LSE:LSE

Stock Analysis Report

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Executive Summary

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, the United States, Italy, France, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has London Stock Exchange Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LSE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

LSE

-2.6%

GB Capital Markets

-1.9%

GB Market


1 Year Return

21.8%

LSE

-0.9%

GB Capital Markets

-16.2%

GB Market

Return vs Industry: LSE exceeded the UK Capital Markets industry which returned -0.9% over the past year.

Return vs Market: LSE exceeded the UK Market which returned -16.2% over the past year.


Shareholder returns

LSEIndustryMarket
7 Day-1.5%-2.6%-1.9%
30 Day-2.4%-0.2%0.7%
90 Day1.8%-2.6%-4.8%
1 Year23.0%21.8%2.5%-0.9%-13.0%-16.2%
3 Year132.2%124.7%20.7%6.3%-9.4%-20.6%
5 Year253.1%232.5%60.8%31.5%13.5%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is London Stock Exchange Group undervalued compared to its fair value and its price relative to the market?

75.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSE (£85.16) is trading above our estimate of fair value (£34.37)

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


Price To Earnings Ratio

PE vs Industry: LSE is poor value based on its PE Ratio (75.1x) compared to the GB Capital Markets industry average (17x).

PE vs Market: LSE is poor value based on its PE Ratio (75.1x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: LSE is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: LSE is overvalued based on its PB Ratio (8x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is London Stock Exchange Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSE's forecast earnings growth (13.7% per year) is above the savings rate (1.2%).

Earnings vs Market: LSE's earnings (13.7% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: LSE's revenue (5.3% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: LSE's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LSE's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

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

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSE has a large one-off loss of £233.0M impacting its June 30 2020 financial results.

Growing Profit Margin: LSE's current net profit margins (16.5%) are lower than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: LSE's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: LSE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LSE had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Capital Markets industry average (0.9%).


Return on Equity

High ROE: LSE's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is London Stock Exchange Group's financial position?


Financial Position Analysis

Short Term Liabilities: LSE's short term assets (£907.5B) exceed its short term liabilities (£906.3B).

Long Term Liabilities: LSE's short term assets (£907.5B) exceed its long term liabilities (£2.5B).


Debt to Equity History and Analysis

Debt Level: LSE's debt to equity ratio (52.7%) is considered high.

Reducing Debt: LSE's debt to equity ratio has reduced from 60.6% to 52.7% over the past 5 years.

Debt Coverage: LSE's debt is well covered by operating cash flow (40.6%).

Interest Coverage: LSE's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSE's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: LSE's dividend (0.82%) is low compared to the top 25% of dividend payers in the UK market (5.3%).


Stability and Growth of Payments

Stable Dividend: LSE is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: LSE is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LSE is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LSE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

David Schwimmer (42 yo)

2.17yrs

Tenure

UK£2,456,000

Compensation

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 Gro ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.21M) is below average for companies of similar size in the UK market ($USD4.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Schwimmer
Group CEO & Executive Director2.17yrsUK£2.46mno data
David Warren
Group CFO & Executive Director8.25yrsUK£4.76mno data
David Shalders
Group COO & Chief Integration Officer0.75yrno datano data
Anthony McCarthy
Group Chief Information Officer0.75yrno datano data
Paul Froud
Head of Investor Relationsno datano datano data
Catherine Johnson
Group General Counsel & Head of Complianceno datano datano data
Brigitte Trafford
Chief Communications & Marketing Officer0.083yrno datano data
Caroline O'Shaughnessy
MD and Global Head of Sales & Marketing and Information Servicesno datano datano data
Tim Jones
Group Head of Human Resources9.42yrsno datano data
Claire Dorrian
Head of London & Southern Regionno datano datano data
Brian Schwieger
Global Head of Equities and Co-Head Equity - Funds & Fixed Income7.42yrsno datano data
Diane Fabienne Côté
Group Chief Risk Officer7.83yrsno data0.016%
£ 4.9m

4.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: LSE's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Schwimmer
Group CEO & Executive Director2.17yrsUK£2.46mno data
David Warren
Group CFO & Executive Director8.25yrsUK£4.76mno data
Donald Robert
Independent Chairman1.42yrsUK£421.00k0.0029%
£ 851.7k
Cressida Hogg
Independent Non-Executive Director1.58yrsUK£61.00kno data
Jacques Alfred Aigrain
Independent Non-Executive Director7.42yrsUK£116.00k0.00040%
£ 119.5k
Raffaele Jerusalmi
CEO of Borsa Italiana & Executive Director10.33yrsUK£4.17m0.015%
£ 4.4m
Kathleen DeRose
Independent Non-Executive Director1.83yrsUK£114.00k0.00020%
£ 59.8k
Valerie Rahmani
Independent Non-Executive Director2.83yrsUK£123.00k0.00032%
£ 95.6k
Stephen O'Connor
Senior Independent Director0.50yrUK£105.00k0.000010%
£ 3.0k
Andrea Sironi
Independent Non-Executive Director4yrsUK£222.00kno data
Dominic Blakemore
Independent Non-Executive Director0.75yrno datano data

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: LSE's board of directors are not considered experienced ( 2.2 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: LSE insiders have only sold shares 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

London Stock Exchange Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: London Stock Exchange Group plc
  • Ticker: LSE
  • Exchange: LSE
  • Founded: 1698
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: UK£29.885b
  • Shares outstanding: 350.93m
  • Website: https://www.lseg.com

Number of Employees


Location

  • London Stock Exchange Group plc
  • 10 Paternoster Square
  • London
  • Greater London
  • EC4M 7LS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSELSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2001
LS4CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2001
LDNX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2001
LSELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2001
LSE NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2001
LNST.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2015
LS4DDB (Deutsche Boerse AG)UNSPONSORED ADRDEEURNov 2015

Biography

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, the United States, Italy, France, and internationally. The company operates in six segments: Infor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 21:24
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.