LSE:IGG

Stock Analysis Report

Executive Summary

IG Group Holdings plc provides leveraged derivatives and spread betting under the IG brand worldwide.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has IG Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

IGG

-1.3%

GB Capital Markets

-0.4%

GB Market


1 Year Return

4.4%

IGG

19.7%

GB Capital Markets

2.9%

GB Market

Return vs Industry: IGG underperformed the UK Capital Markets industry which returned 19.7% over the past year.

Return vs Market: IGG exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

IGGIndustryMarket
7 Day0.6%-1.3%-0.4%
30 Day-5.1%-3.1%-1.4%
90 Day5.2%3.0%-2.1%
1 Year11.8%4.4%22.6%19.7%8.0%2.9%
3 Year-12.1%-26.7%77.2%64.6%18.0%3.6%
5 Year32.2%2.3%148.0%118.6%35.8%6.4%

Price Volatility Vs. Market

How volatile is IG Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IG Group Holdings undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGG (£6.1) is trading below our estimate of fair value (£8.72)

Significantly Below Fair Value: IGG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IGG is good value based on its PE Ratio (14.2x) compared to the Capital Markets industry average (18.9x).

PE vs Market: IGG is good value based on its PE Ratio (14.2x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: IGG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: IGG is overvalued based on its PB Ratio (2.7x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is IG Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGG's forecast earnings growth (6.4% per year) is above the savings rate (1.2%).

Earnings vs Market: IGG's earnings (6.4% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: IGG's revenue (5.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: IGG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IGG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IG Group Holdings performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IGG's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: IGG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IGG had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Capital Markets industry average (4.6%).


Return on Equity

High ROE: IGG's Return on Equity (18.8%) is considered low.


Return on Assets

ROA vs Industry: IGG has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate IGG's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is IG Group Holdings'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: IGG has a low level of unsold assets or inventory.

Debt Coverage by Assets: IGG's debt is covered by short term assets (assets are 7.254010x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is IG Group Holdings's current dividend yield, its reliability and sustainability?

7.08%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Years7.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IGG's dividend (7.08%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: IGG's dividend (7.08%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: IGG's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.3%), IGG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IGG's dividends in 3 years are forecast to be covered by earnings (87.6% payout ratio).


Next Steps

Management

What is the CEO of IG Group Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

June Felix (63yo)

1yrs

Tenure

UK£780,000

Compensation

Ms. June Yee Felix has been the Chief Executive Officer and an Executive Director at IG Group Holdings plc since October 30, 2018. Ms. Felix is the Chief Executive Officer at IG Markets Ltd. and its Execut ...


CEO Compensation Analysis

Compensation vs. Market: June has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: June's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: IGG's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: IGG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£48,78923 Sep 19
June Felix
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares7,800
Max PriceUK£6.26
BuyUK£148,75225 Jul 19
June Felix
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares25,800
Max PriceUK£5.77
BuyUK£50,11025 Mar 19
June Felix
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares9,700
Max PriceUK£5.17
BuyUK£103,43001 Nov 18
June Felix
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares17,000
Max PriceUK£6.08
BuyUK£49,74601 Nov 18
Andrew Green
EntityIndividual
Shares8,174
Max PriceUK£6.09

Ownership Breakdown


Management Team

  • June Felix (63yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: UK£780.00k
  • Paul Mainwaring (56yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£787.00k
  • Bridget Messer (40yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£691.00k
  • David Horsley

    Head of Finance

    • Tenure: 4.2yrs
  • Joe McCaughran

    Chief Risk Officer

    • Tenure: 0yrs
  • Eoin McCoy

    Head of IG Poland

    • Tenure: 0yrs
  • Adam Dance

    Director of Business Development

    • Tenure: 0yrs
  • Jon Noble (43yo)

    COO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£691.00k
  • Liz Scorer

    Head of Investor Relations

    • Tenure: 0yrs
  • Ramon Kaur

    Head of Public Affairs

    • Tenure: 0yrs

Board Members

  • Stephen Hill (59yo)

    Independent Non Executive Director

    • Tenure: 8.5yrs
    • Compensation: UK£93.00k
  • June Felix (63yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: UK£780.00k
  • Andrew Didham (63yo)

    Additional Non-Executive Director

    • Tenure: 0.08yrs
  • Paul Mainwaring (56yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£787.00k
  • Jonathan Moulds (54yo)

    Interim Chairman

    • Tenure: 0.08yrs
    • Compensation: UK£51.00k
  • Malcolm Le May (61yo)

    Senior Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£103.00k
  • Jim Newman (54yo)

    Independent Non-Executive Director

    • Tenure: 6yrs
    • Compensation: UK£96.00k
  • Sally-Ann Hibberd (60yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£45.00k
  • Bridget Messer (40yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£691.00k
  • Jon Noble (43yo)

    COO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£691.00k

Company Information

IG Group Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IG Group Holdings plc
  • Ticker: IGG
  • Exchange: LSE
  • Founded: 1974
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: UK£2.243b
  • Shares outstanding: 367.72m
  • Website: https://www.iggroup.com

Number of Employees


Location

  • IG Group Holdings plc
  • Cannon Bridge House
  • 25 Dowgate Hill
  • London
  • Greater London
  • EC4R 2YA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGGLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2005
IGGR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
I5GDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005
IGGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2005
IGGH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2010

Biography

IG Group Holdings plc provides leveraged derivatives and spread betting under the IG brand worldwide. Its CFDs (contracts for difference) are derivative contracts that enable clients to take advantage of c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:44
End of Day Share Price2019/10/18 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


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.