London Stock Exchange Group plc's (LON:LSEG) Price In Tune With Earnings
Apr 26
U.K. (FTSE) Financials Sector Analysis
UpdatedApr 27, 2024
DataAggregated Company Financials
Companies237
- 7D2.2%
- 3M6.6%
- 1Y6.2%
- YTD4.6%
The Financials industry has gained 1.0% in the last week and HSBC Holdings up 2.7%. This means that the industry has gained 5.8% over the past year. Earnings are forecast to grow by 6.8% annually.
Sector Valuation and Performance
Has the U.K. Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 27 Apr 2024 | UK£440.3b | UK£242.5b | UK£48.4b | 12.1x | 9.1x | 1.8x |
| Mon, 25 Mar 2024 | UK£487.1b | UK£268.7b | UK£54.9b | 12.9x | 8.9x | 1.8x |
| Wed, 21 Feb 2024 | UK£389.4b | UK£184.2b | UK£50.7b | 12.2x | 7.7x | 2.1x |
| Fri, 19 Jan 2024 | UK£386.2b | UK£188.2b | UK£51.5b | 12.5x | 7.5x | 2.1x |
| Sun, 17 Dec 2023 | UK£392.4b | UK£188.2b | UK£51.4b | 12.5x | 7.6x | 2.1x |
| Tue, 14 Nov 2023 | UK£375.8b | UK£190.0b | UK£52.1b | 11.6x | 7.2x | 2x |
| Thu, 12 Oct 2023 | UK£397.1b | UK£182.3b | UK£48.1b | 12.2x | 8.2x | 2.2x |
| Sat, 09 Sep 2023 | UK£376.5b | UK£181.0b | UK£47.9b | 12.9x | 7.9x | 2.1x |
| Mon, 07 Aug 2023 | UK£392.2b | UK£175.3b | UK£47.2b | 12.3x | 8.3x | 2.2x |
| Wed, 05 Jul 2023 | UK£401.7b | UK£177.9b | UK£51.2b | 12.2x | 7.9x | 2.3x |
| Fri, 02 Jun 2023 | UK£406.8b | UK£182.2b | UK£51.6b | 13x | 7.9x | 2.2x |
| Sun, 30 Apr 2023 | UK£410.9b | UK£172.5b | UK£43.6b | 13x | 9.4x | 2.4x |
| Tue, 28 Mar 2023 | UK£388.6b | UK£172.4b | UK£43.2b | 12.6x | 9x | 2.3x |
| Thu, 23 Feb 2023 | UK£452.3b | UK£172.7b | UK£44.7b | 11x | 10.1x | 2.6x |
| Sat, 21 Jan 2023 | UK£414.5b | UK£142.7b | UK£34.6b | 12.1x | 12x | 2.9x |
| Mon, 19 Dec 2022 | UK£372.4b | UK£143.8b | UK£34.9b | 11.7x | 10.7x | 2.6x |
| Wed, 16 Nov 2022 | UK£366.1b | UK£146.2b | UK£36.2b | 9.8x | 10.1x | 2.5x |
| Fri, 14 Oct 2022 | UK£782.1b | UK£187.3b | UK£40.6b | 9.2x | 19.3x | 4.2x |
| Sun, 11 Sep 2022 | UK£377.5b | UK£149.9b | UK£38.8b | 9.5x | 9.7x | 2.5x |
| Tue, 09 Aug 2022 | UK£419.0b | UK£237.1b | UK£41.3b | 9.9x | 10.1x | 1.8x |
| Thu, 07 Jul 2022 | UK£433.2b | UK£282.1b | UK£49.3b | 9.7x | 8.8x | 1.5x |
| Sat, 04 Jun 2022 | UK£457.1b | UK£277.6b | UK£48.4b | 10.2x | 9.4x | 1.6x |
| Mon, 02 May 2022 | UK£461.7b | UK£275.1b | UK£46.6b | 10.6x | 9.9x | 1.7x |
| Wed, 30 Mar 2022 | UK£482.6b | UK£271.8b | UK£46.3b | 11x | 10.4x | 1.8x |
| Fri, 25 Feb 2022 | UK£601.3b | UK£355.0b | UK£48.4b | 10.8x | 12.4x | 1.7x |
| Sun, 23 Jan 2022 | UK£522.3b | UK£323.7b | UK£46.2b | 11.2x | 11.3x | 1.6x |
| Tue, 21 Dec 2021 | UK£498.1b | UK£326.1b | UK£46.5b | 11.8x | 10.7x | 1.5x |
| Thu, 18 Nov 2021 | UK£537.9b | UK£332.6b | UK£48.5b | 12.7x | 11.1x | 1.6x |
| Sat, 16 Oct 2021 | UK£532.8b | UK£326.2b | UK£42.0b | 13.2x | 12.7x | 1.6x |
| Mon, 13 Sep 2021 | UK£513.6b | UK£325.4b | UK£41.5b | 14.2x | 12.4x | 1.6x |
| Wed, 11 Aug 2021 | UK£530.3b | UK£325.7b | UK£41.7b | 14.5x | 12.7x | 1.6x |
| Sun, 06 Jun 2021 | UK£515.6b | UK£301.0b | UK£29.9b | 17.4x | 17.2x | 1.7x |
Price to Earnings Ratio
16.9x
Current Industry PE
- Investors are pessimistic on the British Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.9x which is lower than its 3-year average PE of 10.7x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 18% per year over the last three years.
- Meanwhile revenues for these companies have declined 6.9% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the U.K. Financials sector?
| GB Market | 2.84% | |
| Financials | 2.23% | |
| Consumer Finance | 9.46% | |
| Banks | 3.84% | |
| Capital Markets | 1.16% | |
| Diversified Financial | 0.24% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Insurance | -0.03% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 17.1x.
- Analysts are expecting annual earnings growth of 20.9%, which is higher than its past year's earnings growth of 1.1% per year.
- Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 8.7x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings growth rate of 1.1% per year.
- In contrast, the Banks industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| HSBA HSBC Holdings | UK£6.64 | 2.7% +UK£3.2b | 15.7% | PB0.8x | |
| BARC Barclays | UK£2.04 | 10.0% +UK£2.7b | 27.8% | PB0.4x | |
| NWG NatWest Group | UK£3.07 | 11.1% +UK£2.7b | 17.3% | PB0.7x | |
| LLOY Lloyds Banking Group | UK£0.52 | 2.7% +UK£948.4m | 8.5% | PB0.7x | |
| KSPI Kaspi.kz | US$120.60 | 5.4% +US$1.2b | 59.9% | PE12.2x |
