Invesco (IVZ) AI Stock Analysis

• Market Cap: $12.02B
• Dividend Yield: 3.09%
• Average Volume (3M): 4.76M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.18
• Revenue Growth: 6.64%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.61
• Shares Outstanding: 445,092,900
• 10 Day Avg. Volume: 6,180,733
• 30 Day Avg. Volume: 4,757,448
• PEG Ratio: -0.04
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 7.13
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: 6.19
• 1Y Price Target: $28.09
• Price Target Upside: 4.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.98
• Revenue Forecast (FY): $4.64B

• Rating: 77 Outperform
• Price Target: $31.00 ▲(14.81% Upside)

Invesco's overall stock score reflects strong financial performance, robust technical indicators, and positive corporate events. The company's strategic initiatives and operational efficiency have led to record AUM and significant inflows, supporting its growth trajectory. While valuation is fair, the attractive dividend yield enhances investor appeal. Challenges in fundamental equities and ETF restructuring are noted but are outweighed by the company's strengths.

Positive Factors

Record AUM Growth

The record AUM and strong inflows indicate robust client trust and effective asset management strategies, supporting long-term revenue growth.

Debt Reduction

Reducing debt enhances financial stability and flexibility, allowing Invesco to invest more in growth opportunities and withstand market fluctuations.

ETF Expansion

The expansion in ETF offerings indicates strong market demand and positions Invesco well in the growing passive investment trend, supporting future growth.

Negative Factors

Equities Outflows

Significant outflows in fundamental equities suggest challenges in maintaining investor confidence in these products, potentially impacting revenue.

QQQ ETF Restructuring Challenges

Delays in restructuring the QQQ ETF could hinder operational efficiency and limit the potential benefits of modernization, affecting competitiveness.

Non-Cash Impairment Charge

The impairment charge reflects potential missteps in asset management, impacting financial results and signaling challenges in strategic execution.

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 generates revenue through investment management fees, which are charged as a percentage of assets under management (AUM). The company earns these fees by managing client investments in various products, including mutual funds and ETFs. Additionally, Invesco generates performance fees when the investment returns exceed certain benchmarks or targets. Another significant revenue stream comes from advisory and administrative services provided to institutional clients. The firm also benefits from strategic partnerships with financial advisors and institutions that distribute its investment products, enhancing its market reach and client acquisition. Overall, the company's earnings are closely tied to the performance of the financial markets and the levels of AUM, which can fluctuate based on market conditions and investor sentiment.

Invesco Financial Statement Overview

Summary

Invesco's financial statements indicate strong revenue growth and improved profitability, with a stable balance sheet and robust cash flows. However, historical volatility in margins and leverage ratios suggests the need for cautious financial management.

Income Statement

Invesco's income statement shows a strong recovery in revenue with a TTM growth rate of 52.6%, indicating robust business performance. The gross profit margin is stable at around 33%, and the net profit margin has improved to 13.3% in the TTM, reflecting enhanced profitability. However, historical volatility in EBIT and EBITDA margins suggests potential operational challenges.

Balance Sheet

The balance sheet reflects a solid equity position with a low debt-to-equity ratio of 0.14 in the TTM, indicating financial stability. Return on equity has improved slightly to 5.6%, but remains moderate. The equity ratio is healthy, suggesting a strong asset base. However, past fluctuations in leverage ratios highlight potential risks.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 10% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.46, indicating efficient cash conversion. The free cash flow to net income ratio is high at 0.98, showcasing effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28B	6.07B	5.72B	6.05B	6.89B	6.15B
Gross Profit	2.22B	2.03B	2.01B	2.44B	2.83B	2.39B
EBITDA	1.52B	1.24B	1.13B	1.53B	2.80B	1.40B
Net Income	1.05B	774.80M	-96.90M	920.70M	1.63B	761.60M
Balance Sheet
Total Assets	28.44B	27.01B	28.93B	29.76B	32.69B	36.50B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.50B	1.93B	1.43B	2.15B	1.71B
Total Debt	1.62B	7.55B	9.04B	8.56B	9.71B	9.12B
Total Liabilities	13.65B	11.34B	13.02B	12.91B	16.01B	21.48B
Stockholders Equity	14.01B	14.56B	14.60B	15.21B	15.50B	14.36B
Cash Flow
Free Cash Flow	1.37B	1.12B	1.14B	510.30M	969.30M	1.12B
Operating Cash Flow	1.39B	1.19B	1.30B	703.20M	1.08B	1.23B
Investing Cash Flow	-639.10M	68.40M	-244.30M	-375.60M	-847.90M	-859.60M
Financing Cash Flow	-898.10M	-1.66B	-585.40M	-966.90M	117.30M	-285.90M

Invesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 27 is above the 20-day moving average (MA) of 25.47, above the 50-day MA of 24.06, and above the 200-day MA of 19.01, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 65.02 is Neutral, 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
SEIC	79 Outperform	$10.22B	15.34	29.38%	1.18%	9.33%	33.17%
IVZ	77 Outperform	$12.02B	18.33	7.29%	3.09%	6.64%	―
AB	76 Outperform	$3.58B	12.95	19.77%	8.83%	―	-12.92%
AMG	74 Outperform	$7.85B	17.04	15.95%	0.01%	1.08%	8.24%
BEN	74 Outperform	$12.50B	26.32	3.84%	5.33%	2.31%	5.71%
JHG	73 Outperform	$7.11B	13.54	11.10%	3.46%	14.48%	34.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Invesco Corporate Events

Invesco Announces $500 Million Share Repurchase Agreement

On December 8, 2025, Invesco Ltd. entered into an agreement with Massachusetts Mutual Life Insurance Company to repurchase $500 million of its 5.9% Fixed Rate Non-Cumulative Perpetual Series A Preference Shares at an 18% premium. The repurchase is expected to close by mid-December 2025, with MassMutual maintaining a significant stake in Invesco. The dividend for the fourth quarter of 2025 will be prorated and reflected in the first quarter 2026 dividend.