3i Infrastructure (3IN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 2.74%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.61
• Revenue Growth: 5.43%
• EPS Growth: -3.82%
• Country: UK
• Employees: N/A
• Sector: Financial
• Sector Strength: 85
• Industry: Asset Management
• EPS (TTM): 0.35
• Shares Outstanding: 922,350,000
• 10 Day Avg. Volume: 1,293,202
• 30 Day Avg. Volume: 1,157,481
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: £310.32
• Price Target Upside: -6.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

3i Infrastructure's strong profitability and stable financial position, combined with strategic investments and refinancing, underpin its solid stock performance. While revenue growth and cash flow conversion are areas for improvement, the stock's undervaluation and attractive dividend yield enhance its appeal. Recent corporate events further strengthen its strategic position in the market.

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

3i Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 333.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 333 is above the 20-day moving average (MA) of 317.70, above the 50-day MA of 317.36, and above the 200-day MA of 323.50, indicating a bullish trend. The MACD of 3.46 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, 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
3IN	75 Outperform		9.45	9.71%	2.74%	5.43%	-3.82%
HICL	73 Outperform		22.71	3.22%	7.09%	-3.67%	51.49%
BBGI	73 Outperform		38.80	2.52%	5.92%	67.61%	46.68%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%
GCP	63 Neutral		31.91	2.09%	9.87%	-8.69%	-35.71%
INPP	61 Neutral		76.16		7.53%	―	―
UKW	54 Neutral		31.01	-1.54%	8.50%	-5.38%	-145.59%

3i Infrastructure Corporate Events

3i Infrastructure PLC Confirms Compliance with Investment Fund Regulations

3i Infrastructure PLC has announced that as of the last business day of March 2025, it holds no investments in listed closed-ended investment funds that lack a stated policy to limit their investments in other similar funds to no more than 15% of their total assets. This disclosure aligns with UK Listing Rule 11.7.8R, ensuring transparency and compliance with regulatory requirements, which may reassure stakeholders about the company’s adherence to investment guidelines.

3i Infrastructure Exceeds Income Expectations with Strategic Investments and Refinancing

3i Infrastructure plc reports strong financial performance for the period from 1 October 2024 to 28 March 2025, with income exceeding expectations due to strategic growth investments and successful refinancing activities. The company completed the sale of its stake in Valorem, generating significant returns, and undertook several refinancing deals, enhancing its financial position and enabling substantial distributions. The portfolio companies, such as TCR and Infinis, showed robust growth, while some, like SRL and Ionisos, faced challenges. Overall, 3i Infrastructure is on track to meet its FY25 dividend target, reflecting its effective management and strategic focus.

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.