TPG (TPG) AI Stock Analysis

• Market Cap: $20.75B
• Dividend Yield: 3.48%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: 43.48%
• EPS Growth: -24.02%
• Country: US
• Employees: 1,900
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.69
• Shares Outstanding: 141,034,700
• 10 Day Avg. Volume: 1,559,315
• 30 Day Avg. Volume: 1,532,098
• PEG Ratio: -3.62
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: 11.16
• Enterprise Value/Ebitda: 73.43
• 1Y Price Target: $67.29
• Price Target Upside: 22.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 63 Neutral
• 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 Business Overview & Revenue Model

Company Description

TPG is a leading global alternative asset management firm with a focus on private equity, growth equity, real estate, credit, and public equity. The company operates across multiple sectors, including healthcare, technology, consumer products, and financial services, offering a range of investment strategies to its clients. TPG is known for its active management approach and its ability to create value through strategic investments and operational improvements.

How the Company Makes Money

TPG 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 54.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPG, the sentiment is Negative. The current price of 54.91 is below the 20-day moving average (MA) of 59.76, below the 50-day MA of 60.06, and above the 200-day MA of 54.72, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 35.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPG.

TPG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	75 Outperform	$13.33B	9.26	10.25%	10.16%	7.71%	-29.47%
CG	69 Neutral	$20.30B	16.38	23.07%	2.49%	101.10%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BX	67 Neutral	$188.86B	41.51	37.72%	2.77%	23.08%	41.35%
TPG	63 Neutral	$20.75B	―	2.55%	3.48%	43.48%	-24.02%
ARES	63 Neutral	$46.03B	80.59	13.92%	3.05%	45.89%	-9.53%
KKR	62 Neutral	$104.97B	56.51	8.22%	0.61%	-24.62%	-48.96%

TPG Corporate Events

TPG Strengthens Board with New Independent Director

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.