Invesco Ltd. (IVZ) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Financial Services · Asset Management
Is Invesco Ltd. a safe investment right now?
Invesco Ltd. is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $27.45 (Watch Zone).
Why the Altman Z-Score does not apply to Invesco Ltd.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Financial Services companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Financial Services companies is planned for a future update.
What is Invesco Ltd. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $27.45 | 11 Wall Street analysts |
| Analyst High / Low | $31.00 / $24.00 | Range of analyst price targets |
| Price / Book | 1.17x | Current market valuation vs book value |
| Return on Equity | -1.2% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Invesco Ltd.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Financial Services companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Financial Services companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Financial Services companies is planned for a future update.
Is Invesco Ltd.'s dividend safe?
Can Invesco Ltd. afford its dividend?
Payout ratio is 56.5%. FCF covers the dividend 1.5x. 31 consecutive years of payments.
Invesco Ltd.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $6.4B | $6.1B | $6.0B | Rising |
| Net Income | −$0.3B | $0.8B | $0.9B | Declining |
| Free Cash Flow | $1.4B | $1.1B | $0.5B | Rising |
| Gross Margin | 35.2% | 33.4% | 40.3% | Declining |
Recent events that affect our IVZ analysis
IVZ earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.58. Revenue estimate: $1.27B. Our current Fair Value: $27.45 — a significant beat or miss could shift this estimate.
IVZ analyst consensus: 42% bullish (5 of 12 analysts)
1 Strong Buy, 4 Buy, 7 Hold, 0 Sell, 0 Strong Sell. Consensus target: $27.45 (7.4% upside). Compare with our independent Fair Value: $27.45.
IVZ paid $0.2100/share dividend
Dividend Safety Grade: A. Payout ratio: 56.5%.
IVZ beat EPS estimates by 7.1%
Reported EPS: $0.62 vs estimate $0.58. Earnings strength supports our Fair Value of $27.45 (7.4% above current price).
IVZ paid $0.2100/share dividend
Dividend Safety Grade: A. Payout ratio: 56.5%.
IVZ beat EPS estimates by 37.7%
Reported EPS: $0.61 vs estimate $0.44. Earnings strength supports our Fair Value of $27.45 (7.4% above current price).
IVZ paid $0.2100/share dividend
Dividend Safety Grade: A. Payout ratio: 56.5%.
IVZ missed EPS estimates by 10.7%
Reported EPS: $0.36 vs estimate $0.40. Our Fair Value of $27.45 may face downward pressure if the trend continues.
IVZ paid $0.2100/share dividend
Dividend Safety Grade: A. Payout ratio: 56.5%.
IVZ beat EPS estimates by 13.9%
Reported EPS: $0.44 vs estimate $0.39. Earnings strength supports our Fair Value of $27.45 (7.4% above current price).
IVZ paid $0.2050/share dividend
Dividend Safety Grade: A. Payout ratio: 56.5%.
IVZ beat EPS estimates by 9.6%
Reported EPS: $0.52 vs estimate $0.47. Earnings strength supports our Fair Value of $27.45 (7.4% above current price).
Common questions about Invesco Ltd.
What is Invesco Ltd. stock price today?
Invesco Ltd. (IVZ) stock price is $25.56 as of the latest market close, traded on the NYSE exchange.
What does Invesco Ltd. do?
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 organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds.
What is Invesco Ltd. market cap?
Invesco Ltd. has a market capitalization of $11.36B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is IVZ in?
Invesco Ltd. operates in the Financial Services sector, specifically within the Asset Management industry. It trades on the NYSE under the ticker symbol IVZ.
Is IVZ stock overvalued or undervalued?
Based on our valuation model, Invesco Ltd. trades 6.9% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $27.45
- Current Price: $25.56
- Valuation Zone: Watch Zone
What is IVZ stock forecast and analyst target price?
Based on 11 Wall Street analysts, the consensus price target for Invesco Ltd. is $27.45, implying upside of 7.4% from the current price.
- Analyst High Target: $31.00
- Analyst Low Target: $24.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Invesco Ltd. revenue and earnings growing?
Here are the analyst consensus growth estimates for Invesco Ltd.:
- Revenue growth (current year est.): 11.9%
- EPS growth (current year est.): 26.6%
- Revenue growth (next year est.): 5.8%
- EPS growth (next year est.): 12.7%
What are Invesco Ltd.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $6.4B | Rising |
| Net Income | −$0.3B | Declining |
| Free Cash Flow | $1.4B | Rising |
| Gross Margin | 35.2% | Declining |
What is IVZ's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 8.8x
How volatile is IVZ stock?
Invesco Ltd. has a beta of 1.63, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Invesco Ltd. have?
Invesco Ltd.'s balance sheet shows:
- Total Cash: $1.04B
- Total Debt: $2.23B
- Net Cash Position: $-1.19B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Invesco Ltd.'s free cash flow?
Invesco Ltd. generated $745.7M in trailing twelve-month free cash flow (from $1.53B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Invesco Ltd. pay a dividend, and is it safe?
Yes, Invesco Ltd. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 3.4%
- Payout Ratio: 56.5%
- Consecutive Years Paid: 31
- 5-Year Dividend Growth: -20.6%
- FairValueLabs Safety Grade: A
Is Invesco Ltd. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like Invesco Ltd.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Invesco Ltd. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Financial Services companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is IVZ's return on equity (ROE)?
Invesco Ltd.'s return on equity is -1.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy IVZ stock?
IVZ shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol IVZ
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is IVZ a value stock or speculative?
FairValueLabs classifies Invesco Ltd. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
What is IVZ's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-1.60
- Forward EPS (next 12 months est.): $2.90
- Analyst consensus EPS (this year): $2.57
- Analyst consensus EPS (next year): $2.90
Other Financial Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
IVZ analysis methodology: How we calculate fair value, Z-Scores, and moat ratings