TPG Inc.
TPG Inc. Fundamental Analysis
TPG Inc. (TPG) shows moderate financial fundamentals with a PE ratio of 36.93, profit margin of 4.42%, and ROE of 16.10%. The company generates $9.4B in annual revenue with strong year-over-year growth of 44.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TPG's fundamental strength across five key dimensions:
Efficiency Score
WeakTPG struggles to generate sufficient returns from assets.
Valuation Score
ModerateTPG shows balanced valuation metrics.
Growth Score
ModerateTPG shows steady but slowing expansion.
Financial Health Score
WeakTPG carries high financial risk with limited liquidity.
Profitability Score
ModerateTPG maintains healthy but balanced margins.
Key Financial Metrics
Is TPG Expensive or Cheap?
P/E Ratio
TPG trades at 36.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TPG's PEG of 0.39 indicates potential undervaluation.
Price to Book
The market values TPG Inc. at 5.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.03 times EBITDA. This signals the market has high growth expectations.
How Well Does TPG Make Money?
Net Profit Margin
For every $100 in sales, TPG Inc. keeps $4.42 as profit after all expenses.
Operating Margin
Core operations generate 17.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.10 in profit for every $100 of shareholder equity.
ROA
TPG Inc. generates $1.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TPG Inc. generates strong operating cash flow of $2.68B, reflecting robust business health.
Free Cash Flow
TPG Inc. generates strong free cash flow of $2.64B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.88 in free cash annually.
FCF Yield
TPG converts 6.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TPG Stacks Against Its Sector Peers
| Metric | TPG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.93 | 18.62 | Worse (Expensive) |
| ROE | 16.10% | 816.00% | Weak |
| Net Margin | 4.42% | 2239.00% | Weak |
| Debt/Equity | 1.45 | 0.97 | Weak (High Leverage) |
| Current Ratio | 0.15 | 692.23 | Weak Liquidity |
| ROA | 1.24% | -24827.00% (disorted) | Weak |
TPG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TPG Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.09%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-96.63%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-55.73%
Industry Style: Value, Dividend, Cyclical
Declining