LSE:INVP

Stock Analysis Report

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Executive Summary

Investec Group provides various financial products and services in the United Kingdom and Europe, South Africa, Mauritius, India, Hong Kong, India, Australia, and the United States. More Details


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

INVP

-2.4%

GB Capital Markets

-2.0%

GB Market


1 Year Return

-64.9%

INVP

-3.1%

GB Capital Markets

-17.2%

GB Market

Return vs Industry: INVP underperformed the UK Capital Markets industry which returned -2.3% over the past year.

Return vs Market: INVP underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

INVPIndustryMarket
7 Day1.4%-2.4%-2.0%
30 Day23.0%0.1%-0.5%
90 Day-4.0%-3.4%-4.4%
1 Year-53.7%-64.9%0.1%-3.1%-14.1%-17.2%
3 Year-55.8%-69.6%18.7%4.5%-10.3%-21.4%
5 Year-54.6%-71.3%59.4%30.4%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INVP (£1.57) is trading below our estimate of fair value (£2.16)

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


Price To Earnings Ratio

PE vs Industry: INVP is good value based on its PE Ratio (9.1x) compared to the GB Capital Markets industry average (17.2x).

PE vs Market: INVP is good value based on its PE Ratio (9.1x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: INVP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: INVP is good value based on its PB Ratio (0.4x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Investec Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INVP's forecast earnings growth (24.9% per year) is above the savings rate (1.2%).

Earnings vs Market: INVP's earnings (24.9% per year) are forecast to grow faster than the UK market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INVP's revenue (6.3% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: INVP's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INVP's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Investec Group performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INVP has a high level of non-cash earnings.

Growing Profit Margin: INVP's current net profit margins (10.3%) are lower than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: INVP's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: INVP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INVP had negative earnings growth (-56.7%) over the past year, making it difficult to compare to the Capital Markets industry average (0.9%).


Return on Equity

High ROE: INVP's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Investec Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: INVP's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: INVP has a low allowance for bad loans (56%).

Low Risk Liabilities: 78% of INVP's liabilities are made up of primarily low risk sources of funding.

Loan Level: INVP has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: INVP's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: INVP has a high level of bad loans (2.2%).


Next Steps

Dividend

What is Investec Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INVP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INVP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INVP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INVP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: INVP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INVP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Fani Titi (58 yo)

2yrs

Tenure

UK£3,426,000

Compensation

Mr. Fani Titi, BSc Hons (Mathematics), MA (Mathematics), MBA, serves as Non-Executive Director at Ninety One PLC since November 19, 2019. He has been Chief Executive Officer at Investec plc and Investec Ba ...


CEO Compensation Analysis

Compensation vs Market: Fani's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD1.73M).

Compensation vs Earnings: Fani's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Fani Titi
Group CEO & Director2yrsUK£3.43m0.062%
£ 910.9k
Nishlan Samujh
Group Finance Director & Executive Director1.5yrsno data0.020%
£ 286.2k
James Whelan
Group Head of Risk & Executive Director0.50yrno data0.054%
£ 784.1k
Richard Wainwright
Executive Director0.083yrno data0.072%
£ 1.1m
Charles Jacobs
Independent Non-Executive Director6.17yrsno datano data
Ian Kantor
Non-Executive Director40.25yrsno data0.000030%
£ 438.7
Peregrine Oughton Crosthwaite
Independent Chairman of the Board2.42yrsno data0.012%
£ 182.1k
George Malloch-Brown
Independent Non-Executive Director6.17yrsno datano data
Khumo Shuenyane
Independent Non-Executive Director6.17yrsno data0.0086%
£ 125.8k
Zarina Bibi Bassa
Senior Independent Non-Executive Director2.5yrsno datano data
David Friedland
Independent Non-Executive Director7.58yrsno datano data
Philip Hourquebie
Independent Non Executive Director3.17yrsno datano data

4.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: INVP's board of directors are considered experienced (4.7 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

Investec Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investec Group
  • Ticker: INVP
  • Exchange: LSE
  • Founded: 1974
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: R30.823b
  • Listing Market Cap: R1.462b
  • Shares outstanding: 929.34m
  • Website: https://www.investec.com

Number of Employees


Location

  • Investec Group
  • 100 Grayston Drive
  • Sandown
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IVDNMSE (Namibian Stock Exchange)YesLTD Ordinary SharesNAZAROct 1992
INVESTECBSM (Botswana Share Market)YesLTD Ordinary SharesBWBWPOct 1992
INLJSE (The Johannesburg Securities Exchange)YesLTD Ordinary SharesZAZAROct 1992
IYYADB (Deutsche Boerse AG)YesLTD Ordinary SharesDEEUROct 1992
IVTJ.FOTCPK (Pink Sheets LLC)PLC Ordinary SharesUSUSDJan 2003
INVPLSE (London Stock Exchange)PLC Ordinary SharesGBGBPJan 2003
INPJSE (The Johannesburg Securities Exchange)PLC Ordinary SharesZAZARJan 2003
IVKADB (Deutsche Boerse AG)PLC Ordinary SharesDEEURJan 2003
INVPLBATS-CHIXE (BATS 'Chi-X Europe')PLC Ordinary SharesGBGBPJan 2003
ITCF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2009
IVTJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDJun 2011
INPPRJSE (The Johannesburg Securities Exchange)NON RED NON CUM NON PTG PREF ZAR0.001ZAZARJun 2011

Biography

Investec Group provides various financial products and services in the United Kingdom and Europe, South Africa, Mauritius, India, Hong Kong, India, Australia, and the United States. The company offers weal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 21:26
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.