LSE:INV

Stock Analysis Report

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Executive Summary

The Investment Company plc is a closed-ended balanced fund launched and managed Fiske Plc.

Rewards


Snowflake Analysis

Share Price & News

How has Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

INV

-1.2%

GB Capital Markets

2.0%

GB Market


1 Year Return

-9.3%

INV

9.7%

GB Capital Markets

-12.8%

GB Market

Return vs Industry: INV underperformed the UK Capital Markets industry which returned 9.7% over the past year.

Return vs Market: INV exceeded the UK Market which returned -12.5% over the past year.


Shareholder returns

INVIndustryMarket
7 Day0.4%-1.2%2.0%
30 Day1.9%8.4%5.7%
90 Day-17.8%1.2%-8.2%
1 Year-5.7%-9.3%12.2%9.7%-8.6%-12.8%
3 Year-4.0%-18.1%57.2%46.0%-6.2%-17.6%
5 Year-1.2%-25.2%127.6%102.2%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Investment undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INV (£2.73) is trading below our estimate of fair value (£3.65)

Significantly Below Fair Value: INV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: INV is good value based on its PE Ratio (4.4x) compared to the Capital Markets industry average (15.4x).

PE vs Market: INV is good value based on its PE Ratio (4.4x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INV is good value based on its PB Ratio (0.7x) compared to the GB Capital Markets industry average (1.6x).

Future Growth

How is Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Investment performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INV has high quality earnings.

Growing Profit Margin: INV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: INV's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: INV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: INV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (16.4%).


Return on Equity

High ROE: INV's Return on Equity (16.7%) is considered low.

Financial Health

How is Investment's financial position?


Financial Position Analysis

Short Term Liabilities: INV's short term assets (£1.4M) exceed its short term liabilities (£112.6K).

Long Term Liabilities: INV has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: INV is debt free.

Reducing Debt: INV has no debt compared to 5 years ago when its debt to equity ratio was 2%.

Debt Coverage: INV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: INV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Dividend

What is Investment's current dividend yield, its reliability and sustainability?

4.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INV's dividend (4.49%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: INV's dividend (4.49%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


Stability and Growth of Payments

Stable Dividend: INV's dividend payments have been volatile in the past 10 years.

Growing Dividend: INV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24%), INV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

24.3yrs

Average board tenure


CEO

Investment has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Frederick Douglas Thomson
Chairman15yrsUK£14.50k1.19% £155.6k
Stephen Cockburn
Non Executive Director29.33yrsUK£14.50kno data
Peter Allen
Non Executive Director24.33yrsUK£14.50k0.42% £54.6k
Martin Henry Perrin
Senior Independent Directorno dataUK£14.50k0.15% £19.5k
Timothy Metcalfe
Non-executive Directorno datano data0.32% £42.3k

24.3yrs

Average Tenure

69yo

Average Age

Experienced Board: INV's board of directors are seasoned and experienced ( 24.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Investment Company plc's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • The Investment Company plc
  • Salisbury House
  • London Wall
  • London
  • EC2M 5QS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INVLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 1996

Biography

The Investment Company plc is a closed-ended balanced fund launched and managed Fiske Plc. The fund invests in the public equity and fixed income markets across the United Kingdom. It primarily invests in a portfolio of equities, preference shares, loans, stocks, and long-term debentures. The Investment Co. plc was formed in 1868 and is domiciled in the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:22
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.