Stocks/TYG

TYG

Tortoise Energy Infrastructure Corporation
Financial Services·Asset Management
$43.99
$758M market cap
Claude Rating
4/10UNDERWEIGHT
Revenue
$10.8M
Free Cash Flow
$65.7M
Rev Growth
-99.3%
FCF Margin
606.4%
P/FCF
11.5x
EV/FCF
15.8x
Fwd EV/EBITDA
--
Fair Value
$40.00
Upside
-9.1%

Tortoise Energy Infrastructure Corporation is a closed ended equity mutual fund launched and managed by Tortoise Capital Advisors L.L.C. The fund invests in the public equity markets of the United States. It seeks to invest in the stocks of companies operating in the energy infrastructure sector, with an emphasis on those companies that are engaged in transporting, processing, storing, distributing or marketing natural gas, natural gas liquids (primarily propane), coal, crude oil or refined petr

2-Year Price History

$46.18+64.3%
$30$35$40$45volMay 24Sep 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q410.00.0--38.0--15.5-0.0130.3----------
Est2027-Q39.60.0--40.3--15.4-0.0114.8----------
Est2027-Q29.80.0--39.2--16.2-0.099.4----------
Est2027-Q19.50.0--42.8--16.2-0.083.3----------
Est2026-Q49.20.0--50.6--16.1-0.067.1----------
Est2026-Q38.80.0--52.8--16.7-0.051.0----------
Est2026-Q29.00.0--45.0--16.2-0.034.3----------
Est2026-Q18.50.0--68.0--17.0-0.018.1----------
Act2025-Q40.189.143.770.316.516.5-0.01.1279.118.16.6%17.7x11.5x
Act2025-Q210.80.04.2-50.949.249.2-0.00.2185.717.20.9%0.0x--
Act2024-Q47.30.03.2140.35.25.2-0.00.3127.110.81.7%0.0x--
Act2024-Q26.40.03.270.67.57.5-0.00.6115.510.82.8%----
Act2023-Q47.30.03.434.60.841.3-0.00.479.410.83.6%0.0x--
Act2023-Q28.50.05.2-50.249.449.4-0.00.379.011.38.4%0.0x--
Act2022-Q46.00.02.817.436.736.7-0.00.3117.111.31.6%0.0x--
Act2022-Q27.20.03.885.97.47.4-0.00.8109.211.91.8%0.0x--

AI Analysis

LLM Evaluations

Claude4/10UNDERWEIGHTFV: $40.00

TYG is a leveraged closed-end fund focused on energy infrastructure that has doubled its asset base via the TEAF merger but diluted portfolio quality by adding underperforming renewable assets. The NAV discount has compressed to ~6% (from historical double-digits), removing the margin of safety. A distribution cut from ~12.8% to ~8-9% is imminent, which will likely pressure the share price. With 80-100% ROC distributions eroding NAV, a high expense ratio (~0.9% management fee), underperformance vs. peers like KYN and EMO, and management governance concerns (attempted shareholder rights limitations), TYG offers below-average risk/reward. The midstream energy tailwind is real but better captured through lower-cost, better-managed vehicles. DCF analysis is unreliable for CEFs — this should be evaluated on NAV discount, distribution sustainability, and total return vs. peers, all of which currently argue against overweighting.

Catalyst Distribution reset announcement (likely negative catalyst cutting yield to 7-10%) could create a buying opportunity at wider NAV discount, or potential activist involvement following the court ruling on shareholder rights could force governance improvements and fee reductions.
Risk Imminent distribution cut from ~12.8% to 7-10% yield could trigger significant selling pressure from income-focused retail holders, driving the share price to a wider NAV discount and eroding total returns.
Trend
DETERIORATING
Mgmt
4/10
Quarter
4/10
Exp. Move
-3.0%

Valuation & Metrics

Market Stats

Price$43.99
Market Cap$758M
Enterprise Value$1.0B
P/S Ratio70.0x
P/FCF11.5x
EV/FCF15.8x
FCF Margin (TTM)606.4%
FCF Yield8.7%
Dividend Yield (TTM)--
Annual Dilution68.1%
CurrencyUSD

TTM Financial Snapshot

Revenue$10.8M
Net Income$19.4M
Free Cash Flow$65.7M

Revenue Growth (YoY)-99.3%
EBITDA Margin822.4%
Net Margin178.6%
FCF Margin606.4%
CapEx % of Revenue0.0%
SBC % of Revenue0.0%
ROIC3.7%
WC Change % Rev-12.0%
Interest Coverage9.8x

DCF Fair Value Estimate

$1.53
-96.5% upside
Fair Enterprise Value$276M
− Net Debt$278M
= Fair Equity$28M
Revenue Growth2.9% → 2.0%
FCF Margin606.4% → 150.0%
Discount Rate15.0%
Terminal EV/FCF10.0x

Forward Outlook & Risk

Short Interest

Short % of Float0.8%
Short Shares0.1M
Days to Cover1.3
Change (vs Prior)+106.0%
Short % Float History
0.80%+0.70pp
0.0%0.5%1.0%1.5%04-3007-1509-1511-1401-1504-30

Forward Projections & Estimates

NTM Revenue Growth+61.5%
Forward FCF Margin189.7%
Forward EBITDA Margin0.0%
Forward P/FCF22.8x
Forward EV/FCF31.2x
Forward Int. Coverage0.0x
Model Risk Score7/10
Bankruptcy Odds3%
Est. Borrow Rate6.5%
Terminal EV/FCF10.0x
LT Growth2.0%
LT FCF Margin150.0%

Institutional Ownership

Headline & net flow

BALANCED

In Q1 2026 so far (quarter still filing), institutions are roughly balanced — bought 4.3% of float, sold 3.3%. 1 filer moved >1% of shares (1 buying, 0 selling).

Net flow · Q1 2026still filing
+1.0% of float (net)
Bought 4.3% · Sold 3.3%
150 filers reported (last quarter: 162)

Ownership composition

Active
35.9%(+5.1% YoY)
152 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.0%(+0.0% YoY)
0 filers
Vanguard, iShares, SPDR
Market makers
0.0%(-0.0% YoY)
1 filers
Citadel, Susquehanna
Insiders
0.1%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
MORGAN STANLEY$57.3M$33.80−$4.6M+$8.1M-0.3%$1.65T
Penserra Capital Management LLC$26.9M$46.75+$19.0M+$21.2M+0.8%$8.52B
Advisors Asset Management, Inc.$21.1M$32.85+$2.0M−$166K-0.4%$6.01B
ROYAL BANK OF CANADA$19.5M$39.02+$2.9M+$7.1M-0.2%$526.36B
RAYMOND JAMES FINANCIAL INC$16.5M$38.39+$219K+$3.7M-0.0%$322.69B
BARD ASSOCIATES INC$9.8M$40.14+$40K+$9.0M-7.1%$398M
Eagle Bluffs Wealth Management LLC$7.5M$29.88+$87K+$3.4M+0.9%$257M
GUGGENHEIM CAPITAL LLC$7.3M$32.53+$770K+$2.3M-0.2%$12.48B
Arete Wealth Advisors, LLC$6.8M$31.59+$164K+$796K-0.2%$1.33B
WELLS FARGO & COMPANY/MN$6.4M$34.60−$4.3M−$5.6M-0.2%$497.71B
LPL Financial LLC$6.0M$32.79−$289K+$987K-0.2%$372.65B
AMERICAN FINANCIAL GROUP INC$5.5M$23.64+$0+$0-2.8%$270M
Meixler Investment Management, Ltd.$4.8M$37.78+$388K+$10K+0.1%$186M
Janney Montgomery Scott LLC$4.3M$39.99+$651K+$2.7M-0.2%$40.39B
CERTUITY, LLC$4.2M$23.16+$0+$0+0.5%$1.52B
UBS Group AG$3.9M$36.03+$444K+$1.8M-0.3%$562.11B
Cambridge Investment Research Advisors, Inc.$3.4M$31.26−$106K+$1.2M-0.4%$38.49B
BANK OF AMERICA CORP /DE/$3.1M$38.79−$1.5M−$308K-0.1%$1.36T
Steward Partners Investment Advisory, LLC$3.1M$43.29+$1.2M+$2.4M-0.2%$19.55B
Mariner, LLC$2.9M$40.48+$76K+$1.1M-0.1%$85.47B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BULLISH
Holders
-0.27%
avg per quarter
Holders (ex-self)
-0.29%
excl. this stock
Buyers (this Q)
+0.09%
73 buyers · $0.06B in
Sellers (this Q)
-0.68%
31 sellers · $0.01B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-8.7%
how holders react when this stock falls
On quiet Qs
-2.5%
−10% to +10% baseline
On rallies (+10%+)
-19.3%
how they react when this stock rises
Holders' portfolio flow this Q
+1.2%
inflows — adds are organic
Sellers' portfolio flow this Q
-35.6%
Sellers shed AUM broadly — partly forced.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-1.4%
Holder mid (any stock)
-2.1%
Holder rally (any stock)
-1.4%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0932K1.9M2.8M3.7M$21$28$35$43$502021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
MORGAN STANLEY1.1MSaba Capital Management, L.P.Penserra Capital Management LLC541KAllspring Global Investments Holdings, LLC17KAdvisors Asset Management, Inc.422KROYAL BANK OF CANADA391KRAYMOND JAMES FINANCIAL INC331KRIVERNORTH CAPITAL MANAGEMENT, LLCSIT INVESTMENT ASSOCIATES INCAristides Capital LLC

Corporate

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Officers & directors
Buys ($, 12mo)
$281K
1 txn · 1 insider · 6,000 sh
Sells ($, 12mo)
$0
0 txns · 0 insiders · 0 sh
Major holders (≥10% beneficial owners)
Buys ($, 12mo)
$15.00M
1 txn · 1 insider · 1,500,000 sh
Sells ($, 12mo)
$0
0 txns · 0 insiders · 0 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2025-11-12BUYIseman Andrew Jdirector6,000$46.83$281K$140K
2025-08-21BUYPRUDENTIAL FINANCIAL INC10 percent owner1,500,000$10.00$15.00M$15.00M

Order Flow (FINRA, ~3w lag)

56.2%retail+0.9pp
17.6%dark+2.3pp
week of 2026-04-13
10%20%30%40%50%60%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In November 2025, TYG completed a major merger with the Tortoise Sustainable and Social Impact Term Fund (TEAF), significantly increasing its assets to $1.3 billion but also introducing lower-performing renewable assets into the portfolio. As of January 2026, analysts have warned that while the fund currently offers a forward yield of 12.77%, this is expected to 'reset' downward to a range of 7%–10% in the coming months as the fund stabilizes post-merger (Seeking Alpha, Jan 2026). Additionally, the fund's NAV has traded sideways despite a market rally, failing to capture full upside momentum (StockTitan, March 2026).

🐻 Bear Case

The primary bear case rests on a looming distribution cut and NAV erosion. Roughly 80%–100% of TYG's distributions are characterized as 'Return of Capital' (ROC), which can deplete the fund's underlying net asset value over time if internal growth doesn't offset the payout (StockTitan, March 2026). Furthermore, the 'Renewables' segment of the portfolio has been a drag on performance, frequently producing losses that offset gains in the stronger midstream sector (Seeking Alpha, July 2025). With the NAV discount nearly closed (trading at only ~6% discount compared to historical double-digits), the 'margin of safety' for new investors has largely evaporated.

🚩 Red Flags

A major red flag is the ongoing legal and regulatory pushback regarding management's attempts to limit shareholder rights. A court ruling recently forced Tortoise funds to abandon their enforcement of the Maryland Control Share Acquisition Act, a defensive tactic typically used to block activist investors (Nasdaq, Nov 2024). Additionally, the fund has a high expense ratio (approximately 0.9% management fee plus high SG&A), where $0.59 of every dollar of fee revenue is consumed by operating expenses (DCFmodeling, Nov 2025). The fund also changed its independent accounting firm to a smaller provider (Tait Weller & Baker) in 2025, which can sometimes precede reporting friction.

⚔️ Competitive Threats

TYG faces stiff competition from other energy infrastructure Closed-End Funds (CEFs) like Kayne Anderson (KYN), SRV, and EMO, which have outpaced TYG in total returns following the 2024 U.S. elections (Seeking Alpha, Jan 2026). Analysts at MarketBeat recently identified five other stocks in the sector that are 'better buys,' explicitly excluding TYG from their recommended list for March 2026 due to higher risk and lower relative performance compared to peers.

💬 Customer Sentiment

Sentiment among income investors is shifting toward caution. While historical sentiment was bullish due to a 30% distribution hike in late 2024, the current consensus has cooled to a 'Hold' (MarketBeat, Feb 2026). Retail investors are increasingly concerned about the 'distribution reset' expected in 2026, which may alienate yield-hungry shareholders. Sentiment scores remain low (0.29 bullishness) as the fund remains at a 52-week high with little room for further multiple expansion (GNG Research, March 2026).