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3i Group

LSE:III
Snowflake Description

Undervalued with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
III
LSE
£10B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
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 last earnings update was 21 days ago. More info.


Add to Portfolio Compare Print
  • 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 Share Price and Events
7 Day Returns
-2.5%
LSE:III
-2.1%
GB Capital Markets
-2.5%
GB Market
1 Year Returns
38%
LSE:III
21.8%
GB Capital Markets
5.3%
GB Market
III Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
3i Group (III) -2.5% -8.4% -8.1% 38% 50.6% 142.1%
GB Capital Markets -2.1% 0.2% 0.5% 21.8% 74.3% 101.2%
GB Market -2.5% -1.3% 0.9% 5.3% 4.1% 5.1%
1 Year Return vs Industry and Market
  • III outperformed the Capital Markets industry which returned 21.8% over the past year.
  • III outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 5.3% over the past year.
Price Volatility
III
Industry
5yr Volatility vs Market

Value

 Is 3i Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of 3i Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for 3i Group.

LSE:III Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= £7.28 * 16.4%
£1.19
Book Value of Equity per Share Median Book Value from the past 5 years. £7.28
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:III
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.763 (1 + (1- 19%) (5.8%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.092 * 6.07%)
7.16%

Discounted Cash Flow Calculation for LSE:III using Excess Returns Model Model

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.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:III Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.4% – 7.16%) * £7.28)
£0.67
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.67 / (7.16% - 0.53%)
£10.16
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £7.28 + £10.16
£17.44
LSE:III Discount to Share Price
Calculation Result
Value per share (GBP) From above. £17.44
Current discount Discount to share price of £10.53
= -1 x (£10.53 - £17.44) / £17.44
39.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price 3i Group is available for.
Intrinsic value
40%
Share price is £10.53 vs Future cash flow value of £17.44
Current Discount Checks
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, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

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.
Price based on past earnings
Are 3i Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:III PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £1.33
LSE:III Share Price ** LSE (2019-12-05) in GBP £10.53
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 43 Publicly-Listed Capital Markets Companies 19.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of 3i Group.

LSE:III PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:III Share Price ÷ EPS (both in GBP)

= 10.53 ÷ 1.33

7.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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.
Price based on expected Growth
Does 3i Group's expected growth come at a high price?
Raw Data
LSE:III PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
10.1%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 25 Publicly-Listed Capital Markets Companies 1.19x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 562 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

LSE:III PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.92x ÷ 10.1%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 3i Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on 3i Group's assets?
Raw Data
LSE:III PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £8.75
LSE:III Share Price * LSE (2019-12-05) in GBP £10.53
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 75 Publicly-Listed Capital Markets Companies 1.45x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.53x
LSE:III PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:III Share Price ÷ Book Value per Share (both in GBP)

= 10.53 ÷ 8.75

1.2x

* Primary Listing of 3i Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 3i Group is good value based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess 3i Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. 3i Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is 3i Group expected to grow at an attractive rate?
  • 3i Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • 3i Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • 3i Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:III Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:III Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 10.1%
LSE:III Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 14.3%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:III Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:III Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,889 435 1
2021-03-31 1,440 354 1,475 2
2020-03-31 1,265 203 1,273 2
2019-12-05
LSE:III Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 1,387 27 1,287
2019-06-30 1,374 258 1,265
2019-03-31 1,361 488 1,242
2018-12-31 1,505 722 1,381
2018-09-30 1,649 956 1,520
2018-06-30 1,612 634 1,492
2018-03-31 1,574 312 1,463
2017-12-31 1,446 37 1,337
2017-09-30 1,318 -239 1,211
2017-06-30 1,471 3 1,369
2017-03-31 1,624 245 1,527
2016-12-31 1,635 1,571

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 3i Group's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
  • 3i Group's revenue is expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:III Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from 3i Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:III Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 1.52 1.52 1.52 1.00
2020-03-31 1.31 1.31 1.31 1.00
2019-12-05
LSE:III Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 1.33
2019-06-30 1.31
2019-03-31 1.28
2018-12-31 1.43
2018-09-30 1.57
2018-06-30 1.55
2018-03-31 1.52
2017-12-31 1.39
2017-09-30 1.26
2017-06-30 1.42
2017-03-31 1.59
2016-12-31 1.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • 3i Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess 3i Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
3i Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare 3i Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 3i Group's year on year earnings growth rate has been positive over the past 5 years.
  • 3i Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • 3i Group's 1-year earnings growth is negative, it can't be compared to the GB Capital Markets industry average.
Earnings and Revenue History
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.
Raw Data

All data from 3i Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:III Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,387.00 1,287.00 126.00
2019-06-30 1,374.00 1,264.50 127.00
2019-03-31 1,361.00 1,242.00 128.00
2018-12-31 1,505.00 1,381.00 128.00
2018-09-30 1,649.00 1,520.00 128.00
2018-06-30 1,611.50 1,491.50 126.00
2018-03-31 1,574.00 1,463.00 124.00
2017-12-31 1,446.00 1,337.00 122.50
2017-09-30 1,318.00 1,211.00 121.00
2017-06-30 1,471.00 1,369.00 118.50
2017-03-31 1,624.00 1,527.00 116.00
2016-12-31 1,634.50 1,571.00 110.00
2016-09-30 1,645.00 1,615.00 104.00
2016-06-30 1,269.00 1,203.50 102.50
2016-03-31 893.00 792.00 101.00
2015-12-31 860.00 694.00 100.00
2015-09-30 827.00 596.00 99.00
2015-06-30 885.00 648.00 105.50
2015-03-31 943.00 700.00 112.00
2014-12-31 887.00 654.00 118.50
2014-09-30 831.00 608.00 125.00
2014-06-30 785.00 562.50 121.00
2014-03-31 739.00 517.00 117.00
2013-12-31 804.00 604.00 103.50
2013-09-30 869.00 691.00 90.00
2013-06-30 835.50 525.50 102.50
2013-03-31 802.00 360.00 115.00
2012-12-31 432.00 -135.00 135.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 3i Group has not efficiently used shareholders’ funds last year (Return on Equity less 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's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess 3i Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
3i Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is 3i Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up 3i Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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 long term commitments exceed its cash and other short term assets.
Balance sheet
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.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from 3i Group Company Filings, last reported 2 months ago.

LSE:III Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 8,475.00 575.00 565.00
2019-06-30 8,475.00 575.00 565.00
2019-03-31 7,909.00 575.00 983.00
2018-12-31 7,909.00 575.00 983.00
2018-09-30 7,548.00 575.00 1,019.00
2018-06-30 7,548.00 575.00 1,019.00
2018-03-31 7,024.00 575.00 972.00
2017-12-31 7,024.00 575.00 972.00
2017-09-30 6,320.00 575.00 342.00
2017-06-30 6,320.00 575.00 342.00
2017-03-31 5,836.00 575.00 931.00
2016-12-31 5,836.00 575.00 931.00
2016-09-30 5,320.00 844.00 920.00
2016-06-30 5,320.00 844.00 920.00
2016-03-31 4,455.00 837.00 957.00
2015-12-31 4,455.00 837.00 957.00
2015-09-30 3,851.00 819.00 662.00
2015-06-30 3,851.00 819.00 662.00
2015-03-31 3,806.00 815.00 861.00
2014-12-31 3,806.00 815.00 861.00
2014-09-30 3,426.00 832.00 629.00
2014-06-30 3,426.00 832.00 629.00
2014-03-31 3,308.00 855.00 674.00
2013-12-31 3,308.00 855.00 674.00
2013-09-30 3,062.00 874.00 925.00
2013-06-30 3,062.00 874.00 925.00
2013-03-31 2,934.00 1,073.00 610.00
2012-12-31 2,934.00 1,073.00 704.00
  • 3i Group's level of debt (6.8%) 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 (24.3% vs 6.8% today).
  • Debt is not well covered by operating cash flow (4.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 38.1x coverage).
X
Financial health checks
We assess 3i Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. 3i Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.8%
Current annual income from 3i Group dividends. Estimated to be 3.59% next year.
If you bought £2,000 of 3i Group shares you are expected to receive £76 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 3i Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • 3i Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.29%).
Upcoming dividend payment

Purchase 3i Group before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:III Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:III Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.43 1.00
2021-03-31 0.38 3.00
2020-03-31 0.36 3.00
2019-12-05
LSE:III Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-16 0.400 3.653
2018-11-15 0.370 4.092
2018-05-30 0.300 3.285
2018-05-17 0.300 3.030
2017-11-16 0.265 2.898
2017-05-18 0.265 2.863
2016-05-19 0.220 3.355
2015-05-27 0.200 4.163
2015-05-14 0.200 3.654
2014-11-13 0.193 4.130
2014-06-05 0.081 2.093
2014-05-14 0.081 1.964
2013-05-16 0.081 2.171
2012-06-15 0.108 4.537
2011-11-10 0.081 4.302
2011-05-12 0.036 1.554
2011-05-11 0.036 1.283
2010-11-11 0.024 0.788
2010-06-04 0.040 1.410
2010-05-13 0.040 1.420
2009-11-12 0.020 0.725
2009-05-08 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of 3i Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
X
Income/ dividend checks
We assess 3i Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can 3i Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 3i Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of 3i Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Borrows
COMPENSATION £6,847,000
AGE 60
TENURE AS CEO 7.6 years
CEO Bio

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. He was Co-Chief Executive Officer at Greenhill Capital Partners LLC. 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.

CEO Compensation
  • Simon's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Simon's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the 3i Group management team in years:

8.9
Average Tenure
54
Average Age
  • The average tenure for the 3i Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Simon Borrows

TITLE
CEO & Executive Director
COMPENSATION
£7M
AGE
60
TENURE
7.6 yrs

Julia Wilson

TITLE
Group Finance Director & Executive Director
COMPENSATION
£3M
AGE
52
TENURE
11.1 yrs

Tony Lissaman

TITLE
Chief Operating Officer of Private Equity
TENURE
9.9 yrs

Silvia Santoro

TITLE
Director of Investor Relations
TENURE
12.4 yrs

Kevin Dunn

TITLE
General Counsel & Company Secretary
AGE
56
TENURE
0.9 yrs

Alan C. Giddins

TITLE
AGE
53
TENURE
0.7 yrs

Pieter de Jong

TITLE
Co-Head of Private Equity
AGE
55
TENURE
8.9 yrs

George Archer

TITLE
Senior Director of Banking

Ulf Von Haacke

TITLE
Partner
TENURE
10.6 yrs

Richard Relyea

TITLE
Partner
AGE
42
TENURE
5.6 yrs
Board of Directors Tenure

Average tenure and age of the 3i Group board of directors in years:

6.6
Average Tenure
61
Average Age
  • The tenure for the 3i Group board of directors is about average.
Board of Directors

Simon Thompson

TITLE
Non-Executive Chairman
COMPENSATION
£310K
AGE
60
TENURE
4.5 yrs

Simon Borrows

TITLE
CEO & Executive Director
COMPENSATION
£7M
AGE
60
TENURE
8.2 yrs

Jonathan Asquith

TITLE
Deputy Chairman & Senior Independent Director
COMPENSATION
£139K
AGE
63
TENURE
4.7 yrs

Julia Wilson

TITLE
Group Finance Director & Executive Director
COMPENSATION
£3M
AGE
52
TENURE
11.2 yrs

Caroline Banszky

TITLE
Independent non-executive Director
COMPENSATION
£107K
AGE
65
TENURE
5.4 yrs

Carlos António da Rocha Moreira da Silva

TITLE
Member of Advisory Board
AGE
67

Marcelo José e Silva

TITLE
Member of Brazilian Advisory Board

Reginaldo Zero

TITLE
Member of Brazilian Advisory Board

Winston Fritsch

TITLE
Member of Brazilian Advisory Board

Frank Ning

TITLE
Member of China Advisory Board
AGE
61
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
01. Aug 19 Buy Peter Grosch Individual 01. Aug 19 01. Aug 19 1,342 £11.09 £14,883
01. Aug 19 Buy Stephen Daintith Individual 01. Aug 19 01. Aug 19 1,342 £11.09 £14,883
01. Aug 19 Buy Simon Thompson Individual 01. Aug 19 01. Aug 19 6,264 £11.09 £69,468
01. Aug 19 Buy Caroline Banszky Individual 01. Aug 19 01. Aug 19 1,342 £11.09 £14,883
01. Aug 19 Buy Coline McConville Individual 01. Aug 19 01. Aug 19 1,901 £11.09 £21,082
01. Aug 19 Buy David A. Hutchison Individual 01. Aug 19 01. Aug 19 1,342 £11.09 £14,883
01. Aug 19 Buy Jonathan Asquith Individual 01. Aug 19 01. Aug 19 1,342 £11.09 £14,883
25. Jun 19 Sell Julia Wilson Individual 25. Jun 19 25. Jun 19 -22,421 £10.79 £-241,923
17. May 19 Buy Simon Borrows Individual 16. May 19 16. May 19 50,000 £10.51 £525,500
05. Feb 19 Buy Caroline Banszky Individual 05. Feb 19 05. Feb 19 3,000 £8.84 £26,508
07. Dec 18 Buy Julia Wilson Individual 06. Dec 18 06. Dec 18 32,345 £7.67 £247,363
X
Management checks
We assess 3i Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 3i Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Did 3i Group plc's' (LON:III) Insiders Buy Up More Shares?

3i Group plc is a private equity firm specializing in direct and fund of fund investments. … A well-known argument is that insiders investing more in their own companies’ shares sends an optimistic signal … A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

3i Group plc (LON:III): What Does The Future Look Like?

3i Group plc's (LON:III) latest earnings announcement in March 2018a … revealed … company

Simply Wall St -

Should You Be Tempted To Buy 3i Group plc (LON:III) At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in 3i Group plc (LON:III). … 3i Group plc (LON:III) is currently trading at a trailing P/E of 5.9x, which is lower than the industry average of 15.9x. … While this makes III appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Cheap Stocks To Invest In

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.

Simply Wall St -

Is There Now An Opportunity In 3i Group plc (LON:III)?

received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to £10.3 at one point, and dropping to the lows of £8.53. … A question to answer is whether 3i Group's current trading price of £9.32 reflective of the actual value of the? … Let’s take a look at 3i Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Why 3i Group plc (LON:III) Should Be Your Next Investment

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.

Simply Wall St -

Only 5 Days Left Before 3i Group plc (LON:III) Will Start Trading Ex-Dividend, Is It Worth Buying?

3i Group plc (LON:III) will be distributing its dividend of £0.22 per share on the 20 July 2018, and will start trading ex-dividend in 5 days time on the 14 June 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine 3i Group's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Top Undervalued LSE Stocks This Month

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.

Simply Wall St -

Why 3i Group plc (LON:III) Could Be A Buy

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.

Simply Wall St -

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.

Simply Wall St -

Company Info

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.

Details
Name: 3i Group plc
III
Exchange: LSE
Founded: 1945
£10,288,011,465
968,283,432
Website: http://www.3i.com
Address: 3i Group plc
16 Palace Street,
London,
Greater London, SW1E 5JD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE III Ordinary Shares London Stock Exchange GB GBP 18. Jul 1994
OTCPK TGOP.F Ordinary Shares Pink Sheets LLC US USD 18. Jul 1994
DB IGQ5 Ordinary Shares Deutsche Boerse AG DE EUR 18. Jul 1994
BATS-CHIXE IIIL Ordinary Shares BATS 'Chi-X Europe' GB GBP 18. Jul 1994
OTCPK TGOP.Y UNSPONSORD ADR Pink Sheets LLC US USD 17. Oct 2008
Number of employees
Current staff
Staff numbers
240
3i Group employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 21:03
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/11/21
Last earnings filing: 2019/11/14
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.