TPG (TPG) AI Stock Analysis

• Market Cap: $21.99B
• Dividend Yield: 3.4%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 607.2
• Beta (1Y): 1.59
• Revenue Growth: 25.02%
• EPS Growth: 235.70%
• Country: US
• Employees: 1,900
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.69
• Shares Outstanding: 146,498,660
• 10 Day Avg. Volume: 2,063,453
• 30 Day Avg. Volume: 2,070,562
• PEG Ratio: -3.62
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 8.49
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: 48.87
• 1Y Price Target: $64.00
• Price Target Upside: 10.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $2.18B

• Rating: 61 Neutral
• Price Target: $61.00 ▲(4.87% Upside)

TPG's overall stock score reflects strong earnings call performance and solid cash flow generation. However, concerns about profitability margins and high valuation metrics weigh down the score. Technical indicators suggest mixed market sentiment, with potential overvaluation risks.

Positive Factors

Revenue Growth

A consistent revenue growth rate of 7.24% indicates a positive trajectory, suggesting TPG's ability to expand its market reach and enhance product adoption.

Cash Flow Generation

Robust cash flow generation with a 95.52% growth rate highlights TPG's strong cash conversion capabilities, supporting operational flexibility and investment opportunities.

Assets Under Management

A 20% increase in AUM reflects TPG's successful fundraising and investment strategies, enhancing its revenue base and long-term growth potential.

Negative Factors

Profitability Margins

A low net profit margin of 1.71% suggests challenges in converting revenue into profit, which could impact long-term profitability and shareholder returns.

Increased Net Debt

Rising net debt to $1.7 billion due to growth initiatives may strain financial resources, potentially limiting future investment flexibility and increasing financial risk.

Limited Performance-Related Earnings

Limited performance-related earnings indicate potential challenges in achieving high returns on investments, which could affect long-term profitability and investor confidence.

TPG Business Overview & Revenue Model

Company Description

TPG Inc. operates as an alternative asset manager worldwide. It offers investment management services to unconsolidated funds, collateralized loan obligations, and other vehicles; monitoring services to portfolio companies; advisory services, debt and equity arrangements, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. The company invests in private equity funds, real estate funds, fund of hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. operates as a subsidiary of TPG GP A, LLC.

How the Company Makes Money

TPG generates revenue primarily through management fees and performance fees. Management fees are charged as a percentage of the assets under management (AUM) and provide a steady income stream for the firm. Performance fees, also known as carried interest, are earned when TPG's investments exceed predetermined return thresholds, creating significant upside potential. Additionally, TPG benefits from its diverse investment portfolio and strategic partnerships with various institutional investors, enhancing its capital base and investment opportunities. The firm also engages in co-investments with partners, allowing it to share risks and rewards on larger deals, further contributing to its earnings.

TPG Financial Statement Overview

Summary

TPG demonstrates solid financial performance with strong cash flow generation and improving leverage. Revenue growth is promising at 7.24%, but profitability margins are a concern with a net profit margin of 1.71%. The balance sheet shows moderate financial health with a low debt-to-equity ratio of 0.17, but a low return on equity of 3.51%.

Income Statement

TPG's income statement shows a mixed performance. The TTM data indicates a healthy revenue growth rate of 7.24%, suggesting a positive trajectory. However, the net profit margin is relatively low at 1.71%, indicating challenges in converting revenue into profit. The gross profit margin is strong at 68.40%, but the EBIT and EBITDA margins are modest at 4.01% and 10.39%, respectively, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.17 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity is low at 3.51%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the overall asset base is substantial, providing a stable foundation.

Cash Flow

TPG's cash flow statement is strong, with a significant free cash flow growth rate of 95.52% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.77, and the free cash flow to net income ratio is high at 0.95, reflecting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	2.62B	1.86B	1.50B	5.58B	2.27B
Gross Profit	2.92B	2.54B	1.82B	1.48B	5.56B	2.25B
EBITDA	525.35M	110.56M	131.33M	9.24M	4.69B	1.46B
Net Income	252.54M	23.48M	80.09M	92.43M	2.18B	927.58M
Balance Sheet
Total Assets	13.02B	10.54B	9.37B	7.94B	8.96B	7.00B
Cash, Cash Equivalents and Short-Term Investments	1.08B	808.02M	665.19M	1.11B	978.10M	861.92M
Total Debt	2.49B	1.58B	1.26B	592.45M	621.45M	490.63M
Total Liabilities	9.25B	6.94B	6.01B	4.86B	1.70B	1.48B
Stockholders Equity	1.14B	784.10M	579.16M	509.67M	1.61B	2.46B
Cash Flow
Free Cash Flow	867.08M	504.01M	703.79M	1.37B	1.47B	-20.16M
Operating Cash Flow	888.02M	532.15M	720.52M	1.38B	1.47B	95.39M
Investing Cash Flow	-256.10M	-44.47M	-373.56M	-3.01M	-37.74M	-108.10M
Financing Cash Flow	-716.16M	-344.86M	-789.23M	-1.24B	-1.32B	250.33M

TPG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPG, the sentiment is Positive. The current price of 58.17 is above the 20-day moving average (MA) of 55.57, above the 50-day MA of 56.80, and above the 200-day MA of 53.11, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPG.

TPG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	74 Outperform	$14.68B	10.30	10.06%	9.33%	10.34%	-24.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KKR	67 Neutral	$107.70B	51.48	8.73%	0.60%	-33.80%	-24.81%
ARES	64 Neutral	$50.52B	65.84	18.64%	2.88%	50.70%	7.32%
BX	63 Neutral	$176.78B	41.56	35.17%	3.24%	33.12%	19.86%
TPG	61 Neutral	$21.99B	607.20	7.19%	3.40%	25.02%	235.70%
CG	59 Neutral	$19.28B	29.77	11.85%	2.62%	-24.62%	437.16%

TPG Corporate Events

TPG Inc. Reports Strong Q3 2025 Results

TPG Inc. is a leading global alternative asset management firm, founded in 1992, that operates across a diversified range of strategies including private equity, credit, and real estate. In its recent earnings report for the third quarter of 2025, TPG Inc. highlighted significant achievements, including robust capital formation and a record quarter for deployment. The firm successfully raised over $18 billion in capital and deployed nearly $15 billion, marking a 70% increase in investment activity compared to the previous year. Additionally, TPG declared a quarterly dividend of $0.45 per share for its Class A common stock. Looking ahead, TPG’s management remains optimistic about the company’s growth prospects, emphasizing their scale and diversification as key factors for delivering long-term value to shareholders.

TPG Inc’s Earnings Call Highlights Robust Growth

TPG Inc’s recent earnings call painted a picture of robust growth and strategic advancements, with a strong emphasis on fundraising and asset management. The company showcased significant achievements in private equity, credit, and real estate, underscoring these as key strengths. However, concerns were raised regarding limited performance-related earnings and an increase in net debt.

TPG Completes $500 Million Senior Notes Offering

On August 14, 2025, TPG Inc. and its subsidiaries completed a $500 million offering of 5.375% Senior Notes due 2036, underwritten by major financial institutions including Morgan Stanley, BofA Securities, and Wells Fargo. The Notes, which are unsecured and unsubordinated, are guaranteed by TPG’s subsidiaries and are registered under the Securities Act of 1933, with interest payable semi-annually starting January 2026.

The most recent analyst rating on (TPG) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on TPG stock, see the TPG Stock Forecast page.