Intermediate Capital (ICG) AI Stock Analysis

• Market Cap: £6.16B
• Dividend Yield: 3.81%
• Average Volume (3M): 795.37K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.92
• Revenue Growth: -0.15%
• EPS Growth: -7.47%
• Country: UK
• Employees: 635
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.85
• Shares Outstanding: 290,638,000
• 10 Day Avg. Volume: 877,970
• 30 Day Avg. Volume: 795,374
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: £2,569.86
• Price Target Upside: 18.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: ―

Intermediate Capital Group's overall score reflects strong financial performance and positive corporate events, enhanced by robust fundraising and high ESG standards. However, technical analysis indicates bearish market momentum, and the valuation is moderate. The correction in holdings notification slightly impacts transparency views.

Positive Factors

Investor Confidence

ICG's Strategic Equity V fund raised an industry record $11bn, significantly exceeding its target and demonstrating strong investor confidence.

Market Positioning

ICG's right-to-win in GP-led secondaries is supported by large cheque sizes, speed, certainty of execution, and lack of conflict of interest, making it attractive to sponsors and LPs.

Valuation and Growth Prospects

ICG trades at a discount to European peers despite offering similar growth prospects, providing an appealing investment opportunity.

Negative Factors

Cyclical Exposure

ICG is considered a preferred play to add cyclical exposure with a relatively more defensive earnings profile and fewer fund-raising risks, with a valuation that provides a buffer against macro downside risks.

Intermediate Capital Business Overview & Revenue Model

Company Description

Intermediate Capital Group plc is a private equity firm specializing in direct and fund of fund investments. Within direct it specializes in private debt, credit and equity investments. It invests in middle market, mature, growth capital, reinvestment, industry consolidations, bridge financing, restructuring of a shareholder base, acquisitions, public to private transactions with or without private equity backing, leveraged and acquisition finance, leveraged credit, partnership equity, management buyouts and management buyins, secondary investments, development capital, public quoted company finance, off-balance-sheet finance, refinancing and recapitalizations, and pre-IPO financing. The firm does not invest in property companies, early stage funds or start-ups. Within fund of fund, it specializes in secondary investments. The firm prefer to invest in all sector with focus on insurance, healthcare, education and childcare. It prefers to invest in commercial real estate assets and commercial property in the United Kingdom. It seeks to invest in companies whose principal place of business is DACH region, European Union, Pan-European, Germany, Spain, Nordic, United States, United Kingdom, France, Italy, Bulgaria, Romania, North America, South East Asia and the Asia Pacific, including Hong Kong, South Korea, Singapore, Taiwan, Japan, Australia, Oceania, and New Zealand. The firm provides mezzanine financing in the range between 15 million ($20.31 million) and 500 million ($676.1 million) to firms with an enterprise values between $40.62 million and 1 billion ($1353.94 million). Its real estate debt investments typically are in the range £5 million ($8.20 million) and £50 million ($82.1 million) secured on commercial real estate assets in the value range £20 million ($32.84 million) and £200 million ($328.38 million) and in corporate strategies, it prefers to invests to the firms with enterprise value of £100 million ($108.54 million) and £2000 million ($2170.85 million). The firm seeks to acquire minority, and majority stakes. It generally structures its financing in the form of subordinated loan with equity warrants, as preference shares, preferred equity, mezzanine debt, convertible loan, leveraged loans, senior, junior, and mezzanine loans, and CDOs. The firm provides loans for a maturity period between seven years and 10 years with repayments to be made in one payment at final maturity. Its mezzanine investments are usually structured to provide a cash yield between three percent and four percent over the relevant interbank rate, plus an additional return to reflect the risk involved. It also invests in the debt, fixed income and alternate asset markets. The firm's alternative capital solutions invest in mid-market companies, in Europe, the United States and Asia Pacific. It invests in corporate businesses through private debt, senior, junior and sub-ordinate debt, mezzanine, structured loans and equity in Europe, Asia Pacific and North America. Alternative Credit strategies are structured in portfolio format, such as CLOs, RMBS, CMBS and correlation tranches. It focus on structured credit, and credit portfolios sourced from banks balance sheets. The firm's direct lending strategies invest in senior secured and subordinated debt investments in companies across Europe either as the lead arranger or the sole lender. In strategic secondaries, it focuses on restructuring, mainly in the North America, United States and Europe with a focus on leading restructuring and recapitalization transactions for mature private equity funds. In fixed income solutions, the firm invests in leveraged loans and high yield bonds; corporate loans and bonds- segregated loan strategies as well as multi-asset credit funds; multi-asset credit strategies- European loans and European high yield bonds; CLOsin Europe and in the United States, Asset Backed Securities and securitised debt- Europe and in the United States. It is also a manager of third party mezzanine, CDO, and Institutional Client Funds. It seeks to make balance sheet investments and seeks Board attendance rights from its portfolio companies. Intermediate Capital Group plc was founded in 1989 and is based in London with additional offices across Europe, North America, Middle East and Asia Pacific.

How the Company Makes Money

ICG makes money through a diversified revenue model that includes management fees, performance fees, and investment income. The company earns management fees by managing assets on behalf of its clients, typically calculated as a percentage of the assets under management (AUM). Performance fees are accrued when the investments managed by ICG exceed predefined benchmarks or achieve specific performance targets. Additionally, ICG generates investment income from its own capital investments, which can include interest, dividends, and capital gains from the assets in its portfolio. Strategic partnerships and collaborations with institutional investors also play a significant role in enhancing its investment capabilities and broadening its revenue streams.

Intermediate Capital Financial Statement Overview

Summary

Intermediate Capital demonstrates strong revenue growth and profitability margins, although it operates with a moderate level of leverage. Cash flow generation is satisfactory but can be improved to better align with net income.

Income Statement

Intermediate Capital has demonstrated significant revenue growth, with a revenue increase of over 119% from 2023 to 2024. The company maintains a strong gross profit margin of approximately 98.2% and a healthy net profit margin of about 48.2% in 2024. EBIT and EBITDA margins are both robust, reflecting strong operating efficiency.

Balance Sheet

The balance sheet reveals a moderately high debt-to-equity ratio of 2.66, indicating leveraged operations. However, the company has improved its equity base with a 13.9% equity ratio. Return on equity is strong at 20.6%, suggesting efficient use of equity in generating profits.

Cash Flow

The cash flow statement shows positive free cash flow growth, although operating cash flow to net income ratio is lower than ideal at 0.54, indicating potential volatility in cash generation relative to net earnings. Free cash flow to net income ratio is strong at 0.52, indicating decent cash conversion.

Breakdown	TTM	Mar 2024	Mar 2022	Mar 2021	Mar 2019	Mar 2020
Income Statement
Total Revenue	850.40M	981.70M	989.50M	672.40M	212.70M	256.30M
Gross Profit	833.00M	963.70M	934.70M	656.80M	212.70M	246.00M
EBITDA	825.20M	598.70M	637.10M	585.30M	188.20M	124.50M
Net Income	400.90M	473.40M	526.80M	457.10M	180.10M	108.90M
Balance Sheet
Total Assets	9.07B	9.12B	8.87B	7.46B	6.52B	7.02B
Cash, Cash Equivalents and Short-Term Investments	780.50M	990.00M	761.50M	296.90M	431.30M	947.90M
Total Debt	1.20B	6.13B	6.02B	5.20B	4.63B	1.93B
Total Liabilities	6.79B	6.82B	6.87B	5.84B	5.12B	5.71B
Stockholders Equity	2.28B	2.30B	1.97B	1.62B	1.38B	1.31B
Cash Flow
Free Cash Flow	457.30M	246.40M	235.60M	100.20M	82.80M	290.80M
Operating Cash Flow	459.10M	255.90M	243.40M	111.00M	88.00M	300.90M
Investing Cash Flow	1.53B	71.50M	45.50M	64.70M	-289.80M	-74.00M
Financing Cash Flow	-539.20M	-282.50M	111.30M	-653.30M	48.30M	471.20M

Intermediate Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2174.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ICG, the sentiment is Positive. The current price of 2174 is above the 20-day moving average (MA) of 2149.50, above the 50-day MA of 2036.97, and above the 200-day MA of 2029.93, indicating a bullish trend. The MACD of 40.46 indicates Positive momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ICG.

Intermediate Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHLL	77 Outperform	£2.49B	3.89	16.46%	13.28%	1.20%	161.62%
SDR	75 Outperform	£6.17B	17.37	8.30%	5.40%	4.78%	―
ABDN	74 Outperform	£3.64B	11.46	6.50%	7.21%	-7.11%	0.45%
ICG	67 Neutral	£6.16B	13.88	18.83%	3.81%	-0.15%	-7.47%
Sector *	65 Neutral	£5.46B	8.75	9.53%	5.11%	10.05%	-13.15%
MGPUF	―	$8.44B	31.80	-10.00%	7.26%	―	―
NINTF	―	$4.53B	11.82	40.46%	7.13%	―	―

Intermediate Capital Corporate Events

Intermediate Capital Group Corrects Major Holdings Notification

Intermediate Capital Group plc, a prominent player in the financial sector, announced a correction regarding its major holdings notification. Initially, JPMorgan Chase & Co. had reported an increase in its holdings above the notification threshold, but later retracted this statement, advising stakeholders to refer to a previous notification from November 2024. This correction may affect shareholder perceptions and the company’s transparency in reporting significant changes in holdings.

Intermediate Capital Group: Notification of Major Holdings by JPMorgan Chase

Intermediate Capital Group plc, a UK-based company, has been notified of a significant change in voting rights due to transactions involving JPMorgan Chase & Co. The notification indicates that JPMorgan Chase & Co. has adjusted its holdings, crossing a threshold on March 17, 2025, with a total of 5.386441% voting rights in the company. This shift in holdings could impact Intermediate Capital Group’s shareholder dynamics and influence its strategic decisions moving forward.

Intermediate Capital’s CEO Transfers Shares to Trust and Partnership

Intermediate Capital Group PLC announced that its CEO and CIO, Benoît Durteste, transferred a significant number of shares to a charitable trust and a partnership. These transactions, involving a total of 1,748,688 ordinary shares, were conducted for nil consideration and in exchange for a partnership interest, respectively. This strategic move reflects a potential shift in Durteste’s personal investment strategy and may have implications for the company’s shareholding structure, although it does not alter his retained interest in the company.

ICG Appoints Robin Lawther as Non-Executive Director

Intermediate Capital Group plc (ICG) has announced the appointment of Robin Lawther as a Non-Executive Director, effective November 1, 2025. Lawther brings extensive experience from her roles at JPMorgan Chase and various other financial institutions, which is expected to enhance ICG’s board with her broad market knowledge and expertise across different geographies.

Intermediate Capital Group Announces Total Voting Rights Update

Intermediate Capital Group plc announced that as of January 31, 2025, the company has a total of 290,636,469 voting rights. This figure is crucial for shareholders to determine their interest changes under the FCA’s Disclosure Guidance and Transparency Rules, impacting investor reporting obligations and potentially influencing shareholder engagement strategies.

Intermediate Capital Group Sees Shift in Major Holdings by BlackRock

Intermediate Capital Group plc, a UK-based entity, has seen a change in its major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc. As of January 24, 2025, BlackRock increased its total voting rights in the company to 5.39%, up from a previous 5.11%. This adjustment in holdings reflects BlackRock’s strategic interest and investment in Intermediate Capital Group, potentially impacting the company’s market positioning and shareholder dynamics.

Intermediate Capital Group Achieves Robust Fundraising and Sustains High ESG Standards

Intermediate Capital Group (ICG) reported strong fundraising results, raising $7.2 billion in the third quarter, totaling $22 billion over the past twelve months, more than doubling the previous year’s amount, which supports its long-term growth in client capital and management fees. The company’s assets under management (AUM) reached $107 billion, with fee-earning AUM of $71 billion, and it received an AAA ESG rating for the fourth consecutive year, maintaining its membership in the Dow Jones Sustainability Index (Europe), which indicates a strong commitment to sustainability and positive impacts for stakeholders.

Intermediate Capital Group plc Updates Total Voting Rights

Intermediate Capital Group plc has announced the total number of voting rights in the company as of December 31, 2024, is 290,635,768, after accounting for shares held in treasury. This figure is essential for shareholders to assess their reporting obligations under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.