Hargreaves Lansdown
Market Cap
UK£7.9b
Last Updated
2021/01/22 01:55 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
Earnings are forecast to decline by an average of 5.2% per year for the next 3 years
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 +/- 5% a week.
Volatility Over Time: HL.'s weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
6.0%
HL.
0.9%
GB Capital Markets
-0.1%
GB Market
1 Year Return
-9.2%
HL.
4.4%
GB Capital Markets
-7.7%
GB Market
Return vs Industry: HL. underperformed the UK Capital Markets industry which returned 4.4% over the past year.
Return vs Market: HL. underperformed the UK Market which returned -7.7% over the past year.
Shareholder returns
| HL. | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 0.9% | -0.1% |
| 30 Day | 8.7% | 3.0% | 4.1% |
| 90 Day | 17.6% | 14.5% | 14.7% |
| 1 Year | -6.1%-9.2% | 7.8%4.4% | -4.0%-7.7% |
| 3 Year | -5.6%-12.5% | 30.2%14.8% | 4.2%-8.5% |
| 5 Year | 37.7%22.0% | 99.7%63.9% | 43.0%15.1% |
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 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?2 years ago | Simply Wall St
How Hargreaves Lansdown plc's (LON:HL.) Earnings Growth Stacks Up Against The IndustryValuation
Is Hargreaves Lansdown undervalued compared to its fair value and its price relative to the market?
25.16x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HL. (£16.63) is trading above our estimate of fair value (£10.61)
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 (25.2x) compared to the GB Capital Markets industry average (19.8x).
PE vs Market: HL. is poor value based on its PE Ratio (25.2x) compared to the UK market (23.1x).
Price to Earnings Growth Ratio
PEG Ratio: HL.'s earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HL. is overvalued based on its PB Ratio (14.1x) compared to the GB Capital Markets industry average (1.6x).
Next Steps
Future Growth
How is Hargreaves Lansdown forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
-5.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HL.'s earnings are forecast to decline over the next 3 years (-5.2% per year).
Earnings vs Market: HL.'s earnings are forecast to decline over the next 3 years (-5.2% per year).
High Growth Earnings: HL.'s earnings are forecast to decline over the next 3 years.
Revenue vs Market: HL.'s revenue (2.7% per year) is forecast to grow slower than the UK market (6.6% per year).
High Growth Revenue: HL.'s revenue (2.7% 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 (42.1%).
Next Steps
Past Performance
How has Hargreaves Lansdown performed over the past 5 years?
12.2%
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 (56.8%) are higher than last year (51.5%).
Past Earnings Growth Analysis
Earnings Trend: HL.'s earnings have grown by 12.2% per year over the past 5 years.
Accelerating Growth: HL.'s earnings growth over the past year (26.5%) exceeds its 5-year average (12.2% per year).
Earnings vs Industry: HL. earnings growth over the past year (26.5%) exceeded the Capital Markets industry -0.8%.
Return on Equity
High ROE: HL.'s Return on Equity (56.2%) is considered outstanding.
Next Steps
Financial Health
How is Hargreaves Lansdown's financial position?
Financial Position Analysis
Short Term Liabilities: HL.'s short term assets (£1.2B) exceed its short term liabilities (£696.8M).
Long Term Liabilities: HL.'s short term assets (£1.2B) exceed its long term liabilities (£21.7M).
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
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Dividend
What is Hargreaves Lansdown current dividend yield, its reliability and sustainability?
2.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HL.'s dividend (2.81%) is higher than the bottom 25% of dividend payers in the UK market (1.51%).
High Dividend: HL.'s dividend (2.81%) is low compared to the top 25% of dividend payers in the UK market (4.59%).
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 (56.8%), 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 (80.4% 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)
3.75yrs
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 ($USD3.76M) is about average for companies of similar size in the UK market ($USD3.94M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.75yrs | UK£2.74m | 0.011% £ 858.7k | |
| CFO & Executive Director | 3.75yrs | UK£1.92m | 0.0081% £ 638.9k | |
| Co-Founder | 40yrs | UK£5.00k | 23.93% £ 1.9b | |
| Co-Founder | no data | no data | 5.72% £ 450.3m | |
| Chief Investment Officer | 5.08yrs | no data | 0.089% £ 7.0m | |
| Head of Research | no data | no data | 0.10% £ 7.9m | |
| Chief Information Officer | 4.58yrs | no data | 0.0086% £ 676.0k | |
| Head of Investor Relations & Group Financial Controller | no data | no data | no data | |
| Risk and Compliance Director | 6yrs | no data | 0.0027% £ 214.3k | |
| General Counsel & Group Company Secretary | no data | no data | no data | |
| Head of Communications | 6.08yrs | no data | no data | |
| Marketing Director | 2yrs | no data | no data |
4.8yrs
Average Tenure
56.5yo
Average Age
Experienced Management: HL.'s management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.75yrs | UK£2.74m | 0.011% £ 858.7k | |
| CFO & Executive Director | 3.75yrs | UK£1.92m | 0.0081% £ 638.9k | |
| Non-Executive Chairman | 2.92yrs | UK£338.61k | 0.0065% £ 508.2k | |
| Non-Independent Non-Executive Director | 0.17yr | no data | no data | |
| Independent Non-Executive Director | 1yr | UK£55.85k | 0.0030% £ 239.5k | |
| Interim Senior Independent Director | no data | UK£93.37k | no data | |
| Independent Non-Executive Director | 1.58yrs | UK£70.59k | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data |
1.3yrs
Average Tenure
59yo
Average Age
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: Insufficient data to determine if 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£7.878b
- Shares outstanding: 473.88m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HL. | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | May 2007 |
| HRGL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2007 |
| HLL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | May 2007 |
| DMB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2007 |
| HRGL.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Sep 2011 |
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 | 2021/01/22 01:55 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/06/30 |
| 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.