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Tetragon Financial Group LTD (NL:TFG)
:TFG
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Tetragon Financial (TFG) AI Stock Analysis

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NL:TFG

Tetragon Financial

(TFG)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
$14.50
▲(5.07% Upside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by weak recent fundamentals—TTM revenue collapse, a swing to net loss, and very large negative operating/free cash flow—despite a conservatively levered balance sheet. Technicals are mildly positive in the short-to-medium term but not strong enough to offset fundamental volatility. Valuation is a key support, with a very low P/E and an above-average dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage gives TFG greater resilience against portfolio losses and funding stress. The large equity base provides financial flexibility to hold investments through cycles, although sustained losses could gradually weaken this protection.
Negative Factors
Severe Revenue Deterioration
The sharp TTM revenue decline and return to losses indicate that earnings are not currently dependable. If this weakness persists, it could reduce internal capital generation, constrain distributions and erode the equity base despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage gives TFG greater resilience against portfolio losses and funding stress. The large equity base provides financial flexibility to hold investments through cycles, although sustained losses could gradually weaken this protection.
Read all positive factors

Tetragon Financial (TFG) vs. iShares MSCI Netherlands ETF (EWN)

Tetragon Financial Business Overview & Revenue Model

Company Description
Tetragon Financial Group Limited (TFG) operates as a closed-end feeder fund, established and actively managed by Tetragon Financial Management LP. Its primary function is to invest all of its capital exclusively into Tetragon Financial Group Maste...
How the Company Makes Money
TFG makes money primarily by earning returns on its investment portfolio and, where applicable, by generating fee-related income from asset-management interests. Key sources of earnings typically include: (1) Investment income and gains: interest ...

Tetragon Financial Earnings Call Summary

Earnings Call Date:Mar 05, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 08, 2027
Earnings Call Sentiment Positive
The call presents strong operational and investment performance — notably a 19.6% NAV total return for 2025, ROE of 23.4%, and material gains from Equitix, Ripple and Hawke's Point — together with significant near-term cash inflows from the BGO sale enabling buybacks and debt reduction. However, the company faces material headwinds: large CLO/LCM losses and AUM declines, a negative net cash/leverage position prior to BGO proceeds, persistent and large share-price discount to NAV (~58.6%), and recurring dilution and fee/interest drags on NAV. Overall, the positives in realized and unrealized investment gains and the expected BGO proceeds are strong, but structural market sentiment (the discount) and credit-related losses remain important challenges.
Positive Updates
Strong NAV and Total Return
Fully diluted NAV per share of $41.88 at 31-Dec-2025; NAV per share total return of 19.6% for 2025 and an annualized NAV per share total return of 11.2% since IPO.
Negative Updates
Large Persistent Discount to NAV
Share price $17.35 vs NAV $41.88 at year-end, implying a discount of approximately 58.6%; management notes historically limited impact of buybacks on narrowing the discount despite ~$860M of prior buybacks.
Read all updates
Q4-2025 Updates
Negative
Strong NAV and Total Return
Fully diluted NAV per share of $41.88 at 31-Dec-2025; NAV per share total return of 19.6% for 2025 and an annualized NAV per share total return of 11.2% since IPO.
Read all positive updates
Company Guidance
The management reiterated its forward priorities and near-term capital guidance: they will prioritize buybacks over higher recurring dividends (buybacks accretive on large discounts), plan to deploy $50m immediately to repurchase shares from the roughly $475m gross expected BGO sale proceeds (of which $155m is a one‑off amount accretive to 2025 year‑end NAV), then use remaining proceeds to pay taxes and reduce debt on a $500m revolver ( ~$350m drawn), leaving net cash positions that moved from cash $27.1m / net cash ≈ -$316.4m at year‑end to January net ≈ -$413m; longer‑term capital use will balance investments, buybacks and dividends. They reiterated performance targets and metrics as the basis for value creation and investor outreach — fully diluted NAV per share $41.88 (31‑Dec‑25), NAV per share total return 19.6% in 2025 and 11.2% annualized since IPO, ROE 23.4% in 2025 (target 10–15%, avg. since IPO 12.1%), Q4 dividend $0.12 (Q3 $0.11), FY dividend $0.45 (≈2.6% yield on $17.35 year‑end share price), prior buybacks ~$860m and dividends ~ $1bn to date, and near‑term commitments of ~$99.9m — all accompanied by a commitment to improve performance, transparency and market education to address the persistent discount.

Tetragon Financial Financial Statement Overview

Summary
Balance sheet strength is a clear positive (low leverage with debt-to-equity ~0.09 and a large equity base), but results have weakened materially in the latest TTM: revenue fell sharply (~-92% YoY), the company swung to a net loss (-13.9M), and cash generation is very weak with deeply negative operating/free cash flow (~-368M to -375M). Overall, conservative leverage is outweighed by near-term earnings and cash-flow volatility.
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
34
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.25M1.03B365.00M240.40M61.70M611.00M
Gross Profit476.55M778.80M365.00M240.40M-5.90M448.90M
EBITDA2.10M756.90M377.30M165.10M-21.80M425.40M
Net Income-102.45M729.60M352.20M141.10M-32.10M418.20M
Balance Sheet
Total Assets3.93B4.26B3.56B3.11B2.97B3.06B
Cash, Cash Equivalents and Short-Term Investments43.60M27.10M30.50M23.10M21.70M198.80M
Total Debt185.00M350.00M300.00M250.00M115.00M75.00M
Total Liabilities295.80M364.70M391.90M280.40M215.70M187.10M
Stockholders Equity3.63B3.89B3.17B2.83B2.76B2.88B
Cash Flow
Free Cash Flow-238.60M-367.50M47.10M-26.00M-111.00M64.30M
Operating Cash Flow-238.60M-367.50M47.10M-26.00M-111.00M64.30M
Investing Cash Flow699.60M339.40M113.60M119.60M-28.60M164.30M
Financing Cash Flow-400.10M24.70M-39.70M27.40M-66.10M-57.10M

Tetragon Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.80
Price Trends
50DMA
13.46
Positive
100DMA
13.11
Positive
200DMA
14.30
Negative
Market Momentum
MACD
0.17
Negative
RSI
68.02
Neutral
STOCH
73.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TFG, the sentiment is Positive. The current price of 13.8 is above the 20-day moving average (MA) of 13.56, above the 50-day MA of 13.46, and below the 200-day MA of 14.30, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:TFG.

Tetragon Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€14.52B11.583.34%13.61%28.51%
77
Outperform
€219.48M-300.00-0.26%9.58%66.89%-101.43%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
63
Neutral
$1.17B3.519.32%3.36%-64.07%-73.33%
51
Neutral
€13.60M-15.66-4.06%7.52%-44.85%
47
Neutral
€5.46B126.682.17%2.21%0.52%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:TFG
Tetragon Financial
14.00
-3.25
-18.82%
NL:ECT
Eurocastle Investment
13.50
3.85
39.90%
NL:VALUE
VALUE8 N V
6.75
0.16
2.43%
NL:VTA
Volta Finance
6.00
-0.34
-5.32%
NL:ALLFG
Allfunds Group plc
9.07
3.29
57.00%
NL:CVC
CVC Capital Partners plc
13.90
-0.54
-3.72%
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.Date of analysis: Aug 28, 2026