LSE:LFI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

London Finance & Investment Group

Executive Summary

London Finance & Investment Group P.L.C., together with its subsidiaries, operates as an investment finance and management company. More Details


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.

Share Price & News

How has London Finance & Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LFI is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LFI's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0%

LFI

-5.6%

GB Capital Markets

1.2%

GB Market


1 Year Return

-14.0%

LFI

11.2%

GB Capital Markets

4.6%

GB Market

Return vs Industry: LFI underperformed the UK Capital Markets industry which returned 11.2% over the past year.

Return vs Market: LFI underperformed the UK Market which returned 4.6% over the past year.


Shareholder returns

LFIIndustryMarket
7 Day0%-5.6%1.2%
30 Day0%-6.6%0.9%
90 Day-1.4%0.06%2.4%
1 Year-11.2%-14.0%14.8%11.2%10.6%4.6%
3 Year-13.3%-20.7%39.5%23.7%8.6%-4.5%
5 Year13.5%-1.4%99.0%65.5%39.5%12.5%

Long-Term Price Volatility Vs. Market

How volatile is London Finance & Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is London Finance & Investment Group undervalued compared to its fair value and its price relative to the market?

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LFI (£0.35) is trading above our estimate of fair value (£0)

Significantly Below Fair Value: LFI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LFI is unprofitable, so we can't compare its PE Ratio to the GB Capital Markets industry average.

PE vs Market: LFI is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LFI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LFI is good value based on its PB Ratio (0.6x) compared to the GB Capital Markets industry average (1.6x).


Next Steps

Future Growth

How is London Finance & Investment Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as London Finance & Investment Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has London Finance & Investment Group performed over the past 5 years?

-41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LFI is currently unprofitable.

Growing Profit Margin: LFI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LFI is unprofitable, and losses have increased over the past 5 years at a rate of 41.3% per year.

Accelerating Growth: Unable to compare LFI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LFI is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-1.9%).


Return on Equity

High ROE: LFI has a negative Return on Equity (-1.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is London Finance & Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: LFI's short term assets (£11.4M) exceed its short term liabilities (£660.0K).

Long Term Liabilities: LFI's short term assets (£11.4M) exceed its long term liabilities (£1.2M).


Debt to Equity History and Analysis

Debt Level: LFI's debt to equity ratio (2.6%) is considered satisfactory.

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

Debt Coverage: LFI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LFI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is London Finance & Investment Group current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LFI's dividend (3.33%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: LFI's dividend (3.33%) is low compared to the top 25% of dividend payers in the UK market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: LFI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

13.5yrs

Average board tenure


CEO

London Finance & Investment Group has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
John Maxwell
Senior Independent Non-Executive Directorno dataUK£14.00k0.21%
£ 22.4k
David Marshall
Non-Executive Chairman37.17yrsUK£20.00kno data
Edward Beale
Non-Executive Director4.92yrsUK£14.00kno data
Warwick Marshall
Non-Executive Director3.17yrsUK£14.00kno data
Frank William Lucas
Independent Non-Executive Director22.17yrsUK£14.00k0.26%
£ 27.6k

13.5yrs

Average Tenure

60yo

Average Age

Experienced Board: LFI's board of directors are seasoned and experienced ( 13.5 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

London Finance & Investment Group P.L.C.'s company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • London Finance & Investment Group P.L.C.
  • 1 Ely Place,
  • London
  • Greater London
  • EC1N 6RY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFILSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
LNFJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992

Biography

London Finance & Investment Group P.L.C., together with its subsidiaries, operates as an investment finance and management company. It primarily invests in smaller U.K. quoted companies, which are balanced...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 20:15
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.