3i Infrastructure (3IN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 2.56%
• Average Volume (3M): 759.40K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.61
• Revenue Growth: 5.43%
• EPS Growth: -3.82%
• Country: UK
• Employees: N/A
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 922,350,000
• 10 Day Avg. Volume: 619,787
• 30 Day Avg. Volume: 759,403
• PEG Ratio: -0.10
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £430.00
• Price Target Upside: 22.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ―

3i Infrastructure's strong profitability and stable financial position, combined with strategic investments and refinancing, underpin its solid stock performance. While revenue growth and cash flow conversion are areas for improvement, the stock's undervaluation and attractive dividend yield enhance its appeal. Recent corporate events further strengthen its strategic position in the market.

Positive Factors

Dividend Growth

3i Infra is on target to meet its dividend growth forecast of +6.3% in the year to 31/03/25.

Portfolio Performance

The portfolio performed well with larger assets such as TCR and ESV AGT making good progress.

Negative Factors

Market Conditions

The recent rise in bond yields has been a headwind to 3iN’s share price.

3i Infrastructure Business Overview & Revenue Model

Company Description

3i Infrastructure plc is an investment firm specializing in infrastructure investments. The firm invests in early stage assets, mature assets, middle markets, mid venture, acquisitions, and projects and privatizations undergoing a period of operational ramp-up. It may invest in junior or mezzanine debt in infrastructure businesses or assets. The firm primarily invests in core infrastructure companies and assets with a focus on the utilities, transportation, energies, social infrastructure and adjacent sectors; primary PPP with a focus on greenfield projects in education, transport, healthcare; public sector accommodation sectors and low-risk energy projects with a focus on wind, solar, offshore transmission in developed markets; and mid-market economic infrastructure with a focus on low-risk energy projects. It primarily invests in unquoted companies, but may also invest in listed companies. The firm seeks to invest across the world, but with an initial focus on Europe, North America, Asia, the United Kingdom. It seeks to invest more than £50 million ($69.33 million) for an individual investment. The firm typically invests between £5 million ($6.93 million) and £50 million ($69.33 million) in primary PPP sector and £50 million and £250 million ($346.66 million) in low-risk energy projects in mid-market economic infrastructure. The firm seeks board representation in its portfolio companies and in cases where it acquires a majority equity interest in a business, that interest may also be a controlling interest. It primarily exits its investments between 20 to 30 years. 3i Infrastructure plc was founded on January 16, 2007 and is based in St. Helier, Channel Islands with an additional office in London, United Kingdom.

How the Company Makes Money

3i Infrastructure generates revenue primarily through the returns on its investments in infrastructure assets and businesses. The company earns income from dividends and interest on its investments, as well as capital gains realized from the sale of these investments. The infrastructure projects and companies in which 3i Infrastructure invests typically provide essential services, which ensures stable and predictable cash flows, contributing to the company's earnings. Additionally, 3i Infrastructure benefits from strategic partnerships and management expertise provided by its investment advisor, 3i Group plc, which helps in identifying and managing investments to optimize performance and returns. The company also focuses on active asset management, operational improvements, and value creation strategies to enhance the profitability of its investments.

3i Infrastructure Financial Statement Overview

Summary

3i Infrastructure demonstrates strong profitability with high net profit and EBITDA margins, and a solid balance sheet with low leverage. The positive return to free cash flow is encouraging, but revenue decline and potential cash flow constraints warrant attention.

Income Statement

The company demonstrates strong profitability with a high net profit margin of 92.78% for the latest year. However, the revenue growth rate is negative at -6.27%, indicating a decline compared to the previous year. Despite this, the EBIT and EBITDA margins are robust at 78.88% and 98.40%, respectively, showcasing efficient cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.15, indicating low leverage. The return on equity is impressive at 10.38%, reflecting good profitability relative to equity. The equity ratio of 85.00% indicates substantial equity financing, suggesting financial stability.

Cash Flow

The cash flow position shows improvement with a return to positive free cash flow of 118 million from a previous negative position. However, the operating cash flow to net income ratio of 0.34 suggests that a lower portion of net income is being realized as operating cash flow, indicating potential cash flow constraints.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
368.00M	386.00M	399.00M	412.00M	210.00M
	Gross Profit
338.00M	354.00M	497.00M	514.00M	220.00M
	EBIT
333.00M	347.00M	405.00M	424.00M	186.00M
	EBITDA
333.00M	347.00M	-27.00M	-12.00M	22.00M
	Net Income Common Stockholders
333.00M	347.00M	394.00M	404.00M	206.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.00M	5.00M	5.00M	17.00M	462.00M
	Total Assets
3.88B	3.93B	3.71B	3.02B	2.42B
	Total Debt
260.00M	510.00M	501.00M	231.00M	0.00
	Net Debt
256.00M	505.00M	496.00M	214.00M	-462.00M
	Total Liabilities
316.00M	590.00M	606.00M	316.00M	25.00M
	Stockholders Equity
3.56B	3.34B	3.10B	2.70B	2.39B
Cash Flow		Free Cash Flow
376.00M	118.00M	-259.00M	-578.00M	136.00M
	Operating Cash Flow
376.00M	118.00M	-259.00M	-578.00M	136.00M
	Investing Cash Flow
0.00	120.00M	-303.00M	-601.00M	105.00M
	Financing Cash Flow
-379.00M	-118.00M	257.00M	135.00M	-87.00M

3i Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 352.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:3IN, the sentiment is Positive. The current price of 352 is above the 20-day moving average (MA) of 332.70, above the 50-day MA of 325.41, and above the 200-day MA of 323.28, indicating a bullish trend. The MACD of 6.16 indicates Negative momentum. The RSI at 78.20 is Negative, neither overbought nor oversold. The STOCH value of 93.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:3IN.

3i Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3IN	75 Outperform		9.70	9.65%	2.56%	5.43%	-3.82%
FSG	74 Outperform	£452.84M	17.66		5.39%	―	―
CHRY	71 Outperform	£535.02M	5.94		―	―	―
GSF	66 Neutral	£322.25M	―	-4.79%	8.62%	31.44%	-154.75%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
DORE	62 Neutral	£148.01M	29.17		6.86%	―	―
9FV		€30.14M	―	-60.06%	10.02%	―	―

3i Infrastructure Corporate Events

3i Infrastructure PLC Confirms Compliance with Investment Fund Regulations

3i Infrastructure PLC has announced that as of the last business day of March 2025, it holds no investments in listed closed-ended investment funds that lack a stated policy to limit their investments in other similar funds to no more than 15% of their total assets. This disclosure aligns with UK Listing Rule 11.7.8R, ensuring transparency and compliance with regulatory requirements, which may reassure stakeholders about the company’s adherence to investment guidelines.

3i Infrastructure Exceeds Income Expectations with Strategic Investments and Refinancing

3i Infrastructure plc reports strong financial performance for the period from 1 October 2024 to 28 March 2025, with income exceeding expectations due to strategic growth investments and successful refinancing activities. The company completed the sale of its stake in Valorem, generating significant returns, and undertook several refinancing deals, enhancing its financial position and enabling substantial distributions. The portfolio companies, such as TCR and Infinis, showed robust growth, while some, like SRL and Ionisos, faced challenges. Overall, 3i Infrastructure is on track to meet its FY25 dividend target, reflecting its effective management and strategic focus.

3i Infrastructure Appoints Lisa Gordon as Non-Executive Director

3i Infrastructure plc has announced the appointment of Lisa Gordon as a non-executive Director, effective 11 March 2025. Lisa Gordon brings over 30 years of board experience, having held various executive and non-executive roles across listed and private companies. Her extensive background in investment, mergers and acquisitions, and corporate restructuring is expected to enhance the strategic capabilities of 3i Infrastructure’s Board, potentially strengthening its market position and operational effectiveness.