Invesco (IVZ) AI Stock Analysis

• Market Cap: $6.69B
• Dividend Yield: 5.62%
• Average Volume (3M): 4.62M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.23
• Revenue Growth: 5.69%
• EPS Growth: N/A
• Country: US
• Employees: 8,495
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 0.44
• Shares Outstanding: 447,556,270
• 10 Day Avg. Volume: 5,347,336
• 30 Day Avg. Volume: 4,616,748
• PEG Ratio: -0.27
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.35
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $15.35
• Price Target Upside: 5.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $16.50 ▲(13.56%Upside)

Invesco's strong earnings call and financial performance drive its overall score. The company's strategic partnerships and improved income position are significant positives, while technical indicators and valuation contribute to a stable outlook.

Positive Factors

Mandate Wins and Client Relationships

IVZ has been winning mandates and there is no reported 'anti' rhetoric or significant reallocation away from U.S.-based managers, reflecting stability in international client relationships.

Market Performance

IVZ shares rallied on 1Q earnings day, outperforming the S&P 500 and other traditional asset managers, reflecting strong market performance.

Partnerships and Strategic Agreements

Invesco and Barings announced a new strategic product and distribution partnership agreement with a focus on private credit, which could boost future growth.

Negative Factors

Earnings Projections

Lower management fees contribute to a decrease in earnings projections, reflecting potential financial challenges.

Economic Risks

Bear case risks are raised due to tariffs-induced drawdown, posing potential threats to financial stability.

Fee Structure Changes

The shift toward lower fee ETFs is likely to remain firmly intact, potentially impacting revenue growth negatively.

Invesco Business Overview & Revenue Model

Company Description

Invesco Ltd. (IVZ) is a global independent investment management company headquartered in Atlanta, Georgia. The company operates in the financial services sector, primarily focusing on providing a diverse range of investment solutions and services to clients worldwide. Invesco offers a wide array of products, including mutual funds, exchange-traded funds (ETFs), unit trusts, and investment management services across various asset classes, including equities, fixed income, and alternative investments.

How the Company Makes Money

Invesco generates revenue primarily through management fees, performance fees, and service fees associated with its investment products and services. The company's key revenue streams include fees earned from managing mutual funds, ETFs, and institutional accounts. Management fees are typically calculated as a percentage of the assets under management (AUM), providing a steady income stream that scales with market performance and client investments. Performance fees are another source of revenue, charged as a percentage of investment gains above a certain benchmark or hurdle rate. Invesco also benefits from strategic partnerships and distribution agreements with financial institutions and advisors, which expand its reach and client base, further contributing to its earnings.

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.

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.

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.

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	2.44B	2.31B	2.39B
	EBIT
896.30M	832.10M	835.70M	1.32B	1.79B	1.39B
	EBITDA
1.23B	1.24B	1.02B	1.53B	1.93B	1.45B
	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	1.90B	1.71B
	Total Assets
28.14B	27.01B	28.93B	29.76B	32.69B	36.50B
	Total Debt
0.00	7.55B	9.04B	8.56B	9.71B	9.12B
	Net Debt
-821.70M	6.05B	7.11B	7.12B	7.56B	7.41B
	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	510.30M	969.30M	1.12B
	Operating Cash Flow
1.16B	1.19B	1.30B	703.20M	1.08B	1.23B
	Investing Cash Flow
263.70M	68.40M	-244.30M	-375.60M	-847.90M	-865.10M
	Financing Cash Flow
-984.00M	-1.66B	-585.40M	-966.90M	117.30M	-285.90M

Invesco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVZ, the sentiment is Negative. The current price of 14.53 is below the 20-day moving average (MA) of 14.70, above the 50-day MA of 14.06, and below the 200-day MA of 16.15, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IVZ.

Invesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AB	76 Outperform	$4.47B	10.90	20.69%	7.96%	―	53.17%
IVZ	76 Outperform	$6.69B	11.64	5.50%	5.62%	5.69%	―
JHG	75 Outperform	$5.83B	14.37	8.55%	4.32%	17.41%	-4.75%
AMG	74 Outperform	$5.23B	14.28	12.81%	0.02%	-6.37%	-28.43%
BX	68 Neutral	$171.54B	42.77	34.07%	2.64%	22.06%	16.57%
STT	65 Neutral	$27.83B	10.80	11.21%	3.11%	15.02%	66.71%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%

Invesco Corporate Events

Invesco Announces Strategic Hybrid Investment Solution

On May 23, 2025, Invesco Ltd. held its Annual General Meeting where shareholders elected eleven board members, approved executive compensation on a non-binding basis, and appointed PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. Invesco also announced its decision to utilize both State Street and Blackrock platforms for its investment operations, aiming to leverage a hybrid solution to optimize client outcomes. This strategic move is expected to streamline operations without impacting the company’s 2025 expense guidance.

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.

Invesco Secures Major Financial Agreements in May 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.