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 last earnings update was 158 days ago. More info.
3i Group is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
III outperformed the Capital Markets industry which returned 8.6% over the past year.
III outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Is 3i Group undervalued based on future cash flows and its price relative to the stock market?
Here we compare the current share price of 3i Group to its discounted cash flow analysis.value.
Below are the data sources, inputs and calculation used to determine the intrinsic value for 3i Group.
The calculations below outline how an intrinsic value for 3i Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
Amount off the current price 3i Group is available for.
For 3i Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
3i Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
3i Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
The amount the stock market is willing to pay for 3i Group's earnings, growth and assets is considered below, and whether this is a fair price.
Are 3i Group's earnings available for a low price, and how does this compare to other companies in the same industry?
** Primary Listing of 3i Group.
3i Group is good value based on earnings compared to the GB Capital Markets industry average.
3i Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Does 3i Group's expected growth come at a high price?
3i Group earnings are not expected to grow next year, we can't assess if its growth is good value.
What value do investors place on 3i Group's assets?
* Primary Listing of 3i Group.
3i Group is good value based on assets compared to the GB Capital Markets industry average.
3i Group has a total score of 5/6, see the detailed checks below.
How is 3i Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?
Is 3i Group expected to grow at an attractive rate?
3i Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
3i Group's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
3i Group's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
3i Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
3i Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
All data from 3i Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
3i Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
3i Group has a total score of 0/6, see the detailed checks below.
How has 3i Group performed over the past 5 years?
Below we compare 3i Group's growth in the last year to its industry (Capital Markets).
3i Group has delivered over 20% year on year earnings growth in the past 5 years.
3i Group's earnings growth has exceeded the GB Capital Markets industry average in the past year (25.5% vs -1.4%).
3i Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
3i Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
3i Group used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.
3i Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
3i Group has a total score of 6/6, see the detailed checks below.
How is 3i Group's financial health and their level of debt?
The boxes below represent the relative size of what makes up 3i Group's finances.
3i Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
3i Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of 3i Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
All data from 3i Group Company Filings, last reported 6 months ago.
3i Group's level of debt (7.6%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (28% vs 7.6% today).
Debt is well covered by operating cash flow (166.3%, greater than 20% of total debt).
What is 3i Group's current dividend yield, its reliability and sustainability?
Current annual income from 3i Group dividends. Estimated to be 3.14% next year.
If you bought £2,000 of 3i Group shares you are expected to receive £69 in your first year as a dividend.
3i Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
3i Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
What portion of 3i Group's earnings are paid to the shareholders as a dividend.
Dividends paid are thoroughly covered by earnings (6.8x coverage).
3i Group has a total score of 4/6, see the detailed checks below.
What is the CEO of 3i Group's salary, the management and board of directors tenure and is there insider trading?
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 from October 2011 to May 17, 2012. He was the Principal External Advisor to 3i from 1994 to 2004. Prior to joining 3i, he spent 13 years at Greenhill & Co. International LLP. He founded Greenhill & Co., Inc. in 1998 and became Co-President in 2004 and Co-Chief Executive in 2007. He was Founding Partner of Greenhill's European business. Mr. Borrows served as the Chairman of Greenhill & Co., Inc. He joined Greenhill as a Managing Director in June 1998. He served as the Global Head of collateralized loan obligations at Credit Suisse Group AG. He spent 13 years at Greenhill. He served as a Managing Director since 1988 and Chief Executive Officer since 1995 at Baring Brothers International Limited. He spent 10 years at Baring Brothers. He joined Barring Brothers in 1988. He worked in the corporate finance department at Morgan Grenfell Private Equity Ltd. Mr. Borrows serves as a Member of Supervisory Board at Action Nederland BV. He sits on the Advisory Board of The National Theatre. He serves as a Member of the Supervisory Board of Peer Holding B.V. He served as a Non-Executive Director of Inchcape plc from October 2010 to May 21, 2015 and also served as its Senior Independent Non-Executive Director since May 16, 2013. Mr. Borrows served as a Non-Executive Director of The British Land Company PLC from March 17, 2011 to July 18, 2017. Mr. Borrows served as the Chairman of Greenhill & Co. International LLP. He served as a Director of ING Barings Private Equity. He served as Executive Director of Greenhill & Co., Inc. from March 2004 to June 2010. He served as a Director of Baring Brothers from 1989 to 1995. Mr. Borrows holds an M.B.A. from London Business School and a Law degree from London University.
Simon's compensation has been consistent with company performance over the past year.
Simon's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
The average tenure for the 3i Group management team is over 5 years, this suggests they are a seasoned and experienced team.
The tenure for the 3i Group board of directors is about average.
More shares have been bought than sold by 3i Group insiders in the past 3 months, but not in substantial volumes.
3i Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Why Did 3i Group plc's' (LON:III) Insiders Buy Up More Shares?
3i Group plc (LON:III): What Does The Future Look Like?
Should You Be Tempted To Buy 3i Group plc (LON:III) At Its Current PE Ratio?
In terms of relative valuation, III’s PE ratio stands at around 5.99x compared to its Capital Markets peer level of, 15.43x meaning that relative to its comparable company group, you can buy III’s shares at a cheaper price. … Also, PSN’s PE ratio is trading at 10x relative to its Consumer Durables peer level of, 10.19x implying that relative to its comparable company group, you can buy PSN’s shares at a cheaper price. … Moreover, MOSB’s PE ratio stands at around 8.86x while its Specialty Retail peer level trades at, 12.81x implying that relative to its comparable set of companies, you can buy MOSB’s shares at a cheaper price.
Is There Now An Opportunity In 3i Group plc (LON:III)?
Attractive stocks have exceptional fundamentals. … In the case of 3i Group plc (LON:III), there's. … Below, I've touched on some key aspects you should know on a high level.
Only 5 Days Left Before 3i Group plc (LON:III) Will Start Trading Ex-Dividend, Is It Worth Buying?
SAL's stock is currently trading at -39% less than its intrinsic level of £0.51, at a price of UK£0.31, based on my discounted cash flow model. … ATST's shares are currently trading at -46% beneath its intrinsic level of £13.57, at the market price of UK£7.26, according to my discounted cash flow model. … Moreover, ATST’s PE ratio is currently around 5.8x against its its Capital Markets peer level of, 15.56x meaning that relative to other stocks in the industry, ATST’s stock can be bought at a cheaper price.
What does the future of 3i Group look like? … LSE:III Future Profit Apr 10th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.
Does 3i Group plc's (LON:III) CEO Pay Matter?
Earnings is a powerful indication of III's ability to invest shareholders' funds and generate returns. … Therefore I will use earnings as a proxy of Borrows's performance in the past year. … Accounting for the size of III in terms of market cap, as well as its performance, using earnings as a proxy, it seems that Borrows is compensated similar to the average UK mid-cap CEO This may mean that III is appropriately compensating its CEO.
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.