tiprankstipranks
Trending News
More News >
Invesco (IVZ)
NYSE:IVZ
Advertisement

Invesco (IVZ) AI Stock Analysis

Compare
1,237 Followers

Top Page

IVZ

Invesco

(NYSE:IVZ)

Rating:74Outperform
Price Target:
$24.00
▲(10.60% Upside)
Invesco's overall stock score is driven by strong financial performance and positive technical indicators. The company's strategic achievements and asset growth are significant strengths, though valuation concerns and challenges in certain market segments present risks.
Positive Factors
Earnings and Growth
The QQQ reclassification is viewed as a clear catalyst that lifts earnings and improves organic growth visibility.
Financial Performance
The migration to an open-end fund structure is expected to boost the overall fee rate for the firm, improving financial performance.
Market Reaction
The stock jumped approximately 15% on the day of the announcement, indicating strong market reaction and additional potential for growth.
Negative Factors
Earnings Projections
Lower management fees contribute to a decrease in earnings projections.
Fee Pressure
There is an expectation of continued fee pressure and active equity outflows, impacting Invesco Ltd.'s business.
Revenue Growth
The shift toward lower fee ETFs is likely to remain firmly intact, potentially impacting revenue growth.

Invesco (IVZ) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue primarily through management fees charged on the assets it manages for clients. These fees are typically calculated as a percentage of the assets under management (AUM), which can vary depending on the type of investment product and the services provided. Additionally, Invesco earns performance fees from certain investment strategies that exceed specified benchmarks. The company also generates revenue from advisory services and distribution fees associated with its mutual funds and ETFs. Significant partnerships with financial institutions and advisors enhance Invesco's distribution capabilities, contributing to its revenue growth. Moreover, market fluctuations and changes in investor sentiment can impact AUM and, consequently, the fees collected, making them critical factors in the company's earnings.

Invesco Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in asset growth, geographic diversification, and strategic partnerships. However, challenges remain in fundamental equities and private markets, alongside regulatory impacts in China.
Q2-2025 Updates
Positive Updates
Record AUM and Net Inflows
Invesco's assets under management reached a record $2 trillion, with net long-term asset inflows of $15.6 billion, representing a 4.7% annualized growth rate.
Strong ETF and Index Performance
Global ETFs and index platform recorded 10% annualized organic growth with $12.6 billion in long-term net inflows, driven by record inflows in Q2 QM and factor suite ETFs.
Geographic Diversification
Significant inflows from Asia Pacific and EMEA, collectively accounting for 40% of long-term client AUM, with $31 billion in long-term net flows in the first half of 2025.
Partnership with MassMutual and Barings
Completed $1 billion preferred stock repurchase from MassMutual, enhancing balance sheet flexibility, and announced MassMutual's $150 million investment in Invesco Dynamic Credit Opportunity Fund.
Improved Financial Performance
Adjusted operating income increased by 3% and operating margins expanded by 30 basis points compared to the same quarter last year.
Negative Updates
Decline in Fundamental Equities
Net outflows of $3.6 billion in fundamental equities, driven by secular demand challenges and shifts in active equities, particularly in the U.S. market.
Negative Flows in Private Markets
Private markets experienced negative flows driven by April's risk-off sentiment in bank loan ETFs and funds.
Regulatory Changes Impacting China JV
China JV saw a decrease in performance fees due to regulatory changes, affecting compensation and potentially future margins.
Company Guidance
Invesco's earnings call for the second quarter of fiscal year 2025 highlighted several key financial metrics and strategic initiatives. The company achieved a record $2 trillion in assets under management, with $15.6 billion in net long-term asset inflows, representing a 4.7% annualized growth rate. The ETF and index platforms contributed $12.6 billion in long-term net inflows, reflecting a 10% annualized organic growth. The firm reported a 3% increase in adjusted operating income and a 30 basis point expansion in operating margins compared to the previous year. Additionally, Invesco completed the repurchase of $1 billion of preferred stock held by MassMutual, enhancing its balance sheet flexibility. The company also announced a strategic partnership with MassMutual and Barings, focusing on the U.S. wealth channel with a planned total capital support of $650 million. In terms of operational efficiency, Invesco maintained disciplined expense management, with operating expenses increasing by only 1% year-over-year. The company also filed a preliminary proxy statement to change the operational structure of the QQQ from a unit investment trust to an open-end fund ETF, potentially improving net revenue and adjusted operating income by approximately 4 basis points.

Invesco Financial Statement Overview

Summary
Invesco demonstrates a stable financial position with strong profitability recovery, solid operational efficiency, and efficient cash flow management. However, moderate revenue growth and room for improvement in equity utilization slightly temper the score.
Income Statement
75
Positive
Invesco shows strong recovery in profitability with a Gross Profit Margin of 47.9% and a notable improvement in Net Profit Margin to 13.1% in TTM. The Revenue Growth Rate is 0.89% compared to the previous year, indicating moderate revenue expansion. EBIT and EBITDA margins are healthy at 14.6% and 20.1% respectively, showing solid operational efficiency. However, fluctuations in EBIT over the years suggest some volatility.
Balance Sheet
70
Positive
Invesco maintains a solid balance sheet with a low Debt-to-Equity Ratio of 0.07 in TTM, reflecting conservative leverage. The Equity Ratio is robust at 52.2%, indicating strong equity financing. However, Return on Equity is moderate at 5.5%, suggesting room for improvement in generating returns for shareholders.
Cash Flow
72
Positive
The company demonstrates strong cash flow management, with a Free Cash Flow to Net Income Ratio of 1.35, indicating efficient cash conversion. Operating Cash Flow to Net Income Ratio is 1.44, further supporting the company's ability to generate cash from operations. However, Free Cash Flow Growth Rate is -2.91%, indicating a slight decline from the previous year.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.15B6.07B5.72B6.05B6.89B6.15B
Gross Profit2.05B2.03B2.01B2.44B2.83B2.39B
EBITDA1.31B1.24B1.13B1.53B2.80B1.40B
Net Income816.40M774.80M-96.90M920.70M1.63B761.60M
Balance Sheet
Total Assets28.50B27.01B28.93B29.76B32.69B36.50B
Cash, Cash Equivalents and Short-Term Investments922.70M1.50B1.93B1.26B1.93B1.87B
Total Debt0.007.55B9.04B8.56B9.71B9.12B
Total Liabilities13.54B11.34B13.02B12.91B16.01B21.48B
Stockholders Equity13.87B14.56B14.60B15.21B15.50B14.36B
Cash Flow
Free Cash Flow1.20B1.12B1.14B510.30M969.30M1.12B
Operating Cash Flow1.22B1.19B1.30B703.20M1.08B1.23B
Investing Cash Flow-356.40M68.40M-244.30M-375.60M-847.90M-859.60M
Financing Cash Flow-997.10M-1.66B-585.40M-966.90M117.30M-285.90M

Invesco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.70
Price Trends
50DMA
19.48
Positive
100DMA
16.80
Positive
200DMA
16.68
Positive
Market Momentum
MACD
0.62
Positive
RSI
63.37
Neutral
STOCH
70.94
Neutral
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 21.7 is above the 20-day moving average (MA) of 21.22, above the 50-day MA of 19.48, and above the 200-day MA of 16.68, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$6.53B17.3113.47%0.02%-5.87%-21.51%
79
Outperform
$6.91B16.708.87%3.59%17.59%-8.81%
76
Outperform
$4.38B11.7218.55%8.55%16.78%
76
Outperform
$10.89B16.5430.06%1.12%10.55%40.74%
76
Outperform
$13.20B48.742.16%4.97%4.72%-67.85%
74
Outperform
$9.66B23.255.74%3.82%6.79%
68
Neutral
$17.88B11.6610.24%3.76%9.66%1.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IVZ
Invesco
21.70
6.67
44.38%
AMG
Affiliated Managers
230.64
66.78
40.75%
AB
AllianceBernstein
39.55
9.25
30.53%
BEN
Franklin Resources
25.53
7.53
41.83%
SEIC
SEI Investments Company
87.72
23.07
35.68%
JHG
Janus Henderson Group
44.01
9.72
28.35%

Invesco Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Invesco Announces Strategic Hybrid Investment Solution
Neutral
May 27, 2025

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.

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: Aug 26, 2025