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Investec LTD (ITCFY)
:ITCFY
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Investec
(OTC:ITCFY)
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Rating:70Outperform
Price Target:―
Investec's overall stock score reflects its solid financial performance, promising technical indicators, and attractive valuation. The positive guidance from the earnings call supports the score, though challenges in the UK market present risks. The company's strong fundamentals and strategic focus on growth and risk management support a favorable outlook.
Investec (ITCFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.75B
Dividend Yield5.94%
Average Volume (3M)0.00
Price to Earnings (P/E)8.1
Beta (1Y)1.10
Revenue Growth4.24%
EPS GrowthN/A
CountryUS
Employees7,700
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.92
Shares Outstanding146,580,470
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue4.05
Enterprise Value/Gross Profit4.05
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Investec Business Overview & Revenue Model
Company DescriptionInvestec (ITCFY) is an international specialist bank and asset management company that operates primarily in the UK and South Africa. The firm provides a range of financial services, including wealth and investment management, corporate and institutional banking, and private banking. Investec is committed to delivering exceptional service and tailored solutions to its clients, leveraging its deep expertise in finance and investment across its strategic markets.
How the Company Makes MoneyInvestec makes money through a diversified revenue model that includes interest income from its banking activities, management fees, and performance fees from its asset management services. The corporate and institutional banking division generates revenue by providing lending, advisory, and transactional banking services to businesses. The wealth and investment management division earns fees from managing assets for private clients, institutions, and intermediaries. Additionally, Investec capitalizes on its strong market position and strategic partnerships to offer bespoke financial solutions, which further contribute to its earnings.
Investec Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in profit growth, strategic initiatives, and sustainability efforts. However, challenges such as muted growth in the first half, decreased net interest income in the U.K., and increased credit loss ratios were also highlighted. The sentiment reflects a cautious optimism with a focus on future growth opportunities.Q4-2025 Updates
Positive Updates
Record Pre-Provision Operating Profit
Pre-provision operating profit increased by 8% to over GBP 1 billion for the first time in history, indicating strong performance and client franchise strength.
Strategic Growth Initiatives
Announced significant growth initiatives backed by capital, expecting an additional 200 basis points in returns by 2030.
Dividend and Share Buyback
Declared a final dividend of 20p, bringing the full year dividend to 36.5p, and announced a buyback of around ZAR 2.5 billion (approximately GBP 100 million) over the next 12 months.
Loan Book and Funds Under Management Growth
Loan books and funds under management have been increasing, with corporate banking exposure in South Africa growing by about 12.6%.
Sustainability Commitments
Met commitments for reducing fossil fuel exposure and set a 2030 target of GBP 18 billion for transition and sustainable finance.
Negative Updates
Muted First Half Growth
Experienced muted activity and loan book growth in the first half of the year due to uncertainty from elections in South Africa and the U.K.
Decreased Net Interest Income in the U.K.
Net interest income in the U.K. reduced by 4.4%, impacted by lower interest rates and deposit repricing.
Higher Credit Loss Ratio
Credit loss ratio increased to 38 basis points, with ECLs up significantly year-on-year due to lower recoveries compared to the prior year.
Challenges in the U.K. Specialist Bank
Operating profit in the U.K. Specialist Bank grew by only 0.3%, with net interest income reduced despite loan book growth.
Company Guidance
During the call, Fani Titi and Nishlan Samujh presented a robust financial performance for the year ending March 2025, reporting a pre-provision operating profit increase of 8% to over GBP 1 billion and a return on tangible equity (RoTE) of 16.2%. The company also declared a final dividend of 20p, bringing the full-year dividend to 36.5p, and announced a buyback of approximately GBP 100 million. Key financial metrics highlighted included a cost-to-income ratio improvement from 53.8% to 52.6%, a credit loss ratio of around 38 basis points, and adjusted EPS growth from 55.1p to 79.1p. Looking forward, they expect to generate an additional 200 basis points in returns by 2030, aiming for an ROE of over 16% and a RoTE of approximately 18%. The call also emphasized strategic growth initiatives, including expanding their client base and enhancing their transactional banking offerings, particularly in the corporate mid-market and private client segments in both South Africa and the U.K.Investec Financial Statement Overview
Summary
Investec demonstrates solid financial performance with robust revenue growth and profitability. The company maintains a stable balance sheet, despite leverage risks, and shows potential for improving free cash flow.Income Statement
Investec has shown a solid revenue growth trend, with a significant increase in total revenue from the previous year. The gross profit margin is robust, indicating strong profitability, although the absence of EBIT and EBITDA data in the latest year may suggest potential operational challenges. Net profit margin is healthy, showing effective cost management.72
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio, indicating a balanced use of debt in its capital structure. The return on equity is positive, suggesting efficient use of shareholder funds. However, the equity ratio is relatively low, which may imply higher leverage risks. Overall, Investec maintains a stable balance sheet with a careful approach to debt management.65
Positive
Cash Flow
Investec's operating cash flow to net income ratio indicates a reasonable conversion of income to cash, though there is a notable decline in free cash flow compared to the previous year. This could suggest potential liquidity constraints or increased capital expenditures. The cash flow from operations indicates stability, but improvements in free cash flow are necessary for better financial health.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.00B | 2.00B | 1.91B | 1.80B | 1.88B | 1.48B |
| Gross Profit | 2.00B | 2.00B | 4.84B | 1.80B | 1.88B | 1.48B |
| EBITDA | 0.00 | 0.00 | 804.33M | 900.84M | 690.59M | 361.62M |
| Net Income | 693.48M | 693.48M | 941.04M | 804.87M | 516.20M | 268.34M |
Balance Sheet | ||||||
| Total Assets | 58.25B | 58.25B | 56.63B | 57.29B | 58.84B | 51.53B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 7.70B | 8.47B | 9.13B | 6.52B |
| Total Debt | 2.84B | 2.84B | 2.61B | 2.89B | 3.36B | 2.92B |
| Total Liabilities | 52.60B | 52.60B | 51.15B | 51.96B | 53.10B | 46.20B |
| Stockholders Equity | 5.66B | 5.66B | 5.47B | 4.88B | 5.20B | 4.76B |
Cash Flow | ||||||
| Free Cash Flow | -567.79M | -567.79M | -1.69B | -2.25B | -2.13B | -219.27M |
| Operating Cash Flow | -567.79M | -567.79M | -1.67B | -2.22B | -2.12B | -205.94M |
| Investing Cash Flow | 11.04M | 11.04M | -209.37M | -13.99M | 35.56M | 1.41M |
| Financing Cash Flow | -559.23M | -559.23M | 1.43B | -914.68M | 4.61B | -548.41M |
Investec Technical Analysis
Neutral
14.80
Price Trends
15.12
Negative
14.70
Positive
13.63
Positive
Market Momentum
0.07
Positive
49.01
Neutral
12.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITCFY, the sentiment is Neutral. The current price of 14.8 is below the 20-day moving average (MA) of 15.14, below the 50-day MA of 15.12, and above the 200-day MA of 13.63, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 12.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ITCFY.
Investec Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.20B | 16.43 | 16.25% | 11.28% | -8.82% | 4.87% | |
76 Outperform | $17.69B | 13.82 | 21.29% | 6.01% | -11.64% | -8.75% | |
70 Outperform | $13.75B | 8.06 | 12.41% | 5.94% | 4.24% | ― | |
70 Outperform | $21.97B | 20.85 | 9.34% | 5.74% | 1.13% | -11.93% | |
69 Neutral | $13.34B | 11.94 | 24.13% | 4.68% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $13.21B | 6.14 | ― | 3.31% | -1.23% | 16.81% |
* Financial Sector Average
ITCFY
Investec
14.97
-0.07
-0.47%
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BSBR
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BSAC
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28.38
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49.84%
CIB
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58.06
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WF
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55.18
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60.97%
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.