TPG - 3i Group: Sustained Performance Backs Price Rise

2024-03-26 23:57:16 ET

Summary

• 3i Group has experienced a significant rise in share price, up 83% in the past year, supported by an attractive forward P/E and healthy dividend 5-year yield on cost.
• The company's financial performance is good, significantly due to a market beating performance by its biggest investment in the Dutch retailer Action.
• While its price at a premium to NAV and weakness in the European economy are risks to be considered, on the whole, there's more going for 3i than not.

The UK based private equity company 3i Group ( TGOPF ) has had a very good past year with an 83% rise in share price. But its upward climb is hardly just a feature of the past year. Over the past five years, it's up 3x. And that’s not all. It pays a dividend too. In the past year alone, the total returns at 88% are 5 percentage points higher than the price returns....

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