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Investec
(LSE:INVP)
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Rating:66Neutral
Price Target:
686.00 p
▲(7.95% Upside)
Action:Reiterated
Date:08/26/26
The score is primarily held back by weak cash generation (negative operating and free cash flow) and leverage volatility despite solid reported profitability. Valuation is a meaningful positive (low P/E and ~6% yield), while technical signals are mixed and the latest earnings call supports a cautiously constructive outlook but with near-term margin/cost headwinds.
Positive Factors
Strong wealth and funds-under-management growth
Strong FUM growth and net inflows indicate increasing client adoption of Investec’s wealth proposition. A larger asset base can support durable fee generation, deepen client relationships, and reduce reliance on lending spreads as a source of earnings.
Negative Factors
Persistently negative operating and free cash flow
Persistent negative operating and free cash flow weaken the quality of accounting earnings and limit internally generated funding. This can constrain flexibility to support growth, dividends, or debt reduction, while increasing sensitivity to funding conditions and balance-sheet management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong wealth and funds-under-management growth
Strong FUM growth and net inflows indicate increasing client adoption of Investec’s wealth proposition. A larger asset base can support durable fee generation, deepen client relationships, and reduce reliance on lending spreads as a source of earnings.
Read all positive factors
Investec (INVP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.18B
Dividend Yield6.42%
Average Volume (3M)1.99M
Price to Earnings (P/E)7.8
Beta (1Y)1.28
Revenue Growth-3.55%
EPS Growth5.64%
CountryUK
Employees7,700
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)0.77
Shares Outstanding696,082,640
10 Day Avg. Volume1,296,545
30 Day Avg. Volume1,994,942
Financial Highlights & Ratios
PEG Ratio1.36
Price to Book (P/B)0.89
Price to Sales (P/S)1.03
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)£2.32B
Investec Business Overview & Revenue Model
Company Description
Established in 1974 and headquartered in Sandton, South Africa, Investec Group is a global financial services firm providing a comprehensive suite of products across the United Kingdom, South Africa, and various international regions. The company'...
How the Company Makes Money
Investec primarily makes money by earning (1) interest income and (2) fee/commission income from providing banking and wealth/investment services.
1) Net interest income (lending and banking activities): Investec earns interest on loans and other...
Investec Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call portrayed a cautiously positive picture: the group delivered resilient results (EPS +4.8%, revenue +4.2%, operating profit +3.4%), strong wealth flows and completed shareholder returns actions, while pressing ahead with a material multi-year investment program intended to drive an earnings and returns inflection from FY2028. Near-term headwinds include NII pressure, higher operating costs from expensed investments, geopolitical and UK political uncertainty, and a gradual path to ROE targets. On balance the positives around growth in FUM, fee income expansion, solid asset quality and clear investment milestones outweigh the short-term profitability drag and uncertainty.Positive Updates
Adjusted EPS and Operating Profit Growth
Adjusted earnings per share increased by 4.8%. Adjusted operating profit rose 3.4% from GBP 920m to GBP 951m, supported by total revenue growth of 4.2%.
Negative Updates
Net Interest Income Pressure
Net interest income fell 1.6% as reducing interest rates and lower endowment earnings weighed on NII and structural margins remain under pressure in a competitive market.
Read all updates
Q4-2026 Updates
Positive
Negative
Adjusted EPS and Operating Profit Growth
Adjusted earnings per share increased by 4.8%. Adjusted operating profit rose 3.4% from GBP 920m to GBP 951m, supported by total revenue growth of 4.2%.
Read all positive updates
Company Guidance
Management guided FY27 ROE of 13–14% (FY28 13.8–14.2%) on a path to long‑term targets of 16% ROE and 18% ROTE by FY2030, and reiterated a cost‑to‑income band of 52–54% (C/I 52.9% this year) and a credit‑loss‑ratio target range of 25–45bps (group CLR 36bps; SA CLR 14bps); they said the current defensive capital posture will continue (UK CET1 ~13%, SA CET1 ~13.6%). Management expects the heavy technology and platform investment program (GBP246m IT spend this year, ~20% of costs; GBP20.5m software capitalised; GBP282m total platform investment 2025–28; cloud modernisation 58%) to peak now and begin to drive an earnings/returns inflection from 2028. Near‑term operational context and disclosed metrics include adjusted operating profit GBP951m (+3.4%), total revenue +4.2%, non‑interest income +13.6%, adjusted EPS +4.8%, tangible NAV 553.1p (+9.2%), total dividend 38.5p (+5.5%), completed share buyback ~GBP110m (850.3m shares outstanding, pro‑forma ~840m), and private‑client ambitions (SA clients 128k → target ~250k; SA private‑client profit ZAR3.5bn → ZAR6.5bn by 2030; UK private‑client op profit GBP32m → GBP57m; UK loan book +~GBP3.3bn by 2030).Investec Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.73B | 4.87B | 4.82B | 4.00B | 2.95B |
| Gross Profit | 2.06B | 1.95B | 1.95B | 2.01B | 1.92B |
| EBITDA | 840.28M | 820.44M | 833.56M | 922.42M | 690.59M |
| Net Income | 724.51M | 693.48M | 941.04M | 804.87M | 516.20M |
Balance Sheet | |||||
| Total Assets | 63.83B | 58.25B | 56.63B | 58.13B | 58.84B |
| Cash, Cash Equivalents and Short-Term Investments | 5.51B | 5.52B | 7.70B | 8.47B | 9.13B |
| Total Debt | 7.99B | 2.80B | 8.02B | 2.89B | 3.36B |
| Total Liabilities | 58.37B | 52.60B | 51.15B | 52.82B | 53.10B |
| Stockholders Equity | 5.47B | 5.66B | 5.47B | 4.88B | 5.20B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -584.79M | -1.69B | -2.25B | -2.13B |
| Operating Cash Flow | -381.38M | -567.79M | -1.67B | -2.22B | -2.12B |
| Investing Cash Flow | -34.40M | 11.04M | -209.37M | -13.99M | 35.56M |
| Financing Cash Flow | -685.98M | -559.23M | 1.43B | 1.73B | 4.61B |
Investec Technical Analysis
Negative
635.50
Price Trends
632.80
Negative
621.73
Negative
607.03
Negative
Market Momentum
-10.67
Negative
42.48
Neutral
56.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INVP, the sentiment is Negative. The current price of 635.5 is above the 20-day moving average (MA) of 604.05, above the 50-day MA of 632.80, and above the 200-day MA of 607.03, indicating a bearish trend. The MACD of -10.67 indicates Negative momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INVP.
Investec Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £306.39M | 11.89 | 24.47% | 4.64% | 16.29% | 15.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £104.41M | 7.13 | 14.26% | 5.47% | 57.11% | ― | |
66 Neutral | £11.18B | 7.79 | 13.45% | 6.42% | -3.55% | 5.64% | |
52 Neutral | £26.22M | 40.88 | 1.45% | 11.51% | 2.19% | -26.09% | |
51 Neutral | £567.29M | -6.70 | -4.07% | 8.88% | -11.82% | 14.34% |
* Financial Sector Average
GB:INVP
Investec
592.00
46.95
8.61%
GB:CBG
Close Brothers Group
385.00
-49.40
-11.37%
GB:FRP
FRP Advisory Group Plc
125.00
-15.60
-11.10%
GB:CAV
finnCap Group plc
6.85
-3.07
-30.95%
GB:PEEL
Peel Hunt Limited
89.50
-9.65
-9.73%
Investec Corporate Events
Business Operations and StrategyStock Buyback
Investec Limited launches repurchase of up to 20% of preference shares
Positive
Sep 28, 2026
Investec Limited has launched a programme to repurchase up to 20% of its non-redeemable, non-cumulative, non-participating preference shares, acting under a general authority granted by shareholders and a board resolution passed earlier in Septemb...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec discloses ZAR 76m share purchases for 2021 incentive plan
Positive
Sep 28, 2026
Investec has reported a series of on-market acquisitions of its own ordinary shares by the Investec Limited Share Incentive Plan 2021 to meet obligations to employee participants. The transactions, conducted on the JSE between 22 and 25 September ...
Regulatory Filings and Compliance
Investec executives disclose routine share dealings linked to incentive awards
Neutral
Sep 23, 2026
Investec has disclosed a series of transactions in its plc ordinary shares by senior executives, including director Fani Titi and PDMR Stuart Spencer, in line with Market Abuse Regulation and JSE Listings Requirements. The trades relate to the ves...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Investec Updates £6bn Euro Medium Term Note Programme Prospectus
Positive
Sep 22, 2026
Investec plc has published a Base Prospectus Supplement for its £6 billion Euro Medium Term Note Programme, following approval by the U.K. Financial Conduct Authority. The document, accessible via the London Stock Exchange platform, updates t...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares to Fund 2021 Incentive Plans Across Dual Listings
Positive
Sep 21, 2026
Investec has disclosed a series of market purchases of its own shares in both Investec plc and Investec Limited to satisfy obligations under its 2021 share incentive plans. The transactions, executed in line with London and Johannesburg listing ru...
Business Operations and StrategyFinancial Disclosures
Investec flags earnings growth as Southern Africa outperforms softer UK arm
Positive
Sep 18, 2026
Investec Group, the dual-listed bank and wealth manager with primary operations in Southern Africa and the UK, reported that it continues to grow core lending, customer deposits and funds under management, supported by strong private client and co...
Business Operations and StrategyDelistings and Listing Changes
Investec to Fully Redeem Remaining Subordinated Notes and Cancel LSE Listing
Neutral
Sep 17, 2026
Investec plc has announced it will redeem in full the remaining GBP 55.78 million of its 2.625 per cent. Callable Fixed Rate Resettable Subordinated Notes due 2032 on 5 October 2026. The notes will be redeemed at par together with accrued interest...
Stock BuybackRegulatory Filings and Compliance
Investec Buys Shares to Fund Employee Incentive Plan
Neutral
Sep 17, 2026
Investec Limited and Investec plc operate as a dual-listed specialist banking and wealth management group, with shares traded on the JSE, LSE and several regional exchanges. The group serves investors in South Africa, the U.K. and broader internat...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec boosts employee share plans with multi-million share purchases
Positive
Sep 14, 2026
Investec has executed a series of on-market share acquisitions under its 2021 Share Incentive Plans for both Investec plc and Investec Limited, meeting regulatory disclosure requirements in London and Johannesburg. The transactions span 9 to 11 Se...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec buys shares to fund 2021 incentive plans
Neutral
Sep 9, 2026
Investec has executed a series of on-market share purchases to meet obligations under its 2021 share incentive plans for employees and participants. The group acquired 600,000 Investec plc shares across three transactions in early September at pri...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec buys shares on-market to fund 2021 staff incentive plans
Positive
Sep 4, 2026
Investec has disclosed a series of on-market share purchases made to service its 2021 share incentive plans for employees in both its UK and South African entities. Between 1 and 3 September 2026, Investec plc acquired a total of 670,128 ordinary ...
Stock BuybackRegulatory Filings and Compliance
Investec buys shares on market to fund 2021 incentive plans
Neutral
Sep 1, 2026
Investec has disclosed a series of on-market share acquisitions undertaken to meet obligations under its 2021 Share Incentive Plans for Investec plc and Investec Limited. The transactions, carried out in compliance with JSE Listings Requirements a...
Financial DisclosuresRegulatory Filings and Compliance
Investec posts strong capital and liquidity metrics in Q2 2026 Pillar 3 update
Positive
Aug 28, 2026
Investec has published its quarterly Pillar 3 capital and liquidity disclosures for the period ended 30 June 2026, detailing regulatory metrics for Investec plc, Investec Limited and Investec Bank Limited. The group reports robust capital position...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Purchases Shares to Fund 2021 Incentive Plans
Positive
Aug 27, 2026
Investec has disclosed a series of market purchases of ordinary shares in Investec plc and Investec Limited made between 24 and 26 August 2026 to satisfy obligations under its 2021 Share Incentive Plans. The transactions, conducted on both the Lon...
Business Operations and StrategyExecutive/Board Changes
Investec Begins Succession Planning as Key Risk Committee Chair Prepares to Exit Board
Neutral
Aug 20, 2026
Investec has announced a forthcoming change to its board, as independent non-executive director Vanessa Olver plans to take an executive role outside the group at the beginning of 2027. Olver currently chairs the Board Risk and Capital Committee a...
Business Operations and StrategyStock Buyback
Investec closes preference share buy-back after repurchasing 7.62% of issue
Positive
Aug 12, 2026
Investec Limited has continued to actively manage its capital structure through a buy-back of non-redeemable, non-cumulative, non-participating preference shares. Between 19 March 2026 and 5 August 2026, the company repurchased 401,798 preference ...
Executive/Board ChangesStock BuybackDividendsShareholder Meetings
Investec Shareholders Back All AGM Resolutions, Confirm Board Changes
Positive
Aug 6, 2026
Investec has reported that all resolutions at the annual general meetings of Investec Limited and Investec plc were approved by the required majorities, covering director elections, remuneration, dividends, auditor appointments and authorities to ...
Stock BuybackRegulatory Filings and Compliance
Investec Discloses Share Purchases for 2021 Incentive Plans
Neutral
Jul 29, 2026
Investec has disclosed on-market share acquisitions undertaken to meet obligations under its 2021 share incentive plans for employees. The transactions form part of regulatory requirements under the JSE Listings Requirements and the FCA’s di...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Investec Buys Shares to Fund 2021 Incentive Plans
Positive
Jul 27, 2026
Investec, the dual-listed banking and investment group with primary operations in South Africa and the U.K., continues to leverage broad exchange listings to support its international growth strategy. Its structured share incentive plans are a cor...
Business Operations and StrategyRegulatory Filings and Compliance
Investec discloses share purchases to fund 2021 incentive plans
Neutral
Jul 22, 2026
Investec has reported a series of on-market share acquisitions undertaken to meet obligations under its 2021 Share Incentive Plans for participants in both Investec Limited and Investec plc. The transactions, executed on 17, 20 and 21 July 2026, i...
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.