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Hargreaves Lansdown

LSE:HL.
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HL.
LSE
£11B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland. The last earnings update was 86 days ago. More info.


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  • Hargreaves Lansdown has significant price volatility in the past 3 months.
HL. Share Price and Events
7 Day Returns
2.1%
LSE:HL.
0.5%
GB Capital Markets
1.2%
GB Market
1 Year Returns
26.9%
LSE:HL.
8.8%
GB Capital Markets
2.5%
GB Market
HL. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hargreaves Lansdown (HL.) 2.1% 24% 22.6% 26.9% 72.1% 83.1%
GB Capital Markets 0.5% 11.3% 9.2% 8.8% 46% 74.3%
GB Market 1.2% 5.3% 9.8% 2.5% 16.9% 6.7%
1 Year Return vs Industry and Market
  • HL. outperformed the Capital Markets industry which returned 8.8% over the past year.
  • HL. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
HL.
Industry
5yr Volatility vs Market

HL. Value

 Is Hargreaves Lansdown undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hargreaves Lansdown to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hargreaves Lansdown.

LSE:HL. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= £1.26 * 54.4%
£0.68
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. £1.26
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:HL.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 19%) (0%))
0.822
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.822 * 6.65%)
6.69%

Discounted Cash Flow Calculation for LSE:HL. using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hargreaves Lansdown is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:HL. Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (54.4% – 6.69%) * £1.26)
£0.60
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.60 / (6.69% - 1.23%)
£10.94
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1.26 + £10.94
£12.2
LSE:HL. Discount to Share Price
Calculation Result
Value per share (GBP) From above. £12.20
Current discount Discount to share price of £22.25
= -1 x (£22.25 - £12.20) / £12.20
-82.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hargreaves Lansdown is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hargreaves Lansdown's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hargreaves Lansdown's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HL. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.51
LSE:HL. Share Price ** LSE (2019-04-25) in GBP £22.25
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 45 Publicly-Listed Capital Markets Companies 19.33x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.3x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hargreaves Lansdown.

LSE:HL. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HL. Share Price ÷ EPS (both in GBP)

= 22.25 ÷ 0.51

43.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hargreaves Lansdown is overvalued based on earnings compared to the GB Capital Markets industry average.
  • Hargreaves Lansdown is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Hargreaves Lansdown's expected growth come at a high price?
Raw Data
LSE:HL. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
11.2%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 22 Publicly-Listed Capital Markets Companies 1.44x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 566 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:HL. PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.71x ÷ 11.2%

3.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hargreaves Lansdown is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hargreaves Lansdown's assets?
Raw Data
LSE:HL. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.81
LSE:HL. Share Price * LSE (2019-04-25) in GBP £22.25
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 80 Publicly-Listed Capital Markets Companies 1.45x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:HL. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HL. Share Price ÷ Book Value per Share (both in GBP)

= 22.25 ÷ 0.81

27.44x

* Primary Listing of Hargreaves Lansdown.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hargreaves Lansdown is overvalued based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Hargreaves Lansdown's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Hargreaves Lansdown has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HL. Future Performance

 How is Hargreaves Lansdown expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hargreaves Lansdown expected to grow at an attractive rate?
  • Hargreaves Lansdown's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Hargreaves Lansdown's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Hargreaves Lansdown's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:HL. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HL. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 11.2%
LSE:HL. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 10.1%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 14%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:HL. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HL. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 736 496 398 1
2022-06-30 670 453 363 1
2021-06-30 590 351 306 10
2020-06-30 531 313 274 11
2019-06-30 481 277 246 11
LSE:HL. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 468 253 242
2018-09-30 458 249 239
2018-06-30 448 245 236
2018-03-31 432 240 230
2017-12-31 417 234 225
2017-09-30 401 230 218
2017-06-30 386 227 212
2017-03-31 348 211 204
2016-12-31 311 195 196
2016-09-30 319 180 187
2016-06-30 327 165 177
2016-03-31 312 172 170

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hargreaves Lansdown's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • Hargreaves Lansdown's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HL. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Hargreaves Lansdown Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HL. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.83 0.83 0.83 1.00
2022-06-30 0.76 0.76 0.76 1.00
2021-06-30 0.65 0.70 0.60 9.00
2020-06-30 0.58 0.64 0.54 10.00
2019-06-30 0.52 0.53 0.50 10.00
LSE:HL. Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.51
2018-09-30 0.50
2018-06-30 0.50
2018-03-31 0.49
2017-12-31 0.47
2017-09-30 0.46
2017-06-30 0.45
2017-03-31 0.43
2016-12-31 0.41
2016-09-30 0.39
2016-06-30 0.37
2016-03-31 0.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hargreaves Lansdown is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Hargreaves Lansdown's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hargreaves Lansdown has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HL. Past Performance

  How has Hargreaves Lansdown performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hargreaves Lansdown's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hargreaves Lansdown's year on year earnings growth rate has been positive over the past 5 years.
  • Hargreaves Lansdown's 1-year earnings growth is less than its 5-year average (7.6% vs 10.2%)
  • Hargreaves Lansdown's earnings growth has exceeded the GB Capital Markets industry average in the past year (7.6% vs -1.4%).
Earnings and Revenue History
Hargreaves Lansdown's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hargreaves Lansdown Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HL. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 467.90 241.50 18.30
2018-09-30 457.70 238.90 18.75
2018-06-30 447.50 236.30 19.20
2018-03-31 432.15 230.40 18.55
2017-12-31 416.80 224.50 17.90
2017-09-30 401.20 218.10 17.35
2017-06-30 385.60 211.70 16.80
2017-03-31 348.08 203.94 18.10
2016-12-31 310.56 196.19 19.40
2016-09-30 318.53 186.54 16.50
2016-06-30 326.50 176.90 13.60
2016-03-31 312.09 170.25 6.80
2015-12-31 297.68 163.59
2015-09-30 295.94 160.13
2015-06-30 294.19 156.66
2015-03-31 345.71 159.12
2014-12-31 397.23 161.58
2014-09-30 377.81 161.83
2014-06-30 358.39 162.09
2014-03-31 334.45 159.97 -23.49
2013-12-31 310.50 157.85 -46.99
2013-09-30 301.45 153.12 -23.49
2013-06-30 292.40 148.39
2013-03-31 279.29 139.71 45.63
2012-12-31 266.18 131.02 91.26
2012-09-30 252.46 121.99 88.41
2012-06-30 238.74 112.96 85.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hargreaves Lansdown made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Hargreaves Lansdown used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • Hargreaves Lansdown's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hargreaves Lansdown's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hargreaves Lansdown has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HL. Health

 How is Hargreaves Lansdown's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hargreaves Lansdown's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hargreaves Lansdown is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hargreaves Lansdown's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hargreaves Lansdown's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Hargreaves Lansdown has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hargreaves Lansdown Company Filings, last reported 3 months ago.

LSE:HL. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 385.50 0.00 322.90
2018-09-30 385.50 0.00 322.90
2018-06-30 405.20 0.00 348.80
2018-03-31 405.20 0.00 348.80
2017-12-31 333.10 0.00 280.10
2017-09-30 333.10 0.00 280.10
2017-06-30 307.70 0.00 265.50
2017-03-31 307.70 0.00 265.50
2016-12-31 236.44 0.00 194.56
2016-09-30 236.44 0.00 194.56
2016-06-30 254.20 0.00 212.40
2016-03-31 254.20 0.00 212.40
2015-12-31 214.71 0.00 182.44
2015-09-30 214.71 0.00 182.44
2015-06-30 237.07 0.00 217.66
2015-03-31 237.07 0.00 217.66
2014-12-31 189.17 0.00 154.50
2014-09-30 189.17 0.00 154.50
2014-06-30 228.34 0.00 202.11
2014-03-31 228.34 0.00 202.11
2013-12-31 180.35 0.00 169.72
2013-09-30 180.35 0.00 169.72
2013-06-30 197.15 0.00 178.37
2013-03-31 197.15 0.00 178.37
2012-12-31 146.85 0.00 149.57
2012-09-30 146.85 0.00 149.57
2012-06-30 157.42 0.00 159.95
  • Hargreaves Lansdown has no debt.
  • Hargreaves Lansdown has not taken on any debt in the past 5 years.
  • Hargreaves Lansdown has no debt, it does not need to be covered by operating cash flow.
  • Hargreaves Lansdown has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Hargreaves Lansdown's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hargreaves Lansdown has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HL. Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.45%
Current annual income from Hargreaves Lansdown dividends. Estimated to be 2.1% next year.
If you bought £2,000 of Hargreaves Lansdown shares you are expected to receive £29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hargreaves Lansdown's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Hargreaves Lansdown's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.1%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:HL. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:HL. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.67 1.00
2022-06-30 0.61 1.00
2021-06-30 0.51 11.00
2020-06-30 0.46 12.00
2019-06-30 0.41 12.00
LSE:HL. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-08-30 0.322 1.706
2018-08-07 0.322 1.502
2017-08-30 0.290 1.684
2017-08-15 0.290 2.148
2017-02-08 0.348 2.586
2016-09-07 0.340 2.725
2016-02-03 0.335 2.626
2015-09-09 0.330 2.422
2014-09-03 0.320 2.975
2014-02-05 0.303 2.469
2013-09-04 0.296 2.483
2013-02-07 0.238 2.552
2012-10-24 0.226 3.090
2012-09-05 0.226 3.384
2011-09-13 0.189 3.885
2011-09-01 0.189 3.898
2010-10-27 0.119 2.131
2010-09-01 0.119 2.726
2009-09-02 0.101 3.186

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hargreaves Lansdown's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Hargreaves Lansdown's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hargreaves Lansdown afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hargreaves Lansdown has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HL. Management

 What is the CEO of Hargreaves Lansdown's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Hill
COMPENSATION £2,498,000
AGE 47
TENURE AS CEO 2.3 years
CEO Bio

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, 2017 and Chief Financial Officer from February 01, 2016 to September, 2016. Mr. Hill is responsible for driving forward the cultural and risk management aspects of the business. Mr. Hill served as the Chief Financial Officer of IG Group PLC, the listed financial derivatives business. He has considerable strategic, leadership and operational skills and experience from a number of business sectors. He also has extensive finance and accounting experience. Mr. Hill served as the Chief Financial Officer of Access Prepaid Worldwide Limited since 2008. Mr. Hill served as the Chief Financial Officer of IG Group Holdings Plc since April 26, 2011 until October 30, 2015. Mr. Hill served as Chief Financial Officer of Travelex Card Services Limited since 2008. He served as Chief Financial Officer of Travelex Canada Limited and Travelex Group Limited since January 2009. Mr. Hill served as an Acting Chief Financial Officer of Travelex Group Limited from September 2008 to January 2009. Mr. Hill joined Travelex in January 2007 as Group Financial Controller. He joined VWR International in 2005 as Finance Director (UK and Ireland). He served as Head of the Finance Function for VWR Group subsidiary, where Mr. Hill had been responsible for substantially improving working capital and EBITDA performance over his tenure. He served at General Electric from 2000 to 2005, leading a number of financial planning, reporting and treasury functions. He served for Arthur Andersen from 1993 to 2000 in audit and treasury consulting. He has been an Executive Director of Hargreaves Lansdown plc since February 2016. He served as an Executive Director of IG Group Holdings Plc since January 8, 2011 until February 2016. He serves as a Director of IG Securities Limited (IG Markets Securities Limited). He served as a Director of Travelex Canada Limited and Travelex Group. Limited. He is qualified as a chartered accountant at Arthur Andersen and is an associate member of the Association of Corporate Treasurers. He is a member of the 30% Club. He has an MA in Modern History from Oxford University.

CEO Compensation
  • Chris's compensation has been consistent with company performance over the past year.
  • Chris's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Hargreaves Lansdown management team in years:

2.8
Average Tenure
47
Average Age
  • The tenure for the Hargreaves Lansdown management team is about average.
Management Team

Chris Hill

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
47
TENURE
2.3 yrs

Philip Johnson

TITLE
CFO & Executive Director
COMPENSATION
£1M
TENURE
2.2 yrs

Stephen Lansdown

TITLE
Co-Founder
AGE
66

Lee Gardhouse

TITLE
Chief Investment Officer
AGE
45
TENURE
3.3 yrs

Mark Dampier

TITLE
Head of Research
AGE
62

David Davies

TITLE
Chief Information Officer
TENURE
2.8 yrs

James Found

TITLE
Head of Investor Relations & Group Financial Controller

Rob Byett

TITLE
Risk and Compliance Director
AGE
44
TENURE
4.3 yrs

Danny Cox

TITLE
Head of Communications
TENURE
4.3 yrs

David James

TITLE
Marketing Director
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Hargreaves Lansdown board of directors in years:

1.8
Average Tenure
60
Average Age
  • The average tenure for the Hargreaves Lansdown board of directors is less than 3 years, this suggests a new board.
Board of Directors

Deanna Oppenheimer

TITLE
Non-Executive Chairman
COMPENSATION
£132K
AGE
60
TENURE
1.2 yrs

Chris Hill

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
47
TENURE
3.2 yrs

Philip Johnson

TITLE
CFO & Executive Director
COMPENSATION
£1M
TENURE
2 yrs

Shirley Garrood

TITLE
Senior Independent Director
COMPENSATION
£83K
TENURE
1.2 yrs

Jayne Styles

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
TENURE
3.5 yrs

Fiona Clutterbuck

TITLE
Independent Non-Executive Director
COMPENSATION
£57K
AGE
60
TENURE
1.6 yrs

Roger Perkin

TITLE
Independent Non-Executive Director
COMPENSATION
£61K
AGE
70
TENURE
1.6 yrs

Stephen Robertson

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
64
TENURE
7.5 yrs
Who owns this company?
Recent Insider Trading
  • Hargreaves Lansdown insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
04. Apr 19 Sell David Davies Individual 02. Apr 19 02. Apr 19 -1,044 £19.19 £-20,026
04. Apr 19 Buy David Davies Individual 02. Apr 19 02. Apr 19 1,036 £19.19 £19,874
04. Mar 19 Sell Mark Dampier Individual 04. Mar 19 04. Mar 19 -5,515 £18.14 £-100,021
15. Nov 18 Buy Lee Gardhouse Individual 14. Nov 18 14. Nov 18 4,895 £19.20 £93,984
18. May 18 Sell Ian Hunter Individual 17. May 18 17. May 18 -410,262 £19.52 £-8,008,930
18. May 18 Sell Lee Gardhouse Individual 17. May 18 17. May 18 -128,066 £19.52 £-2,500,040
18. May 18 Sell Mark Dampier Individual 17. May 18 17. May 18 -102,452 £19.52 £-2,000,017
X
Management checks
We assess Hargreaves Lansdown's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hargreaves Lansdown has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HL. News

Simply Wall St News

Does Hargreaves Lansdown plc's (LON:HL.) 12% Earnings Growth Make It An Outperformer?

When Hargreaves Lansdown plc's (LON:HL.) announced its latest earnings (30 June 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Hargreaves Lansdown's average earnings over the past couple of years, and its industry performance. … View our latest analysis for Hargreaves Lansdown.

Simply Wall St -

Hargreaves Lansdown plc (LON:HL.): Is It A Smart Long Term Opportunity?

In June 2018, Hargreaves Lansdown plc (LON:HL.) announced its earnings update. … with profits predicted to increase by 16.00% next year … the past 5-year average growth rate of 10.91%

Simply Wall St -

How Hargreaves Lansdown plc's (LON:HL.) Earnings Growth Stacks Up Against The Industry

Below, I assess HL.'s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. … View our latest analysis for Hargreaves Lansdown? … HL.'s trailing twelve-month earnings (from 31 December 2017) of UK£224.50m has

Simply Wall St -

Why Did Hargreaves Lansdown plc's (LON:HL.) Insiders Sell Their Own Shares?

some insider selling over the past three months, with insiders divesting from. … Generally, insiders selling shares in their own firm sends a bearish signal. … A research published in The MIT Press (1998) concluded that stocks following insider selling fell 2.7% compared to the market

Simply Wall St -

Does Hargreaves Lansdown plc's (LON:HL.) Stock Price Account For Its Growth?

Looking at Hargreaves Lansdown plc’s (LON:HL.) fundamentals some investors are wondering if its last closing price of £20.11 represents a good value for money for this high growth stock. … See our latest analysis for Hargreaves Lansdown? … Analysts are predicting good growth prospects for Hargreaves Lansdown over the next couple of years

Simply Wall St -

Why Hargreaves Lansdown plc (LON:HL.) Is A Buy When Markets Go Down

High quality companies, such as Hargreaves Lansdown plc, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … View out our latest analysis for Hargreaves Lansdown. … Hargreaves Lansdown plc provides advisory and third party investment services for individuals and corporates in the United Kingdom

Simply Wall St -

Best-In-Class Growth Stocks

HL.’s projected future profit growth is a robust 13.45%, with an underlying 27.64% growth from its revenues expected over the upcoming years. … GKP’s projected future profit growth is a robust 37.70%, with an underlying 30.64% growth from its revenues expected over the upcoming years. … AIM:FLO Future Profit Jun 2nd 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

Does Hargreaves Lansdown plc's (LON:HL.) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HL. … Price per share = £17.23 Earnings per share = £0.473 ∴ Price-Earnings Ratio = £17.23 ÷ £0.473 = 36.4x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … HL.’s P/E of 36.4x is higher than its industry peers (15.3x), which implies that each dollar of HL.’s earnings is being overvalued by investors.

Simply Wall St -

Did Hargreaves Lansdown plc's (LON:HL.) Recent Earnings Growth Beat The Trend?

For Hargreaves Lansdown, its most recent trailing-twelve-month earnings is UK£224.50M, which, in comparison to the prior year's level, has risen by 14.43%. … Since these figures are relatively short-term, I have determined an annualized five-year value for HL.'s net income, which stands at UK£157.05M This means on average, Hargreaves Lansdown has been able to increasingly raise its net income over the past few years as well. … This shows that any uplift the industry is enjoying, Hargreaves Lansdown has not been able to leverage it as much as its industry peers.What does this mean?

Simply Wall St -

Hargreaves Lansdown plc (LON:HL.): Can Growth Justify Its April Share Price?

Hargreaves Lansdown plc (LSE:HL.) is considered a high-growth stock, but its last closing price of £16.365 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Hargreaves Lansdown is available at price-to-earnings ratio of 34.62x, showing us it is overvalued compared to the GB market average ratio of 16.58x , and overvalued based on current earnings compared to the capital markets industry average of 15.41x. … A PE ratio of 34.62x and expected year-on-year earnings growth of 13.59% give Hargreaves Lansdown a quite high PEG ratio of 2.55x.

Simply Wall St -

HL. Company Info

Description

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, self-invested personal pensions (SIPPs), and lifetime ISAs. It also provides pension services, including SIPPs, annuities, drawdown, and mix and match pensions; share dealing services, such as overseas share dealing, initial public offerings and share offers, certificated share dealing, and exchange traded funds and exchange traded commodities/currencies; and fund dealing services. In addition, the company offers personal and business currency services; Junior ISA, SIPP, and investment accounts; and financial advisory services comprising investment management, lump sum investment, pension consolidation, portfolio restructuring, retirement planning, and estate planning services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.

Details
Name: Hargreaves Lansdown plc
HL.
Exchange: LSE
Founded: 1981
£10,544,496,832
473,909,970
Website: http://www.hl.co.uk
Address: Hargreaves Lansdown plc
One College Square South,
Anchor Road,
Bristol,
BS1 5HL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HL. Ordinary Shares London Stock Exchange GB GBP 15. May 2007
OTCPK HRGL.F Ordinary Shares Pink Sheets LLC US USD 15. May 2007
DB DMB Ordinary Shares Deutsche Boerse AG DE EUR 15. May 2007
BATS-CHIXE HLL Ordinary Shares BATS 'Chi-X Europe' GB GBP 15. May 2007
OTCPK HRGL.Y ADR Pink Sheets LLC US USD 06. Sep 2011
Number of employees
Current staff
Staff numbers
1,534
Hargreaves Lansdown employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 21:17
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.