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LSEG

London Stock Exchange Group LSE:LSEG Stock Report

Last Price

UK£76.22

Market Cap

UK£42.3b

7D

1.0%

1Y

3.7%

Updated

27 Sep, 2022

Data

Company Financials +
LSEG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends3/6

LSEG Stock Overview

London Stock Exchange Group plc engages in the market infrastructure business primarily in the United Kingdom, the United States, other European countries, Asia, and internationally.

London Stock Exchange Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for London Stock Exchange Group
Historical stock prices
Current Share PriceUK£76.22
52 Week HighUK£86.12
52 Week LowUK£62.30
Beta0.29
1 Month Change-7.81%
3 Month Change-1.01%
1 Year Change3.67%
3 Year Change5.04%
5 Year Change96.70%
Change since IPO1,689.90%

Recent News & Updates

Aug 09
London Stock Exchange Group's (LON:LSEG) Upcoming Dividend Will Be Larger Than Last Year's

London Stock Exchange Group's (LON:LSEG) Upcoming Dividend Will Be Larger Than Last Year's

The board of London Stock Exchange Group plc ( LON:LSEG ) has announced that the dividend on 20th of September will be...

Shareholder Returns

LSEGGB Capital MarketsGB Market
7D1.0%-1.9%-3.1%
1Y3.7%-19.3%-14.5%

Return vs Industry: LSEG exceeded the UK Capital Markets industry which returned -19.6% over the past year.

Return vs Market: LSEG exceeded the UK Market which returned -14.6% over the past year.

Price Volatility

Is LSEG's price volatile compared to industry and market?
LSEG volatility
LSEG Average Weekly Movement3.1%
Capital Markets Industry Average Movement4.1%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
169823,261David Schwimmerhttps://www.lseg.com

London Stock Exchange Group plc engages in the market infrastructure business primarily in the United Kingdom, the United States, other European countries, Asia, and internationally. The company operates through three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-trading, and foreign exchange markets, including London Stock Exchange, AIM, Turquoise, CurveGlobal, FXall, and Tradeweb.

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£42.30b
Earnings (TTM)UK£934.00m
Revenue (TTM)UK£7.46b

45.3x

P/E Ratio

5.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSEG income statement (TTM)
RevenueUK£7.46b
Cost of RevenueUK£974.00m
Gross ProfitUK£6.48b
Other ExpensesUK£5.55b
EarningsUK£934.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.68
Gross Margin86.94%
Net Profit Margin12.53%
Debt/Equity Ratio29.9%

How did LSEG perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

61%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LSEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LSEG?

Other financial metrics that can be useful for relative valuation.

LSEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA19.1x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does LSEG's PE Ratio compare to its peers?

LSEG PE Ratio vs Peers
The above table shows the PE ratio for LSEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.4x
IHP IntegraFin Holdings
14.3x2.3%UK£736.9m
III 3i Group
2.7x-13.6%UK£10.8b
AQX Aquis Exchange
22.5x22.4%UK£89.9m
300059 East Money InformationLtd
25.5x22.3%CN¥243.8b
LSEG London Stock Exchange Group
45.3x15.0%UK£42.3b

Price-To-Earnings vs Peers: LSEG is expensive based on its Price-To-Earnings Ratio (45.3x) compared to the peer average (16.4x).


Price to Earnings Ratio vs Industry

How does LSEG's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: LSEG is expensive based on its Price-To-Earnings Ratio (45.3x) compared to the UK Capital Markets industry average (11.1x)


Price to Earnings Ratio vs Fair Ratio

What is LSEG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LSEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.3x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: LSEG is expensive based on its Price-To-Earnings Ratio (45.3x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


Share Price vs Fair Value

What is the Fair Price of LSEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LSEG (£76.22) is trading below our estimate of fair value (£78.63)

Significantly Below Fair Value: LSEG is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is London Stock Exchange Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSEG's forecast earnings growth (15% per year) is above the savings rate (0.9%).

Earnings vs Market: LSEG's earnings (15% per year) are forecast to grow faster than the UK market (9% per year).

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

Revenue vs Market: LSEG's revenue (5.4% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: LSEG's revenue (5.4% 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 (8.1%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LSEG has high quality earnings.

Growing Profit Margin: LSEG's current net profit margins (12.5%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: LSEG's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: LSEG's earnings growth over the past year (236%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: LSEG earnings growth over the past year (236%) exceeded the Capital Markets industry 13.9%.


Return on Equity

High ROE: LSEG's Return on Equity (3.9%) is considered low.


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Financial Health

How is London Stock Exchange Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LSEG's short term assets (£849.6B) exceed its short term liabilities (£847.0B).

Long Term Liabilities: LSEG's short term assets (£849.6B) exceed its long term liabilities (£11.9B).


Debt to Equity History and Analysis

Debt Level: LSEG's net debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: LSEG's debt to equity ratio has reduced from 38.1% to 29.9% over the past 5 years.

Debt Coverage: LSEG's debt is well covered by operating cash flow (30.7%).

Interest Coverage: LSEG's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.33%

Current Dividend Yield

Dividend Yield vs Market

London Stock Exchange Group Dividend Yield vs Market
How does London Stock Exchange Group dividend yield compare to the market?
SegmentDividend Yield
Company (London Stock Exchange Group)1.3%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Capital Markets)3.6%
Analyst forecast in 3 Years (London Stock Exchange Group)1.5%

Notable Dividend: LSEG's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.09%).

High Dividend: LSEG's dividend (1.33%) is low compared to the top 25% of dividend payers in the UK market (5.9%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.7%), LSEG's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.3%), LSEG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure


CEO

David Schwimmer (44 yo)

4.08yrs

Tenure

UK£6,442,000

Compensation

Mr. David A. Schwimmer has been Group Chief Executive Officer and Executive Director at London Stock Exchange Group Plc since August 01, 2018 and serves as its Group Head, Data & Analytics since June 2022....


CEO Compensation Analysis

David Schwimmer's Compensation vs London Stock Exchange Group Earnings
How has David Schwimmer's remuneration changed compared to London Stock Exchange Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£934m

Mar 31 2022n/an/a

UK£732m

Dec 31 2021UK£6mUK£983k

UK£529m

Jun 30 2021n/an/a

UK£278m

Mar 31 2021n/an/a

UK£286m

Dec 31 2020UK£7mUK£794k

UK£293m

Sep 30 2020n/an/a

UK£341m

Jun 30 2020n/an/a

UK£329m

Mar 31 2020n/an/a

UK£373m

Dec 31 2019UK£2mUK£775k

UK£417m

Sep 30 2019n/an/a

UK£449m

Jun 30 2019n/an/a

UK£480m

Mar 31 2019n/an/a

UK£480m

Dec 31 2018UK£2mUK£323k

UK£480m

Compensation vs Market: David's total compensation ($USD6.93M) is about average for companies of similar size in the UK market ($USD5.64M).

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


Leadership Team

Experienced Management: LSEG's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: LSEG's board of directors are not considered experienced ( 2.3 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

LSE:LSEG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 Mar 22BuyUK£15,250Kathleen DeRoseIndividual220UK£69.32
07 Dec 21BuyUK£18,802Kathleen DeRoseIndividual280UK£67.15

Ownership Breakdown

What is the ownership structure of LSEG?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders77,9690.01%
State or Government200,8960.04%
Public Companies411,2990.07%
Employee Share Scheme593,2310.1%
VC/PE Firms34,538,4606.2%
General Public93,395,37916.8%
Private Companies123,631,97222.3%
Institutions302,396,70854.5%

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


Top Shareholders

Top 25 shareholders own 63.58% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
22.18%
Refinitiv US Holdings Inc.
123,170,645£9.4b0%no data
6.22%
Qatar Holding LLC
34,538,460£2.6b-1.89%6.13%
4.82%
BlackRock, Inc.
26,754,753£2.0b10.71%0.05%
4.15%
Lindsell Train Limited
23,023,400£1.8b-5.25%10.08%
3.39%
Blackstone Inc.
18,834,560£1.4b0%4.3%
3.12%
Capital Research and Management Company
17,341,341£1.3b2.02%0.1%
2.64%
The Vanguard Group, Inc.
14,642,766£1.1b3.23%0.03%
2.57%
T. Rowe Price Group, Inc.
14,274,353£1.1b-9.33%0.14%
1.54%
Norges Bank Investment Management
8,547,130£651.5m2.91%0.09%
1.46%
Massachusetts Financial Services Company
8,089,222£616.6m77.5%0.17%
1.33%
Legal & General Investment Management Limited
7,357,765£560.8m3.95%0.18%
1.21%
Royal London Asset Management Limited
6,713,052£511.7m3.93%1.05%
1.21%
UBS Asset Management
6,693,387£510.2m43.76%0.11%
1.04%
Aviva Investors Global Services Limited
5,765,441£439.4m-0.16%0.94%
1.03%
State Street Global Advisors, Inc.
5,725,433£436.4m2.63%0.03%
0.73%
Artemis Investment Management LLP
4,026,215£306.9m-0.78%1.5%
0.66%
Invesco Ltd.
3,664,824£279.3m-6.54%0.1%
0.65%
Liontrust Asset Management PLC
3,635,600£277.1m52.41%1.33%
0.63%
Ignis Investment Services Limited
3,476,409£265.0m3.66%1.1%
0.59%
Vontobel Asset Management, Inc.
3,280,854£250.1m16.06%0.95%
0.55%
Wellington Management Group LLP
3,059,982£233.2m2196.35%0.05%
0.51%
Fiera Capital Corporation
2,825,844£215.4m0.24%0.32%
0.49%
Artisan Partners Limited Partnership
2,717,322£207.1m4.45%0.23%
0.46%
J.P. Morgan Asset Management, Inc.
2,539,944£193.6m9.38%0.04%
0.42%
RBC Global Asset Management Inc.
2,307,631£175.9m41.47%0.14%

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
  • Implied Market Cap: UK£42.302b
  • Shares outstanding: 555.00m
  • 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
LSEGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2001
LS4CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2001
LDNX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2001
LS4CXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.