NYSE:IVZ

Stock Analysis Report

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Executive Summary

Invesco Ltd. is a publicly owned investment manager. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IVZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IVZ's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

6.1%

IVZ

1.0%

US Capital Markets

-0.7%

US Market


1 Year Return

67.6%

IVZ

38.8%

US Capital Markets

36.6%

US Market

Return vs Industry: IVZ exceeded the US Capital Markets industry which returned 38.8% over the past year.

Return vs Market: IVZ exceeded the US Market which returned 36.6% over the past year.


Shareholder returns

IVZIndustryMarket
7 Day6.1%1.0%-0.7%
30 Day16.3%10.8%4.3%
90 Day42.9%17.0%8.1%
1 Year76.5%67.6%42.2%38.8%39.6%36.6%
3 Year-14.1%-27.7%40.1%29.7%53.5%43.7%
5 Year8.4%-15.1%152.2%121.0%123.7%98.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IVZ ($23.95) is trading below our estimate of fair value ($46.66)

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


Price To Earnings Ratio

PE vs Industry: IVZ is good value based on its PE Ratio (21x) compared to the US Capital Markets industry average (22.8x).

PE vs Market: IVZ is good value based on its PE Ratio (21x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: IVZ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: IVZ is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (15x).


Next Steps

Future Growth

How is Invesco forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IVZ's forecast earnings growth (31.9% per year) is above the savings rate (2%).

Earnings vs Market: IVZ's earnings (31.9% per year) are forecast to grow faster than the US market (19.8% per year).

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

Revenue vs Market: IVZ's revenue is expected to decline over the next 3 years (-6.3% per year).

High Growth Revenue: IVZ's revenue is forecast to decline over the next 3 years (-6.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IVZ's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Invesco performed over the past 5 years?

-12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IVZ has a large one-off loss of $359.3M impacting its December 31 2020 financial results.

Growing Profit Margin: IVZ's current net profit margins (8.5%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: IVZ's earnings have declined by 12.4% per year over the past 5 years.

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

Earnings vs Industry: IVZ had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).


Return on Equity

High ROE: IVZ's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Invesco's financial position?


Financial Position Analysis

Short Term Liabilities: IVZ's short term assets ($18.4B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: IVZ's short term assets ($18.4B) do not cover its long term liabilities ($18.8B).


Debt to Equity History and Analysis

Debt Level: IVZ's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: IVZ's debt to equity ratio has reduced from 23.4% to 13.9% over the past 5 years.

Debt Coverage: IVZ's debt is well covered by operating cash flow (59.1%).

Interest Coverage: IVZ's interest payments on its debt are well covered by EBIT (1316.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Invesco current dividend yield, its reliability and sustainability?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IVZ's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: IVZ's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: IVZ's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.3%), IVZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IVZ's dividends in 3 years are forecast to be well covered by earnings (22.5% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Marty Flanagan (60 yo)

15.58yrs

Tenure

US$11,518,949

Compensation

Mr. Martin L. Flanagan, CFA, CPA is the President, Chief Executive Officer and Director of Invesco Ltd. since August 1, 2005. Previously, Mr. Flanagan served as the Chief Executive Officer, Advisor to the ...


CEO Compensation Analysis

Compensation vs Market: Marty's total compensation ($USD11.52M) is about average for companies of similar size in the US market ($USD10.48M).

Compensation vs Earnings: Marty's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Flanagan
President15.58yrsUS$11.52m0.96%
$ 105.6m
Gregory McGreevey
Senior Managing Director of Investments4yrsUS$5.33m0.12%
$ 12.9m
Andrew Tak Lo
Senior MD & Head of Invesco Asia Pacific20.08yrsUS$4.65m0.12%
$ 13.7m
Loren Starr
Vice Chairman15.42yrsUS$3.43m0.14%
$ 15.7m
Andrew Schlossberg
Senior MD & Head of the Americas5.17yrsUS$4.54m0.036%
$ 4.0m
Carl Stanton
Managing Partner & Head of Private Equity3.08yrsno datano data
Allison Dukes
Senior MD & CFO0.58yrno datano data
David Farmer
Chief Operating Officerno datano datano data
Annette Lege
Chief Accounting Officer4yrsno data0.023%
$ 2.5m
Donie Lochan
MD, CTO & Global Head of Technologyno datano datano data
Michael Hyman
Chief Investment Officer of Global Investment Grade and Emerging Marketsno datano datano data
Mark Giuliano
Senior MD & Chief Administrative Officer2.33yrsno data0.016%
$ 1.8m

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: IVZ's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Flanagan
President15.58yrsUS$11.52m0.96%
$ 105.6m
Nelson Peltz
Non Executive Director0.33yrno data0.00024%
$ 26.4k
G. Wagoner
Independent Non-Executive Chairmanno dataUS$373.74k0.013%
$ 1.4m
Carl Henrikson
Independent Non-Executive Director9.17yrsUS$279.97k0.014%
$ 1.5m
Thomas Finke
Non Executive Director0.25yrno data0.00013%
$ 14.3k
William Glavin
Independent Non-Executive Director1.83yrsUS$92.35k0.0038%
$ 416.7k
Phoebe Wood
Independent Non-Executive Director11.17yrsUS$314.97k0.012%
$ 1.3m
Denis Kessler
Independent Non-Executive Director19yrsUS$264.97k0.014%
$ 1.5m
Sarah Beshar
Independent Non-Executive Director3.83yrsUS$264.97k0.011%
$ 1.2m
Edward Garden
Director0.33yrno data0.00024%
$ 26.4k
George Baird
Chairman of Invesco Leveraged High Yield Fund Limitedno datano datano data
Nigel Sheinwald
Independent Non-Executive Director5.83yrsUS$264.97k0.0083%
$ 917.0k

4.8yrs

Average Tenure

67yo

Average Age

Experienced Board: IVZ's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Invesco Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Invesco Ltd.
  • Ticker: IVZ
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$10.995b
  • Shares outstanding: 459.07m
  • Website: https://www.invesco.com

Number of Employees


Location

  • Invesco Ltd.
  • Two Peachtree Pointe
  • 1555 Peachtree Street, NE, Suite 1800
  • Atlanta
  • Georgia
  • 30309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3IWDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1995
0UANLSE (London Stock Exchange)YesCommon SharesGBUSDAug 1995
IVZNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1995
I1VZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 00:32
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.