AI Spotlight on III
Company Description
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.
Market Data
Last Price | 3861 |
Change Percentage | 1.31% |
Open | 3818 |
Previous Close | 3811 |
Market Cap ( Millions) | 37275 |
Volume | 1219019 |
Year High | 3915 |
Year Low | 2307 |
M A 50 | 3664.48 |
M A 200 | 3254.8 |
Financial Ratios
FCF Yield | 1.69% |
Dividend Yield | 1.68% |
ROE | 19.97% |
Debt / Equity | 6.20% |
Net Debt / EBIDTA | 22.33% |
Price To Book | 1.85 |
Price Earnings Ratio | 9.74 |
Price To FCF | 59.17 |
Price To sales | 9.37 |
EV / EBITDA | 9.54 |
News
- Jan -28 - Where the UK’s ISA millionaires are investing
- Jan -20 - 3i Group plc's (LON:III) high institutional ownership speaks for itself as stock continues to impress, up 5.4% over last week
- Dec -24 - FTSE 100 best performing stocks of 2024
- Nov -16 - 3i Group First Half 2025 Earnings: EPS: UK£2.12 (vs UK£1.74 in 1H 2024)
- Nov -15 - 3i Group PLC (TGOPF) (HY 2025) Earnings Call Highlights: Strong Returns and Strategic Growth ...
- Nov -11 - Bullish 3i Group Insiders Loaded Up On UK£9.44m Of Stock
- Aug -29 - The top FTSE 100 winners and losers of 2024 so far
- Jun -19 - 3i Group (LON:III) Is Increasing Its Dividend To £0.345
- Jun -16 - 3i Group (LON:III) Could Be A Buy For Its Upcoming Dividend
- Jun -03 - Insider Buying: 3i Group CEO & Executive Director Bought UK£2.8m Of Shares
- May -31 - 3i Group (LON:III) Is Increasing Its Dividend To £0.345
- May -12 - 3i Group's (LON:III) Upcoming Dividend Will Be Larger Than Last Year's
- May -11 - 3i Group Full Year 2024 Earnings: Misses Expectations
- May -10 - Stocks to watch this week: Burberry, Vodafone, BT and Walmart
- May -10 - British private equity giant soars on back of unexpected retail powerhouse
- Apr -26 - Stocks to watch this week: Amazon, Apple, Anglo American and Novo Nordisk
- Apr -17 - Microsoft's (NASDAQ:MSFT) investors will be pleased with their solid 247% return over the last five years
- Apr -14 - Investors in Edel SE KGaA (ETR:EDL) have seen splendid returns of 185% over the past five years
- Mar -17 - Does APG|SGA (VTX:APGN) Deserve A Spot On Your Watchlist?
- Feb -21 - Private equity trusts are ‘pregnant’ with gains from investments made years ago
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Private Equity
Expected Growth : 4.5 %
What the company do ?
3i Group plc's Private Equity segment invests in and provides financing solutions to mid-market companies in Europe and North America.
Why we expect these perspectives ?
3i Group plc's Private Equity segment growth of 4.5% is driven by increasing deal flow, successful exits, and a strong pipeline of investment opportunities. Additionally, the segment benefits from a diversified portfolio, a robust fundraising environment, and a favorable macroeconomic backdrop, supporting growth in valuations and returns.
Segment n°2 -> Infrastructure
Expected Growth : 5.0 %
What the company do ?
Infrastructure from 3i Group plc refers to investments in essential assets like transportation, energy, and utilities, providing essential services to the public.
Why we expect these perspectives ?
3i Group plc's Infrastructure segment growth of 5.0% is driven by increasing demand for renewable energy, transportation, and social infrastructure projects. Government initiatives and investments in digital infrastructure, such as 5G networks and data centers, also contribute to growth. Additionally, the segment benefits from a strong pipeline of projects and a growing need for asset maintenance and upgrade services.
Segment n°3 -> Scandlines
Expected Growth : 4.8 %
What the company do ?
Scandlines is a ferry operator acquired by 3i Group plc in 2007, connecting Denmark and Germany with 8.5 million passengers annually.
Why we expect these perspectives ?
Scandlines' 4.8% growth driven by increasing freight volumes, rising passenger numbers, and higher revenue per passenger. Strong demand for cross-border transportation, investments in digitalization and operational efficiency, and a favorable competitive landscape also contribute to growth. Additionally, 3i Group's strategic support and Scandlines' solid cost management practices further support the company's expansion.
3I Group Plc Products
Product Range | What is it ? |
---|---|
Private Equity | 3i Group plc's Private Equity segment provides financing solutions to mid-market companies, supporting their growth and development. |
Infrastructure | 3i Group plc's Infrastructure segment invests in and manages infrastructure assets, such as energy, transportation, and social infrastructure projects. |
Debt Management | 3i Group plc's Debt Management segment provides debt financing solutions to companies, supporting their working capital and growth needs. |
3i Group plc's Porter Forces
Threat Of Substitutes
The threat of substitutes for 3i Group plc is moderate due to the presence of alternative investment options for investors.
Bargaining Power Of Customers
The bargaining power of customers for 3i Group plc is low due to the company's diversified investment portfolio and lack of dependence on a single customer.
Bargaining Power Of Suppliers
The bargaining power of suppliers for 3i Group plc is moderate due to the company's reliance on a few key suppliers for its investment activities.
Threat Of New Entrants
The threat of new entrants for 3i Group plc is high due to the relatively low barriers to entry in the investment management industry.
Intensity Of Rivalry
The intensity of rivalry for 3i Group plc is high due to the presence of several established players in the investment management industry.
Capital Structure
Value | |
---|---|
Debt Weight | 5.64% |
Debt Cost | 8.96% |
Equity Weight | 94.36% |
Equity Cost | 9.11% |
WACC | 9.11% |
Leverage | 5.98% |
3i Group plc : Quality Control
3i Group plc passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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