Yahoo Finance Why 3i Infrastructure plc (LON:3IN) Should Be Your Next Investment
I’ve been keeping an eye on 3i Infrastructure plc (LSE:3IN) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 3IN has a lot to offer. Basically, it is a financially-healthy company with a an impressive track record of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on 3i Infrastructure here.
Flawless balance sheet with outstanding track record and pays a dividend
In the past couple of years, 3IN has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 28.04% return to shareholders, which is an optimistic signal for the future. 3IN’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 3IN manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at 3IN’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a UK£1.87B market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
3IN’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 3IN’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, 3IN’s share price is trading below the group’s average. This supports the theory that 3IN is potentially underpriced.
Next Steps:
For 3i Infrastructure, I’ve compiled three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for 3IN’s future growth? Take a look at our free research report of analyst consensus for 3IN’s outlook.
Dividend Income vs Capital Gains: Does 3IN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 3IN as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3IN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
