Latest news with #3iGroup
Yahoo
18-05-2025
- Business
- Yahoo
3i Group (LON:III) Is Increasing Its Dividend To £0.425
3i Group plc (LON:III) will increase its dividend from last year's comparable payment on the 25th of July to £0.425. Even though the dividend went up, the yield is still quite low at only 1.8%. We check all companies for important risks. See what we found for 3i Group in our free report. Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, 3i Group was quite comfortably covering its dividend with earnings and it was paying more than 75% of its free cash flow to shareholders. However, with more than 75% of free cash flow being paid out to shareholders, future growth could potentially be constrained. The next year is set to see EPS grow by 44.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 11%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for 3i Group The company has an extended history of paying stable dividends. The annual payment during the last 10 years was £0.081 in 2015, and the most recent fiscal year payment was £0.73. This implies that the company grew its distributions at a yearly rate of about 25% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock. Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that 3i Group has grown earnings per share at 88% 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, it's great to see that the company can raise the dividend and keep it in a sustainable range. However, lack of cash flows makes us wary of the potential for cuts in the dividend's future, even though the dividend is generally looking okay. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for 3i Group for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated 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) 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.
Yahoo
18-05-2025
- Business
- Yahoo
3i Group (LON:III) Is Increasing Its Dividend To £0.425
3i Group plc (LON:III) will increase its dividend from last year's comparable payment on the 25th of July to £0.425. Even though the dividend went up, the yield is still quite low at only 1.8%. We check all companies for important risks. See what we found for 3i Group in our free report. Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, 3i Group was quite comfortably covering its dividend with earnings and it was paying more than 75% of its free cash flow to shareholders. However, with more than 75% of free cash flow being paid out to shareholders, future growth could potentially be constrained. The next year is set to see EPS grow by 44.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 11%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for 3i Group The company has an extended history of paying stable dividends. The annual payment during the last 10 years was £0.081 in 2015, and the most recent fiscal year payment was £0.73. This implies that the company grew its distributions at a yearly rate of about 25% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock. Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that 3i Group has grown earnings per share at 88% 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, it's great to see that the company can raise the dividend and keep it in a sustainable range. However, lack of cash flows makes us wary of the potential for cuts in the dividend's future, even though the dividend is generally looking okay. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for 3i Group for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated 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) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
17-05-2025
- Business
- Business Insider
3i Group plc (III) Receives a Buy from Barclays
Barclays analyst Michael Sanderson maintained a Buy rating on 3i Group plc (III – Research Report) on May 15 and set a price target of £44.55. The company's shares closed yesterday at p3,974.00. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Sanderson is ranked #2440 out of 9519 analysts. Currently, the analyst consensus on 3i Group plc is a Moderate Buy with an average price target of p4,430.00, an 11.47% upside from current levels. In a report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a £45.00 price target. III market cap is currently £40.48B and has a P/E ratio of 9.61.
Yahoo
15-05-2025
- Business
- Yahoo
The 3i Group share price plunges 7.5% on today's results – but it's still my favourite FTSE share
The 3i Group (LSE: III) share price slumped 7.5% this morning (15 May) after it published full-year results to 31 March. That's a blow for me, as it's the single biggest FTSE 100 holding, worth an overmighty 10% of my entire self-invested personal pension (SIPP). It's been my best performer since I added it to my SIPP in 2023, having more than doubled my money. Yesterday, I was sitting on a total return of around 100%. Today it's declining towards 90% after markets took a dim view of this morning's numbers. That reaction feels harsh. Yet I expected it. Expectations have been sky-high following recent stellar performance. A knock was almost inevitable. 3i Group's total return jumped to £5.05bn, equal to an increase of 25% on opening shareholder funds. Net asset value per share jumped 22% to 2,542p. That includes a 27p per share loss on foreign exchange translation. That's solid progress in any year, let alone the current uncertain one. The group's biggest holding by far, Dutch discount retailer Action, generated a gross investment return of £4.55bn, up 32% on its opening value. Revenues grew 22%, with like-for-like sales up 10.3%. EBITDA earnings jumped 29%. These are not the numbers of a company in decline. Chief executive Simon Borrows said the firm remains confident it can 'compound growth across the portfolio in the years to come'. Let's hope so. The final dividend was lifted to 42.5p, taking the total for the year to 73p, up from 61p. That's a 20% income boost. The trailing yield is just 1.55% though. The shares have been going gangbusters lately. Even after today's dip they're up 45% over 12 months and 425% over five years. They passed unscathed through recent tariff volatility. 3i Group has been around since 1945 and knows what it's doing. But I do have one concern. Action now makes up more than 65% of 3i's net asset value. That's a big concentration risk. Sometimes it feels like I've bought a European discount retailer with a private equity group clinging to its tail. It's done well through tough conditions, maybe because consumers have been trading down. But if the economy improves, they might start going to posher shops. That could take some shine off Action Expansion is still happening, but it won't go on forever. At some point, 3i will need a clearer plan for what comes next. For now, management seems content to ride the tiger. I've placed a lot of faith in 3i, and it has placed a lot of faith in a shop I've never even been in. Still, its deep experience and proven results give me confidence. Nothing in today's announcement has shaken that. The nine analysts serving up one-year share price forecasts have produced a median target of just under 4,402p. If correct, that's a rise of more than 12% from today. These forecasts will have been made before this morning's slump though. Brokers are clearly wary. That's hardly surprising, 3i Group shares now trade at a 69% premium to underlying net value. They've always been expensive, but that's massive. If I was sensible, I would take some profits and cut my exposure. But for now, I'm going to ride the tiger too. The post The 3i Group share price plunges 7.5% on today's results – but it's still my favourite FTSE share appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in 3i Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Times
08-05-2025
- Business
- Times
Listings and mergers put on hold in face of tariff storm
Bankers shelved deals worth about £2.5 billion on Tuesday as trade uncertainty impacted the appetite for public listings and mergers and acquisitions. Shawbrook Bank's private equity owners were said to have pushed back plans for a £2 billion initial public offering (IPO) amid market volatility after they were initially rumoured to be looking to list the lender in the first half of 2025. Meanwhile 3i Group, the London-listed investment firm, paused the sale of MPM, a pet food maker, as it assessed the impact of the US tariff regime. • Trump tariffs live: US puts 104% levies on China from tonight The investment firm has been drumming up interest in MPM, which owns brands including Applaws, Reveal, and Encore, and is seeking a valuation
