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Tpg Inc Class A (TPG)
:TPG
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TPG
(NASDAQ:TPG)
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Rating:63Neutral
Price Target:―
TPG's overall score reflects strong strategic growth and operational efficiency but is tempered by profitability challenges and negative technical indicators. The robust earnings call and dividend yield provide some positive outlook, but market headwinds and valuation concerns weigh on the score.
Positive Factors
Strong Fundraising
TPG's ability to significantly increase fundraising showcases its strong market position and investor confidence, which supports future growth and investment opportunities.
Operational Efficiency
A strong balance sheet with no debt reliance indicates financial stability and operational efficiency, allowing TPG to navigate market fluctuations and invest in growth opportunities.
Expansion into New Strategies
Expanding into climate and infrastructure strategies positions TPG to capitalize on emerging market trends and diversify its investment portfolio, enhancing long-term growth potential.
Negative Factors
Profitability Challenges
Negative profit margins indicate ongoing challenges in achieving profitability, which can impact TPG's ability to reinvest in its business and return value to shareholders.
Fee-Earning AUM Growth Challenges
Slow growth in fee-earning AUM can limit revenue growth from management fees, impacting TPG's ability to scale its operations and increase profitability.
Cash Flow Fluctuations
Fluctuations in cash flow growth can affect TPG's ability to fund new investments and operational initiatives, potentially hindering long-term strategic goals.
TPG (TPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.56B
Dividend Yield3.35%
Average Volume (3M)1.67M
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth43.48%
EPS Growth-24.02%
CountryUS
Employees1,900
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.69
Shares Outstanding141,034,700
10 Day Avg. Volume1,744,641
30 Day Avg. Volume1,668,095
Financial Highlights & Ratios
PEG Ratio-3.62
Price to Book (P/B)8.03
Price to Sales (P/S)2.40
P/FCF Ratio12.50
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue7.63
Enterprise Value/Gross Profit11.16
Enterprise Value/Ebitda73.43
Forecast
1Y Price Target
$66.56Price Target Upside16.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
TPG Business Overview & Revenue Model
Company DescriptionTPG Inc. operates as an alternative asset manager worldwide. It offers investment management services to unconsolidated funds, collateralized loan obligations, and other vehicles; monitoring services to portfolio companies; advisory services, debt and equity arrangements, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. The company invests in private equity funds, real estate funds, fund of hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. operates as a subsidiary of TPG GP A, LLC.
How the Company Makes MoneyTPG makes money primarily through managing private investment funds and earning fees from investors. The company's revenue streams include management fees, which are a percentage of the total assets under management, and performance fees, which are earned when the investment returns exceed a predetermined benchmark. TPG also generates income from strategic partnerships and co-investments with institutional investors, enhancing its ability to deploy capital effectively across diverse sectors. Additionally, the firm earns returns from its direct investments and successful exits, including the sale of portfolio companies or assets.
TPG Key Performance Indicators (KPIs)
Any
Revenue by Type
Categorizes revenue by its sources, providing clarity on how the firm earns money and the stability or volatility of its income streams.
Categorizes revenue by its sources, providing clarity on how the firm earns money and the stability or volatility of its income streams.
Data provided by:
Main Street Data
Main Street DataTPG Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The call highlighted TPG's impressive fundraising achievements, robust deployment, and strategic growth in credit and private wealth. Despite challenges in the broader market and specific sectors, TPG's performance and strategic initiatives indicate strong momentum.Q2-2025 Updates
Positive Updates
Impressive Fundraising Growth
TPG achieved the second-highest fundraising quarter in its history, raising $11.3 billion, a 80% increase year-over-year. Credit fundraising hit a record $5.4 billion.
Strong Deployment and Realizations
TPG's deployment grew 36% year-over-year to $10.4 billion, while realizations increased over 20% to $6.5 billion.
Successful Fund Closures
Completed fundraising for TPG Growth VI, raising $4.8 billion, a 35% increase over the previous fund. TGS II campaign closed on $1.3 billion.
Credit Platform Expansion
Closed $1.4 billion for the third flagship fund in Credit Solutions, bringing the total to $4 billion. Twin Brook raised $1.4 billion for its sixth drawdown fund.
Private Wealth Expansion
T-POP raised $430 million across the first two closes, with participation from over 560 financial advisers. TCAP had its highest organic fundraising quarter with over $200 million in inflows.
Record Dry Powder
TPG finished the quarter with record dry powder of $63 billion, representing 43% of fee-earning AUM.
Negative Updates
Muted Market for Private Equity Fundraising
While TPG experienced strong fundraising, the broader private equity market is facing headwinds with ongoing macro uncertainty and cautious client behavior.
Challenges in Insurance Channel
TPG continues to navigate the complex insurance market, balancing between maintaining a 'balance sheet light' approach and exploring strategic partnerships.
Impact of Market and Policy Uncertainty
Despite clarity from new legislation, U.S. market activity paused, particularly in Climate investments, affecting the pace of fundraising and deployment.
Company Guidance
During TPG's Second Quarter 2025 Earnings Call, the firm highlighted several key financial metrics and strategic initiatives. The company reported a GAAP net income of $15 million and after-tax distributable earnings of $268 million, translating to $0.69 per share of Class A common stock. A dividend of $0.59 per share was declared, payable on September 2, 2025. TPG's second-quarter fundraising surged nearly 80% year-over-year to $11.3 billion, while deployment increased by 36% to $10.4 billion, and realizations rose by over 20% to $6.5 billion. The firm ended the quarter with a record dry powder of $63 billion, representing 43% of fee-earning AUM. Additionally, TPG's credit platform achieved a record fundraising quarter, with $5.4 billion raised. The company expressed optimism about raising significantly more capital in 2025 compared to the previous year, driven by strong fundraising momentum and strategic acquisitions, such as Peppertree.TPG Financial Statement Overview
Summary
TPG exhibits strong operational efficiency and a robust balance sheet with no debt reliance. However, challenges in profitability and cash flow fluctuations impact its financial performance.Income Statement
TPG's revenue growth has been inconsistent, with a notable increase in 2024 compared to 2023. However, the net profit margin is negative due to a net loss in 2024, indicating challenges in profitability. The EBIT margin improved significantly in 2024, reflecting better operational efficiency despite previous losses.60
Neutral
Balance Sheet
TPG has a strong equity base with a debt-to-equity ratio of 0, indicating no reliance on debt financing in 2024. The equity ratio is moderate, reflecting a stable financial position. However, fluctuations in stockholders' equity over the years suggest potential volatility.75
Positive
Cash Flow
The free cash flow was positive in 2024, showcasing good cash generation ability. The operating cash flow is strong compared to net income, which is a positive indicator. However, the decline in free cash flow growth in 2024 compared to previous periods points to some challenges in maintaining cash flow momentum.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.02B | 2.62B | 1.82B | 1.90B | 5.56B | 2.25B |
| Gross Profit | 2.07B | 2.54B | 23.28M | 381.47M | 4.62B | 1.72B |
| EBITDA | 314.17M | 110.56M | 0.00 | 179.51M | 0.00 | 1.11B |
| Net Income | 51.68M | 23.48M | 80.09M | 92.43M | 2.18B | 731.67M |
Balance Sheet | ||||||
| Total Assets | 11.97B | 10.54B | 9.37B | 7.94B | 8.96B | 7.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 808.02M | 678.37M | 1.11B | 972.73M | 1.26B |
| Total Debt | 602.85M | 1.58B | 1.26B | 444.57M | 621.45M | 490.63M |
| Total Liabilities | 8.41B | 6.94B | 6.01B | 4.86B | 1.66B | 1.48B |
| Stockholders Equity | 3.56B | 784.10M | 579.16M | 509.67M | 1.61B | 2.46B |
Cash Flow | ||||||
| Free Cash Flow | 443.47M | 504.01M | 703.79M | 1.37B | 1.47B | -20.16M |
| Operating Cash Flow | 464.91M | 532.15M | 720.52M | 1.38B | 1.47B | 95.39M |
| Investing Cash Flow | -21.45M | -44.47M | -373.56M | -3.01M | -37.74M | -108.10M |
| Financing Cash Flow | -452.46M | -344.86M | -789.23M | -1.24B | -1.32B | 250.33M |
TPG Technical Analysis
Positive
57.05
Price Trends
59.07
Negative
57.03
Positive
54.35
Positive
Market Momentum
-0.69
Negative
48.11
Neutral
65.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPG, the sentiment is Positive. The current price of 57.05 is above the 20-day moving average (MA) of 56.71, below the 50-day MA of 59.07, and above the 200-day MA of 54.35, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPG.
TPG Risk Analysis
TPG disclosed 74 risk factors in its most recent earnings report. TPG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TPG Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $14.16B | 9.84 | 10.25% | 9.33% | 7.71% | -29.47% | |
| ― | $184.83B | 43.50 | 35.17% | 2.63% | 31.91% | 19.86% | |
| ― | $20.87B | 16.84 | 23.07% | 2.43% | 101.10% | ― | |
| ― | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $21.56B | ― | 2.55% | 3.35% | 43.48% | -24.02% | |
| ― | $49.31B | 86.34 | 13.92% | 2.84% | 45.89% | -9.53% | |
| ― | $107.46B | 57.84 | 8.22% | 0.60% | -24.62% | -48.96% |
* Financial Sector Average
TPG
TPG
57.05
-9.18
-13.86%
KKR
KKR & Co
120.61
-18.81
-13.49%
BX
Blackstone Group
151.69
-16.19
-9.64%
CG
Carlyle Group
57.71
7.96
16.00%
ARCC
Ares Capital
20.57
1.03
5.27%
ARES
Ares Management
150.93
-13.76
-8.36%
TPG Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
TPG Strengthens Board with New Independent Director
Positive
Jan 15, 2025
On January 15, 2025, TPG Inc. appointed Kathy Elsesser as an independent director as part of its strategic transition to a majority independent board. Elsesser, who brings over three decades of experience from Goldman Sachs, will serve on the Audit and Compensation Committees, enhancing TPG’s corporate governance and positioning as a leader in the alternative asset management industry.
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.