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Invesco (IVZ)
NYSE:IVZ
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Invesco (IVZ) AI Stock Analysis

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IVZ

Invesco

(NYSE:IVZ)

Rating:76Outperform
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 (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, 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 Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 7.97%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Invesco reported strong financial performance with record assets under management and significant net long-term inflows. The company's diversified platform showed resilience, and strategic partnerships were highlighted as key achievements. However, challenges remain in fundamental equities and private markets flows, and performance fees saw a decline. Despite these challenges, the positive aspects of the call, including growth in AUM and strategic partnerships, outweigh the negatives.
Q2-2025 Updates
Positive Updates
Record AUM
Invesco reached a record high of $2 trillion in assets under management, an 8% increase from the previous quarter and a 17% increase from the same quarter last year.
Strong Net Long-Term Asset Inflows
The company generated $15.6 billion in net long-term asset inflows, representing a 4.7% annualized growth rate.
Diversified Platform Performance
Invesco's global ETFs and index platform recorded 10% annualized organic growth with $12.6 billion of long-term net inflows in the quarter.
Improved Financial Metrics
Adjusted operating income increased by 3%, and operating margins expanded by 30 basis points compared to the same quarter last year.
Partnership with MassMutual and Barings
Invesco completed a $1 billion stock repurchase from MassMutual and announced a $150 million investment by MassMutual in the Invesco Dynamic Credit Opportunity Fund.
China JV Growth
Invesco's China JV reached a record high period-ending AUM of $105 billion, driven by $5.6 billion of net long-term inflows.
Negative Updates
Decline in Fundamental Equities
There were net outflows of $4 billion in fundamental equities, notably in the U.S. wealth management channel, particularly from the emerging markets fund.
Negative Private Markets Flows
The private credit franchise experienced negative flows driven by April's risk-off sentiment in bank loan ETFs and funds.
Performance Fee Decline
Performance fees were $14 million lower compared to the same quarter last year due to fewer funds generating performance fees.
Company Guidance
During Invesco's second quarter earnings call for fiscal year 2025, several key metrics were highlighted. The company achieved net long-term asset inflows of $15.6 billion, representing a 4.7% annualized growth rate, and reached a record high of $2 trillion in assets under management by the end of the period. Invesco reported $1.1 billion in net revenue, with adjusted operating income increasing by 3% and operating margins expanding by 30 basis points compared to the previous year. The firm's ETF platform recorded 10% annualized organic growth, contributing $12.6 billion in net inflows, while the China joint venture achieved $5.6 billion in net long-term inflows. Invesco's leverage ratio, excluding preferred stock, was 0.83x, demonstrating continued balance sheet strength. The company also highlighted a potential 4 basis points increase in net revenue yield if the proposed conversion of QQQ from a unit investment trust to an open-end fund ETF is approved.

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
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.07B5.72B6.05B6.89B6.15B
Gross Profit2.03B2.01B2.44B2.31B1.88B
EBITDA1.24B892.30M1.53B2.80B1.59B
Net Income774.80M-96.90M920.70M1.63B761.60M
Balance Sheet
Total Assets27.01B28.93B29.76B32.69B36.50B
Cash, Cash Equivalents and Short-Term Investments1.50B1.93B1.26B1.93B1.87B
Total Debt7.55B9.04B8.56B9.71B9.12B
Total Liabilities11.34B13.02B12.91B16.01B21.48B
Stockholders Equity14.56B14.60B15.21B15.50B14.36B
Cash Flow
Free Cash Flow1.12B1.14B510.30M969.30M1.12B
Operating Cash Flow1.19B1.30B703.20M1.08B1.23B
Investing Cash Flow68.40M-244.30M-375.60M-847.90M-859.60M
Financing Cash Flow-1.66B-585.40M-966.90M117.30M-285.90M

Invesco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.81
Price Trends
50DMA
16.10
Positive
100DMA
15.20
Positive
200DMA
16.28
Positive
Market Momentum
MACD
1.58
Negative
RSI
88.12
Negative
STOCH
96.60
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 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
76
Outperform
$4.73B12.4518.55%7.77%53.17%
76
Outperform
$9.59B23.035.74%3.78%6.20%
73
Outperform
$6.00B16.5012.81%0.02%-6.37%-28.43%
72
Outperform
$6.78B17.118.55%3.64%17.41%-4.75%
68
Neutral
$31.65B12.4010.94%2.69%13.08%67.88%
68
Neutral
$17.10B11.199.70%3.58%11.11%-4.55%
66
Neutral
$217.42B46.4237.72%2.27%27.13%41.35%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IVZ
Invesco
21.81
5.22
31.46%
AMG
Affiliated Managers
215.77
38.79
21.92%
AB
AllianceBernstein
42.88
10.92
34.17%
STT
State Street
112.93
30.33
36.72%
BX
Blackstone Group
178.10
39.81
28.79%
JHG
Janus Henderson Group
43.13
8.01
22.81%

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.

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.

Private Placements and FinancingStock BuybackBusiness Operations and Strategy
Invesco Secures Major Financial Agreements in May 2025
Neutral
May 16, 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.

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: Jul 24, 2025