LSE:HL.

Stock Analysis Report

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Executive Summary

Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. More Details


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.IndustryMarket
7 Day6.0%0.9%-0.1%
30 Day8.7%3.0%4.1%
90 Day17.6%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 Year37.7%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

Valuation

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


Next Steps

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

NamePositionTenureCompensationOwnership
Christopher Hill
CEO & Executive Director3.75yrsUK£2.74m0.011%
£ 858.7k
Philip Johnson
CFO & Executive Director3.75yrsUK£1.92m0.0081%
£ 638.9k
Peter Hargreaves
Co-Founder40yrsUK£5.00k23.93%
£ 1.9b
Stephen Lansdown
Co-Founderno datano data5.72%
£ 450.3m
Lee Gardhouse
Chief Investment Officer5.08yrsno data0.089%
£ 7.0m
Mark Dampier
Head of Researchno datano data0.10%
£ 7.9m
David Davies
Chief Information Officer4.58yrsno data0.0086%
£ 676.0k
James Found
Head of Investor Relations & Group Financial Controllerno datano datano data
Rob Byett
Risk and Compliance Director6yrsno data0.0027%
£ 214.3k
Alison Zobel
General Counsel & Group Company Secretaryno datano datano data
Danny Cox
Head of Communications6.08yrsno datano data
David James
Marketing Director2yrsno datano 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

NamePositionTenureCompensationOwnership
Christopher Hill
CEO & Executive Director3.75yrsUK£2.74m0.011%
£ 858.7k
Philip Johnson
CFO & Executive Director3.75yrsUK£1.92m0.0081%
£ 638.9k
Deanna Oppenheimer
Non-Executive Chairman2.92yrsUK£338.61k0.0065%
£ 508.2k
Adrian John Collins
Non-Independent Non-Executive Director0.17yrno datano data
John Troiano
Independent Non-Executive Director1yrUK£55.85k0.0030%
£ 239.5k
Roger Perkin
Interim Senior Independent Directorno dataUK£93.37kno data
Dan Olley
Independent Non-Executive Director1.58yrsUK£70.59kno data
Andrea Blance
Independent Non-Executive Director0.33yrno datano data
Mansura Mannings
Independent Non-Executive Director0.33yrno datano 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 01:55
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.