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IP Group plc
(LSE:IPO)
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Rating:55Neutral
Price Target:
77.00 p
▲(6.06% Upside)
Action:Reiterated
Date:09/15/26
The score is held back primarily by weak and inconsistent cash generation and volatile operating performance, despite a solid balance sheet. The latest earnings call adds support through improving NAV and stronger realizations, while technical indicators remain soft in the near term. Valuation is moderately attractive on P/E, but lack of dividend data limits additional support.
Positive Factors
Growing realizations and exit pipeline
Rising realizations demonstrate that IP Group can convert portfolio development into liquidity through exits and other transactions. Progress toward the 2027 target supports funding for new investments, potential shareholder returns, and continued recycling of capital into maturing science and technology assets.
Negative Factors
Weak and inconsistent cash generation
Persistent negative operating cash flow means reported profitability has not consistently translated into internally generated cash. This weak conversion can increase reliance on realizations or financing to fund operations and portfolio commitments, making the earnings recovery less durable than headline net income suggests.
Read all positive and negative factors
Positive Factors
Negative Factors
Growing realizations and exit pipeline
Rising realizations demonstrate that IP Group can convert portfolio development into liquidity through exits and other transactions. Progress toward the 2027 target supports funding for new investments, potential shareholder returns, and continued recycling of capital into maturing science and technology assets.
Read all positive factors
IP Group plc (IPO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£644.90M
Dividend Yield2.09%
Average Volume (3M)1.77M
Price to Earnings (P/E)4.7
Beta (1Y)1.15
Revenue Growth-37.29%
EPS GrowthN/A
CountryUK
Employees64
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.16
Shares Outstanding883,427,600
10 Day Avg. Volume1,684,451
30 Day Avg. Volume1,771,883
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.55
Price to Sales (P/S)12.04
P/FCF Ratio-27.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£119.50Price Target Upside64.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.05
Revenue Forecast (FY)£71.89M
IP Group plc Business Overview & Revenue Model
Company Description
IP Group Plc functions as a private equity and venture capital enterprise, allocating funds across the entire lifecycle of businesses, from initial seed and early-stage rounds to start-up, incubation, growth capital, and mature financing. A specif...
How the Company Makes Money
IP Group primarily makes money through returns on its equity (and equity-like) investments in portfolio companies. Key revenue/earnings drivers include: (1) Realisations and exits: selling shareholdings in portfolio companies via trade sales, IPOs...
IP Group plc Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported NAV per share growth, substantially higher cash realizations, a strong cash balance, progress in Pfizer's obesity programs, improved Oxford Nanopore performance, broad portfolio milestones, and expansion of the third-party capital platform. These positives outweighed the failed offer process, remaining clinical and valuation risks, higher overheads, the 40% share price discount, and the selective funding environment.Positive Updates
NAV Per Share Growth
NAV per share increased by about 3% to GBP 1.14 in the first half, taking net asset value above GBP 1 billion. Since the period end, NAV per share increased further to approximately GBP 1.17 as at 11th of September.
Negative Updates
Offer Process Did Not Result in an Acceptable Proposal
The possible offer process during the summer did not result in an acceptable proposal after the board engaged constructively with Railpen and its partners.
Read all updates
Q2-2026 Updates
Positive
Negative
NAV Per Share Growth
NAV per share increased by about 3% to GBP 1.14 in the first half, taking net asset value above GBP 1 billion. Since the period end, NAV per share increased further to approximately GBP 1.17 as at 11th of September.
Read all positive updates
Company Guidance
Management said Oxford Nanopore remains on track for EBIT break-even in full-year 2027 and positive free cash flow in 2028, while Pfizer’s launch is targeted in 2028 and royalties are anticipated to begin in 2028 if development and launch proceed to the plan that is set out here; two berobenatide phase III studies are expected to reach primary completion in October 2027, the berobenatide and amylin combination’s primary completion is currently expected in April 2027, and Oxa’s first scalable commercial deployment is planned before the end of 2027. IP Group remains on track for its GBP 250 million target by the end of 2027, with a healthy pipeline of maturing assets and potential realization opportunities over the next 12-18 months, expects the initial Aberdeen portfolio to be up and running by the end of the year, plans to begin investing the GBP 50 million IP Group Climate Catalyst Fund by the end of the year, and expects total overheads to be about GBP 17 million.IP Group plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.90M | 44.90M | 69.20M | -4.90M | -700.00K | 95.10M |
| Gross Profit | 43.70M | 44.40M | 68.60M | -5.50M | -1.30M | 93.50M |
| EBITDA | 145.95M | 71.70M | -199.40M | -170.10M | -341.50M | 458.00M |
| Net Income | 141.20M | 66.80M | -202.60M | -170.90M | -342.00M | 448.20M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 1.10B | 1.15B | 1.41B | 1.56B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 98.50M | 16.50M | 285.60M | 226.90M | 241.50M | 321.90M |
| Total Debt | 119.80M | 119.70M | 150.00M | 156.40M | 101.80M | 71.80M |
| Total Liabilities | 123.20M | 123.50M | 198.70M | 221.30M | 181.70M | 141.20M |
| Stockholders Equity | 1.01B | 975.10M | 966.00M | 1.20B | 1.38B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | -2.80M | -19.60M | -25.10M | -17.90M | -23.80M | 10.30M |
| Operating Cash Flow | -2.80M | -14.50M | -25.10M | -17.90M | -23.50M | 10.50M |
| Investing Cash Flow | 10.80M | -32.10M | 82.90M | -4.40M | -2.30M | 26.30M |
| Financing Cash Flow | -26.70M | -52.50M | -42.90M | 34.70M | 8.80M | -58.30M |
IP Group plc Technical Analysis
Positive
72.60
Price Trends
70.70
Positive
68.45
Positive
63.69
Positive
Market Momentum
0.54
Negative
56.32
Neutral
90.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IPO, the sentiment is Positive. The current price of 72.6 is above the 20-day moving average (MA) of 71.02, above the 50-day MA of 70.70, and above the 200-day MA of 63.69, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 90.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IPO.
IP Group plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £519.70M | 12.41 | 46.72% | 5.75% | 7.26% | 30.92% | |
69 Neutral | £1.14B | 9.78 | 9.21% | ― | -78.12% | 30945.45% | |
68 Neutral | £88.76M | 11.91 | 27.84% | 7.69% | -3.44% | -16.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | £127.84M | -15.02 | -4.78% | 3.28% | -2.25% | -350.00% | |
55 Neutral | £644.90M | 4.70 | 14.25% | 2.09% | -37.29% | ― | |
48 Neutral | £832.55M | 20.12 | 3.30% | 2.85% | -29.52% | -32.33% |
* Financial Sector Average
GB:IPO
IP Group plc
73.00
12.60
20.86%
GB:GROW
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665.00
200.20
43.07%
GB:MERC
Mercia Asset Management
30.50
1.53
5.28%
GB:REC
Record plc
46.80
-9.12
-16.31%
GB:FSG
Foresight Group Holdings Ltd.
471.50
42.15
9.82%
GB:ICGT
ICG Enterprise Trust PLC GBP
1,388.00
-107.01
-7.16%
IP Group plc Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
IP Group boosts NAV on Pfizer obesity gains and strong portfolio funding
Positive
Sep 15, 2026
IP Group reported a 3.2% rise in net asset value per share to 113.9p for the first half of 2026, lifting NAV to £1bn on the back of a stronger Pfizer obesity royalty asset and robust balance sheet cash of £239m. The group generated £...
Business Operations and StrategyFinancial Disclosures
IP Group to unveil interim results and host live investor presentation
Positive
Sep 10, 2026
IP Group plc, a leading UK-based early stage investor in healthtech, deeptech and cleantech, plans to release its interim results for the six months to 30 June 2026 on 15 September. The announcement will be available via the London Stock Exchange&...
Business Operations and StrategyExecutive/Board Changes
IP Group Grants Deferred and Restricted Share Awards to Align Pay With Long-Term Performance
Positive
Aug 7, 2026
IP Group plc, the UK-based early stage science and technology investor, has implemented a series of conditional share awards for its executive directors, a PDMR and other employees under its existing share plan. The awards cover both the deferral ...
Business Operations and StrategyRegulatory Filings and Compliance
IP Group Executives Boost Holdings with New Share Purchases
Positive
Aug 5, 2026
Senior leaders at IP Group plc have increased their personal stakes in the company, with Non-executive Chair Michael Queen, Chief Executive Officer Greg Smith and Chief Financial and Operating Officer David Baynes buying a combined 271,368 shares ...
Business Operations and StrategyM&A Transactions
IP Group backs strategy as Railpen drops takeover interest
Neutral
Jul 27, 2026
IP Group plc has confirmed that Railways Pension Trustee Company Limited, via Railway Pension Investments Limited, will not make an offer for the company and is now bound by U.K. takeover rules restricting further approaches. With the end of the o...
Business Operations and StrategyM&A Transactions
IP Group Rejects Railpen’s Revised Bid but Extends Takeover Talks
Neutral
Jul 20, 2026
IP Group plc has rejected a revised takeover proposal from Railways Pension Trustee Company Limited and Railway Pension Investments Limited that valued each share at 71.3 pence, excluding a contingent value right tied to the future performance of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.