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IGG

IG Group Holdings LSE:IGG Stock Report

Last Price

UK£6.84

Market Cap

UK£3.0b

7D

-2.6%

1Y

-19.4%

Updated

01 Jul, 2022

Data

Company Financials +
IGG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends6/6

IGG Stock 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£6.84
52 Week HighUK£10.05
52 Week LowUK£6.47
Beta0.50
1 Month Change-4.20%
3 Month Change-16.38%
1 Year Change-19.44%
3 Year Change15.07%
5 Year Change22.58%
Change since IPO471.19%

Recent News & Updates

Shareholder Returns

IGGGB Capital MarketsGB Market
7D-2.6%0.5%1.4%
1Y-19.4%-17.0%-9.5%

Return vs Industry: IGG underperformed the UK Capital Markets industry which returned -17% over the past year.

Return vs Market: IGG underperformed the UK Market which returned -9.5% over the past year.

Price Volatility

Is IGG's price volatile compared to industry and market?
IGG volatility
IGG Average Weekly Movement3.7%
Capital Markets Industry Average Movement4.1%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: IGG is less volatile than 75% 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
19742,424June 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£2.97b
Earnings (TTM)UK£390.20m
Revenue (TTM)UK£915.40m

7.5x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGG income statement (TTM)
RevenueUK£915.40m
Cost of RevenueUK£349.50m
Gross ProfitUK£565.90m
Other ExpensesUK£175.70m
EarningsUK£390.20m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)0.91
Gross Margin61.82%
Net Profit Margin42.63%
Debt/Equity Ratio17.1%

How did IGG perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IGG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IGG?

Other financial metrics that can be useful for relative valuation.

IGG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does IGG's PE Ratio compare to its peers?

IGG PE Ratio vs Peers
The above table shows the PE ratio for IGG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average60.4x
AJB AJ Bell
28.2x14.9%UK£1.1b
CMCX CMC Markets
10.8x-4.2%UK£780.8m
TCAP TP ICAP Group
174.9x62.2%UK£875.8m
AFX Alpha FX Group
27.4xn/aUK£658.3m
IGG IG Group Holdings
7.5x-8.4%UK£3.0b

Price-To-Earnings vs Peers: IGG is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (60.4x).


Price to Earnings Ratio vs Industry

How does IGG's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: IGG is good value based on its Price-To-Earnings Ratio (7.5x) compared to the UK Capital Markets industry average (9.2x)


Price to Earnings Ratio vs Fair Ratio

What is IGG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IGG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: IGG is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


Share Price vs Fair Value

What is the Fair Price of IGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IGG (£6.84) is trading below our estimate of fair value (£28.53)

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


Price to Earnings Growth Ratio

PEG Ratio: IGG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGG's earnings are forecast to decline over the next 3 years (-8.4% per year).

Earnings vs Market: IGG's earnings are forecast to decline over the next 3 years (-8.4% per year).

High Growth Earnings: IGG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IGG's revenue (7% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: IGG's revenue (7% 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 (25.5%)


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IGG has high quality earnings.

Growing Profit Margin: IGG's current net profit margins (42.6%) are lower than last year (42.8%).


Past Earnings Growth Analysis

Earnings Trend: IGG's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: IGG's earnings growth over the past year (14%) is below its 5-year average (17.7% per year).

Earnings vs Industry: IGG earnings growth over the past year (14%) underperformed the Capital Markets industry 47.5%.


Return on Equity

High ROE: IGG's Return on Equity (22.4%) is considered high.


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Financial Health

How is IG Group Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IGG's short term assets (£1.5B) exceed its short term liabilities (£666.5M).

Long Term Liabilities: IGG's short term assets (£1.5B) exceed its long term liabilities (£388.8M).


Debt to Equity History and Analysis

Debt Level: IGG has more cash than its total debt.

Reducing Debt: IGG's debt to equity ratio has increased from 7.3% to 17.1% over the past 5 years.

Debt Coverage: IGG's debt is well covered by operating cash flow (207.1%).

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


Balance Sheet


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Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IGG's dividend (6.32%) is higher than the bottom 25% of dividend payers in the UK market (1.91%).

High Dividend: IGG's dividend (6.32%) is in the top 25% of dividend payers in the UK market (5.28%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.8%), IGG's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.1%), IGG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

June Felix (66 yo)

3.67yrs

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 ($USD4.26M) is above average for companies of similar size in the UK market ($USD3.01M).

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 (3.3 years average tenure).


Board Members

Experienced Board: IGG's board of directors are not considered experienced ( 2.5 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 not been meaningfully diluted in the past year.


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
  • Implied Market Cap: UK£2.974b
  • 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 Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/11/30
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.