company's key revenue streams include fees earned from managing mutual funds, ETFs, and institutional accounts. Management fees are typically calculated as a percentage of the assets under management (AUM), providing a steady income stream that scales with market performance and client investments. Performance fees are another source of revenue, charged as a percentage of investment gains above a certain benchmark or hurdle rate. Invesco also benefits from strategic partnerships and distribution agreements with financial institutions and advisors, which expand its reach and client base, further contributing to its earnings.

Invesco Financial Statement Overview

Summary

Invesco's financial performance is solid with a positive turnaround in net income and strong cash flow generation. The absence of debt strengthens the balance sheet, but revenue volatility and asset decline present potential risks.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.12B	6.07B	5.72B	6.05B	6.89B	6.15B
Gross Profit	2.93B	2.03B	2.01B	2.44B	2.31B	2.39B
EBITDA	1.23B	1.24B	1.02B	1.53B	1.93B	1.45B
Net Income	804.40M	774.80M	-96.90M	920.70M	1.63B	761.60M
Balance Sheet
Total Assets	28.14B	27.01B	28.93B	29.76B	32.69B	36.50B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.50B	1.93B	1.43B	1.90B	1.71B
Total Debt	0.00	7.55B	9.04B	8.56B	9.71B	9.12B
Total Liabilities	12.36B	11.34B	13.02B	12.91B	16.01B	21.48B
Stockholders Equity	14.70B	14.56B	14.60B	15.21B	15.50B	14.36B
Cash Flow
Free Cash Flow	1.08B	1.12B	1.14B	510.30M	969.30M	1.12B
Operating Cash Flow	1.16B	1.19B	1.30B	703.20M	1.08B	1.23B
Investing Cash Flow	263.70M	68.40M	-244.30M	-375.60M	-847.90M	-865.10M
Financing Cash Flow	-984.00M	-1.66B	-585.40M	-966.90M	117.30M	-285.90M

Invesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Positive. The current price of 16.59 is above the 20-day moving average (MA) of 15.06, above the 50-day MA of 14.69, and above the 200-day MA of 16.13, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 74.42 is Negative, neither overbought nor oversold. The STOCH value of 95.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IVZ.

Invesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVZ	77 Outperform	$7.42B	13.29	5.50%	5.06%	5.69%	―
AMG	76 Outperform	$5.65B	15.59	12.81%	0.02%	-6.37%	-28.43%
AB	76 Outperform	$4.57B	11.13	20.69%	7.76%	―	53.17%
JHG	75 Outperform	$6.32B	15.94	8.55%	3.99%	17.41%	-4.75%
BX	71 Outperform	$186.30B	46.45	34.07%	2.42%	22.06%	16.57%
STT	70 Neutral	$31.22B	12.30	11.21%	2.78%	15.02%	66.71%
Sector *	64 Neutral	$6.55B	10.89	6.59%	5.08%	24.65%	0.99%

Invesco Corporate Events

Invesco Announces Strategic Hybrid Investment Solution

On May 23, 2025, Invesco Ltd. held its Annual General Meeting where shareholders elected eleven board members, approved executive compensation on a non-binding basis, and appointed PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. Invesco also announced its decision to utilize both State Street and Blackrock platforms for its investment operations, aiming to leverage a hybrid solution to optimize client outcomes. This strategic move is expected to streamline operations without impacting the company’s 2025 expense guidance.

The most recent analyst rating on (IVZ) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Invesco stock, see the IVZ Stock Forecast page.

Invesco Secures Major Financial Agreements in May 2025

On May 16, 2025, Invesco Ltd. entered into significant financial agreements, including a $1.0 billion Term Loan Agreement and a $2.5 billion Credit Agreement. The Term Loan Agreement, involving a syndicate of banks, was used to finance the repurchase of $1.0 billion of the company’s preferred stock from MassMutual. The Credit Agreement amends a prior agreement, extending the credit facility to $2.5 billion for general corporate purposes. These agreements include various covenants and financial ratios that Invesco must maintain, impacting its financial strategy and operations.

The most recent analyst rating on (IVZ) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Invesco stock, see the IVZ Stock Forecast page.