Investec (INVR) AI Stock Analysis

• Market Cap: £8.98B
• Dividend Yield: N/A
• Average Volume (3M): 2.09K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 1,300
• Sector: Financial
• Sector Strength: 87
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 2,754,587
• 10 Day Avg. Volume: 5,136
• 30 Day Avg. Volume: 2,093
• PEG Ratio: -5.83
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.75
• 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

Investec's overall score reflects strong revenue growth and profitability, balanced by operational inefficiencies and cash flow issues. Technical indicators show strong momentum but suggest caution due to overbought conditions. The absence of valuation metrics limits a full assessment, but the company's growth trajectory is a positive factor.

Investec Business Overview & Revenue Model

Company Description

Investec plc, a specialist bank and wealth manager, provides various financial products and services in the United Kingdom and internationally. It offers wealth and investment services, such as investments and savings, financial planning, and pensions and retirement services to private clients, professional advisors, charities, and trusts. The company also provides specialist banking products and services comprising private banking services, including lending, private capital, transactional banking, savings, and foreign exchange; corporate and investment banking services, such as lending, advisory, and treasury and risk management solutions, as well as institutional research, sales, and trading; and principal investments, property investment, and fund management solutions to high net worth and high income private clients, as well as corporate, private equity, government, and institutional clients. In addition, it offers nominee, leasing, debt issuance, property, financing, shipping, investment management, corporate secretary, insurance, merchant banking and stock broking, aircraft leasing, and retail credit services. The company was founded in 1974 and is headquartered in London, the United Kingdom. Investec plc is a subsidiary of Investec Group.

How the Company Makes Money

Investec generates revenue through a diversified model comprising three primary streams. Firstly, its Specialist Banking division earns income from interest on loans and advances, fees, and commissions for services such as advisory, asset financing, and treasury operations. Secondly, the Wealth & Investment division accrues fees for managing client portfolios, advisory services, and performance-based incentives. Lastly, the Asset Management segment collects management and performance fees from institutional and retail clients investing in a range of assets. Investec's earnings are bolstered by strategic partnerships and a robust client network, capitalizing on market opportunities and geographic presence in key financial hubs.

Investec Financial Statement Overview

Summary

Investec shows strong revenue and profit growth with high gross margins, indicating financial health. However, operational inefficiencies and cash flow constraints present potential risks. The company maintains moderate leverage, common in the industry, while a decline in free cash flow raises concerns about liquidity.

Income Statement

Investec demonstrates strong revenue growth with a 132% increase from the previous year. The gross profit margin is notably high at 465%, indicating exceptional profitability relative to revenue. However, EBITDA margin is negative, suggesting issues with operational efficiency or high depreciation/amortization costs. Overall, the income statement reflects strong top-line growth but mixed operational performance.

Balance Sheet

The debt-to-equity ratio is 1.41, showing moderate leverage which is typical in capital markets. The equity ratio is 9.67%, indicating a lower proportion of equity financing. Return on equity is robust at 17.19%, reflecting efficient use of equity capital. The balance sheet shows a healthy equity position with moderate leverage, aligning with industry norms.

Cash Flow

There is a significant decline in free cash flow growth rate, which dropped by 88.29% from the previous year. The operating cash flow to net income ratio is 0.14, indicating low cash conversion from earnings. Free cash flow to net income ratio is 0.12, suggesting limited cash availability for reinvestment or returns to shareholders. The cash flow statement indicates challenges in maintaining cash generation relative to net income.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.04B	4.48B	3.02B	2.84B	3.74B
	Gross Profit
4.84B	4.48B	3.02B	2.84B	3.74B
	EBIT
993.44M	384.55M	268.79M	101.15M	123.05M
	EBITDA
804.33M	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
941.04M	804.87M	516.20M	268.34M	1.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.97B	6.29B	6.84B	4.37B	3.98B
	Total Assets
56.63B	57.29B	58.89B	51.45B	50.56B
	Total Debt
7.73B	8.17B	8.17B	7.51B	9.03B
	Net Debt
-6.97B	1.88B	1.32B	3.14B	5.05B
	Total Liabilities
51.74B	52.36B	53.56B	46.47B	45.96B
	Stockholders Equity
5.47B	4.48B	4.79B	4.41B	4.03B
Cash Flow		Free Cash Flow
112.47M	960.40M	1.28B	-386.64M	1.71B
	Operating Cash Flow
131.45M	990.74M	1.29B	-373.31M	1.75B
	Investing Cash Flow
-209.37M	-3.23B	-3.42B	700.94M	-5.58B
	Financing Cash Flow
-372.06M	1.78B	4.64B	-1.08B	3.45B

Investec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 610.00
• 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 GB:INVR, the sentiment is Positive. The current price of 610 is above the 20-day moving average (MA) of 609.38, above the 50-day MA of 608.65, and above the 200-day MA of 572.48, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 60.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INVR.

Investec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLUS	81 Outperform	£2.35B	11.66	40.24%	5.31%	2.95%	9.84%
ALPH	80 Outperform	£1.31B	14.30	37.13%	0.59%	18.79%	4.95%
IGG	76 Outperform	£3.74B	10.97	19.85%	4.34%	6.34%	30.64%
TCAP	74 Outperform	£1.97B	12.19	8.13%	5.99%	2.63%	132.46%
INVR	67 Neutral	£8.98B	―		―	―	―
Sector *	64 Neutral	$12.74B	9.85	7.88%	17015.07%	12.17%	-6.02%
INVP	62 Neutral	£8.98B	6.73	12.50%	7.28%	-3.32%	-31.32%