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LSEG

London Stock Exchange GroupLSE:LSEG Stock Report

Market Cap

UK£38.1b

7D

2.2%

1Y

-13.5%

Updated

27 Nov, 2021

Data

Company Financials +
LSEG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends3/6

LSEG Stock Overview

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

London Stock Exchange Group Competitors

Aquis Exchange

AIM:AQX

UK£177.4m

CME Group

NasdaqGS:CME

US$79.8b

Intercontinental Exchange

NYSE:ICE

US$73.1b

Hong Kong Exchanges and Clearing

SEHK:388

HK$567.6b

Price History & Performance

Summary of all time highs, changes and price drops for London Stock Exchange Group
Historical stock prices
Current Share PriceUK£68.50
52 Week HighUK£100.10
52 Week LowUK£65.52
Beta0.30
1 Month Change-4.20%
3 Month Change-14.63%
1 Year Change-13.51%
3 Year Change69.85%
5 Year Change156.46%
Change since IPO1,508.61%

Recent News & Updates

Shareholder Returns

LSEGGB Capital MarketsGB Market
7D2.2%-2.8%-3.0%
1Y-13.5%5.9%11.7%

Return vs Industry: LSEG underperformed the UK Capital Markets industry which returned 5.9% over the past year.

Return vs Market: LSEG underperformed the UK Market which returned 11.7% over the past year.

Price Volatility

Is LSEG's price volatile compared to industry and market?
LSEG volatility
LSEG Average Weekly Movement3.7%
Capital Markets Industry Average Movement3.8%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: LSEG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LSEG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
16985,554David Schwimmerhttps://www.lseg.com

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 five segments: Information Services, Post Trade Services, Capital Markets, Technology Services, and Other. It operates a range of international equity, ETF, 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.

London Stock Exchange Group Fundamentals Summary

How do London Stock Exchange Group's earnings and revenue compare to its market cap?
LSEG fundamental statistics
Market CapUK£38.15b
Earnings (TTM)UK£441.00m
Revenue (TTM)UK£4.53b

86.5x

P/E Ratio

8.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSEG income statement (TTM)
RevenueUK£4.53b
Cost of RevenueUK£504.00m
Gross ProfitUK£4.03b
ExpensesUK£3.58b
EarningsUK£441.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.79
Gross Margin88.87%
Net Profit Margin9.74%
Debt/Equity Ratio34.5%

How did LSEG perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

86.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSEG (£68.5) is trading above our estimate of fair value (£62.88)

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


Price To Earnings Ratio

PE vs Industry: LSEG is poor value based on its PE Ratio (86.5x) compared to the UK Capital Markets industry average (12.2x).

PE vs Market: LSEG is poor value based on its PE Ratio (86.5x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: LSEG is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: LSEG is good value based on its PB Ratio (1.7x) compared to the GB Capital Markets industry average (1.8x).


Future Growth

How is London Stock Exchange Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSEG's forecast earnings growth (21.3% per year) is above the savings rate (0.9%).

Earnings vs Market: LSEG's earnings (21.3% per year) are forecast to grow faster than the UK market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LSEG's revenue (6.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: LSEG's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LSEG's Return on Equity is forecast to be low in 3 years time (9.7%).


Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSEG has a large one-off loss of £296.0M impacting its June 30 2021 financial results.

Growing Profit Margin: LSEG's current net profit margins (9.7%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: LSEG's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: LSEG's earnings growth over the past year (34%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: LSEG earnings growth over the past year (34%) underperformed the Capital Markets industry 57.4%.


Return on Equity

High ROE: LSEG's Return on Equity (2.2%) is considered low.


Financial Health

How is London Stock Exchange Group's financial position?


Financial Position Analysis

Short Term Liabilities: LSEG's short term assets (£771.7B) exceed its short term liabilities (£769.9B).

Long Term Liabilities: LSEG's short term assets (£771.7B) exceed its long term liabilities (£11.3B).


Debt to Equity History and Analysis

Debt Level: LSEG's net debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: LSEG's debt to equity ratio has increased from 32.5% to 34.5% over the past 5 years.

Debt Coverage: LSEG's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: LSEG's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSEG's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: LSEG's dividend (1.12%) is low compared to the top 25% of dividend payers in the UK market (4.15%).


Stability and Growth of Payments

Stable Dividend: LSEG's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), LSEG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LSEG's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

David Schwimmer (43 yo)

3.25yrs

Tenure

UK£6,876,000

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 ($USD9.16M) is above average for companies of similar size in the UK market ($USD3.74M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LSEG's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: LSEG's board of directors are not considered experienced ( 1.4 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 been substantially diluted in the past year, with total shares outstanding growing by 58.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: London Stock Exchange Group plc
  • Ticker: LSEG
  • Exchange: LSE
  • Founded: 1698
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: UK£38.146b
  • Shares outstanding: 556.87m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 19:00
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.