3i Group (TGOPY) AI Stock Analysis

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3i Group

(OTC:TGOPY)

Rating:85Outperform

Price Target:

$33.00

▲(12.05%Upside)

3i Group demonstrates a strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet and cash flow. The technical indicators suggest positive momentum, while the valuation metrics highlight potential undervaluation. The recent earnings call further underscores the company's strengths, particularly in private equity performance and dividend growth, despite some challenges in foreign exchange and specific market segments.

3i Group (TGOPY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$56.97B

Dividend Yield0.06%

Average Volume (3M)37.52K

Price to Earnings (P/E)8.8

Beta (1Y)0.78

Revenue Growth55.49%

EPS Growth33.12%

CountryUS

Employees249

SectorFinancial

Sector Strength72

IndustryAsset Management

Share Statistics

EPS (TTM)1.97

Shares Outstanding1,946,807,500

10 Day Avg. Volume0

30 Day Avg. Volume37,521

Financial Highlights & Ratios

PEG Ratio0.41

Price to Book (P/B)1.65

Price to Sales (P/S)0.00

P/FCF Ratio54.28

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

3i Group Business Overview & Revenue Model

Company Description3i Group (TGOPY) is a leading international investment manager focused on private equity and infrastructure. The company specializes in providing capital and strategic advice to growing businesses across Europe, North America, and Asia. 3i Group operates primarily through two divisions: Private Equity and Infrastructure, investing in mid-market companies and infrastructure projects that demonstrate potential for significant growth and value creation.

How the Company Makes Money3i Group makes money primarily through its investment activities in the private equity and infrastructure sectors. In private equity, the company generates revenue by investing in mid-market companies, enhancing their value, and eventually exiting these investments for a profit. This can include selling stakes to other investors or through public offerings. In infrastructure, 3i Group invests in long-term infrastructure projects and assets, earning returns through capital appreciation and income generated from these assets. Additionally, the company earns management fees and performance fees from managing investment funds and portfolios for institutional and retail investors. These fees are based on the size of the assets under management and the performance of the investments, respectively. Partnerships with other investment firms and financial institutions also contribute to its revenue by leveraging shared expertise and co-investment opportunities.

3i Group Key Performance Indicators (KPIs)

Any

Gross Investment Return by Segment

Gross Investment Return by Segment
Measures the profitability of investments across different business segments, highlighting which areas are driving returns and where strategic adjustments might be needed.

Chart Insights3i Group's private equity segment shows robust growth, driven by Action's strong performance, contributing significantly to the 26% gross investment return. Despite a dip in infrastructure returns, the segment still achieved a 10.1% return, reflecting solid portfolio management. Scandlines' recent uptick suggests a potential recovery. The earnings call highlights a resilient portfolio with 97% earnings growth, despite foreign exchange losses and regional consumer market challenges. The strategic focus on private growth companies and infrastructure positions 3i defensively, with promising dividend growth and expansion plans.

Data provided by:

Main Street Data

3i Group Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2025)

% Change Since: 6.36%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong overall performance by 3i Group, with significant achievements in return on equity, private equity performance, and dividend growth. The performance of Action and the resilience of the portfolio are notable highlights. However, challenges remain with foreign exchange losses, underperformance in the infrastructure segment, and weaker consumer markets in specific regions. Overall, the positive aspects significantly outweigh the negatives.

Q4-2025 Updates

Positive Updates

Strong Return on Equity

3i Group delivered a return on equity of 25% for FY '25, following a 23% return last year. This marks the fifth consecutive year of achieving over 20% total return.

Private Equity Performance

The private equity segment generated a 26% gross investment return, with Action contributing a 32% return. 97% of the portfolio by value grew earnings, with six companies achieving over 20% growth.

Dividend Increase

3i Group announced a dividend of 73p per share, a 20% increase compared to the previous year.

Action's Performance

Action delivered sales growth of 22%, opened over 350 stores, and achieved 10.3% like-for-like growth. EBITDA grew by 29%.

Portfolio Resilience

Only two companies in the portfolio experienced negative growth compared to six the previous year. The portfolio is positioned defensively with decent earnings momentum.

Negative Updates

Foreign Exchange Loss

The group experienced a foreign exchange translation loss of GBP 259 million.

Infrastructure Segment Underperformance

The infrastructure segment was impacted by a 3% reduction in the 3iN share price, despite a 10.1% underlying portfolio return.

Weaker Consumer Markets

Action faced weaker consumer activity in Belgium, France, and Germany compared to the Netherlands and Poland.

Company Guidance

During the call, 3i Group provided comprehensive guidance on its financial performance for FY '25, highlighting a strong return on equity of 25%, marking the fifth consecutive year of delivering over 20% total return. The company reported a NAV per share of GBP 25.42, despite a foreign exchange translation loss of GBP 259 million. The private equity segment achieved a 26% gross investment return, with Action contributing significantly with a 32% gross return and cash proceeds of GBP 1.6 billion out of a total of GBP 2.3 billion. The firm ended the year with 3% gearing and declared a 73p per share dividend, a 20% increase from the previous year. The portfolio, 87% of which is concentrated in private growth companies across value in private label, infrastructure, and healthcare, is positioned defensively with decent earnings momentum, as 97% of the portfolio by value grew earnings. Notably, Action's impressive performance included a sales growth of 22%, a 29% increase in EBITDA, and the opening of 350 new stores, with plans to reach over 7,700 stores in Europe. The infrastructure segment delivered a 10.1% return despite a 3% decrease in the 3i Infrastructure share price, reflecting strong portfolio performance.

3i Group Financial Statement Overview

Summary

3i Group exhibits strong financial health with impressive growth in revenue and profits. The balance sheet is solid with low leverage, and cash flows are robust, supporting ongoing operations and potential expansions. The company’s financial position is stable, with high profitability and efficient operations, positioning it well for future growth.

Income Statement

Very Positive

The company has shown strong revenue growth, with a 32.24% increase in the latest year over the previous. The gross profit and net profit margins are extraordinarily high, both exceeding 95%, indicating efficient operations and cost management. EBIT and EBITDA margins are also robust, suggesting strong operational performance.

Balance Sheet

Very Positive

The company’s balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating minimal leverage. The return on equity is exceptional at 20.47%, showing effective use of shareholder equity to generate profits. The equity ratio of 94.47% suggests a solid capital structure with significant equity financing.

Cash Flow

Very Positive

Cash flows are healthy with a significant increase in free cash flow from the previous year, showing a growth rate of 105.76%. The operating cash flow to net income ratio is 0.15, which reflects a moderate conversion of net income into cash. The free cash flow to net income ratio of 0.15 also indicates moderate free cash flow generation relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.27B	3.98B	606.00M	714.00M	238.00M
Gross Profit	5.19B	3.98B	562.00M	661.00M	225.00M
EBITDA	5.05B	3.82B	4.61B	4.03B	1.87B
Net Income	5.04B	3.84B	4.57B	4.01B	1.85B
Balance Sheet
Total Assets	26.06B	21.64B	17.82B	13.95B	10.33B
Cash, Cash Equivalents and Short-Term Investments	412.00M	358.00M	162.00M	212.00M	216.00M
Total Debt	1.24B	1.25B	785.00M	989.00M	992.00M
Total Liabilities	1.45B	1.47B	975.00M	1.19B	1.17B
Stockholders Equity	24.61B	20.17B	16.84B	12.75B	9.16B
Cash Flow
Free Cash Flow	747.00M	363.00M	185.00M	132.00M	-66.00M
Operating Cash Flow	763.00M	366.00M	186.00M	132.00M	-65.00M
Investing Cash Flow	-16.00M	-3.00M	486.00M	306.00M	-541.00M
Financing Cash Flow	-690.00M	-164.00M	-719.00M	-446.00M	53.00M

3i Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price29.45

Price Trends

50DMA

27.87

Positive

100DMA

26.61

Positive

200DMA

24.66

Positive

Market Momentum

MACD

0.35

Negative

RSI

55.50

Neutral

STOCH

78.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGOPY, the sentiment is Positive. The current price of 29.45 is above the 20-day moving average (MA) of 28.46, above the 50-day MA of 27.87, and above the 200-day MA of 24.66, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGOPY.

3i Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGOPY	85 Outperform	$56.97B	8.85	22.44%	0.06%	55.49%	33.12%
ARES	77 Outperform	$58.97B	104.36	12.97%	2.25%	19.02%	-22.75%
KKR	71 Outperform	$132.05B	64.27	9.03%	0.48%	-27.45%	-46.67%
BX	70 Outperform	$208.63B	52.02	37.72%	2.27%	22.06%	16.57%
CG	70 Outperform	$22.05B	20.62	20.38%	2.29%	81.86%	―
TPG	63 Neutral	$20.80B	―	0.24%	3.09%	46.69%	-98.56%
Sector *	61 Neutral	C$15.14B	6.69	23.28%	5.39%	30.07%	-23.38%

* Financial Sector Average

Performance Comparison

TGOPY

3i Group

28.87

9.69

50.52%

KKR

KKR & Co

150.19

32.35

27.45%

Blackstone Group

178.11

39.82

28.79%

Carlyle Group

62.31

16.48

35.96%

ARES

Ares Management

182.34

39.01

27.22%

TPG

57.57

9.65

20.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025