Invesco (IVZ) AI Stock Analysis

• Market Cap: $10.07B
• Dividend Yield: 3.74%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.24
• Revenue Growth: 6.79%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.36
• Shares Outstanding: 445,963,780
• 10 Day Avg. Volume: 4,386,120
• 30 Day Avg. Volume: 4,019,314
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 8.98
• Enterprise Value/Ebitda: 14.06
• 1Y Price Target: $22.10
• Price Target Upside: -0.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $24.00 ▲(8.21% 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

Record AUM Growth

Achieving a record AUM of $2 trillion with significant net inflows indicates strong market position and client trust, supporting long-term revenue growth.

Strategic Partnerships

The strategic partnership with MassMutual and Barings enhances distribution capabilities and financial flexibility, positioning Invesco for sustained growth.

Strong ETF Performance

Strong performance in ETFs and index platforms reflects effective product offerings and market demand, contributing to durable revenue streams.

Negative Factors

Decline in Fundamental Equities

The decline in fundamental equities indicates challenges in maintaining competitiveness in active equity markets, potentially impacting future revenue.

Negative Flows in Private Markets

Negative flows in private markets suggest vulnerability to market sentiment changes, which could affect long-term asset growth and revenue stability.

Regulatory Impact in China

Regulatory changes in China impacting performance fees could hinder Invesco's profitability and growth prospects in a key emerging market.

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 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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.15B	6.07B	5.72B	6.05B	6.89B	6.15B
Gross Profit	2.05B	2.03B	2.01B	2.44B	2.83B	2.39B
EBITDA	1.31B	1.24B	1.13B	1.53B	2.80B	1.40B
Net Income	816.40M	774.80M	-96.90M	920.70M	1.63B	761.60M
Balance Sheet
Total Assets	28.50B	27.01B	28.93B	29.76B	32.69B	36.50B
Cash, Cash Equivalents and Short-Term Investments	922.70M	1.50B	1.93B	1.26B	1.93B	1.87B
Total Debt	0.00	7.55B	9.04B	8.56B	9.71B	9.12B
Total Liabilities	13.54B	11.34B	13.02B	12.91B	16.01B	21.48B
Stockholders Equity	13.87B	14.56B	14.60B	15.21B	15.50B	14.36B
Cash Flow
Free Cash Flow	1.20B	1.12B	1.14B	510.30M	969.30M	1.12B
Operating Cash Flow	1.22B	1.19B	1.30B	703.20M	1.08B	1.23B
Investing Cash Flow	-356.40M	68.40M	-244.30M	-375.60M	-847.90M	-859.60M
Financing Cash Flow	-997.10M	-1.66B	-585.40M	-966.90M	117.30M	-285.90M

Invesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 22.18 is below the 20-day moving average (MA) of 22.18, above the 50-day MA of 21.29, and above the 200-day MA of 17.06, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 50.27 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
JHG	79 Outperform	6.92B	16.78	8.80%	3.56%	17.59%	-8.81%
AB	76 Outperform	4.19B	11.38	―	8.93%	―	16.78%
BX	76 Outperform	218.71B	49.91	34.29%	2.39%	23.08%	41.35%
IVZ	74 Outperform	$10.07B	24.24	5.74%	3.74%	6.79%	―
AMG	74 Outperform	6.74B	18.20	15.29%	0.02%	-5.87%	-21.51%
STT	73 Outperform	32.05B	12.66	10.44%	2.69%	11.66%	67.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.