Investec (INVR) AI Stock Analysis

• Market Cap: £9.87B
• Dividend Yield: 9.37%
• Average Volume (3M): 1.15K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 1,300
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 2,754,587
• 10 Day Avg. Volume: 599
• 30 Day Avg. Volume: 1,146
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £648.00
• Price Target Upside: 2.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: 648.00p ▲(2.05% Upside)

Investec's overall stock score reflects a challenging financial performance with significant revenue decline and negative cash flows, despite strong profit margins. Technical analysis shows mixed signals, and the high dividend yield is a positive aspect of its valuation. The absence of earnings call data and corporate events limits additional insights.

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 multiple streams, primarily from interest income, fees, and commissions associated with its banking and asset management operations. The company earns interest income from lending activities, which include mortgages, personal loans, and corporate financing. Additionally, Investec charges fees for advisory services, asset management, and transaction-related activities in investment banking. The asset management division plays a significant role in revenue generation, as it collects management fees based on assets under management (AUM) and performance fees based on investment returns. Strategic partnerships, particularly in the investment and financial services sector, also contribute to revenue growth by expanding service offerings and client reach. Overall, Investec's diversified revenue model allows it to mitigate risks and capitalize on market opportunities.

Investec Financial Statement Overview

Summary

Investec's financial performance is mixed. While profit margins are strong and the balance sheet is stable, significant revenue decline and negative cash flows present major challenges. The company needs to address these issues to ensure long-term stability.

Income Statement

Investec's income statement reveals significant volatility in revenue growth, with a sharp decline of 66.7% in the latest year. While the net profit margin is strong at 32.6%, indicating profitability, the drastic revenue drop is concerning. EBIT and EBITDA margins are robust, suggesting efficient operations, but the overall revenue trajectory poses a risk.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.495, indicating manageable leverage. However, the return on equity has decreased to 5.9%, reflecting reduced profitability. The equity ratio is stable, suggesting a solid capital structure, but the declining ROE is a concern for future growth.

Cash Flow

Investec's cash flow statement highlights challenges, with negative operating and free cash flows in the latest period. The free cash flow to net income ratio is slightly above 1, indicating some cash generation relative to profits, but the negative cash flow growth and operating cash flow coverage ratio suggest liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.93B	1.02B	4.78B	3.80B	2.92B	2.74B
Gross Profit	1.02B	1.02B	1.99B	2.25B	1.91B	1.60B
EBITDA	832.01M	896.24M	872.93M	952.45M	721.99M	363.58M
Net Income	622.63M	331.75M	941.04M	765.16M	476.72M	268.34M
Balance Sheet
Total Assets	58.25B	58.25B	56.63B	57.29B	58.89B	51.45B
Cash, Cash Equivalents and Short-Term Investments	5.52B	5.52B	6.97B	6.29B	6.44B	3.96B
Total Debt	2.80B	2.80B	7.87B	8.17B	8.17B	7.51B
Total Liabilities	52.60B	52.60B	51.74B	52.36B	53.56B	46.47B
Stockholders Equity	5.66B	5.66B	5.47B	4.46B	4.79B	4.41B
Cash Flow
Free Cash Flow	0.00	-584.79M	112.47M	960.40M	1.28B	-386.64M
Operating Cash Flow	1.51B	-567.79M	131.45M	990.74M	1.29B	-373.31M
Investing Cash Flow	-2.89B	11.04M	-209.37M	3.24M	1.13M	12.86M
Financing Cash Flow	264.63M	-559.23M	-372.06M	-411.27M	669.37M	81.95M

Investec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Positive

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 635 is above the 20-day moving average (MA) of 634.12, above the 50-day MA of 631.70, and above the 200-day MA of 604.60, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 82.37 is Negative, neither overbought nor oversold. The STOCH value of 18.62 is Positive, 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
ALPH	78 Outperform	£1.78B	21.65	30.28%	0.35%	17.44%	-12.83%
PLUS	72 Outperform	£2.25B	11.15	42.26%	5.17%	1.09%	4.88%
IGG	69 Neutral	£3.72B	10.13	20.39%	4.37%	9.46%	32.24%
TCAP	69 Neutral	£1.85B	11.09	8.74%	6.21%	5.77%	81.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INVP	62 Neutral	£9.87B	7.65	12.42%	9.81%	2.66%	-30.08%
INVR	55 Neutral	£9.87B	―	―	9.37%	―	―