Investco Holding A.S. operates as an investment company in Turkey. It invests in companies operating in renewable energy, mining, chemistry, iron-steel, technology, software, venture capital, food, and healthcare industries. Investco Holding A.S. was founded in 2011 and is based in Istanbul, Turkey.

Turkey

Investco Holding A.S.

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

INVES.IS reported revenue of TRY  At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 2 383% from FY23 to TRY 5.96.

Over the past six months, the stock has consistently fallen, resulting in a 29% total decrease. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 22ppts. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 34ppts and accelerated its growth by 7ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -81.0% in the last 12 months, up from -363.0% in FY23. 

Historically, INVES.IS has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -31.2%, a growth from -49.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 6.3% in the last 12 months, an increase from -0.5% in FY23. 

Investco Holding A.S. reported a return on equity (RoE) of 6.9% in the last 12 months, up from -0.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 6.4%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 6.2 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are acceptable. In combination with good business standards, shareholder rights are protected.

INVES.IS has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and poor working capital management. We note solid return on capital, low margin volatility, adequate interest coverage, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, INVES.IS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, INVES.IS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. We would also like to highlight the mild intraday volatility of the instrument. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITDA, overvalued on P/FCF. 

Investco Holding A.S.

TRY 223.4

3

Investco Holding A.S.

TRY 223.4

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 223.4

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