Invesco (IVZ) AI Stock Analysis

• Market Cap: $9.59B
• Dividend Yield: 3.78%
• Average Volume (3M): 7.04M
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.23
• Revenue Growth: 6.20%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.36
• Shares Outstanding: 447,556,270
• 10 Day Avg. Volume: 11,888,887
• 30 Day Avg. Volume: 7,040,534
• PEG Ratio: -0.47
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.12
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 1.46
• 1Y Price Target: $21.02
• Price Target Upside: -3.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $24.00 ▲(10.04%Upside)

Invesco's strong technical momentum and positive earnings call highlights, including record AUM and strategic growth, drive the overall score. Financial performance is stable, with robust operational efficiency and cash management. The valuation presents some concerns, but the dividend yield offers a cushion.

Positive Factors

Earnings

The QQQ reclassification is viewed as a clear catalyst that lifts earnings and improves organic growth visibility.

Market Reaction

The stock jumped approximately 15% on the day of the announcement, indicating strong market reaction and additional potential for growth.

Revenue Growth

The QQQ proposal is expected to unlock revenues and growth by converting from a UIT to an open-end ETF, potentially increasing net earnings for Invesco Ltd.

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.

Fee Shifts

Mix shifts toward low- and no-fee products resumed after slight reversals in March and April.

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 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 shows strong recovery in profitability with solid operational efficiency, evidenced by healthy EBIT and EBITDA margins. The balance sheet is robust with low leverage, although Return on Equity has room for improvement. Cash flow management is efficient, despite a slight decline in free cash flow growth.

Income Statement

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

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

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.

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	2.03B	2.01B	2.44B	2.31B	1.88B
EBITDA	1.24B	892.30M	1.53B	2.80B	1.59B
Net Income	774.80M	-96.90M	920.70M	1.63B	761.60M
Balance Sheet
Total Assets	27.01B	28.93B	29.76B	32.69B	36.50B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.93B	1.26B	1.93B	1.87B
Total Debt	7.55B	9.04B	8.56B	9.71B	9.12B
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	510.30M	969.30M	1.12B
Operating Cash Flow	1.19B	1.30B	703.20M	1.08B	1.23B
Investing Cash Flow	68.40M	-244.30M	-375.60M	-847.90M	-859.60M
Financing Cash Flow	-1.66B	-585.40M	-966.90M	117.30M	-285.90M

Invesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.81
• 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 21.81 is above the 20-day moving average (MA) of 18.02, above the 50-day MA of 16.10, and above the 200-day MA of 16.28, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 88.12 is Negative, neither overbought nor oversold. The STOCH value of 96.60 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
AB	76 Outperform	$4.73B	12.45	18.55%	7.77%	―	53.17%
IVZ	76 Outperform	$9.59B	23.03	5.74%	3.78%	6.20%	―
AMG	73 Outperform	$6.00B	16.50	12.81%	0.02%	-6.37%	-28.43%
JHG	72 Outperform	$6.78B	17.11	8.55%	3.64%	17.41%	-4.75%
STT	68 Neutral	$31.65B	12.40	10.94%	2.69%	13.08%	67.88%
Sector *	68 Neutral	$17.10B	11.19	9.70%	3.58%	11.11%	-4.55%
BX	66 Neutral	$217.42B	46.42	37.72%	2.27%	27.13%	41.35%

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.