📊 IVZ Key Takeaways
Is Invesco Ltd. (IVZ) a Good Investment?
Invesco faces severe profitability headwinds with net income and EPS collapsing -315.5% and -235.6% YoY respectively, while returns on capital are alarmingly weak (ROE 1.9%, ROA 0.9%), indicating poor utilization of its $26.8B asset base. While the company maintains operational efficiency (19.1% operating margin) and a solid balance sheet with conservative leverage (0.16x Debt/Equity), the fundamental deterioration in earnings quality and capital efficiency signals structural challenges in the business model that offset operational strengths.
Invesco shows mixed fundamentals: revenue grew 5.1% year over year and free cash flow remained strong at $1.44B, but reported profitability deteriorated sharply with negative operating income, negative net income, and weak returns on equity and assets. The balance sheet is not heavily levered and liquidity is adequate, which provides resilience, but the quality of earnings is currently poor and the business needs a clear recovery in margins for the fundamentals to improve materially.
Invesco Ltd. Key Strengths (IVZ)
- Strong operating margin of 19.1% demonstrates operational efficiency and cost control
- Conservative leverage profile with Debt/Equity of 0.16x and exceptional interest coverage of 10.3x provides financial flexibility
- Positive free cash flow generation of $198.4M with 11.4% FCF margin shows underlying cash-generating capability
- Strong operating cash flow and free cash flow generation despite reported losses
- Conservative leverage profile with low debt-to-equity and manageable long-term debt
- Positive top-line growth and adequate liquidity support financial flexibility
IVZ Stock Risks: Invesco Ltd. Investment Risks
- Catastrophic net income decline of -315.5% YoY and EPS collapse of -235.6% YoY indicate severe profitability deterioration
- Returns on capital critically low with ROE of 1.9% and ROA of 0.9%, suggesting inadequate returns on the $12.3B shareholder equity base
- Sluggish revenue growth of 5.1% YoY insufficient to offset profitability challenges and improve capital efficiency for a mature asset manager
- Severe deterioration in operating and net profitability suggests weak earnings quality or significant charges
- Negative interest coverage indicates reported earnings are currently insufficient to support financing costs
- Negative ROE and ROA point to poor capital efficiency and pressure on shareholder returns
Key Metrics to Watch
- Quarterly net income trend and earnings quality - critical to determine if 2024 decline was one-time charge or structural deterioration
- Assets Under Management (AUM) flows and fee rate evolution - core drivers of asset manager profitability
- ROE and ROA recovery trajectory - essential indicator of whether capital efficiency will improve
- Operating margin and net income recovery
- Operating cash flow and free cash flow sustainability
Invesco Ltd. (IVZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Invesco Ltd. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
IVZ Profit Margin, ROE & Profitability Analysis
IVZ vs Market Sector: How Invesco Ltd. Compares
How Invesco Ltd. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Invesco Ltd. Stock Overvalued? IVZ Valuation Analysis 2026
Based on fundamental analysis, Invesco Ltd. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Invesco Ltd. Balance Sheet: IVZ Debt, Cash & Liquidity
IVZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Invesco Ltd.'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $-0.73 indicates the company is currently unprofitable.
IVZ Revenue Growth, EPS Growth & YoY Performance
IVZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.5B | N/A | $0.38 |
| Q3 2025 | $1.5B | N/A | $0.12 |
| Q2 2025 | $1.5B | N/A | $-0.03 |
| Q1 2025 | $1.5B | $141.5M | $0.31 |
| Q3 2024 | $1.4B | $55.0M | $0.12 |
| Q2 2024 | $1.4B | $132.2M | $0.29 |
| Q1 2024 | $1.4B | $141.5M | $0.31 |
| Q3 2023 | $1.4B | $131.4M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Invesco Ltd. Dividends, Buybacks & Capital Allocation
IVZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Invesco Ltd. (CIK: 0000914208)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IVZ
What is the AI rating for IVZ?
Invesco Ltd. (IVZ) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IVZ's key strengths?
Claude: Strong operating margin of 19.1% demonstrates operational efficiency and cost control. Conservative leverage profile with Debt/Equity of 0.16x and exceptional interest coverage of 10.3x provides financial flexibility. ChatGPT: Strong operating cash flow and free cash flow generation despite reported losses. Conservative leverage profile with low debt-to-equity and manageable long-term debt.
What are the risks of investing in IVZ?
Claude: Catastrophic net income decline of -315.5% YoY and EPS collapse of -235.6% YoY indicate severe profitability deterioration. Returns on capital critically low with ROE of 1.9% and ROA of 0.9%, suggesting inadequate returns on the $12.3B shareholder equity base. ChatGPT: Severe deterioration in operating and net profitability suggests weak earnings quality or significant charges. Negative interest coverage indicates reported earnings are currently insufficient to support financing costs.
What is IVZ's revenue and growth?
Invesco Ltd. reported revenue of $1.7B.
Does IVZ pay dividends?
Invesco Ltd. pays dividends, with $95.3M distributed to shareholders in the trailing twelve months.
Where can I find IVZ SEC filings?
Official SEC filings for Invesco Ltd. (CIK: 0000914208) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IVZ's EPS?
Invesco Ltd. has a diluted EPS of $0.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is IVZ's fundamental grade?
Based on our AI fundamental analysis in June 2026, Invesco Ltd. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is IVZ stock overvalued or undervalued?
Valuation metrics for IVZ: ROE of 1.9% (sector avg: 15%), net margin of 13.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is IVZ's AI grade for 2026?
Our dual AI analysis gives Invesco Ltd. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IVZ's free cash flow?
Invesco Ltd.'s operating cash flow is $212.6M, with capital expenditures of $14.2M. FCF margin is 11.4%.
How does IVZ compare to other Market stocks?
Vs Default sector averages: Net margin 13.2% (avg: 12%), ROE 1.9% (avg: 15%), current ratio 1.46 (avg: 1.8).