LSE:III

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Executive Summary

3i Group plc is a private equity firm specializing in mature companies, growth capital, middle markets, infrastructure, and management leveraged buyouts and buy-ins. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has 3i Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: III is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: III's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

III

-0.04%

GB Capital Markets

-1.5%

GB Market


1 Year Return

1.8%

III

1.6%

GB Capital Markets

-10.7%

GB Market

Return vs Industry: III exceeded the UK Capital Markets industry which returned -0.1% over the past year.

Return vs Market: III exceeded the UK Market which returned -10% over the past year.


Shareholder returns

IIIIndustryMarket
7 Day-1.7%-0.04%-1.5%
30 Day11.4%8.0%12.4%
90 Day17.0%2.6%6.5%
1 Year5.7%1.8%5.0%1.6%-7.2%-10.7%
3 Year34.5%20.9%24.9%10.2%-0.7%-12.9%
5 Year163.1%119.3%66.0%36.2%25.2%-3.5%

Long-Term Price Volatility Vs. Market

How volatile is 3i Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 3i Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: III (£10.71) is trading below our estimate of fair value (£22.21)

Significantly Below Fair Value: III is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: III is good value based on its PE Ratio (14.6x) compared to the GB Capital Markets industry average (19.3x).

PE vs Market: III is good value based on its PE Ratio (14.6x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: III is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: III's PB Ratio (1.2x) is in line with the GB Capital Markets industry average.


Next Steps

Future Growth

How is 3i Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: III's forecast earnings growth (13.2% per year) is above the savings rate (1.2%).

Earnings vs Market: III's earnings (13.2% per year) are forecast to grow slower than the UK market (27.1% per year).

High Growth Earnings: III's earnings are forecast to grow, but not significantly.

Revenue vs Market: III's revenue (14.6% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: III's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: III's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has 3i Group performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: III has high quality earnings.

Growing Profit Margin: III's current net profit margins (83.8%) are lower than last year (92.8%).


Past Earnings Growth Analysis

Earnings Trend: III's earnings have declined by 5.8% per year over the past 5 years.

Accelerating Growth: III's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: III had negative earnings growth (-44.7%) over the past year, making it difficult to compare to the Capital Markets industry average (1.8%).


Return on Equity

High ROE: III's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is 3i Group's financial position?


Financial Position Analysis

Short Term Liabilities: III's short term assets (£593.0M) exceed its short term liabilities (£86.0M).

Long Term Liabilities: III's short term assets (£593.0M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: III's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: III's debt to equity ratio has reduced from 21.2% to 11.2% over the past 5 years.

Debt Coverage: III's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: III's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Next Steps

Dividend

What is 3i Group current dividend yield, its reliability and sustainability?

3.27%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: III's dividend (3.27%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: III's dividend (3.27%) is low compared to the top 25% of dividend payers in the UK market (4.93%).


Stability and Growth of Payments

Stable Dividend: III's dividend payments have been volatile in the past 10 years.

Growing Dividend: III's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), III's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: III's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.2yrs

Average management tenure


CEO

Simon Borrows (61 yo)

8.5yrs

Tenure

UK£3,984,000

Compensation

Mr. Simon A. Borrows serves as the Chief Executive Officer of 3i Group plc since May 17, 2012 and also has been its Executive Director since October 2011. He joined 3i Group as the Chief Investment Officer...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD5.31M) is about average for companies of similar size in the UK market ($USD4.56M).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Borrows
CEO & Executive Director8.5yrsUK£3.98m1.6%
£ 165.6m
Julia Wilson
Group Finance Director & Executive Director12.08yrsUK£2.04m0.12%
£ 12.7m
Tony Lissaman
Chief Operating Officer of Private Equity10.83yrsno datano data
Silvia Santoro
Director of Investor Relations13.33yrsno datano data
Kevin Dunn
General Counsel & Company Secretary1.83yrsno datano data
Pieter de Jong
Co-Head of Private Equity9.83yrsno datano data
George Archer
Senior Director of Bankingno datano datano data
Ulf Von Haacke
Partner11.5yrsno datano data
Richard Relyea
Partner6.5yrsno datano data
Rémi Carnimolla
Partnerno datano datano data
Andrew Olinick
Partner5.17yrsno datano data
Jennifer Dunstan
Partner & Head of Fund Investor Relations10.58yrsno datano data

10.2yrs

Average Tenure

56yo

Average Age

Experienced Management: III's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Borrows
CEO & Executive Director8.5yrsUK£3.98m1.6%
£ 165.6m
Julia Wilson
Group Finance Director & Executive Director12.08yrsUK£2.04m0.12%
£ 12.7m
Jonathan Asquith
Independent Non-Executive Director9.67yrsUK£125.00k0.0094%
£ 970.6k
David A. Hutchison
Senior Independent Director0.42yrUK£93.00k0.0084%
£ 869.1k
Gaoning Ning
Member of China Advisory Board8.67yrsno datano data
Coline McConville
Independent Non-Executive Director2yrsUK£87.00k0.00069%
£ 71.5k
Caroline Banszky
Independent Non-Executive Director6.33yrsUK£93.00k0.0024%
£ 253.8k
Winston Fritsch
Member of Brazilian Advisory Boardno datano datano data
Simon Thompson
Independent Non-Executive Chairman5.42yrsUK£310.00k0.0086%
£ 886.7k
Carlos António da Rocha Moreira da Silva
Member of Advisory Boardno datano datano data
Marcelo José e Silva
Member of Brazilian Advisory Boardno datano datano data
Reginaldo Zero
Member of Brazilian Advisory Boardno datano datano data

7.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: III's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

3i Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 3i Group plc
  • Ticker: III
  • Exchange: LSE
  • Founded: 1945
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£10.359b
  • Shares outstanding: 962.73m
  • Website: https://www.3i.com

Number of Employees


Location

  • 3i Group plc
  • 16 Palace Street
  • London
  • Greater London
  • SW1E 5JD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGOP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1994
IIILSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1994
IGQ5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1994
IIILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1994
TGOP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

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 f...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 19:45
End of Day Share Price2020/11/30 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.