Hargreaves Lansdown
Market Cap
UK£8.0b
Last Updated
2021/04/20 01:02 UTC
Data Sources
Company Financials +
Executive Summary
Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
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: HL. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HL.'s weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
HL.
0.9%
GB Capital Markets
1.6%
GB Market
1 Year Return
14.1%
HL.
29.5%
GB Capital Markets
23.4%
GB Market
Return vs Industry: HL. underperformed the UK Capital Markets industry which returned 29.5% over the past year.
Return vs Market: HL. underperformed the UK Market which returned 23.4% over the past year.
Shareholder returns
| HL. | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 0.9% | 1.6% |
| 30 Day | 8.3% | 6.3% | 5.2% |
| 90 Day | 3.1% | 1.6% | 4.0% |
| 1 Year | 18.2%14.1% | 33.6%29.5% | 30.4%23.4% |
| 3 Year | 4.6%-3.1% | 36.4%20.2% | 17.3%2.6% |
| 5 Year | 46.4%29.5% | 92.4%57.2% | 48.5%19.8% |
Long-Term 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
2 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out Hargreaves Lansdown (LON:HL.) Before It's Too Late2 years ago | Simply Wall St
Does Hargreaves Lansdown plc's (LON:HL.) 12% Earnings Growth Make It An Outperformer?2 years ago | Simply Wall St
Hargreaves Lansdown plc (LON:HL.): Is It A Smart Long Term Opportunity?Valuation
Is Hargreaves Lansdown undervalued compared to its fair value and its price relative to the market?
24.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HL. (£16.84) is trading above our estimate of fair value (£10.66)
Significantly Below Fair Value: HL. is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HL. is poor value based on its PE Ratio (24.4x) compared to the GB Capital Markets industry average (20.5x).
PE vs Market: HL. is good value based on its PE Ratio (24.4x) compared to the UK market (26.3x).
Price to Earnings Growth Ratio
PEG Ratio: HL. is poor value based on its PEG Ratio (25.5x)
Price to Book Ratio
PB vs Industry: HL. is overvalued based on its PB Ratio (15.9x) compared to the GB Capital Markets industry average (2x).
Future Growth
How is Hargreaves Lansdown forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HL.'s forecast earnings growth (1% per year) is below the savings rate (1%).
Earnings vs Market: HL.'s earnings (1% per year) are forecast to grow slower than the UK market (17.9% per year).
High Growth Earnings: HL.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: HL.'s revenue (2.3% per year) is forecast to grow slower than the UK market (5.8% per year).
High Growth Revenue: HL.'s revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HL.'s Return on Equity is forecast to be very high in 3 years time (43.4%).
Past Performance
How has Hargreaves Lansdown performed over the past 5 years?
12.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HL. has a high level of non-cash earnings.
Growing Profit Margin: HL.'s current net profit margins (55%) are higher than last year (52.3%).
Past Earnings Growth Analysis
Earnings Trend: HL.'s earnings have grown by 12.5% per year over the past 5 years.
Accelerating Growth: HL.'s earnings growth over the past year (24.1%) exceeds its 5-year average (12.5% per year).
Earnings vs Industry: HL. earnings growth over the past year (24.1%) exceeded the Capital Markets industry -0.2%.
Return on Equity
High ROE: HL.'s Return on Equity (65.1%) is considered outstanding.
Financial Health
How is Hargreaves Lansdown's financial position?
Financial Position Analysis
Short Term Liabilities: HL.'s short term assets (£1.4B) exceed its short term liabilities (£924.8M).
Long Term Liabilities: HL.'s short term assets (£1.4B) exceed its long term liabilities (£17.2M).
Debt to Equity History and Analysis
Debt Level: HL. is debt free.
Reducing Debt: HL. has not had any debt for past 5 years.
Debt Coverage: HL. has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: HL. has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Hargreaves Lansdown current dividend yield, its reliability and sustainability?
2.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HL.'s dividend (2.77%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: HL.'s dividend (2.77%) is low compared to the top 25% of dividend payers in the UK market (4.08%).
Stability and Growth of Payments
Stable Dividend: HL.'s dividend payments have been volatile in the past 10 years.
Growing Dividend: HL.'s dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.5%), HL.'s dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HL.'s dividends in 3 years are forecast to be covered by earnings (80.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Chris Hill (49 yo)
4yrs
Tenure
UK£2,740,000
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 ($USD3.83M) is about average for companies of similar size in the UK market ($USD3.57M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: HL.'s management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: HL.'s board of directors are not considered experienced ( 1.3 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: HL. 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: HL.
- Exchange: LSE
- Founded: 1981
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: UK£7.975b
- Shares outstanding: 473.74m
- 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
Biography
Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/20 01:02 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.