The Investment (INV) AI Stock Analysis

• Market Cap: £5.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.45K
• Price to Earnings (P/E): 7.6
• Beta (1Y): -0.09
• Revenue Growth: 109.71%
• EPS Growth: 400.62%
• Country: UK
• Employees: 1
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): 0.08
• Shares Outstanding: 9,186,025
• 10 Day Avg. Volume: 2,319
• 30 Day Avg. Volume: 2,453
• PEG Ratio: -0.73
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -122.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The Investment Company's stock score reflects strong financial health with high profitability and a robust balance sheet. However, negative cash flows and recent bearish technical indicators pose challenges. The valuation is attractive with a low P/E ratio, and positive corporate events are expected to boost market confidence.

The Investment Business Overview & Revenue Model

Company Description

The Investment Company plc is a closed-ended balanced fund launched and managed Fiske Plc. The fund invests in the public equity and fixed income markets across the United Kingdom. It primarily invests in a portfolio of equities, preference shares, loans, stocks, and long-term debentures. The Investment Co. plc was formed in 1868 and is domiciled in the United Kingdom.

How the Company Makes Money

The Investment (INV) generates revenue primarily through management fees charged on assets under management (AUM), performance fees based on investment returns above a specified benchmark, and advisory fees for financial consulting services. Additionally, the company earns income from partnerships with financial institutions, offering co-branded investment products and leveraging shared expertise to expand market reach. INV's earnings are further bolstered by strategic investments in various asset classes, generating interest and dividend income.

The Investment Financial Statement Overview

Summary

The Investment Company shows strong profitability with a high net profit margin and efficient cost management. The balance sheet is robust with zero debt and high equity, but challenges are evident in revenue volatility and negative cash flows.

Income Statement

The company demonstrated strong profitability with a high net profit margin of 80.1% for TTM (Trailing-Twelve-Months). Revenue growth has been volatile, with significant fluctuations over the years. In recent periods, the revenue has decreased from the previous year, indicating potential challenges in revenue generation. The gross profit margin remains high at 100%, which is typical for asset management firms. However, the high EBIT margin of 100% for TTM suggests efficient cost management.

Balance Sheet

The balance sheet is robust, characterized by zero debt and a high equity ratio of 98.3% for TTM, indicating strong financial health and minimal leverage. The return on equity is strong at 10.1% for TTM, showcasing the company's ability to generate profit from shareholders' equity. However, the significant decrease in total assets over the years might indicate strategic divestments or market challenges.

Cash Flow

Cash flow management appears to be challenging, with negative operating and free cash flows for TTM. The operating cash flow to net income ratio is negative, indicating potential issues in converting income into cash. Despite these challenges, the company has managed to maintain a positive investing cash flow, suggesting reinvestment strategies to support long-term growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
924.75K	1.20M	1.18M	146.55K	1.94M	-694.12K
	Gross Profit
924.75K	1.20M	1.18M	146.55K	1.94M	-694.12K
	EBIT
924.75K	1.02M	784.22K	-200.26K	1.41M	-998.68K
	EBITDA
53.78K	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
740.63K	1.01M	739.20K	-248.63K	1.39M	-998.68K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
425.30K	252.29K	8.28M	678.59K	540.80K	265.05K
	Total Assets
7.48M	7.59M	16.87M	16.15M	16.55M	15.17M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-425.30K	-252.29K	-8.28M	-678.59K	-540.80K	-265.05K
	Total Liabilities
123.46K	210.30K	601.16K	106.00K	266.89K	134.07K
	Stockholders Equity
7.36M	7.38M	16.27M	16.05M	16.28M	15.04M
Cash Flow		Free Cash Flow
-46.74K	-36.73K	-119.24K	-248.63K	98.97K	639.11K
	Operating Cash Flow
-46.74K	-36.73K	-119.24K	-248.63K	98.97K	639.11K
	Investing Cash Flow
104.00K	2.37M	7.76M	168.19K	319.92K	-575.23K
	Financing Cash Flow
0.00	-10.37M	-35.00K	212.56K	-143.16K	-584.58K

The Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INV, the sentiment is Negative. The current price of 61 is above the 20-day moving average (MA) of 60.85, below the 50-day MA of 64.16, and below the 200-day MA of 71.35, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INV.

The Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
INV	63 Neutral	£5.74M	7.57	10.60%	―	109.71%	400.62%
WCW	57 Neutral	£5.43M	―	-4.46%	3.92%	2.97%	-283.90%
BSFA	51 Neutral	£2.72M	―	-41.55%	―	346.77%	-2.53%

The Investment Corporate Events

The Investment Company Announces Share Split to Enhance Marketability

The Investment Company plc has announced a share split, approved at the Annual General Meeting, to divide each existing ordinary share into five new ordinary shares. This move aims to enhance share liquidity and marketability, making it more accessible to smaller investors. The share split is contingent upon the new shares being admitted to the Official List of the Financial Conduct Authority and trading on the London Stock Exchange. The transition is expected to be effective from 13 March 2025, with the total number of voting rights in the company adjusting accordingly. This strategic decision reflects the company’s intention to boost investment opportunities and potentially raise additional capital by selling shares from treasury.

The Investment Company plc Director Acquires Shares to Strengthen Market Position

The Investment Company plc announced the acquisition of 4,000 ordinary shares on the market by its director, Mr. Martin H W Perrin. This transaction, conducted at a price of 358p per share, reflects the company’s ongoing strategy to enhance its market position and potentially increase shareholder value. The acquisition may impact the company’s operations by bolstering its asset portfolio and demonstrating confidence in its market prospects.

The Investment Company plc Reports Mixed Half-Year Results Amid Market Challenges

The Investment Company plc’s half-year report reveals a slight decline in net asset value and shareholder funds, with no dividends paid. The change in investment objective and policy, alongside the appointment of Chelverton Asset Management Limited, reflects a strategic shift towards long-term capital growth. Despite initial optimism, economic challenges and tax changes under the new UK government impacted market performance, especially affecting AIM shares due to speculation about inheritance tax relief changes. The company’s performance was mixed, with contributions from certain sectors and companies offset by underperformance in others, notably in the technology sector, which remains a significant focus. Looking ahead, the company anticipates potential market adjustments following recent budget announcements and economic developments.