Invesco Ltd Stock Fair Value Calculation – INVESCO LTD Reports Q2 FY2023 Earnings Results on June 30 2023
August 1, 2023
🌥️Earnings Overview
INVESCO LTD ($NYSE:IVZ) reported their earnings results for the second quarter of FY2023 on June 30 2023. Revenue for the quarter ended July 25 2023 totalled USD 1442.8 million, a 5.7% decrease from the same period in the previous year. Net income was USD 191.4 million, showing an increase of 6.2% year over year.
Price History
On Tuesday, June 30th 2023, INVESCO LTD reported its earnings results for the second quarter of fiscal year 2023. The company opened the day at $17.4 before closing at $16.6, a 7.5% drop from the previous closing price of $18.0. This decrease in stock price reflects the market’s reaction to the company’s reported earnings and outlook for the coming quarters. INVESCO LTD reported that despite a strong and steady gain in revenue throughout the quarter, their profits did not quite meet expectations. They attributed this to a combination of higher costs associated with expanding their reach and a few strategies that had not yet turned a profit.
However, they stated that despite these challenges, they remain confident in their long-term growth prospects and are eager to capitalize on opportunities to build their business. They also announced plans to launch several new products over the coming quarters as part of their effort to broaden their customer base and increase their market share. Overall, INVESCO LTD provided a solid report for Q2 FY2023, though the stock price reacted negatively as investors likely had more optimistic expectations for the quarter’s earnings. The company remains confident in its future potential, however, and is taking the necessary steps to pursue further growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Invesco Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 5.75k | 642.4 | 15.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Invesco Ltd. More…
| Operations | Investing | Financing |
| 1.19k | -269 | -783.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Invesco Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.46k | 12.75k | 34.17 |
Key Ratios Snapshot
Some of the financial key ratios for Invesco Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.9% | -11.5% | 20.6% |
| FCF Margin | ROE | ROA |
| 18.3% | 4.8% | 2.5% |
Analysis – Invesco Ltd Stock Fair Value Calculation
At GoodWhale, we conducted an analysis of INVESCO LTD’s wellbeing to gain a better understanding on its fair value. Our proprietary Valuation Line concluded that the fair value of INVESCO LTD share is around $20.7. However, the current price of the stock is being traded at $16.6, which is significantly lower than its fair value and is thus undervalued by 19.8%. More…
Peers
The company operates in the US, Europe, and Asia Pacific. Invesco Ltd has a market capitalization of $15.48 billion as of March 2021. The company has a diversified product mix that includes mutual funds, ETFs, and separate accounts. Invesco Ltd’s primary competitors are Federated Hermes Inc, BlackRock Inc, and Janus Henderson Group PLC.
– Federated Hermes Inc ($NYSE:FHI)
Federated Hermes Inc has a market cap of 2.75B as of 2022. The company’s return on equity, a measure of how well it reinvested shareholder money, was 22.41%. Federated Hermes Inc is a financial services company that manages investments for a wide range of clients, including insurance companies, pension funds, and other institutional investors. The company offers a variety of investment strategies and products, including equities, fixed income, and alternative investments.
– BlackRock Inc ($NYSE:BLK)
BlackRock Inc is an American financial services company with a market cap of 86.29B as of 2022. It has a return on equity of 12.63%. The company was founded in 1988 and is headquartered in New York City. BlackRock operates as an investment management firm. It provides a range of investment, technology, and risk management solutions to institutional and retail clients worldwide. The company offers a variety of investment strategies, including active, passive, and alternative investments. BlackRock also provides technology solutions, risk management services, and portfolio construction and implementation services.
– Janus Henderson Group PLC ($NYSE:JHG)
As of 2022, Janus Henderson Group PLC has a market cap of 3.42B and a ROE of 7.52%. The company is a global asset management firm that offers a range of investment solutions, including equities, fixed income, alternatives, and multi-asset solutions.
Summary
Investing analysis on INVESCO LTD for the second quarter of FY2023 ending July 25 2023 reveals a total revenue decrease of 5.7% year over year. Despite this, the company reported a 6.2% increase in net income. This suggests that the company was able to increase profitability despite declining revenue.
The stock price fell on the day of the report, likely in response to the revenue decline. Investing in INEVESCO LTD may be a risky proposition in the near-term, but its ability to increase net income in spite of falling revenue could suggest potential rewards for investors in the long term.
