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III

3i GroupLSE:III Stock Report

Market Cap

UK£12.3b

7D

0.2%

1Y

30.0%

Updated

27 Sep, 2021

Data

Company Financials +
III fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends4/6

III Overview

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

3i Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 3i Group
Historical stock prices
Current Share PriceUK£12.75
52 Week HighUK£9.47
52 Week LowUK£13.51
Beta0.99
1 Month Change-4.21%
3 Month Change7.55%
1 Year Change30.05%
3 Year Change34.41%
5 Year Change95.55%
Change since IPO195.07%

Recent News & Updates

Jul 24
Forecast: Analysts Think 3i Group plc's (LON:III) Business Prospects Have Improved Drastically

Forecast: Analysts Think 3i Group plc's (LON:III) Business Prospects Have Improved Drastically

3i Group plc ( LON:III ) shareholders will have a reason to smile today, with the analysts making substantial upgrades...

Shareholder Returns

IIIGB Capital MarketsGB Market
7D0.2%-1.1%1.6%
1Y30.0%10.5%21.7%

Return vs Industry: III exceeded the UK Capital Markets industry which returned 14.4% over the past year.

Return vs Market: III exceeded the UK Market which returned 24.1% over the past year.

Price Volatility

Is III's price volatile compared to industry and market?
III volatility
III Beta0.99
Industry Beta0.79
Market Beta1

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

Volatility Over Time: III's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1945234Simon Borrowshttps://www.3i.com

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.

3i Group Fundamentals Summary

How do 3i Group's earnings and revenue compare to its market cap?
III fundamental statistics
Market CapUK£12.30b
Earnings (TTM)UK£1.86b
Revenue (TTM)UK£1.99b

6.6x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
III income statement (TTM)
RevenueUK£1.99b
Cost of RevenueUK£0
Gross ProfitUK£1.99b
ExpensesUK£132.00m
EarningsUK£1.86b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.92
Gross Margin100.00%
Net Profit Margin93.36%
Debt/Equity Ratio10.6%

How did III perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

20%

Payout Ratio

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 (£12.75) is trading below our estimate of fair value (£43.24)

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 (6.6x) compared to the UK Capital Markets industry average (13.6x).

PE vs Market: III is good value based on its PE Ratio (6.6x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: III is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: III is good value based on its PB Ratio (1.3x) compared to the GB Capital Markets industry average (1.8x).


Future Growth

How is 3i Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: III's forecast earnings growth (1.1% per year) is above the savings rate (0.9%).

Earnings vs Market: III's earnings (1.1% per year) are forecast to grow slower than the UK market (14.4% per year).

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

Revenue vs Market: III's revenue (7.9% per year) is forecast to grow faster than the UK market (5.9% per year).

High Growth Revenue: III's revenue (7.9% 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 (17.4%).


Past Performance

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

-6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: III has a high level of non-cash earnings.

Growing Profit Margin: III's current net profit margins (93.4%) are higher than last year (65.8%).


Past Earnings Growth Analysis

Earnings Trend: III's earnings have declined by 6.5% per year over the past 5 years.

Accelerating Growth: III's earnings growth over the past year (766.8%) exceeds its 5-year average (-6.5% per year).

Earnings vs Industry: III earnings growth over the past year (766.8%) exceeded the Capital Markets industry 54.7%.


Return on Equity

High ROE: III's Return on Equity (20.2%) is considered high.


Financial Health

How is 3i Group's financial position?


Financial Position Analysis

Short Term Liabilities: III's short term assets (£257.0M) exceed its short term liabilities (£84.0M).

Long Term Liabilities: III's short term assets (£257.0M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: III's debt to equity ratio (10.6%) is considered satisfactory.

Reducing Debt: III's debt to equity ratio has reduced from 18.7% to 10.6% 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 (39.6x coverage).


Balance Sheet


Dividend

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

3.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: III's dividend (3.29%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: III's dividend (3.29%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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 low payout ratio (20%), 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 (20.7% payout ratio).


Next Steps

Management

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

12.6yrs

Average management tenure


CEO

Simon Borrows (62 yo)

9.33yrs

Tenure

UK£5,250,000

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 ($USD7.20M) is above average for companies of similar size in the UK market ($USD3.77M).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: III's management team is seasoned and experienced (12.6 years average tenure).


Board Members

Experienced Board: III's board of directors are considered experienced (8.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: III 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 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£12.300b
  • Shares outstanding: 964.67m
  • Website: https://www.3i.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:11
End of Day Share Price2021/09/27 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.