IVZ Financial Analysis

Analysis Date: 1/29/2025

Business Model

Invesco generates revenue primarily through investment management fees, service and distribution fees, and performance fees

Revenue Sources

• Investment management fees (71% of Q4 2024 revenue)
• Service and distribution fees (24% of Q4 2024 revenue)
• Performance fees (2% of Q4 2024 revenue)

Revenue Distribution by Channel

• Retail: 69% of AUM
• Institutional: 31% of AUM

Income Statement Analysis

• Operating revenues increased 5.1% quarter over quarter driven by higher AUM and performance fees
• Operating expenses decreased 9.4% due to lower employee compensation
• Operating income increased 210% quarter over quarter showing strong operating leverage

Balance Sheet Analysis

• Total assets decreased 3.4% quarter over quarter
• Total liabilities decreased 8.5% driven by debt reduction
• Total equity increased slightly by 0.7%

Cash Flow Analysis

• Operating cash flow remained strong at $316.9 million
• Financing cash outflows increased due to share repurchases and dividends

Capital Allocation

The company maintains zero net debt and a strong balance sheet with $986.5 million in cash. Repurchased $25 million of shares in Q4 and paid $152 million in dividends. Credit facility balance remains at zero.

Management Commentary

Generated profitable growth with higher operating income compared to prior quarter and year

Strong net long-term inflows with 8% annualized organic growth rate

Operating margin improved to nearly 34% in Q4

Overall Sentiment: Positive and confident about strategic execution and business momentum

Recommendation

Rating: Buy

Reason for Rating: Strong organic growth, improving margins and solid execution warrant a Buy rating

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 10:09:41 AM