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Invesco (IVZ)
NYSE:IVZ
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Invesco
(NYSE:IVZ)
76Outperform
Positive Factors
Market Performance
IVZ shares rallied on 1Q earnings day, rising 8.3% vs 2.5% for S&P 500 and the 3.8% average for other traditional asset managers.
Performance Resilience
Flows were positive despite market volatility, indicating resilience in the company's performance.
Strategic Partnership
Invesco and Barings announced a new strategic product and distribution partnership agreement with a focus on private credit.
Negative Factors
Earnings Projections
Lower management fees contribute to a decrease in earnings projections.
Macro Environment
Decreasing EPS and price objective due to a negative macro set-up, driven by a higher tax rate and reduced management fees and non-operating income.
Revenue Growth
The shift toward lower fee ETFs is likely to remain firmly intact, potentially impacting revenue growth.
Invesco (IVZ) vs. S&P 500 (SPY)
Market Cap
$6.91B
Dividend Yield5.31%
Average Volume (3M)5.95M
Price to Earnings (P/E)12.4
Beta (1Y)1.22
Revenue Growth5.69%
EPS GrowthN/A
CountryUS
Employees8,495
SectorFinancial
Sector Strength87
IndustryAsset Management
Share Statistics
EPS (TTM)0.44
Shares Outstanding447,556,270
10 Day Avg. Volume4,387,399
30 Day Avg. Volume5,947,697
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)0.46
Price to Sales (P/S)0.00
P/FCF Ratio6.14
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit1.63
Enterprise Value/Ebitda1.04
Forecast
1Y Price Target
$15.17Price Target Upside-1.04% Downside
Rating ConsensusHold
Number of Analyst Covering12
Invesco Business Overview & Revenue Model
Company DescriptionInvesco Ltd. is a global independent investment management company headquartered in Atlanta, Georgia. The company operates in the financial services sector and offers a broad range of investment products and solutions to institutions and individual investors worldwide. Invesco provides a diversified set of offerings including mutual funds, exchange-traded funds (ETFs), unit trusts, and retirement plans, aiming to help clients achieve their financial objectives through active and passive management strategies.
How the Company Makes MoneyInvesco makes money primarily through management fees charged on its assets under management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the type of investment product and market conditions. The company also earns performance fees, which are additional charges based on the investment returns above a certain benchmark. Invesco's revenue streams are further diversified by its product offerings, including mutual funds, ETFs, and other investment vehicles. Significant partnerships with financial advisors and institutional clients enhance its distribution network, contributing to the growth of assets under management and, consequently, its earnings. Additionally, Invesco leverages its global presence to tap into various markets, enhancing its revenue potential through geographic diversification.
Invesco Financial Statement Overview
Summary
Invesco's financial position reflects resilience and operational efficiency. The company has managed to recover from previous losses, evidenced by improved net income and strong cash flow generation. The absence of debt in the latest year significantly strengthens the balance sheet. However, revenue volatility and asset decline pose risks that need addressing to ensure sustained growth. Overall, Invesco is on a positive trajectory with key areas to monitor for continued financial health.Income Statement
Invesco demonstrated a solid income statement performance with a significant turnaround in net income, going from a loss in 2023 to a positive net income in 2024. The gross profit margin is strong as gross profit equals total revenue, indicating no cost of goods sold. Revenue growth is moderate, with a 6.13% increase from 2023 to 2024. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency. However, the decline in total revenue from 2021 to 2023 indicates potential revenue volatility challenges.75
Positive
Balance Sheet
The balance sheet of Invesco shows a healthy equity position with no total debt in 2024, marking a significant improvement from previous years. The equity ratio stands strong at 53.89%, indicating a solid financial foundation. However, the decline in total assets from 2020 to 2024 and fluctuating stockholder's equity pose potential long-term challenges.70
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow generation with a stable operating cash flow. The free cash flow growth rate from 2023 to 2024 is commendable, contributing to financial flexibility. The operating cash flow to net income ratio is nearly 1, showcasing efficient conversion of income to cash. Despite the positive cash flow position, the decline in cash and short-term investments suggests a need for prudent liquidity management.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.12B | 6.07B | 5.72B | 6.05B | 6.89B | 6.15B | Gross Profit |
| 2.93B | 2.03B | 2.01B | 4.32B | 4.98B | 4.34B | EBIT |
| 896.30M | 832.10M | 835.70M | 1.32B | 2.53B | 1.39B | EBITDA |
| 1.23B | 1.24B | 1.02B | 1.32B | 1.93B | 1.59B | Net Income Common Stockholders |
| 804.40M | 774.80M | -96.90M | 920.70M | 1.63B | 761.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.87B | 1.50B | 1.93B | 1.43B | 2.15B | 1.71B | Total Assets |
| 28.14B | 27.01B | 28.93B | 29.76B | 32.69B | 36.50B | Total Debt |
| 0.00 | 7.55B | 9.04B | 8.08B | 9.42B | 8.80B | Net Debt |
| -821.70M | 6.05B | 7.11B | 6.64B | 7.27B | 7.09B | Total Liabilities |
| 12.36B | 11.34B | 13.02B | 12.91B | 16.01B | 21.48B | Stockholders Equity |
| 14.70B | 14.56B | 14.60B | 15.21B | 15.50B | 14.36B |
| Cash Flow | Free Cash Flow | ||||
| 1.08B | 1.12B | 1.14B | 503.30M | 969.30M | 1.12B | Operating Cash Flow |
| 1.16B | 1.19B | 1.30B | 696.20M | 1.08B | 1.23B | Investing Cash Flow |
| 263.70M | 68.40M | -244.30M | -368.60M | -847.90M | -865.10M | Financing Cash Flow |
| -984.00M | -1.66B | -585.40M | -966.90M | 117.30M | -285.90M |
Invesco Technical Analysis
Positive
15.33
Price Trends
14.26
Positive
15.79
Negative
16.25
Negative
Market Momentum
0.38
Negative
65.14
Neutral
70.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Positive. The current price of 15.33 is above the 20-day moving average (MA) of 14.21, above the 50-day MA of 14.26, and below the 200-day MA of 16.25, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IVZ.
Invesco Risk Analysis
Invesco disclosed 43 risk factors in its most recent earnings report. Invesco reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Invesco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.05B | 15.38 | 8.55% | 4.03% | 17.41% | -4.75% | |
76 Outperform | $6.91B | 12.37 | 5.50% | 5.31% | 5.69% | ― | |
76 Outperform | $4.51B | 10.99 | 20.69% | 8.00% | ― | 53.17% | |
70 Outperform | $5.21B | 14.39 | 12.81% | 0.02% | -6.37% | -28.43% | |
67 Neutral | $177.98B | 44.38 | 34.07% | 2.76% | 24.92% | 16.65% | |
65 Neutral | $28.03B | 11.04 | 11.21% | 3.02% | 15.02% | 66.71% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% |
* Financial Sector Average
Performance Comparison
IVZ
Invesco
15.33
0.07
0.46%
AMG
Affiliated Managers
182.32
25.08
15.95%
AB
AllianceBernstein
40.85
9.85
31.77%
STT
State Street
98.28
23.73
31.83%
BX
Blackstone Group
145.45
23.06
18.84%
JHG
Janus Henderson Group
38.39
5.37
16.26%
Invesco Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 24.74%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
Invesco Ltd. demonstrated strong growth and strategic initiatives in the first quarter, marked by significant net asset inflows, a beneficial partnership with MassMutual and Barings, and increased dividend payouts. However, challenges such as volatility in global markets, outflows in fundamental equities, and pressure on operating expenses moderated the overall positive sentiment.Q1-2025 Updates
Positive Updates
Strong Growth in Net Asset Inflows
Invesco Ltd. generated $17.6 billion in long-term net asset inflows, achieving a 5.3% annualized growth rate. This contributed to an 18% increase in adjusted operating income and a 330 basis point expansion in operating margins compared to the same quarter last year.
Strategic Partnership with MassMutual and Barings
Invesco Ltd. announced a new strategic product distribution partnership with MassMutual and Barings, including a $1 billion repurchase of preferred stock. This partnership is focused on delivering private credit-oriented income solutions to US wealth management clients, supported by MassMutual's initial investment of $650 million.
Record ETF Growth
Invesco Ltd.'s global ETF and index platform recorded 13% annualized organic growth in the first quarter. The QQQM ETF achieved near-record flows of $4 billion, and net new ETF flows in EMEA amounted to $8 billion.
Successful Preferred Stock Repurchase
Invesco Ltd. reached an agreement with MassMutual to repurchase $1 billion of preferred stock, providing balance sheet flexibility and anticipated EPS accretion of $0.13 on a run-rate basis once loans are repaid.
Dividend Increase
Invesco Ltd. announced an increase in its quarterly common stock dividend from $0.205 to $0.21 per share, reflecting strong cash position and cash flow.
Negative Updates
Decline in Fundamental Equities
The firm experienced net outflows of $7 billion in fundamental equities, particularly in the US region, although offset by inflows in EMEA and Asia Pacific regions.
Volatility Impacting Markets
Global financial markets have experienced increased volatility, which has tempered ETF demand and caused a shift towards more cautious asset allocation among investors.
Challenges in Operating Expenses
Despite efforts to manage operating expenses, there is increased difficulty in providing specific guidance due to recent market volatility. Seasonal compensation expenses were higher, and ongoing implementation of the Alpha platform incurs additional costs.
Company Guidance
During the first quarter earnings call for Invesco Ltd., the company reported robust financial performance and strategic initiatives. The quarter saw $17.6 billion in long-term net asset inflows, representing a 5.3% annualized growth rate. Adjusted operating income increased by 18%, with operating margins expanding by over 330 basis points compared to the same quarter last year. Invesco Ltd. also announced a significant new strategic product distribution partnership with MassMutual, entailing a $650 million seed investment, and a $1 billion repurchase of preferred stock to enhance balance sheet flexibility. The partnership with Barings aims to deliver private credit-oriented income solutions to U.S. wealth management clients. The company highlighted its geographic diversity and local presence across the Americas, EMEA, and Asia Pacific, which contributed to $15 billion in net long-term inflows from Asia Pacific and EMEA regions. Furthermore, despite market volatility, Invesco Ltd.'s global ETF and index platform recorded 13% annualized organic growth. The company also increased its quarterly common stock dividend and emphasized disciplined expense management to navigate the uncertain market environment.Invesco Corporate Events
Private Placements and FinancingStock BuybackBusiness Operations and Strategy
Invesco Secures Major Financial Agreements in May 2025
Neutral
May 16, 2025
On May 16, 2025, Invesco Ltd. entered into significant financial agreements, including a $1.0 billion Term Loan Agreement and a $2.5 billion Credit Agreement. The Term Loan Agreement, involving a syndicate of banks, was used to finance the repurchase of $1.0 billion of the company’s preferred stock from MassMutual. The Credit Agreement amends a prior agreement, extending the credit facility to $2.5 billion for general corporate purposes. These agreements include various covenants and financial ratios that Invesco must maintain, impacting its financial strategy and operations.
The most recent analyst rating on (IVZ) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Invesco stock, see the IVZ Stock Forecast page.
Spark’s Take on IVZ Stock
According to Spark, TipRanks’ AI Analyst, IVZ is a Outperform.
Invesco presents a strong financial performance with significant strategic initiatives that enhance its market position. The absence of debt and attractive valuation metrics contribute to a favorable outlook. However, technical indicators suggest a cautious approach due to mixed signals, and market volatility poses ongoing challenges. Overall, Invesco is well-positioned for growth, supported by its strategic partnerships and financial resilience.
To see Spark’s full report on IVZ stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.