Investec (ITCFY)
OTHER OTC:ITCFY
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Investec
(OTC:ITCFY)
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Rating:62Neutral
Price Target:
$17.50
▲(18.16% Upside)
Action:Reiterated
Date:05/26/26
The score is held back primarily by weak cash generation and a notable increase in leverage, despite strong revenue momentum and solid profitability. Cheap valuation (low P/E and strong dividend yield) and generally positive earnings-call guidance provide meaningful support, while technicals are only mildly positive with limited momentum.
Positive Factors
Diversified fee-rich model & FUM growth
Investec's mix of specialist banking and wealth/asset management drives recurring fee income and reduces reliance on interest margins. Strong FUM and fee momentum (non‑interest income +13.6%) underpin durable revenue streams tied to client relationships and AUM growth, supporting steadier earnings through cycles.
Negative Factors
Persistent negative operating cash flow
Repeated negative operating cash flow suggests reported profits are not consistently converting to cash, limiting self-funding ability for growth, investment or capital returns. Over months this constrains flexibility, raises reliance on external funding, and increases vulnerability to funding or credit stress.
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Positive Factors
Negative Factors
Diversified fee-rich model & FUM growth
Investec's mix of specialist banking and wealth/asset management drives recurring fee income and reduces reliance on interest margins. Strong FUM and fee momentum (non‑interest income +13.6%) underpin durable revenue streams tied to client relationships and AUM growth, supporting steadier earnings through cycles.
Read all positive factors
Investec (ITCFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.25B
Dividend Yield5.51%
Average Volume (3M)0.00
Price to Earnings (P/E)7.3
Beta (1Y)1.00
Revenue Growth1.31%
EPS GrowthN/A
CountryUS
Employees7,700
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.56
Shares Outstanding145,232,500
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)0.94
Price to Sales (P/S)1.07
P/FCF Ratio0.00
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda11.33
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 Description
Established in 1974 and headquartered in Sandton, South Africa, Investec Group operates as a global provider of diverse financial solutions. The firm extends its broad spectrum of services across the United Kingdom, South Africa, and international...
How the Company Makes Money
Investec makes money primarily through its specialist banking and wealth/asset management activities. In specialist banking, it earns net interest income by funding itself (mainly through customer deposits and wholesale funding) and lending to cli...
Investec Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call balanced clear progress and execution on strategic priorities (FUM growth, fee momentum, completed buyback, dividend increase, tangible NAV growth, cloud modernization progress and detailed Private Client growth plans) against near‑term headwinds (NII compression, higher operating costs from large tech investments being expensed, geopolitical risk and some capital ratio effects in South Africa). Management articulated credible medium‑term targets (ROE 16% by 2030, ROTE 18% by 2030) and signposted an inflection in returns from FY28 as investments start to convert to revenue. On balance the positives around client inflows, wealth momentum, capital returns and a clear execution plan outweigh the short‑term profitability and macro risks.Positive Updates
Adjusted EPS and Profitability Growth
Adjusted earnings per share rose 4.8% year‑on‑year. Adjusted operating profit increased 3.4% to GBP 951m (from GBP 920m) and total revenue grew 4.2%, reflecting resilient core profitability in a challenging macro environment.
Negative Updates
Net Interest Income Compression
Net interest income declined 1.6% as reducing interest rates further pressured endowment capital and margins. Management flagged continued margin pressure in a competitive lending market and uncertainty on interest rate trajectory.
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Q4-2026 Updates
Positive
Negative
Adjusted EPS and Profitability Growth
Adjusted earnings per share rose 4.8% year‑on‑year. Adjusted operating profit increased 3.4% to GBP 951m (from GBP 920m) and total revenue grew 4.2%, reflecting resilient core profitability in a challenging macro environment.
Read all positive updates
Company Guidance
Management guidance flagged a near-term ROE of 13–14% for FY27, 13.8–14.2% for 2028 and long‑term targets of 16% ROE and 18% ROTE by FY2030, with an expected inflection in returns from FY2028 as the current investment program (GBP 282m through 2025–28) peaks; group targets include maintaining a cost‑to‑income ratio of 52–54% (actual 52.9%), a credit‑loss ratio within 25–45 bps (group 36 bps, improved from 38 bps; SA 14 bps), and continued conservative capital and liquidity (CET1 UK 13.0%, SA 13.6%); near‑term results and operating metrics shown were adjusted EPS +4.8%, adjusted operating profit +3.4% to GBP951m (from GBP920m), total revenue +4.2%, NII −1.6%, non‑interest income +13.6%, operating costs +4.7%, IT spend GBP246m (20% of cost base) and cloud modernization 58%; capital returns include total dividend 38.5p (+5.5%) and completed buyback ~GBP110m (ZAR2.5bn); Private Client growth targets include SA clients 128k→250k, operating profit ZAR3.5bn→ZAR6.5bn, AUM My Investments ZAR5bn→ZAR29bn and ~ZAR100bn loan growth by 2030, while UK Private Clients aim to grow from 8,200 clients (addressable 95k) toward ~13k–18k and lift operating profit GBP32m→GBP57m (with a ~GBP25m uplift to 2030 and ~GBP3.3bn loanbook expansion).Investec Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.80B | 2.00B | 1.91B | 1.80B | 1.88B |
| Gross Profit | 2.10B | 2.00B | 1.91B | 1.80B | 1.88B |
| EBITDA | 824.12M | 21.38B | 804.33M | 900.84M | 690.59M |
| Net Income | 738.03M | 693.48M | 941.04M | 804.87M | 516.20M |
Balance Sheet | |||||
| Total Assets | 63.84B | 58.25B | 56.63B | 57.89B | 58.84B |
| Cash, Cash Equivalents and Short-Term Investments | 5.51B | 12.11B | 7.70B | 8.47B | 9.13B |
| Total Debt | 7.99B | 2.84B | 2.61B | 2.76B | 2.88B |
| Total Liabilities | 58.38B | 52.60B | 51.15B | 2.76B | 53.10B |
| Stockholders Equity | 5.47B | 5.66B | 5.47B | 4.88B | 5.20B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -567.79M | -1.69B | -2.25B | -2.13B |
| Operating Cash Flow | -387.58M | -567.79M | -1.67B | -2.22B | -2.12B |
| Investing Cash Flow | -34.95M | 11.04M | -209.37M | -3.99B | 35.56M |
| Financing Cash Flow | -697.13M | -559.23M | 1.43B | 1.73B | 4.61B |
Investec Technical Analysis
Neutral
14.81
Price Trends
16.62
Positive
16.40
Positive
15.59
Positive
Market Momentum
0.11
Positive
48.96
Neutral
57.23
Neutral
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 14.81 is below the 20-day moving average (MA) of 16.82, below the 50-day MA of 16.62, and below the 200-day MA of 15.59, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 57.23 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $21.67B | 9.52 | 17.47% | 10.29% | -1.31% | -42.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $15.39B | 14.14 | 20.90% | 4.29% | -3.09% | 2.72% | |
62 Neutral | $15.25B | 7.30 | 12.75% | 5.51% | 1.31% | ― | |
62 Neutral | $15.04B | 7.71 | 9.33% | 3.71% | 7.90% | 8.29% | |
61 Neutral | $20.42B | 16.28 | 20.11% | 5.56% | -7.31% | -7.03% | |
58 Neutral | $19.44B | 15.43 | 11.11% | 4.98% | 17.17% | -1.33% |
* Financial Sector Average
ITCFY
Investec
16.62
3.79
29.59%
BCH
Banco De Chile
40.21
11.94
42.23%
BSBR
Banco Santander Brasil
5.20
0.16
3.15%
BSAC
Banco Santander Chile
32.64
9.67
42.07%
CIB
Grupo Cibest
81.45
39.00
91.85%
WF
Woori Finance Holdings Co
62.55
16.49
35.80%
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.