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Invesco Ltd
Invesco Ltd (IVZ) is a publicly traded independent investment management company based in Atlanta, Georgia, United States. The company offers a wide range of investment capabilities and solutions to individuals, institutions, and private investors worldwide. With approximately $1.4 trillion in assets under management as of December 31, 2021, Invesco operates in more than 20 countries and has a team of over 7,000 employees globally.
Invesco's business is divided into two primary segments: Investment Management and Investment Services. The Investment Management segment includes the company's institutional and retail products, such as mutual funds, closed-end funds, unit investment trusts, and exchange-traded funds (ETFs). The Investment Services segment includes the company's proprietary trading and asset servicing businesses, which provide a range of services to institutional clients, including trade execution, custody, and securities lending.
Earnings and Growth:
Invesco's financial performance has been strong in recent years, driven by growth in assets under management and the company's focus on expanding its product offerings. In the third quarter of 2021, the company reported net income of $360 million, up from $245 million in the same period in 2020. Earnings per share (EPS) for the quarter were $0.91, up from $0.60 in the prior-year period.
Over the past five years, Invesco's revenue has grown at a compound annual growth rate (CAGR) of 3.5%, while its net income has grown at a CAGR of 15.6%. Invesco has consistently generated strong cash flow, with operating cash flow of $1.0 billion in 2021.
In terms of growth, Invesco has been expanding its presence in key markets around the world, particularly in Asia, where the company sees significant opportunities for growth. Invesco has also been active in making strategic acquisitions and investments, such as its $1.2 billion acquisition of OppenheimerFunds in 2019.
Valuation:
As of February 22, 2023, Invesco's stock price was around $23.8 per share, which gives it a price-to-earnings (P/E) ratio of 13.8x. This valuation metric is lower than the industry average for asset management companies, which is around 17.3x. Additionally, Invesco's price-to-book (P/B) ratio is 1.1x, which is also lower than the industry average of 2.3x. These valuation metrics suggest that Invesco's stock may be undervalued relative to its peers.
Overall, Invesco is a well-established and diversified investment management company with a strong track record of earnings growth and a solid financial position. The company's focus on expanding its product offerings and geographic reach should continue to support its growth in the coming years.