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London Stock Exchange Group

LSE:LSE
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LSE
LSE
£17B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, Italy, France, the United States, and internationally. The last earnings update was 33 days ago. More info.


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LSE Share Price and Events
7 Day Returns
0.8%
LSE:LSE
0.6%
GB Capital Markets
1.5%
GB Market
1 Year Returns
16.7%
LSE:LSE
7.9%
GB Capital Markets
2.1%
GB Market
LSE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
London Stock Exchange Group (LSE) 0.8% 9.9% 13% 16.7% 80.3% 175.1%
GB Capital Markets 0.6% 10.4% 9.8% 7.9% 46.5% 73.4%
GB Market 1.5% 5.2% 9.7% 2.1% 17.8% 6.8%
1 Year Return vs Industry and Market
  • LSE outperformed the Capital Markets industry which returned 7.9% over the past year.
  • LSE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.1% over the past year.
Price Volatility
LSE
Industry
5yr Volatility vs Market

LSE Value

 Is London Stock Exchange Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of London Stock Exchange Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for London Stock Exchange Group.

LSE:LSE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= £12.19 * 17.1%
£2.08
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. £12.19
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:LSE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 19%) (12.95%))
0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.874 * 6.65%)
7.04%

Discounted Cash Flow Calculation for LSE:LSE using Excess Returns Model Model

The calculations below outline how an intrinsic value for London Stock Exchange Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:LSE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17.1% – 7.04%) * £12.19)
£1.22
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £1.22 / (7.04% - 1.23%)
£21.05
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £12.19 + £21.05
£33.24
LSE:LSE Discount to Share Price
Calculation Result
Value per share (GBP) From above. £33.24
Current discount Discount to share price of £49.85
= -1 x (£49.85 - £33.24) / £33.24
-50%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of London Stock Exchange Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for London Stock Exchange Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are London Stock Exchange Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:LSE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £1.38
LSE:LSE Share Price ** LSE (2019-04-24) in GBP £49.85
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 45 Publicly-Listed Capital Markets Companies 19.33x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of London Stock Exchange Group.

LSE:LSE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LSE Share Price ÷ EPS (both in GBP)

= 49.85 ÷ 1.38

36.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • London Stock Exchange Group is overvalued based on earnings compared to the GB Capital Markets industry average.
  • London Stock Exchange Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does London Stock Exchange Group's expected growth come at a high price?
Raw Data
LSE:LSE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
13.7%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 22 Publicly-Listed Capital Markets Companies 1.44x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:LSE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36.04x ÷ 13.7%

2.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • London Stock Exchange Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on London Stock Exchange Group's assets?
Raw Data
LSE:LSE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £9.62
LSE:LSE Share Price * LSE (2019-04-24) in GBP £49.85
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 80 Publicly-Listed Capital Markets Companies 1.46x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:LSE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LSE Share Price ÷ Book Value per Share (both in GBP)

= 49.85 ÷ 9.62

5.18x

* Primary Listing of London Stock Exchange Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • London Stock Exchange Group is overvalued based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess London Stock Exchange Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. London Stock Exchange Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LSE Future Performance

 How is London Stock Exchange Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is London Stock Exchange Group expected to grow at an attractive rate?
  • London Stock Exchange Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • London Stock Exchange Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • London Stock Exchange Group's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:LSE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:LSE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 13.7%
LSE:LSE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -3.8%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 14%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:LSE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:LSE Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,774 1
2021-12-31 2,554 1,206 723 8
2020-12-31 2,396 1,007 652 11
2019-12-31 2,242 929 558 12
LSE:LSE Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 2,942 722 480
2018-09-30 2,831 704 541
2018-06-30 2,720 685 601
2018-03-31 2,663 672 566
2017-12-31 2,606 659 530
2017-09-30 2,398 567 417
2017-06-30 2,189 474 303
2017-03-31 2,109 358 263
2016-12-31 2,029 241 223
2016-09-30 1,764 268 231
2016-06-30 1,499 296 239
2016-03-31 1,459 365 249

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • London Stock Exchange Group's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
  • London Stock Exchange Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:LSE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from London Stock Exchange Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LSE Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.04 2.33 1.72 5.00
2020-12-31 1.82 2.06 1.56 8.00
2019-12-31 1.56 1.78 1.40 9.00
LSE:LSE Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 1.38
2018-09-30 1.56
2018-06-30 1.74
2018-03-31 1.64
2017-12-31 1.54
2017-09-30 1.20
2017-06-30 0.87
2017-03-31 0.75
2016-12-31 0.64
2016-09-30 0.66
2016-06-30 0.69
2016-03-31 0.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • London Stock Exchange Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess London Stock Exchange Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
London Stock Exchange Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LSE Past Performance

  How has London Stock Exchange Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare London Stock Exchange Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • London Stock Exchange Group has delivered over 20% year on year earnings growth in the past 5 years.
  • London Stock Exchange Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • London Stock Exchange Group's 1-year earnings growth is negative, it can't be compared to the GB Capital Markets industry average.
Earnings and Revenue History
London Stock Exchange Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from London Stock Exchange Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LSE Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,942.00 480.00 834.00
2018-09-30 2,831.00 540.50 829.50
2018-06-30 2,720.00 601.00 825.00
2018-03-31 2,663.00 565.50 821.50
2017-12-31 2,606.00 530.00 818.00
2017-09-30 2,397.50 416.50 794.00
2017-06-30 2,189.00 303.00 770.00
2017-03-31 2,109.00 263.00 738.50
2016-12-31 2,029.00 223.00 707.00
2016-09-30 1,763.85 231.05 607.55
2016-06-30 1,498.70 239.10 508.10
2016-03-31 1,458.65 249.35 510.80
2015-12-31 1,418.60 259.60 513.50
2015-06-30 1,334.95 173.35 673.30
2015-03-31 1,310.25 174.35 502.20
2014-12-31 1,285.55 175.35 331.10
2014-09-30 1,287.40 167.80 407.30
2014-06-30 1,255.10 186.70 385.00
2014-03-31 1,209.60 184.90 385.10
2013-12-31 1,101.95 176.90 343.85
2013-09-30 994.30 175.90 302.60
2013-06-30 920.15 194.40 164.00
2013-03-31 852.90 217.00 221.30
2012-12-31 852.45 369.45 220.65
2012-09-30 852.00 521.90 220.00
2012-06-30 833.40 521.95 213.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • London Stock Exchange Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • London Stock Exchange Group used its assets less efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • London Stock Exchange Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess London Stock Exchange Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
London Stock Exchange Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LSE Health

 How is London Stock Exchange Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up London Stock Exchange Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • London Stock Exchange Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • London Stock Exchange Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of London Stock Exchange Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 372.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from London Stock Exchange Group Company Filings, last reported 3 months ago.

LSE:LSE Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,698.00 2,250.00 1,563.00
2018-09-30 3,698.00 2,250.00 1,563.00
2018-06-30 3,908.00 1,930.00 1,361.00
2018-03-31 3,908.00 1,930.00 1,361.00
2017-12-31 3,752.00 1,982.00 1,400.00
2017-09-30 3,752.00 1,982.00 1,400.00
2017-06-30 3,507.00 1,332.00 1,172.00
2017-03-31 3,507.00 1,332.00 1,172.00
2016-12-31 3,614.00 1,185.00 1,225.00
2016-09-30 3,614.00 1,185.00 1,225.00
2016-06-30 3,356.90 1,093.30 1,060.10
2016-03-31 3,356.90 1,093.30 1,060.10
2015-12-31 3,196.10 1,609.10 923.90
2015-06-30 2,903.40 1,763.00 942.40
2015-03-31 2,903.40 1,763.00 942.40
2014-12-31 2,955.30 1,731.50 1,127.20
2014-09-30 2,930.60 938.20 1,711.60
2014-06-30 1,961.10 1,192.20 985.10
2014-03-31 2,003.00 1,231.10 919.20
2013-12-31 1,956.90 1,231.10 919.20
2013-09-30 1,898.70 1,339.40 1,034.60
2013-06-30 1,599.00 800.30 446.20
2013-03-31 1,599.00 800.30 446.20
2012-12-31 1,599.00 800.30 446.20
2012-09-30 1,458.30 713.20 231.50
2012-06-30 1,458.30 713.20 231.50
  • London Stock Exchange Group's level of debt (60.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (62.9% vs 60.8% today).
  • Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess London Stock Exchange Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. London Stock Exchange Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LSE Dividends

 What is London Stock Exchange Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.21%
Current annual income from London Stock Exchange Group dividends. Estimated to be 1.53% next year.
If you bought £2,000 of London Stock Exchange Group shares you are expected to receive £24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • London Stock Exchange Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • London Stock Exchange Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.14%).
Upcoming dividend payment

Purchase London Stock Exchange Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:LSE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.1%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:LSE Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.94 1.00
2021-12-31 0.85 10.00
2020-12-31 0.77 13.00
2019-12-31 0.68 14.00
LSE:LSE Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-22 0.604 1.254
2019-03-01 0.604 1.288
2018-03-20 0.516 1.182
2018-03-02 0.516 1.310
2017-03-21 0.432 1.172
2017-03-03 0.432 1.405
2016-03-16 0.372 1.334
2016-03-04 0.360 1.259
2015-04-29 0.225 0.899
2014-06-12 0.308 1.448
2014-05-15 0.308 1.621
2013-11-14 0.299 1.649
2013-05-15 0.295 1.944
2012-11-16 0.287 2.386
2012-06-18 0.283 2.853
2012-05-18 0.283 2.893
2011-11-16 0.273 2.993
2011-05-13 0.268 2.967
2010-05-21 0.244 3.299
2009-11-25 0.244 3.494
2009-05-20 0.244 3.157

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of London Stock Exchange Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess London Stock Exchange Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can London Stock Exchange Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. London Stock Exchange Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LSE Management

 What is the CEO of London Stock Exchange Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Schwimmer
COMPENSATION £2,153,000
AGE 40
TENURE AS CEO 0.7 years
CEO Bio

Mr. David A. Schwimmer has been Group Chief Executive Officer and Executive Director at London Stock Exchange Group Plc since August 01, 2018. He served as a European Managing Director of Goldman Sachs Group Inc. since October 26, 2005. Mr. Schwimmer has a twenty year career at Goldman Sachs. Most recently, David was Global Head of Market Structure and Global Head of Metals and Mining in Investment Banking. He began his career at Goldman Sachs in the Financial Institutions Group, focusing on Market Structure, Brokerage and Trading. He also served as Chief of Staff to then President and COO, Lloyd Blankfein, and spent three years in Moscow as Co-Head of Goldman Sachs' business for Russia/CIS. David brings a strategic perspective on the drivers of growth and innovation in financial markets infrastructure. He has extensive experience leading diverse and high performing teams in dynamic markets. He also brings deep experience in capital markets, having advised blue-chip corporate clients across sectors and regions on mergers and acquisitions, initial public offerings and other transactions.

CEO Compensation
  • Insufficient data for David to compare compensation growth.
  • David's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the London Stock Exchange Group management team in years:

3.4
Average Tenure
57.5
Average Age
  • The tenure for the London Stock Exchange Group management team is about average.
Management Team

David Schwimmer

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
40
TENURE
0.7 yrs

Raffaele Jerusalmi

TITLE
Director of Capital Markets & Executive Director
COMPENSATION
£3M
AGE
57

Dave Warren

TITLE
Group CFO & Executive Director
AGE
63
TENURE
6.8 yrs

Chris Corrado

TITLE
Group COO & Chief Information Officer
AGE
58
TENURE
3.4 yrs

Paul Froud

TITLE
Head of Investor Relations

Catherine Johnson

TITLE
Global General Counsel

Victoria Brough

TITLE
Head of Corporate Communications and Media Relations
TENURE
8.6 yrs

Caroline O'Shaughnessy

TITLE
MD and Global Head of Sales & Marketing and Information Services

Claire Dorrian

TITLE
Head of London & Southern Region

Mark Makepeace

TITLE
Non-Executive Chairman of LSEG Americas & Information Services Division
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the London Stock Exchange Group board of directors in years:

3.9
Average Tenure
58.5
Average Age
  • The tenure for the London Stock Exchange Group board of directors is about average.
Board of Directors

Donald Brydon

TITLE
Chairman of the Board
COMPENSATION
£401K
AGE
72
TENURE
3.8 yrs

David Schwimmer

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
40
TENURE
0.7 yrs

Raffaele Jerusalmi

TITLE
Director of Capital Markets & Executive Director
COMPENSATION
£3M
AGE
57
TENURE
8.8 yrs

Dave Warren

TITLE
Group CFO & Executive Director
AGE
63
TENURE
6.8 yrs

Paul Heiden

TITLE
Senior Independent Director
COMPENSATION
£163K
AGE
61
TENURE
4.1 yrs

Jacques Alfred Aigrain

TITLE
Independent Non-Executive Director
COMPENSATION
£120K
AGE
64
TENURE
5.9 yrs

Stephen O'Connor

TITLE
Independent Non-Executive Director
COMPENSATION
£105K
AGE
56
TENURE
5.8 yrs

Andrea Sironi

TITLE
Independent Non-Executive Director
COMPENSATION
£229K
AGE
54
TENURE
2.5 yrs

Val Rahmani

TITLE
Independent Non-Executive Director
COMPENSATION
£109K
AGE
60
TENURE
1.3 yrs

Ruth Wandhöfer

TITLE
Independent Non-Executive Director
COMPENSATION
£15K
AGE
42
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • London Stock Exchange Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
20. Mar 19 Sell Diane Fabienne Côté Individual 19. Mar 19 19. Mar 19 -2,967 £48.00 £-142,429
X
Management checks
We assess London Stock Exchange Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. London Stock Exchange Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LSE News

Simply Wall St News

Should You Be Concerned With London Stock Exchange Group plc's (LON:LSE) -9.4% Earnings Drop?

Below, I will assess London Stock Exchange Group plc's (LON:LSE) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … View our latest analysis for London Stock Exchange Group? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 27%, indicating the rate at which LSE is growing has slowed down

Simply Wall St -

London Stock Exchange Group (LON:LSE) Shareholders Have Enjoyed An Impressive 174% Share Price Gain

Long term London Stock Exchange Group plc (LON:LSE) shareholders would be well aware of this, since the stock is up 174% in five years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, London Stock Exchange Group managed to grow its earnings per share at 16% a year.

Simply Wall St -

London Stock Exchange Group plc (LON:LSE): What's The Analyst Consensus Outlook?

London Stock Exchange Group plc's (LON:LSE) most recent earnings update in December 2018a

Simply Wall St -

London Stock Exchange Group plc (LON:LSE): Poised For Long Term Success?

Based on London Stock Exchange Group plc's (LON:LSE) earnings update on 31 December 2018, … as a 16% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 27%.

Simply Wall St -

Is Now The Time To Look At Buying London Stock Exchange Group plc (LON:LSE)?

London Stock Exchange Group plc (LON:LSE). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Despite Its High P/E Ratio, Is London Stock Exchange Group plc (LON:LSE) Still Undervalued?

To keep it practical, we'll show how London Stock Exchange Group plc's (LON:LSE) P/E ratio could help you assess the value on offer. … Based on the last twelve months, London Stock Exchange Group's P/E ratio is 25.34. … How Do I Calculate London Stock Exchange Group's Price To Earnings Ratio

Simply Wall St -

Why London Stock Exchange Group plc (LON:LSE) Is A Star In A Falling Market

High quality companies, such as London Stock Exchange Group plc, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … View our latest analysis for London Stock Exchange Group. … London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, Italy, France, the United States, and internationally

Simply Wall St -

Have Investors Priced In London Stock Exchange Group plc's (LON:LSE) Growth?

London Stock Exchange Group plc (LON:LSE) is considered a high-growth stock, but its last closing price of £40.5 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … What can we expect from London Stock Exchange Group in the future. … According to the analysts covering the company, the following few years should bring about good growth prospects for London Stock Exchange Group

Simply Wall St -

What Can We Expect From London Stock Exchange Group plc's (LON:LSE) Earnings Over The Next Year?

After London Stock Exchange Group plc's (LON:LSE) recent earnings announcement in June 2018, … as a -13% fall in profits is expected in the upcoming year

Simply Wall St -

Is London Stock Exchange Group plc (LON:LSE) Attractive At This PE Ratio?

I am writing today to help inform people who are new to the stock market. … London Stock Exchange Group plc (LON:LSE) is currently trading at a trailing P/E of 23.5, which is higher than the industry average of 19.6. … See our latest analysis for London Stock Exchange Group

Simply Wall St -

LSE Company Info

Description

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, Italy, France, the United States, and internationally. The company operates in six segments: Information Services, Post Trade Services – LCH, Post Trade Services – CC&G and Monte Titoli, Capital Markets, Technology Services, and Other. It operates a range of international equity, bond, and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, a European fixed income market; and Turquoise, a pan-European equities multilateral trading facility. The company provides capital formation, intellectual property, and risk and balance sheet management services; financial indexing, benchmarking, and analytic services; data and research services; and post trade and risk management, clearing house, and custody and settlement services. The company also develops and operates technology solutions, including trading, market surveillance, and post trade systems for organizations and exchanges; and offers information and data products, such as indexes and benchmarks, real time pricing data, product identification, reporting, and reconciliation services, as well as network connectivity and server hosting services. In addition, it provides market information services comprising indices, market data and statistics, real time data, and regulatory news; education and training, events space, and studio hire services; and capital markets technology and services, trading solutions, technical services, infrastructure solutions and services, and market connectivity, as well as operates data centers and trading venues. Further, the company licenses capital markets and related IT infrastructure. London Stock Exchange Group plc was founded in 1698 and is headquartered in London, the United Kingdom.

Details
Name: London Stock Exchange Group plc
LSE
Exchange: LSE
Founded: 1698
£17,378,952,361
348,624,922
Website: http://www.lseg.com
Address: London Stock Exchange Group plc
10 Paternoster Square,
London,
Greater London, EC4M 7LS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LSE Ordinary Shares London Stock Exchange GB GBP 20. Jul 2001
OTCPK LDNX.F Ordinary Shares Pink Sheets LLC US USD 20. Jul 2001
DB LS4C Ordinary Shares Deutsche Boerse AG DE EUR 20. Jul 2001
BMV LSE N Ordinary Shares Bolsa Mexicana de Valores MX MXN 20. Jul 2001
BATS-CHIXE LSEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 20. Jul 2001
OTCPK LNST.Y UNSPONSORED ADR Pink Sheets LLC US USD 06. Nov 2015
Number of employees
Current staff
Staff numbers
4,587
London Stock Exchange Group employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 21:02
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/24
Last earnings filing: 2019/03/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.