3i Group (TGOPY) AI Stock Analysis

• Market Cap: $52.70B
• Dividend Yield: 1.39%
• Average Volume (3M): 3.40K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.84
• Revenue Growth: 85.75%
• EPS Growth: -2.49%
• Country: US
• Employees: 249
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 1.97
• Shares Outstanding: 1,946,803,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,399
• PEG Ratio: 0.12
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

3i Group's strong financial performance, characterized by high profitability and a robust balance sheet, significantly contributes to the overall score. While the technical analysis reflects some short-term volatility, the attractive valuation offers potential upside. The absence of detailed guidance from the earnings call tempers the outlook slightly. Overall, the company is well-positioned in the asset management industry, balancing strong fundamentals with favorable valuation metrics.

3i Group Business Overview & Revenue Model

Company Description

3i Group plc is a private equity firm specializing in mature companies, growth capital, middle markets, infrastructure, and management leveraged buyouts and buy-ins. The firm also provides infrastructure financing and debt management. For debt management, it invests in senior and mezzanine corporate debt in typically large and private companies in United Kingdom, Europe, Asia, and North America. It makes private equity investments in business and technology services, financial services, consumer, healthcare, consumption and distribution, media and telecom, renewable energy, wind, and industrial sector. Within business and technology services, the firm seeks to invest in sub sectors such as testing, inspection and certification; BPO and consultancy; human capital including staffing, governance, risk and compliance, services to pharmaceutical companies, vertical application software, education and training businesses; facilities management; support services to industrial sectors such as oil and gas and utilities; human resources outsourcing and advising; recruitment; logistics and infrastructure support services including distribution, waste, and rental. In the consumer sector, it focuses on polarization, health and wellness, ageing population, millennials, consumer goods; e-commerce; retail; food and drinks; and leisure. In the healthcare sector, the firm focuses on pharmaceuticals and biotechnology including specialty pharma, generics / OTC, drug delivery, and animal health; healthcare Services including activities such as elderly and specialty care, including caring for people in their own homes, in hospital and in community facilities, as well as operational services such as outsourced support, clinical services and B2B contract services; medical devices and technology including devices, medical equipment and consumables, diagnostics, and healthcare IT. In the industrial sector, it focuses on automotive, chemicals, construction and building products, electronics and electrical components, flow control and filtration, life science manufacturing, mobility, packaging, software, oil, gas and power. Through 3i BIFM Limited and 3i Infrastructure plc the firm makes infrastructure investments where it focuses principally on the utilities including energy transmission and storage, electricity and gas distribution, water, power generation, and communication network; transportation including airports, ports, ferries, toll roads, and rail; and social infrastructure sector including primary and secondary PFI, public private partnerships, healthcare, education, and government accommodation. In infrastructure it invests primarily in utilities, transportation and social infrastructure in the United Kingdom, France, Italy, Europe, and Ireland. The firm prefers to invest in companies across Europe, France, United States, South America, and Asia. It seeks to make new investments in Northern Europe and North America. The firm typically invests between €5 million ($5.59125 million) and €300 million ($335.475 million) in companies with an enterprise value typically between €100 million ($111.825 million) and €500 million ($559.125 million) and sales value between €80 million ($89.46 million) and €1500 million ($1677.38 million). It seeks to take either majority or minority stakes. It seeks to take a board seat in its portfolio companies with regards to infrastructure investments. The firm invests through a combination of third-party and proprietary capital. It invests through its personal capital. 3i Group plc was founded in 1945 and is based in London, United Kingdom with additional offices across Europe, North America, and Asia.

How the Company Makes Money

3i Group makes money primarily through its private equity and infrastructure investments. The company's revenue model involves earning returns on equity investments by acquiring stakes in mid-market companies and helping them grow and improve operations. This is achieved through strategic management, operational improvements, and eventually selling these investments at a profit. In addition, 3i Group generates income from its infrastructure business by investing in and managing large-scale infrastructure projects, often benefiting from stable, long-term cash flows. The company also earns management fees and carried interest from its external fund management activities, enhancing its revenue streams. Significant partnerships with co-investors and an extensive network of industry connections contribute to 3i's ability to source and manage attractive investment opportunities.

3i Group Financial Statement Overview

Summary

3i Group demonstrates exceptional financial health with strong profitability margins, a robust balance sheet marked by low leverage, and solid cash generation capabilities. The company's financial stability is underscored by high margins and efficient equity use. However, there is room to improve cash conversion rates.

Income Statement

3i Group demonstrates remarkably high profitability with a Gross Profit Margin of 99.82% and a Net Profit Margin of 96.27%. The company's revenue growth has been volatile, with a significant increase in the latest period, highlighting strong operational performance. Margins remain robust, with an EBIT Margin of 95.98% and an EBITDA Margin of 95.86% for the latest year.

Balance Sheet

The company maintains a strong balance sheet, with a Debt-to-Equity Ratio of 0.06, indicating low leverage. The Return on Equity is highly impressive at 19.01%, reflecting efficient use of equity. The Equity Ratio of 93.19% underscores a solid financial foundation, though modest increases in debt should be monitored.

Cash Flow

3i Group has shown a solid Free Cash Flow Growth Rate of 96.22%, reflecting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.10, and the Free Cash Flow to Net Income Ratio is 0.09, suggesting that while cash conversion is adequate, there is room for improvement in translating income into cash.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.98B	606.00M	714.00M	238.00M	176.00M
	Gross Profit
3.98B	562.00M	661.00M	225.00M	146.00M
	EBIT
3.84B	4.43B	4.07B	2.08B	192.00M
	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
-358.00M	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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.23
• 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 TGOPY, the sentiment is Neutral. The current price of 27.23 is below the 20-day moving average (MA) of 27.76, below the 50-day MA of 27.33, and above the 200-day MA of 23.82, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 45.88 is Neutral, neither overbought nor oversold. The STOCH value of -4.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TGOPY.

3i Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGOPY	77 Outperform	$52.70B	8.37	22.44%	1.39%	85.75%	-2.49%
CG	73 Outperform	$17.00B	15.90	20.38%	2.97%	81.86%	―
ARES	71 Outperform	$54.65B	96.72	12.97%	2.68%	19.02%	-22.75%
KKR	68 Neutral	$109.03B	53.07	9.03%	0.60%	-27.45%	-46.67%
BX	68 Neutral	$166.81B	41.59	34.07%	2.71%	22.06%	16.57%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
TPG	63 Neutral	$18.45B	―	0.24%	3.28%	46.69%	-98.56%