Investec PLC



Investec PLC" (INVP.L)

Name of company: Investec PLC RIC: INVP.L

Price:434.30GBp6th April 2013

GICS:Asset Management

Company profile:

Investec Plc is London based international specialist banking and asset Management Company that has been operating in United Kingdom, South Africa, Australia and Ireland. These are their principal markets in which they offer range of financial products and services. It has three main divisions which are Asset Management, Wealth & Investment, and Specialist Banking (finance.yahoo).

One-Year Price Chart:

EPS

DPS

Plowback ratio

ROE

Actual Mar 12

30.10

8

1 - (134 436/ 2 299 925)

8.77

Estimate Mar 13

37.67

9

1 - (254 487 / 3 988 548)

9.27

Estimate Mar 14

46.296

12

1 - (254 487 / 3 988 548)

10.25

Estimate Mar 15

56.89

15

1 - (321 877 / 5 000 815)

10.22

Analysts' forecast

ROE*b

Economic model

Growth rate

5.82%

8.77*1.65

14.4%

Multistage growth DDM

Year

FY2009

FY2010

FY2011

FY2012

Feb 2013

Market Price

425.10

527.0

339.00

423.70

479.40

DDM Intrinsic Value

0

0

89.871

98.492

118.121

By Comparables

Using sector median ratio we have estimated price using P/E, P/B, DY, P/S, after that we have taken median value of these fair prices as the intrinsic value by comparable.

Growth Est

INVP.L

Industry

Sector

S&P 500

Current Qtr.

N/A

-100.00%

-26.50%

10.50%

Next Qtr.

N/A

N/A

-36.90%

16.30%

This Year

25.10%

8.10%

10.00%

8.20%

Next Year

23.20%

27.60%

25.20%

12.80%

Past 5 Years (per annum)

-15.68%

N/A

N/A

N/A

Next 5 Years (per annum)

9.00%

17.06%

18.15%

8.95%

Price/Earnings (avg. for comparison categories)

11.91

-13.99

-5.34

18.47

PEG Ratio (avg. for comparison categories)

1.32

1.35

3.17

1.89

INVP.L vs. Industry Leaders

Statistic

Industry Leader

INVP.L

INVP.L Rank

Market Capitalization

SDR.L

5.62B

3.71B

5 / 763

P/E Ratio (ttm)

HL.L

3,025.18

1,930.22

10 / 763

PEG Ratio (ttm, 5 yr expected)

LSE.L

45.03

1.32

46 / 763

Revenue Growth (Qtrly YoY)

VBP.AX

N/A

0.30%

319 / 763

EPS Growth (Qtrly YoY)

0093.HK

2967.10%

-12.20%

251 / 763

Long-Term Growth Rate (5 yr)

SUNS

64.00%

9.00%

55 / 763

Return on Equity (ttm)

JDT.L

N/A

5.75%

398 / 763

Long-Term Debt/Equity (mrq)

N/A

Dividend Yield (annual)

OZM

31.80%

N/A

N/A

Mean Target:

511.29

Median Target:

525

High Target:

559

Low Target:

444

No. of Brokers:

7

Recommendation Trends

Current Year

Last Year

Two Years Ago

Three Years Ago

Strong Buy

2

2

3

3

Buy

4

4

3

3

Hold

2

2

3

3

Underperform

0

0

0

0

Sell

0

0

0

0

It is recommended to hold Investec plc stock since it is expected that growth rate would be 5.82% with 14.4% of economic model which means that the price will go up with more than 6% of the current price.

Introduction

Investec Plc is British based banking and asset management group which offers finance products and services to four main markets that are United Kingdom, South Africa, Australia and Ireland. Investec Plc was established as small leasing and financing company in 1974 by Nestadt, Grolman and Kantor. It is listed on London Stock Exchange as well as Johannesburg Stock Exchange and it is also constitute of FTSE 250 (finance.yahoo).

Product and Services

There are six business divisions of Investec Plc that comprises of Asset Management, Wealth & Investment, Property, Private Banking, Investment Banking and Capital Markets. Among them have three main divisions which are Asset Management, Wealth & Investment, and Specialist Banking.

Financial Highlight

2012 was a challenging year for Investec Plc due to global macro-economic environments along with volatile market and level of activity was low which has adversely affected the overall company's results. Considering this, company managed to maintain their revenues with improvement in earnings due to revenue generated from capital light and non-lending activities (Investec Plc Annual report, 2012).

Operation in UK and South African was in line with home currencies while Australian operation was in loss. In 2012, Net income was improved by 2.6& while investment income has been reduced by 31.6%. Company was able to maintain a strong capital position along with liquidity position. There was increased in their part assets by 8.9%. The following is Investec Plc Sustainable business ...