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 9ppts over six months and grown 21ppts faster 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 positive. Usually, this means that a fairly valued or slightly undervalued stock has become more 'expensive', indicating that the market, in general, may have gained short-term confidence in the stock.

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. 

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

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

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 6.6 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 relatively 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. 

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

Investco Holding A.S.

TRY 234

3

Investco Holding A.S.

TRY 234

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 234

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