IVZ is now undervalued and could go up 117%
Invesco, headquartered in Atlanta, employs 8,527 people and operates in 120 countries, offering diverse investment strategies across various asset classes to retail and institutional markets. Its clients include public and private entities, unions, and financial institutions.
Based on our analysis, Invesco has received an undervalued rating of 4 out of 5 stars from Cashu, primarily based on its compelling financial ratios compared to the sector.
Invesco's Price-to-Earnings (PE) ratio stands at 9.42, significantly lower than the sector average of 12.19. A lower PE ratio can indicate that the company is undervalued relative to its earnings potential. Furthermore, the Price-to-Book (PB) ratio of 0.54 suggests that Invesco's stock is trading below its book value, while the sector average is 1.12, reinforcing the perception of undervaluation.
The company's net profit margin is 12.77%, which, though below the sector average of 18.27%, still indicates a healthy level of profitability. Additionally, Invesco’s Return on Equity (ROE) ratio of 5.32 is lower than the sector's average of 8.04, suggesting there may be room for improvement in efficiently generating profits from shareholders' equity.
On a positive note, Invesco boasts a robust dividend yield of 8.06%, well above the sector average of 3.30%, making it an attractive option for income-focused investors. Moreover, the Return on Assets (ROA) ratio of 2.87, compared to the sector's 0.88, highlights Invesco's effective use of assets to generate earnings.
Overall, these metrics indicate that Invesco may be undervalued, presenting potential opportunities for investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
