3i Group plc (III) AI Stock Analysis

• Market Cap: £37.19B
• Dividend Yield: 1.69%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.20
• Revenue Growth: 78.18%
• EPS Growth: -6.27%
• Country: UK
• Employees: 244
• Sector: Industrials
• Sector Strength: 72
• Industry: Asset Management Services
• EPS (TTM): 4.37
• Shares Outstanding: 973,397,400
• 10 Day Avg. Volume: 1,715,147
• 30 Day Avg. Volume: 1,266,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.42
• Price to Cash Flow (P/CF): N/A
• 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: 4,393.33p
• Price Target Upside: 18.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

3i Group plc scores highly on financial performance, demonstrating strong profitability and a solid balance sheet. The company's valuation is attractive, with a low P/E ratio and a reasonable dividend yield. While technical indicators suggest current market weakness, the company's robust corporate events and strategic investments offer a positive outlook. Overall, the stock presents a promising investment opportunity, tempered by the need for improved revenue growth.

Positive Factors

Dividend Proceeds

3i Group has received significant dividend proceeds from its top assets, indicating strong returns.

EBITDA Margin

The EBITDA margin has improved, exceeding expectations and showing a positive trend.

Negative Factors

Stock Valuation

3i trades at a 47% premium to September 2024 NAV, which is towards the upper end of its historical range.

3i Group plc Business Overview & Revenue Model

Company Description

3i Group plc is a leading international investment manager focused on mid-market private equity and infrastructure. Headquartered in London, the company operates across various sectors, including consumer, industrial, and business services. 3i Group provides its clients with access to growth capital, offering innovative financial solutions and strategic support to drive business expansion and value creation.

How the Company Makes Money

3i Group makes money primarily through its private equity and infrastructure investment activities. The company earns revenue from capital gains on its investments, management fees, and carried interest. In private equity, 3i invests in mid-market companies, aiming to enhance their value and sell them at a profit. The infrastructure business focuses on investing in and managing assets in sectors like transport and utilities, generating consistent returns through dividends and capital appreciation. Additionally, the company benefits from strategic partnerships and co-investments with other financial institutions, which can enhance deal flow and investment opportunities.

3i Group plc Financial Statement Overview

Summary

3i Group plc presents a strong financial position with high profitability and efficient equity utilization. The company benefits from low leverage and a healthy cash flow situation, although improvements in revenue growth and operating cash flow generation could further strengthen its financial standing.

Income Statement

3i Group plc has shown robust profitability with consistently high gross and net profit margins over the years. Despite a decline in revenue in the latest year, the company maintained strong EBIT and EBITDA margins, indicating effective cost management and operational efficiency. However, the revenue growth rate was negative, highlighting a potential area for improvement in sales expansion.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio and strong equity backing. The return on equity is impressive, reflecting efficient utilization of shareholder funds. The equity ratio is also high, indicating financial stability and low leverage.

Cash Flow

3i Group plc has demonstrated positive operating and free cash flow over recent periods, with significant growth in free cash flow. However, the operating cash flow to net income ratio is relatively modest, suggesting potential for better cash generation relative to reported earnings.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.98B	4.75B	4.16B	1.99B	325.00M
	Gross Profit
3.98B	4.71B	4.11B	1.97B	295.00M
	EBIT
3.82B	4.60B	4.02B	1.86B	204.00M
	EBITDA
3.82B	4.61B	4.03B	1.87B	211.00M
	Net Income Common Stockholders
3.84B	4.57B	4.01B	1.85B	214.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
358.00M	162.00M	212.00M	216.00M	771.00M
	Total Assets
21.64B	17.82B	13.95B	10.33B	8.57B
	Total Debt
1.25B	785.00M	989.00M	992.00M	595.00M
	Net Debt
893.00M	623.00M	777.00M	776.00M	-176.00M
	Total Liabilities
1.47B	975.00M	1.19B	1.17B	810.00M
	Stockholders Equity
20.17B	16.84B	12.75B	9.16B	7.76B
Cash Flow		Free Cash Flow
363.00M	185.00M	132.00M	-66.00M	581.00M
	Operating Cash Flow
366.00M	186.00M	132.00M	-65.00M	584.00M
	Investing Cash Flow
-3.00M	486.00M	306.00M	-541.00M	-408.00M
	Financing Cash Flow
-164.00M	-719.00M	-446.00M	53.00M	-425.00M

3i Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3706.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:III, the sentiment is Negative. The current price of 3706 is below the 20-day moving average (MA) of 3986.85, below the 50-day MA of 3862.14, and above the 200-day MA of 3378.50, indicating a neutral trend. The MACD of -37.41 indicates Positive momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:III.

3i Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	76 Outperform	£37.19B	8.83	20.99%	1.69%	78.18%	-6.27%
NG	66 Neutral	£46.75B	21.55	5.28%	5.91%	-6.68%	-77.57%
SSE	65 Neutral	£16.24B	8.32	21.94%	4.16%	-13.09%	231.40%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
SVT	61 Neutral	£7.39B	30.78	17.17%	4.96%	5.38%	86.34%
UU	56 Neutral	£6.69B	57.72	5.50%	5.27%	8.61%	―

3i Group plc Corporate Events

3i Group Directors Acquire Shares Under Incentive Plan

3i Group plc announced that several of its directors and persons discharging managerial responsibilities have acquired beneficial interests in the company’s ordinary shares as part of the 3i Group Share Incentive Plan. These transactions, involving both Partnership Shares purchased at a subscription price and Matching Shares awarded for nil consideration, were reported to the company on 28 February 2025 and occurred outside a trading venue.

3i Group Updates Total Voting Rights Post Share Allotment

3i Group plc announced an update regarding its total voting rights following the allotment of shares under its Share Incentive Plan. As of February 28, 2025, the company has 973,397,391 issued ordinary shares, each carrying one vote, which impacts shareholder calculations under the FCA’s Disclosure and Transparency Rules. This update is significant for stakeholders as it affects the denominator used for determining changes in shareholding interests, reinforcing the company’s commitment to transparency and regulatory compliance.

3i Group’s Leadership Acquires Shares Under Incentive Plan

3i Group plc announced that on January 31, 2025, several of its directors and managerial staff became beneficially interested in a series of ordinary shares under the 3i Group Share Incentive Plan. These shares, comprising Partnership Shares, Matching Shares, and Dividend Shares, were acquired at a subscription price of 3820.66667 pence per share for the Partnership and Dividend Shares, while the Matching Shares were awarded for nil consideration. The notification of these transactions, which occurred outside a trading venue, was disclosed to the company on February 3, 2025. This move likely reflects the company’s ongoing strategy to align the interests of its leadership with those of its shareholders, potentially impacting its market positioning and stakeholder relations.

3i Group Appoints Hemant Patel as Non-Executive Director

3i Group plc has appointed Hemant Patel as a non-executive Director, effective 3 February 2025. Hemant brings significant financial and commercial expertise from his roles at Whitbread, Greene King, Asda, and Mars, enhancing 3i’s strategic positioning in the investment sector. This appointment underscores 3i’s commitment to maintaining a robust portfolio capable of delivering resilience and superior returns across economic cycles, benefiting shareholders.

3i Group Updates Total Voting Rights Following Share Allotment

3i Group plc has announced an update on its total voting rights following a share allotment under its Share Incentive Plan, resulting in 973,396,464 issued ordinary shares. This update is significant for shareholders and stakeholders as the total voting rights figure is essential for determining notification obligations under the FCA’s Disclosure Rules and Transparency Rules.

3i Group Reports Robust FY2025 Q3 Performance Driven by Strong Returns and Strategic Investments

3i Group plc reported strong financial performance in its FY2025 Q3 update, with a 20% total return for the nine months ending December 2024 and an increase in NAV per share. Action, a major investment of 3i, delivered exceptional sales and EBITDA growth, adding 352 new stores and achieving significant debt restructuring benefits. Despite challenging macroeconomic conditions, the majority of 3i’s private equity portfolio companies performed well, with notable investments in WaterWipes and OMS Prüfservice. The company’s financial position remains robust, with substantial cash reserves and low gearing, indicating a strong outlook for the remainder of the financial year.

3i Group Directors Acquire Additional Shares through Incentive Plan

3i Group plc announced that several directors and persons discharging managerial responsibilities have acquired additional shares in the company through the Share Incentive Plan. This transaction, which involved purchasing partnership shares and receiving matching shares, signifies an increase in shareholding by key personnel, potentially indicating confidence in the company’s future performance.

3i Group Announces Share Allotment and Updated Voting Rights

3i Group plc announced an allotment of shares under its Share Incentive Plan, bringing the total issued ordinary shares to 973,389,719, each carrying one vote at general meetings. This update on total voting rights is crucial for shareholders and others with notification obligations to comply with the FCA’s Disclosure Rules and Transparency Rules.

3i Group Maintains Compliance with UK Listing Rules

3i Group plc has announced that as of the end of December 2024, it held no investments in listed closed-ended investment funds that do not adhere to a specific investment policy. This disclosure aligns with the UK Listing Rule 15.6.8R, indicating 3i Group’s compliance with regulatory standards and its strategic approach to asset management.