DB:DMB

Stock Analysis Report

Executive Summary

Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Hargreaves Lansdown's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DMB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.3%

DMB

-9.2%

DE Capital Markets

-9.1%

DE Market


1 Year Return

-9.3%

DMB

17.4%

DE Capital Markets

2.9%

DE Market

Return vs Industry: DMB underperformed the German Capital Markets industry which returned 17.4% over the past year.

Return vs Market: DMB underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

DMBIndustryMarket
7 Day-10.3%-9.2%-9.1%
30 Day-16.4%1.0%-7.2%
90 Day-17.5%12.3%-6.5%
1 Year-7.2%-9.3%19.9%17.4%6.1%2.9%
3 Year26.5%18.0%-6.7%-17.9%3.5%-5.6%
5 Yearn/a-26.4%-37.9%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Hargreaves Lansdown's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hargreaves Lansdown undervalued compared to its fair value and its price relative to the market?

27.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DMB (€19.45) is trading above our estimate of fair value (€17.37)

Significantly Below Fair Value: DMB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DMB is poor value based on its PE Ratio (28.2x) compared to the Capital Markets industry average (26.3x).

PE vs Market: DMB is poor value based on its PE Ratio (28.2x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: DMB is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: DMB is overvalued based on its PB Ratio (16.8x) compared to the DE Capital Markets industry average (1.8x).


Next Steps

Future Growth

How is Hargreaves Lansdown forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DMB's forecast earnings growth (8.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: DMB's earnings (8.1% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: DMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: DMB's revenue (8.8% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: DMB's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DMB's Return on Equity is forecast to be very high in 3 years time (51.5%).


Next Steps

Past Performance

How has Hargreaves Lansdown performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMB has a high level of non-cash earnings.

Growing Profit Margin: DMB's current net profit margins (52.3%) are higher than last year (51.6%).


Past Earnings Growth Analysis

Earnings Trend: DMB's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: DMB's earnings growth over the past year (8.7%) is below its 5-year average (11.1% per year).

Earnings vs Industry: DMB earnings growth over the past year (8.7%) exceeded the Capital Markets industry -2.7%.


Return on Equity

High ROE: DMB's Return on Equity (59.4%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hargreaves Lansdown's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DMB has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DMB's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: DMB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DMB has a sufficient allowance for bad loans.

Low Risk Liabilities: DMB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DMB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DMB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DMB has an appropriate level of bad loans.


Next Steps

Dividend

What is Hargreaves Lansdown's current dividend yield, its reliability and sustainability?

2.73%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.9%industryaverage1.7%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: DMB's dividend (2.69%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: DMB's dividend (2.69%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: DMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: DMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.5%), DMB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DMB's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Chris Hill (48yo)

3.1yrs

Tenure

UK£649,000

Compensation

Mr. Christopher F. Hill, also known as Chris, ACA, has been the Chief Executive of Hargreaves Lansdown plc since April 13, 2017 and served as its Deputy Chief Executive from October 1, 2016 to April 13, 20 ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD835.55K) is below average for companies of similar size in the German market ($USD3.74M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Hill
CEO & Executive Director3.1yrsUK£649.00k0.0052% £437.0k
Philip Johnson
CFO & Executive Director2.8yrsUK£457.00k0.0065% £546.1k
Stephen Lansdown
Co-Founder0yrsno data9.31% £787.4m
Lee Gardhouse
Chief Investment Officer4.2yrsno data0.15% £12.9m
Mark Dampier
Head of Research0yrsno data0.10% £8.4m
David Davies
Chief Information Officer3.7yrsno data0.0086% £725.3k
James Found
Head of Investor Relations & Group Financial Controller0yrsno datano data
Rob Byett
Risk and Compliance Director5.1yrsno data0.0020% £165.7k
Danny Cox
Head of Communications5.2yrsno datano data
David James
Marketing Director1.1yrsno datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: DMB's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Hill
CEO & Executive Director3.1yrsUK£649.00k0.0052% £437.0k
Philip Johnson
CFO & Executive Director2.8yrsUK£457.00k0.0065% £546.1k
Deanna Oppenheimer
Non-Executive Chairman2yrsUK£325.00k0.013% £1.1m
Shirley Garrood
Senior Independent Director2yrsUK£95.00kno data
John Troiano
Independent Non-Executive Director0.08yrsno datano data
Fiona Clutterbuck
Independent Non-Executive Director2.4yrsUK£81.25k0.00046% £38.9k
Roger Perkin
Independent Non-Executive Director2.4yrsUK£86.25kno data
Dan Olley
Independent Non-Executive Director0.7yrsUK£5.83kno data
Stephen Robertson
Independent Non-Executive Director8.3yrsUK£67.50k0.0027% £229.1k

2.4yrs

Average Tenure

61yo

Average Age

Experienced Board: DMB's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DMB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hargreaves Lansdown plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hargreaves Lansdown plc
  • Ticker: DMB
  • Exchange: DB
  • Founded: 1981
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£7.281b
  • Listing Market Cap: UK£8.453b
  • Shares outstanding: 473.87m
  • Website: https://www.hl.co.uk

Number of Employees


Location

  • Hargreaves Lansdown plc
  • One College Square South
  • Anchor Road
  • Bristol
  • BS1 5HL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HL.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2007
HRGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
HLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2007
DMBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
HRGL.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2011

Biography

Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland. Its flagship service is Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 23:54
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.