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.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 31ppts over six months and grown 11ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

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. 

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. 

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

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 poor 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. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

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 moderately volatile. In other words, the stock will fall more than 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 moderate. 

In normal market circumstances, INVES.IS is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much 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. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, of fair value on EV/EBITDA, overvalued on P/FCF. 

Investco Holding A.S.

TRY 202.3

3

Investco Holding A.S.

TRY 202.3

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 202.3

About

About

About

About