Fact based stock research
3i Group (LSE:III)
GB00B1YW4409
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
3i Group stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), 3i Group (Asset Management & Custody, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of 3i Group are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives). But they show above-average growth (Growth Rank of 91) and are safely financed (Safety Rank of 50, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on 3i Group's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company 3i Group exhibits low value (Obermatt Value Rank of 35), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 91). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 50) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | Asset Management & Custody |
| Index | FTSE All Shares, FTSE 100, FTSE 350, Diversity Europe |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: 3i Group
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 56 |
|
79 |
|
46 |
|
35 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
73 |
|
57 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 83 |
|
34 |
|
50 |
|
50 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
43 |
|
54 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
69 |
|
54 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), 3i Group (Asset Management & Custody, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of 3i Group are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives). But they show above-average growth (Growth Rank of 91) and are safely financed (Safety Rank of 50, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on 3i Group's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company 3i Group exhibits low value (Obermatt Value Rank of 35), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 91). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 50) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 56 |
|
79 |
|
46 |
|
35 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
73 |
|
57 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 83 |
|
34 |
|
50 |
|
50 |
|
| COMBINED | ||||||||
| COMBINED | 95 |
|
68 |
|
43 |
|
72 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), 3i Group shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for 3i Group. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 93, which means that the stock price compared with what market professionals expect for future profits is lower than for 93% of comparable companies, indicating a good value concerning 3i Group's profit levels. But Price-to-Sales is 15 which means that the stock price compared with what market professionals expect for future profits is higher than for 85% of comparable companies, indicating a low value concerning 3i Group's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 47 and for dividend yield, which is lower than for 77% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on 3i Group's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then 3i Group is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 56 |
|
43 |
|
20 |
|
15 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 79 |
|
100 |
|
95 |
|
93 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 42 |
|
70 |
|
53 |
|
47 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 58 |
|
38 |
|
22 |
|
23 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 56 |
|
79 |
|
46 |
|
35 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 91 (better than 91% compared with alternatives) for 2024, 3i Group shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for 3i Group. Sales Growth has a value of 68, which means that, currently, professionals expect the company to grow more than 68% of its competitors. The same is valid for Profit Growth with a value of 64 and for Capital Growth with 56. In addition, Stock Returns had an above-average rank value of 97, which means they have been higher than 97% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 91, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, 3i Group exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 88 |
|
4 |
|
15 |
|
68 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 1 |
|
82 |
|
16 |
|
64 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
76 |
|
90 |
|
56 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 58 |
|
65 |
|
99 |
|
97 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 81 |
|
73 |
|
57 |
|
91 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company 3i Group has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of 3i Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for 3i Group. Leverage is at a rank of 73, meaning the company has a below-average debt-to-equity ratio. It has less debt than 73% of its competitors. Liquidity is also good at a rank of 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 5, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 95% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), 3i Group has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for 3i Group. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with 3i Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 67 |
|
61 |
|
77 |
|
73 |
|
| REFINANCING | ||||||||
| REFINANCING | 33 |
|
9 |
|
5 |
|
5 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 88 |
|
55 |
|
75 |
|
71 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 83 |
|
34 |
|
50 |
|
50 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
65 |
|
64 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
21 |
|
60 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
54 |
|
36 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
43 |
|
54 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for 3i Group from December 19, 2024.
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