| 3I Group PLC (GB00B1YW4409) | |||
40,78 GBXStand (close): 03.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 14.04.25 17:16:22 | 3i Group (LSE:III) Surges 14% in One Week Amid Broader Market Optimism |  |
| 3i Group experienced a significant price surge of 14%, reflecting strong shareholder returns over the last week. This rise aligns with the broader market’s positive momentum, which saw a 6% increase across various sectors. No specific company events have been highlighted as immediate influence factors; however, broader market trends such as relief from tariff exemptions on tech products may have indirectly supported the company's performance. With major indexes experiencing their largest weekly gains since late 2022, 3i's upward movement is consistent with overall market optimism and investor confidence. Buy, Hold or Sell 3i Group? View our complete analysis and fair value estimate and you decide.LSE:III Revenue & Expenses Breakdown as at Apr 2025 Find companies with promising cash flow potential yet trading below their fair value. The recent 14% surge in 3i Group's share price, aligned with the overall market momentum, could bolster the company’s strategy focusing on expanding its private equity portfolio and refocusing on resilient sectors. This optimistic market trend may lend support to the company’s future earnings and revenue forecasts by fostering investor confidence, which is crucial against the backdrop of broader market relief factors detailed in the introduction. Analysts expect 3i Group to grow its revenue by 17.5% annually over the next few years, potentially leading to substantial growth in earnings, although currency fluctuations and sector challenges may pose some risks. Over the past five years, 3i Group has delivered a total return of over 480%, a very large gain compared to its one-year return that exceeded the UK Capital Markets industry average of 12.8%. This substantial long-term performance underlines the company's increased investor returns through both share price appreciation and dividends. Despite recent uncertainties, such as political and sector-specific issues, the five-year trend highlights robust historical shareholder value and places the company in a favorable position compared to its peers. The current share price remains approximately 15% below the consensus analyst price target of £44.05, indicating room for further appreciation if the company meets projected earnings and revenue forecasts. Investors should observe whether the market’s optimism continues to influence 3i's trading valuation, potentially closing the gap between the current share price and its forecasted target. The comparison of 3i's price-to-earnings ratio to market averages further suggests it may still be trading at good value, given its forecast for future earnings growth. As always, investors should weigh these projections against their risk tolerance and the broader market outlook. Story Continues Learn about 3i Group's future growth trajectory here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:III. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 20.01.25 07:00:53 | 3i Group plc's (LON:III) high institutional ownership speaks for itself as stock continues to impress, up 5.4% over last week |  |
| Key Insights Significantly high institutional ownership implies 3i Group's stock price is sensitive to their trading actions 50% of the business is held by the top 16 shareholders Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock A look at the shareholders of 3i Group plc (LON:III) can tell us which group is most powerful. The group holding the most number of shares in the company, around 84% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Last week’s 5.4% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 61% and last week's gain would have been more than welcomed. Let's take a closer look to see what the different types of shareholders can tell us about 3i Group. View our latest analysis for 3i Group LSE:III Ownership Breakdown January 20th 2025 What Does The Institutional Ownership Tell Us About 3i Group? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. 3i Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of 3i Group, (below). Of course, keep in mind that there are other factors to consider, too.LSE:III Earnings and Revenue Growth January 20th 2025 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in 3i Group. BlackRock, Inc. is currently the company's largest shareholder with 9.1% of shares outstanding. With 5.3% and 5.1% of the shares outstanding respectively, WCM Investment Management, LLC and Capital Research and Management Company are the second and third largest shareholders. Furthermore, CEO Simon Borrows is the owner of 1.7% of the company's shares. A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Story Continues Insider Ownership Of 3i Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can see that insiders own shares in 3i Group plc. It is a very large company, and board members collectively own UK£657m worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling. General Public Ownership The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand 3i Group better, we need to consider many other factors. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 23.12.24 12:51:59 | 3i Group's (LON:III) earnings growth rate lags the 30% CAGR delivered to shareholders | |
| When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. One great example is 3i Group plc (LON:III) which saw its share price drive 222% higher over five years. Unfortunately, though, the stock has dropped 4.0% over a week. But note that the broader market is down 2.2% since last week, and this may have impacted 3i Group's share price. Although 3i Group has shed UK£1.4b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. Check out our latest analysis for 3i Group There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, 3i Group achieved compound earnings per share (EPS) growth of 27% per year. This EPS growth is remarkably close to the 26% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. In fact, the share price seems to largely reflect the EPS growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).LSE:III Earnings Per Share Growth December 23rd 2024 We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for 3i Group the TSR over the last 5 years was 276%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's nice to see that 3i Group shareholders have received a total shareholder return of 49% over the last year. That's including the dividend. That's better than the annualised return of 30% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of 3i Group by clicking this link. Story Continues 3i Group is not the only stock insiders are buying. So take a peek at this freelist of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 12.08.24 13:58:33 | With 86% ownership in 3i Group plc (LON:III), institutional investors have a lot riding on the business | |
| Key Insights Institutions' substantial holdings in 3i Group implies that they have significant influence over the company's share price The top 17 shareholders own 50% of the company Insiders have been buying lately If you want to know who really controls 3i Group plc (LON:III), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 86% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Last week’s 4.1% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 61% and last week's gain would have been more than welcomed. In the chart below, we zoom in on the different ownership groups of 3i Group. Check out our latest analysis for 3i Group ownership-breakdown What Does The Institutional Ownership Tell Us About 3i Group? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that 3i Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see 3i Group's historic earnings and revenue below, but keep in mind there's always more to the story. earnings-and-revenue-growth Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in 3i Group. BlackRock, Inc. is currently the company's largest shareholder with 8.9% of shares outstanding. Capital Research and Management Company is the second largest shareholder owning 5.1% of common stock, and WCM Investment Management, LLC holds about 4.9% of the company stock. In addition, we found that Simon Borrows, the CEO has 1.7% of the shares allocated to their name. A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Story continues Insider Ownership Of 3i Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can see that insiders own shares in 3i Group plc. The insiders have a meaningful stake worth UK£529m. Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling. General Public Ownership With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 3i Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 16.07.24 10:44:16 | Investing in 3i Group (LON:III) five years ago would have delivered you a 223% gain | |
| The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is 3i Group plc (LON:III) which saw its share price drive 175% higher over five years. In the last week the share price is up 2.2%. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Check out our latest analysis for 3i Group To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, 3i Group managed to grow its earnings per share at 25% a year. So the EPS growth rate is rather close to the annualized share price gain of 22% per year. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). earnings-per-share-growth It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of 3i Group's earnings, revenue and cash flow. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, 3i Group's TSR for the last 5 years was 223%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! A Different Perspective It's good to see that 3i Group has rewarded shareholders with a total shareholder return of 63% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 26% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. Story continues If you like to buy stocks alongside management, then you might just love this freelist of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 19.06.24 08:55:48 | 3i Group (LON:III) Is Increasing Its Dividend To £0.345 | |
| 3i Group plc's (LON:III) dividend will be increasing from last year's payment of the same period to £0.345 on 26th of July. Although the dividend is now higher, the yield is only 2.0%, which is below the industry average. Check out our latest analysis for 3i Group 3i Group's Payment Has Solid Earnings Coverage Even a low dividend yield can be attractive if it is sustained for years on end. Prior to this announcement, 3i Group's dividend was only 15% of earnings, however it was paying out 162% of free cash flows. The business might be trying to strike a balance between returning cash to shareholders and reinvesting back into the business, but this high of a payout ratio could definitely force the dividend to be cut if the company runs into a bit of a tough spot. Over the next year, EPS is forecast to expand by 24.5%. If the dividend continues along recent trends, we estimate the payout ratio will be 15%, which is in the range that makes us comfortable with the sustainability of the dividend. historic-dividend 3i Group Has A Solid Track Record The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the dividend has gone from £0.081 total annually to £0.61. This works out to be a compound annual growth rate (CAGR) of approximately 22% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock. The Dividend Looks Likely To Grow Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. 3i Group has impressed us by growing EPS at 25% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future. Our Thoughts On 3i Group's Dividend Overall, we always like to see the dividend being raised, but we don't think 3i Group will make a great income stock. While 3i Group is earning enough to cover the payments, the cash flows are lacking. Overall, we don't think this company has the makings of a good income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 9 3i Group analysts we track are forecasting continued growth with our freereport on analyst estimates for the company. Is 3i Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Story continues Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 16.06.24 08:49:53 | 3i Group (LON:III) Could Be A Buy For Its Upcoming Dividend | |
| Readers hoping to buy 3i Group plc (LON:III) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase 3i Group's shares before the 20th of June to receive the dividend, which will be paid on the 26th of July. The company's next dividend payment will be UK£0.345 per share, and in the last 12 months, the company paid a total of UK£0.61 per share. Looking at the last 12 months of distributions, 3i Group has a trailing yield of approximately 2.0% on its current stock price of UK£30.40. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether 3i Group can afford its dividend, and if the dividend could grow. Check out our latest analysis for 3i Group Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. 3i Group is paying out just 15% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. historic-dividend Have Earnings And Dividends Been Growing? Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see 3i Group's earnings have been skyrocketing, up 25% per annum for the past five years. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, 3i Group has lifted its dividend by approximately 22% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Story continues The Bottom Line Has 3i Group got what it takes to maintain its dividend payments? Companies like 3i Group that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. We think this is a pretty attractive combination, and would be interested in investigating 3i Group more closely. Wondering what the future holds for 3i Group? See what the nine analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 03.06.24 05:18:12 | Insider Buying: 3i Group CEO & Executive Director Bought UK£2.8m Of Shares | |
| Those following along with 3i Group plc (LON:III) will no doubt be intrigued by the recent purchase of shares by Simon Borrows, CEO & Executive Director of the company, who spent a stonking UK£2.8m on stock at an average price of UK£29.03. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.6%. Check out our latest analysis for 3i Group 3i Group Insider Transactions Over The Last Year In fact, the recent purchase by Simon Borrows was the biggest purchase of 3i Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£28.63). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. In the last twelve months insiders purchased 113.87k shares for UK£3.2m. But they sold 50.88k shares for UK£1.5m. In the last twelve months there was more buying than selling by 3i Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume 3i Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this freelist of growing companies with recent insider purchasing, could be just the ticket. Does 3i Group Boast High Insider Ownership? Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that 3i Group insiders own 1.8% of the company, worth about UK£498m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. So What Do The 3i Group Insider Transactions Indicate? The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about 3i Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 3i Group. For example - 3i Group has 1 warning sign we think you should be aware of. Story continues If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 31.05.24 05:13:16 | 3i Group (LON:III) Is Increasing Its Dividend To £0.345 | |
| The board of 3i Group plc (LON:III) has announced that it will be paying its dividend of £0.345 on the 26th of July, an increased payment from last year's comparable dividend. Although the dividend is now higher, the yield is only 2.1%, which is below the industry average. View our latest analysis for 3i Group 3i Group's Payment Has Solid Earnings Coverage It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Prior to this announcement, 3i Group's dividend was only 15% of earnings, however it was paying out 162% of free cash flows. The business might be trying to strike a balance between returning cash to shareholders and reinvesting back into the business, but this high of a payout ratio could definitely force the dividend to be cut if the company runs into a bit of a tough spot. Looking forward, earnings per share is forecast to rise by 24.5% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 15% by next year, which is in a pretty sustainable range. historic-dividend 3i Group Has A Solid Track Record The company has an extended history of paying stable dividends. Since 2014, the annual payment back then was £0.081, compared to the most recent full-year payment of £0.61. This implies that the company grew its distributions at a yearly rate of about 22% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable. The Dividend Looks Likely To Grow Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. 3i Group has seen EPS rising for the last five years, at 25% per annum. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. In Summary Overall, we always like to see the dividend being raised, but we don't think 3i Group will make a great income stock. While 3i Group is earning enough to cover the payments, the cash flows are lacking. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 2 warning signs for 3i Group that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 12.05.24 09:50:32 | 3i Group's (LON:III) Upcoming Dividend Will Be Larger Than Last Year's | |
| 3i Group plc (LON:III) will increase its dividend from last year's comparable payment on the 26th of July to £0.345. This takes the annual payment to 2.1% of the current stock price, which unfortunately is below what the industry is paying. See our latest analysis for 3i Group 3i Group's Dividend Is Well Covered By Earnings If it is predictable over a long period, even low dividend yields can be attractive. Before making this announcement, 3i Group was paying a whopping 162% as a dividend, but this only made up 15% of its overall earnings. The business might be trying to strike a balance between returning cash to shareholders and reinvesting back into the business, but this high of a payout ratio could definitely force the dividend to be cut if the company runs into a bit of a tough spot. Over the next year, EPS is forecast to expand by 24.5%. If the dividend continues on this path, the payout ratio could be 15% by next year, which we think can be pretty sustainable going forward. historic-dividend 3i Group Has A Solid Track Record The company has an extended history of paying stable dividends. Since 2014, the dividend has gone from £0.081 total annually to £0.61. This implies that the company grew its distributions at a yearly rate of about 22% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable. The Dividend Looks Likely To Grow The company's investors will be pleased to have been receiving dividend income for some time. 3i Group has impressed us by growing EPS at 25% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. In Summary Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. While 3i Group is earning enough to cover the payments, the cash flows are lacking. This company is not in the top tier of income providing stocks. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for 3i Group that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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