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III

3i Group LSE:III Stock Report

Last Price

UK£11.53

Market Cap

UK£10.6b

7D

3.2%

1Y

-8.9%

Updated

04 Oct, 2022

Data

Company Financials +
III fundamental analysis
Snowflake Score
Valuation6/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

III Stock 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£11.53
52 Week HighUK£15.08
52 Week LowUK£10.42
Beta1.03
1 Month Change-1.54%
3 Month Change2.35%
1 Year Change-8.89%
3 Year Change7.16%
5 Year Change21.96%
Change since IPO166.72%

Recent News & Updates

Shareholder Returns

IIIGB Capital MarketsGB Market
7D3.2%-1.7%-1.4%
1Y-8.9%-19.7%-14.4%

Return vs Industry: III exceeded the UK Capital Markets industry which returned -20.9% over the past year.

Return vs Market: III exceeded the UK Market which returned -15.2% over the past year.

Price Volatility

Is III's price volatile compared to industry and market?
III volatility
III Average Weekly Movement4.5%
Capital Markets Industry Average Movement4.1%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.9%

Stable Share Price: III is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
1945236Simon 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£10.58b
Earnings (TTM)UK£4.01b
Revenue (TTM)UK£4.20b

2.8x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
III income statement (TTM)
RevenueUK£4.20b
Cost of RevenueUK£0
Gross ProfitUK£4.20b
Other ExpensesUK£187.00m
EarningsUK£4.01b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.17
Gross Margin100.00%
Net Profit Margin95.55%
Debt/Equity Ratio7.6%

How did III perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

11%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is III undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for III?

Other financial metrics that can be useful for relative valuation.

III key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA2.8x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does III's PE Ratio compare to its peers?

III PE Ratio vs Peers
The above table shows the PE ratio for III vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13x
SDR Schroders
11.1x9.5%UK£6.3b
ICP Intermediate Capital Group
5.4x-5.4%UK£2.9b
HL. Hargreaves Lansdown
18.8x9.5%UK£4.1b
STJ St. James's Place
14.9x10.0%UK£5.5b
III 3i Group
2.6x-13.1%UK£10.6b

Price-To-Earnings vs Peers: III is good value based on its Price-To-Earnings Ratio (2.6x) compared to the peer average (12.6x).


Price to Earnings Ratio vs Industry

How does III's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: III is good value based on its Price-To-Earnings Ratio (2.6x) compared to the UK Capital Markets industry average (11.7x)


Price to Earnings Ratio vs Fair Ratio

What is III's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

III PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.8x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: III is good value based on its Price-To-Earnings Ratio (2.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).


Share Price vs Fair Value

What is the Fair Price of III when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: III (£10.99) is trading below our estimate of fair value (£55.56)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is 3i Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-13.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: III's earnings are forecast to decline over the next 3 years (-13.1% per year).

Earnings vs Market: III's earnings are forecast to decline over the next 3 years (-13.1% per year).

High Growth Earnings: III's earnings are forecast to decline over the next 3 years.

Revenue vs Market: III's revenue is expected to decline over the next 3 years (-5.8% per year).

High Growth Revenue: III's revenue is forecast to decline over the next 3 years (-5.8% 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 (15.5%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.4%

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 (95.5%) are higher than last year (91.8%).


Past Earnings Growth Analysis

Earnings Trend: III's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: III's earnings growth over the past year (116.6%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: III earnings growth over the past year (116.6%) exceeded the Capital Markets industry 15.4%.


Return on Equity

High ROE: III's Return on Equity (31.5%) is considered high.


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Financial Health

How is 3i Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: III's short term assets (£396.0M) exceed its short term liabilities (£338.0M).

Long Term Liabilities: III's short term assets (£396.0M) do not cover its long term liabilities (£1.8B).


Debt to Equity History and Analysis

Debt Level: III's net debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: III's debt to equity ratio has reduced from 9.8% to 7.6% over the past 5 years.

Debt Coverage: III's debt is well covered by operating cash flow (51.3%).

Interest Coverage: III's interest payments on its debt are well covered by EBIT (76.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.03%

Current Dividend Yield

Dividend Yield vs Market

3i Group Dividend Yield vs Market
How does 3i Group dividend yield compare to the market?
SegmentDividend Yield
Company (3i Group)4.0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.0%
Industry Average (Capital Markets)3.7%
Analyst forecast in 3 Years (3i Group)4.9%

Notable Dividend: III's dividend (4.23%) is higher than the bottom 25% of dividend payers in the UK market (2.11%).

High Dividend: III's dividend (4.23%) is low compared to the top 25% of dividend payers in the UK market (6.08%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.2%), III's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (89.6%), III's dividend payments are covered by cash flows.


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Management

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

7.1yrs

Average management tenure


CEO

Simon Borrows (63 yo)

11yrs

Tenure

UK£6,734,000

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

Simon Borrows's Compensation vs 3i Group Earnings
How has Simon Borrows's remuneration changed compared to 3i Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022UK£7mUK£661k

UK£4b

Dec 31 2021n/an/a

UK£3b

Sep 30 2021n/an/a

UK£3b

Jun 30 2021n/an/a

UK£2b

Mar 31 2021UK£5mUK£647k

UK£2b

Dec 31 2020n/an/a

UK£1b

Sep 30 2020n/an/a

UK£709m

Jun 30 2020n/an/a

UK£462m

Mar 31 2020UK£4mUK£645k

UK£214m

Dec 31 2019n/an/a

UK£751m

Sep 30 2019n/an/a

UK£1b

Jun 30 2019n/an/a

UK£1b

Mar 31 2019UK£8mUK£633k

UK£1b

Dec 31 2018n/an/a

UK£1b

Sep 30 2018n/an/a

UK£2b

Jun 30 2018n/an/a

UK£1b

Mar 31 2018UK£7mUK£615k

UK£1b

Dec 31 2017n/an/a

UK£1b

Sep 30 2017n/an/a

UK£1b

Jun 30 2017n/an/a

UK£1b

Mar 31 2017UK£8mUK£597k

UK£2b

Dec 31 2016n/an/a

UK£2b

Sep 30 2016n/an/a

UK£2b

Jun 30 2016n/an/a

UK£1b

Mar 31 2016UK£6mUK£579k

UK£792m

Compensation vs Market: Simon's total compensation ($USD7.61M) is above average for companies of similar size in the UK market ($USD5.16M).

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 (7.1 years average tenure).


Board Members

Experienced Board: III's board of directors are considered experienced (6.1 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

LSE:III Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Aug 22BuyUK£15,621Peter McKellarIndividual1,256UK£12.44
08 Aug 22BuyUK£72,943David A. HutchisonIndividual5,865UK£12.44
08 Aug 22BuyUK£15,621Lesley Mary KnoxIndividual1,256UK£12.44
08 Aug 22BuyUK£15,621Coline McConvilleIndividual1,256UK£12.44
08 Aug 22BuyUK£15,621Caroline BanszkyIndividual1,256UK£12.44
08 Aug 22BuyUK£15,621Stephen DaintithIndividual1,256UK£12.44
08 Aug 22BuyUK£15,621Alexandra Elisabeth Johanna SchaapveldIndividual1,256UK£12.44
30 Jun 22BuyUK£98,412Stephen DaintithIndividual8,850UK£11.12
29 Nov 21BuyUK£21,078David A. HutchisonIndividual1,509UK£13.97

Ownership Breakdown

What is the ownership structure of III?
Owner TypeNumber of SharesOwnership Percentage
Public Companies587,0980.06%
Private Companies1,364,0610.1%
State or Government1,563,8510.2%
Individual Insiders17,769,4241.8%
General Public128,209,72413.3%
Institutions813,575,50284.5%

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


Top Shareholders

Top 25 shareholders own 54.15% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.38%
BlackRock, Inc.
90,331,299£1.0b10.53%0.03%
4.95%
Artemis Investment Management LLP
47,712,989£549.9m-2.98%2.7%
4.34%
The Vanguard Group, Inc.
41,765,737£481.4m9.05%0.01%
3.49%
Columbia Management Investment Advisers, LLC
33,569,262£386.9m-10.84%0.13%
3.23%
UBS Asset Management
31,080,589£358.2m4.64%0.08%
3.15%
Legal & General Investment Management Limited
30,332,995£349.6m-0.26%0.11%
2.65%
Norges Bank Investment Management
25,558,860£294.6m5.87%0.04%
2.42%
Marathon Asset Management Limited
23,286,772£268.4m-0.53%1.74%
1.84%
J.P. Morgan Asset Management, Inc.
17,702,859£204.0m-2.23%0.04%
1.68%
Simon Borrows
16,163,935£186.3m2.16%no data
1.51%
State Street Global Advisors, Inc.
14,535,567£167.5m-6.43%0.01%
1.45%
Fidelity International Ltd
13,983,181£161.2m1.51%0.09%
1.37%
Royal London Asset Management Limited
13,166,780£151.7m-3.57%0.31%
1.35%
Liontrust Portfolio Management Limited
12,959,023£149.4m0%3.71%
1.27%
Schroder Investment Management Limited
12,232,112£141.0m0.82%0.12%
1.19%
Societe Generale Group, Banking Investments
11,500,951£132.5m140.82%1.51%
1.15%
3i Group plc, ESOP
11,104,824£128.0m56.76%no data
1.11%
NN Investment Partners Holdings N.V.
10,659,317£122.8m-18.27%0.42%
1.09%
Close Asset Management Limited
10,492,268£120.9m-2.99%1.54%
1.05%
LSV Asset Management
10,108,987£116.5m-2.79%0.26%
1.02%
Liontrust Asset Management PLC
9,792,021£112.9m-1.81%0.54%
0.97%
Kuwait Investment Authority
9,329,447£107.5m13.16%0.46%
0.94%
Capital Research and Management Company
9,068,950£104.5m-49.83%0.01%
0.86%
HSBC Global Asset Management (UK) Limited
8,308,981£95.8m-8.98%0.09%
0.7%
Quilter Cheviot Limited
6,728,611£77.5m-1.05%0.83%

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
  • Implied Market Cap: UK£10.579b
  • Shares outstanding: 963.07m
  • 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
III NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 1994
TGOP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008
IGQDB (Deutsche Boerse AG)UNSPONSORD ADRDEEUROct 2008

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.