LSE:IGG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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

Stable Share Price: IGG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.0%

IGG

0.3%

GB Capital Markets

3.2%

GB Market


1 Year Return

40.5%

IGG

11.7%

GB Capital Markets

-11.7%

GB Market

Return vs Industry: IGG exceeded the UK Capital Markets industry which returned 12.1% over the past year.

Return vs Market: IGG exceeded the UK Market which returned -14.4% over the past year.


Shareholder returns

IGGIndustryMarket
7 Day-4.0%0.3%3.2%
30 Day-0.8%7.8%5.9%
90 Day13.0%6.2%-6.3%
1 Year50.3%40.5%14.2%11.7%-7.4%-11.7%
3 Year56.2%30.1%61.1%49.6%-4.8%-16.5%
5 Year26.0%-3.3%127.6%102.2%13.4%-12.0%

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?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGG (£8) is trading below our estimate of fair value (£8.43)

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 poor value based on its PE Ratio (19.7x) compared to the Capital Markets industry average (14.9x).

PE vs Market: IGG is poor value based on its PE Ratio (19.7x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: IGG is poor value based on its PEG Ratio (145x)


Price to Book Ratio

PB vs Industry: IGG is overvalued based on its PB Ratio (3.6x) compared to the GB Capital Markets industry average (1.5x).


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?

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGG's forecast earnings growth (0.1% per year) is below the savings rate (1.2%).

Earnings vs Market: IGG's earnings (0.1% per year) are forecast to grow slower than the UK market (20.1% per year).

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

Revenue vs Market: IGG's revenue (0.5% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: IGG's revenue (0.5% 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 (24.3%)


Next Steps

Past Performance

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

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGG has high quality earnings.

Growing Profit Margin: IGG's current net profit margins (30.7%) are lower than last year (36.8%).


Past Earnings Growth Analysis

Earnings Trend: IGG's earnings have grown by 5.9% 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 (-28.8%) over the past year, making it difficult to compare to the Capital Markets industry average (16.4%).


Return on Equity

High ROE: IGG's Return on Equity (18.4%) is considered low.


Next Steps

Financial Health

How is IG Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IGG's short term assets (£729.5M) exceed its short term liabilities (£222.7M).

Long Term Liabilities: IGG's short term assets (£729.5M) exceed its long term liabilities (£118.2M).


Debt to Equity History and Analysis

Debt Level: IGG's debt to equity ratio (14.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IGG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IGG's debt is well covered by operating cash flow (169.5%).

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


Balance Sheet


Next Steps

Dividend

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

5.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGG's dividend (5.4%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: IGG's dividend (5.4%) is low compared to the top 25% of dividend payers in the UK market (5.86%).


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 high payout ratio (106.4%), 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 (82.6% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

June Felix (63yo)

1.58yrs

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's total compensation ($USD951.35K) is below average for companies of similar size in the UK market ($USD2.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
June Felix
CEO & Executive Director1.58yrsUK£780.00k0.021% £588.5k
Paul Mainwaring
CFO & Executive Director3.83yrsUK£787.00k0.024% £662.4k
Jonathan Noble
COO & Executive Director1.92yrsUK£691.00k0.017% £488.6k
Bridget Messer
Chief Commercial Officer & Executive Director1.92yrsUK£691.00k0.0099% £277.9k
Liz Scorer
Head of Investor Relationsno datano datano data
Ramon Kaur
Head of Public Affairsno datano datano data
Adam Dance
Director of Business Developmentno datano datano data
David Horsley
Head of Finance4.75yrsno datano data
Joe McCaughran
Chief Risk Officerno datano datano data
Eoin McCoy
Head of IG Polandno datano datano data

3.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: IGG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
June Felix
CEO & Executive Director1.58yrsUK£780.00k0.021% £588.5k
Paul Mainwaring
CFO & Executive Director3.83yrsUK£787.00k0.024% £662.4k
Jonathan Noble
COO & Executive Director1.92yrsUK£691.00k0.017% £488.6k
Bridget Messer
Chief Commercial Officer & Executive Director1.92yrsUK£691.00k0.0099% £277.9k
Robert McTighe
Chairman of the Board0.25yrno datano data
Andrew Didham
Additional Non-Executive Director0.67yrno datano data
Jonathan Moulds
Independent Non-Executive Director1.67yrsUK£51.00kno data
Malcolm Le May
Senior Independent Non-Executive Director4.67yrsUK£103.00kno data
James Newman
Independent Non-Executive Director6.58yrsUK£96.00kno data
Sally-Ann Hibberd
Independent Non-Executive Director1.67yrsUK£45.00kno data

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: IGG's board of directors are not considered experienced ( 1.9 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

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£2.798b
  • 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 changes in an asset’s price. The company also offers clients access to a range of risk-mitigation measures, including stops and limits and a limited risk account; and products, such as share dealing and investment portfolios, as well as enables clients to hold their investments in ISAs and SIPPs. In addition, it operates North American Derivatives Exchange, a US-based retail-oriented exchange, which enables investors to trade options on global financial markets in retail-sized contracts; and IG trading platform for foreign exchange, as well as offers mobile apps. It primarily serves retail clients, market professionals, corporate entities, and institutional clients. The company was founded in 1974 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 21:24
End of Day Share Price2020/05/28 00:00
Earnings2019/11/30
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.