3i Infrastructure (3IN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 2.87%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.59
• Revenue Growth: 5.43%
• EPS Growth: -3.82%
• Country: UK
• Employees: N/A
• Sector: Financial
• Sector Strength: 86
• Industry: Asset Management
• EPS (TTM): 0.35
• Shares Outstanding: 922,350,000
• 10 Day Avg. Volume: 1,059,622
• 30 Day Avg. Volume: 1,052,872
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.15
• Price to Cash Flow (P/CF): -45.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 310.32p
• Price Target Upside: -2.57% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

3i Infrastructure is well-positioned with strong profitability, a solid balance sheet, and strategic growth initiatives. Despite challenges in revenue growth and cash flow constraints, the low P/E ratio and dividend yield indicate an attractive valuation. Positive corporate events further support a stable outlook, although technical indicators suggest caution with current market momentum.

Positive Factors

Dividend Growth

3i Infra is on target to meet its dividend growth forecast of +6.3% in the year to 31/03/25.

Portfolio Performance

The portfolio performed well with larger assets such as TCR and ESV AGT making good progress.

Negative Factors

Market Conditions

The recent rise in bond yields has been a headwind to 3iN’s share price.

3i Infrastructure Business Overview & Revenue Model

Company Description

3i Infrastructure (3IN) is a publicly listed investment company that focuses on investing in infrastructure businesses and assets primarily in Europe, North America, and other developed markets. The company aims to provide shareholders with a total return of 8% to 10% per annum over the medium term, comprising a mix of income and capital appreciation. 3i Infrastructure invests in a diverse range of sectors, including utilities, transportation, energy, and social infrastructure, targeting companies that offer essential services with stable and predictable cash flows.

How the Company Makes Money

3i Infrastructure generates revenue primarily through the returns on its investments in infrastructure assets and businesses. The company earns income from dividends and interest on its investments, as well as capital gains realized from the sale of these investments. The infrastructure projects and companies in which 3i Infrastructure invests typically provide essential services, which ensures stable and predictable cash flows, contributing to the company's earnings. Additionally, 3i Infrastructure benefits from strategic partnerships and management expertise provided by its investment advisor, 3i Group plc, which helps in identifying and managing investments to optimize performance and returns. The company also focuses on active asset management, operational improvements, and value creation strategies to enhance the profitability of its investments.

3i Infrastructure Financial Statement Overview

Summary

3i Infrastructure demonstrates strong profitability and financial stability, with high EBIT and EBITDA margins and low leverage. However, the decline in revenue and potential cash flow constraints suggest areas for improvement.

Income Statement

The company demonstrates strong profitability with a high net profit margin of 92.78% for the latest year. However, the revenue growth rate is negative at -6.27%, indicating a decline compared to the previous year. Despite this, the EBIT and EBITDA margins are robust at 78.88% and 98.40%, respectively, showcasing efficient cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.15, indicating low leverage. The return on equity is impressive at 10.38%, reflecting good profitability relative to equity. The equity ratio of 85.00% indicates substantial equity financing, suggesting financial stability.

Cash Flow

The cash flow position shows improvement with a return to positive free cash flow of 118 million from a previous negative position. However, the operating cash flow to net income ratio of 0.34 suggests that a lower portion of net income is being realized as operating cash flow, indicating potential cash flow constraints.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
297.00M	374.00M	399.00M	412.00M	210.00M	229.00M
	Gross Profit
297.00M	374.00M	497.00M	514.00M	220.00M	254.00M
	EBIT
216.00M	295.00M	405.00M	424.00M	186.00M	206.00M
	EBITDA
52.00M	368.00M	-27.00M	-12.00M	22.00M	21.00M
	Net Income Common Stockholders
325.00M	347.00M	394.00M	404.00M	206.00M	224.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.00M	5.00M	5.00M	17.00M	462.00M	413.00M
	Total Assets
3.93B	3.93B	3.71B	3.02B	2.42B	2.30B
	Total Debt
510.00M	510.00M	501.00M	231.00M	0.00	0.00
	Net Debt
505.00M	505.00M	496.00M	214.00M	-462.00M	-413.00M
	Total Liabilities
590.00M	590.00M	606.00M	316.00M	25.00M	29.00M
	Stockholders Equity
3.34B	3.34B	3.10B	2.70B	2.39B	2.27B
Cash Flow		Free Cash Flow
69.00M	118.00M	-259.00M	-578.00M	136.00M	16.00M
	Operating Cash Flow
56.00M	118.00M	-259.00M	-578.00M	136.00M	16.00M
	Investing Cash Flow
174.00M	120.00M	-303.00M	-601.00M	105.00M	11.00M
	Financing Cash Flow
-133.00M	-118.00M	257.00M	135.00M	-87.00M	140.00M

3i Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 318.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:3IN, the sentiment is Positive. The current price of 318.5 is above the 20-day moving average (MA) of 317.38, above the 50-day MA of 317.27, and below the 200-day MA of 323.92, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:3IN.

3i Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HICL	74 Outperform		22.12	3.22%	7.45%	-3.67%	51.49%
3IN	71 Outperform		8.91	9.71%	2.87%	5.43%	-3.82%
Sector *	64 Neutral	$14.24B	10.18	8.97%	4.28%	16.38%	-12.00%
INPP	60 Neutral		76.30		7.45%	―	―
GCP	59 Neutral		42.43	2.14%	9.63%	23.59%	-73.22%
UKW	49 Neutral		31.01	-1.54%	9.19%	-5.38%	-145.59%

3i Infrastructure Corporate Events

3i Infrastructure Appoints Lisa Gordon as Non-Executive Director

3i Infrastructure plc has announced the appointment of Lisa Gordon as a non-executive Director, effective 11 March 2025. Lisa Gordon brings over 30 years of board experience, having held various executive and non-executive roles across listed and private companies. Her extensive background in investment, mergers and acquisitions, and corporate restructuring is expected to enhance the strategic capabilities of 3i Infrastructure’s Board, potentially strengthening its market position and operational effectiveness.

3i Infrastructure plc Reports Robust Portfolio Growth and Strategic Expansions

3i Infrastructure plc reported strong portfolio performance with significant growth opportunities, evidenced by the successful sale of its stake in Valorem at a premium, and the notable expansion of its portfolio companies like TCR and Global Cloud Xchange. The company remains on track to meet its dividend target for FY25, supported by increased income and a robust balance sheet with available liquidity of £466 million. The focus on growth investments and strategic expansions in new markets, such as TCR’s entry into North America, positions 3iN well in the infrastructure sector, while maintaining a cautious outlook for certain segments like DNS:NET and Ionisos.

3i Infrastructure PLC Aligns Investment Strategy with Regulatory Requirements

3i Infrastructure PLC announced that as of the end of December 2024, it held no investments in listed closed-ended investment funds that themselves lack a policy to limit their investments in other closed-ended funds. This disclosure could imply a cautious approach by the company in aligning its investment strategy with regulatory requirements, potentially influencing its investment portfolio’s risk profile and appealing to stakeholders seeking transparency and compliance.