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IGG

IG Group HoldingsLSE:IGG Stock Report

Market Cap

UK£3.5b

7D

0.2%

1Y

5.5%

Updated

24 Oct, 2021

Data

Company Financials +
IGG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
Dividends6/6

IGG Overview

IG Group Holdings plc engages in the online trading business worldwide.

IG Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for IG Group Holdings
Historical stock prices
Current Share PriceUK£8.20
52 Week HighUK£7.35
52 Week LowUK£10.05
Beta0.42
1 Month Change-0.67%
3 Month Change-6.88%
1 Year Change5.47%
3 Year Change44.15%
5 Year Change-1.15%
Change since IPO584.34%

Recent News & Updates

Sep 07
I Ran A Stock Scan For Earnings Growth And IG Group Holdings (LON:IGG) Passed With Ease

I Ran A Stock Scan For Earnings Growth And IG Group Holdings (LON:IGG) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 12
IG Group Holdings plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

IG Group Holdings plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

IG Group Holdings plc ( LON:IGG ) just released its annual report and things are looking bullish. Results were good...

Shareholder Returns

IGGGB Capital MarketsGB Market
7D0.2%-0.3%-0.2%
1Y5.5%13.3%23.2%

Return vs Industry: IGG underperformed the UK Capital Markets industry which returned 13.3% over the past year.

Return vs Market: IGG underperformed the UK Market which returned 23.2% over the past year.

Price Volatility

Is IGG's price volatile compared to industry and market?
IGG volatility
IGG Beta0.42
Industry Beta0.80
Market Beta1

Stable Share Price: IGG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IGG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19742,094June Felixhttps://www.iggroup.com

IG Group Holdings plc engages in the online trading business worldwide. The company offers Over-the-counter (OTC) leveraged derivatives, which include CFD (contracts for difference) that enable clients to take advantage of changes in an asset’s price without owning the asset itself, as well as access to a range of risk-mitigation measures, including stops and limits and a limited risk account; and spread bets and options. It also provides exchange-traded derivatives under the tastytrade, an online brokerage and investor education platform; Nadex, a US derivatives exchange; and Spectrum, a multilateral trading facility.

IG Group Holdings Fundamentals Summary

How do IG Group Holdings's earnings and revenue compare to its market cap?
IGG fundamental statistics
Market CapUK£3.53b
Earnings (TTM)UK£371.90m
Revenue (TTM)UK£854.50m

9.5x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGG income statement (TTM)
RevenueUK£854.50m
Cost of RevenueUK£315.50m
Gross ProfitUK£539.00m
ExpensesUK£167.10m
EarningsUK£371.90m

Last Reported Earnings

May 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.86
Gross Margin63.08%
Net Profit Margin43.52%
Debt/Equity Ratio8.7%

How did IGG perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

43%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGG (£8.2) is trading below our estimate of fair value (£22.66)

Significantly Below Fair Value: IGG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IGG is good value based on its PE Ratio (9.5x) compared to the UK Capital Markets industry average (13x).

PE vs Market: IGG is good value based on its PE Ratio (9.5x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: IGG is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: IGG is overvalued based on its PB Ratio (3.1x) compared to the GB Capital Markets industry average (1.9x).


Future Growth

How is IG Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGG's forecast earnings growth (1.3% per year) is above the savings rate (0.9%).

Earnings vs Market: IGG's earnings (1.3% per year) are forecast to grow slower than the UK market (12.8% per year).

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

Revenue vs Market: IGG's revenue (7.4% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: IGG's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGG's Return on Equity is forecast to be high in 3 years time (25.7%)


Past Performance

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

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGG has high quality earnings.

Growing Profit Margin: IGG's current net profit margins (43.5%) are higher than last year (37.2%).


Past Earnings Growth Analysis

Earnings Trend: IGG's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: IGG's earnings growth over the past year (54.7%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: IGG earnings growth over the past year (54.7%) underperformed the Capital Markets industry 56.1%.


Return on Equity

High ROE: IGG's Return on Equity (32.8%) is considered high.


Financial Health

How is IG Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IGG's short term assets (£1.2B) exceed its short term liabilities (£478.8M).

Long Term Liabilities: IGG's short term assets (£1.2B) exceed its long term liabilities (£116.0M).


Debt to Equity History and Analysis

Debt Level: IGG's debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: IGG's debt to equity ratio has increased from 0.08% to 8.7% over the past 5 years.

Debt Coverage: IGG's debt is well covered by operating cash flow (496.5%).

Interest Coverage: Insufficient data to determine if IGG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

5.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGG's dividend (5.27%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: IGG's dividend (5.27%) is in the top 25% of dividend payers in the UK market (4.06%)


Stability and Growth of Payments

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 reasonably low payout ratio (42.9%), IGG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IGG's dividends in 3 years are forecast to be covered by earnings (61.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

June Felix (65 yo)

3yrs

Tenure

UK£3,544,000

Compensation

Ms. June Yee Felix serves as Non-Executive Director at RELX PLC since October 15, 2020. She has been the Chief Executive Officer and an Executive Director at IG Group Holdings plc since October 30, 2018. M...


CEO Compensation Analysis

Compensation vs Market: June's total compensation ($USD4.88M) is above average for companies of similar size in the UK market ($USD2.22M).

Compensation vs Earnings: June's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IGG's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: IGG's board of directors are not considered experienced ( 1.6 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: IGG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.


Top Shareholders

Company Information

IG Group Holdings plc's 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£3.529b
  • Shares outstanding: 430.68m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 17:50
End of Day Share Price2021/10/22 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.