| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£68.50 |
| 52 Week High | UK£100.10 |
| 52 Week Low | UK£65.52 |
| Beta | 0.30 |
| 1 Month Change | -4.20% |
| 3 Month Change | -14.63% |
| 1 Year Change | -13.51% |
| 3 Year Change | 69.85% |
| 5 Year Change | 156.46% |
| Change since IPO | 1,508.61% |
Recent News & Updates
Shareholder Returns
| LSEG | GB Capital Markets | GB Market | |
|---|---|---|---|
| 7D | 2.2% | -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
| LSEG volatility | |
|---|---|
| LSEG Average Weekly Movement | 3.7% |
| Capital Markets Industry Average Movement | 3.8% |
| Market Average Movement | 4.9% |
| 10% most volatile stocks in GB Market | 9.7% |
| 10% least volatile stocks in GB Market | 2.5% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1698 | 5,554 | David Schwimmer | https://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
| LSEG fundamental statistics | |
|---|---|
| Market Cap | UK£38.15b |
| Earnings (TTM) | UK£441.00m |
| Revenue (TTM) | UK£4.53b |
86.5x
P/E Ratio8.4x
P/S RatioIs LSEG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LSEG income statement (TTM) | |
|---|---|
| Revenue | UK£4.53b |
| Cost of Revenue | UK£504.00m |
| Gross Profit | UK£4.03b |
| Expenses | UK£3.58b |
| Earnings | UK£441.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.79 |
| Gross Margin | 88.87% |
| Net Profit Margin | 9.74% |
| Debt/Equity Ratio | 34.5% |
How did LSEG perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield76%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/11/27 19:00 |
| End of Day Share Price | 2021/11/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.