Tetragon Financial (TFG) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: 3.22%
• Average Volume (3M): 18.72K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.21
• Revenue Growth: 328.05%
• EPS Growth: 412.44%
• Country: NL
• Employees: 530
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 139,694,470
• 10 Day Avg. Volume: 15,312
• 30 Day Avg. Volume: 18,722
• PEG Ratio: 0.02
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 25.35
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 1.69
• Enterprise Value/Ebitda: 5.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $19.00 ▲(11.44% Upside)

The score is driven primarily by solid underlying financial strength (high profitability and low leverage in the financial statements) and very attractive valuation (low P/E plus dividend yield). These positives are partly offset by weaker technical momentum and cash-flow/segment volatility highlighted in both the financials and the latest earnings call.

Tetragon Financial Business Overview & Revenue Model

Company Description

Tetragon Financial Group Limited is a close ended feeder fund launched and managed by Tetragon Financial Management LP. The fund invests its entire corpus in Tetragon Financial Group Master Fund Limited. It was formerly known as Tetragon Credit Income Fund Limited. Tetragon Financial Group Limited was formed on June 23, 2005 and is domiciled in the Guernsey, Channel Islands.

How the Company Makes Money

Tetragon Financial Group makes money through a combination of capital appreciation and income generation from its diversified investment portfolio. The company earns revenue primarily from dividends, interest, and capital gains on its investments in public and private equities, loans, real estate, and infrastructure. TFG also benefits from management and performance fees generated by its asset management operations, where it manages funds and investment vehicles for institutional and retail clients. Significant partnerships with financial institutions and strategic investments in asset management businesses, such as TFG Asset Management, enhance its earning potential and contribute to its overall financial performance.

Tetragon Financial Financial Statement Overview

Summary

Tetragon Financial exhibits a mixed financial performance with strong equity backing and improved profitability. The balance sheet shows excellent financial stability with no debt and a high equity ratio. However, there are concerns about operational efficiency due to negative EBIT and cash generation lagging behind net income, though the cash flow recovery is promising.

Income Statement

Tetragon Financial has shown significant volatility in its revenue and profitability over the years. The latest annual data shows a strong recovery in Total Revenue with a 51.8% increase from the previous year, leading to a Net Profit Margin of 96.5%, which is impressive. However, the significant negative EBIT in the latest year raises concerns about operational efficiency. Overall, the company has demonstrated resilience with fluctuating yet improving profitability.

Balance Sheet

The company maintains a strong Balance Sheet with Zero Total Debt in the latest year, providing a Debt-to-Equity Ratio of 0, which indicates excellent financial stability. The Equity Ratio remains high at 89.0%, suggesting a solid asset base supported by equity. Return on Equity has improved significantly to 11.1%, indicating effective use of equity to generate profits. Overall, the balance sheet reflects strong financial health and low leverage risk.

Cash Flow

The Cash Flow statement reveals a positive turnaround with Free Cash Flow reaching $47.1 million, demonstrating a significant recovery from previous negative figures. The Operating Cash Flow to Net Income ratio of 0.13 suggests that cash generation from operations is still lagging behind net income, which is a concern. However, the positive Free Cash Flow trend is a positive indicator of improving cash management and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	390.40M	240.40M	61.70M	447.50M	306.40M
Gross Profit	1.10B	365.00M	182.40M	-5.90M	441.70M	199.30M
EBITDA	333.90M	352.20M	0.00	0.00	418.20M	0.00
Net Income	857.45M	352.20M	141.10M	-32.10M	418.20M	171.10M
Balance Sheet
Total Assets	4.15B	3.56B	3.11B	2.97B	3.06B	2.67B
Cash, Cash Equivalents and Short-Term Investments	3.00M	30.50M	23.10M	21.70M	198.80M	191.60M
Total Debt	350.00M	300.00M	250.00M	115.00M	75.00M	100.00M
Total Liabilities	606.50M	391.90M	280.40M	215.70M	187.10M	194.11M
Stockholders Equity	3.55B	3.17B	2.83B	2.76B	2.88B	2.47B
Cash Flow
Free Cash Flow	-93.00M	47.10M	-26.00M	-111.00M	64.30M	208.50M
Operating Cash Flow	-93.00M	47.10M	-26.00M	-111.00M	64.30M	208.50M
Investing Cash Flow	120.30M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-19.55M	-39.70M	27.40M	-66.10M	-57.10M	-150.40M

Tetragon Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TFG, the sentiment is Negative. The current price of 17.05 is below the 20-day moving average (MA) of 17.40, below the 50-day MA of 18.18, and above the 200-day MA of 16.73, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 28.75 is Positive, neither overbought nor oversold. The STOCH value of 37.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:TFG.

Tetragon Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAL	81 Outperform	€13.10B	7.60	11.85%	2.07%	2.01%	79.48%
VTA	79 Outperform	€237.77M	6.71	13.24%	9.16%	-42.89%	-21.25%
TFG	73 Outperform	$2.36B	2.05	21.90%	3.22%	328.05%	412.44%
NN	68 Neutral	€16.51B	13.97	6.47%	5.40%	-15.54%	10.53%
CVC	68 Neutral	€16.32B	21.63	―	3.13%	20.37%	54.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLFG	62 Neutral	€4.70B	-29.91	-7.45%	1.65%	8.64%	-304.46%