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Law Debenture

LSE:LWDB
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LWDB
LSE
£706M
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

The Law Debenture Corporation p.l.c., an investment trust, provides independent professional services. The last earnings update was 41 days ago. More info.


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LWDB Share Price and Events
7 Day Returns
0%
LSE:LWDB
3.8%
GB Capital Markets
1%
GB Market
1 Year Returns
0.3%
LSE:LWDB
9.5%
GB Capital Markets
1.6%
GB Market
LWDB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Law Debenture (LWDB) 0% 2.7% 5.3% 0.3% 22.9% 13.9%
GB Capital Markets 3.8% 6.6% 10% 9.5% 46% 73.7%
GB Market 1% 2.3% 8.6% 1.6% 14% 5.9%
1 Year Return vs Industry and Market
  • LWDB underperformed the Capital Markets industry which returned 9.5% over the past year.
  • LWDB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.6% over the past year.
Price Volatility
LWDB
Industry
5yr Volatility vs Market

Value

 Is Law Debenture 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 Law Debenture 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 Law Debenture.

LSE:LWDB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £5.66 * 10.1%
£0.57
Book Value of Equity per Share Median Book Value from the past 5 years. £5.66
Discount Rate (Cost of Equity) See below 7.1%
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:LWDB
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))
= 0.734 (1 + (1- 19%) (16.16%))
0.886
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.886 * 6.65%)
7.12%

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

The calculations below outline how an intrinsic value for Law Debenture 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:LWDB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.1% – 7.12%) * £5.66)
£0.17
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.17 / (7.12% - 1.23%)
£2.89
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £5.66 + £2.89
£8.56
LSE:LWDB Discount to Share Price
Calculation Result
Value per share (GBP) From above. £8.56
Current discount Discount to share price of £5.98
= -1 x (£5.98 - £8.56) / £8.56
30.1%

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

Current Discount
Amount off the current price Law Debenture is available for.
Intrinsic value
30%
Share price is £5.98 vs Future cash flow value of £8.56
Current Discount Checks
For Law Debenture to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Law Debenture's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Law Debenture's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Law Debenture's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Law Debenture's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:LWDB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £-0.51
LSE:LWDB Share Price ** LSE (2019-04-18) in GBP £5.98
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 45 Publicly-Listed Capital Markets Companies 19.22x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 795 Publicly-Listed Companies 16.28x

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

** Primary Listing of Law Debenture.

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

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

= 5.98 ÷ -0.51

-11.82x

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

  • Law Debenture is loss making, we can't compare its value to the GB Capital Markets industry average.
  • Law Debenture is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Law Debenture's expected growth come at a high price?
Raw Data
LSE:LWDB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -11.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
31.2%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 22 Publicly-Listed Capital Markets Companies 1.41x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Law Debenture, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Law Debenture's assets?
Raw Data
LSE:LWDB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £5.66
LSE:LWDB Share Price * LSE (2019-04-18) in GBP £5.98
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 79 Publicly-Listed Capital Markets Companies 1.46x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.52x
LSE:LWDB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 5.98 ÷ 5.66

1.06x

* Primary Listing of Law Debenture.

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

  • Law Debenture is good value based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Law Debenture'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. Law Debenture has a total score of 2/6, 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.

Future Performance

 How is Law Debenture expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Law Debenture, future earnings growth has been estimated based on fundamentals.
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
31.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Law Debenture expected to grow at an attractive rate?
  • Law Debenture's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Law Debenture's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Unable to compare Law Debenture's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
LSE:LWDB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:LWDB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 31.2%
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 11.1%
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:LWDB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:LWDB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 -27 28 -60
2018-09-30 35 28 2
2018-06-30 96 28 64
2018-03-31 116 26 85
2017-12-31 136 25 105
2017-09-30 163 24 131
2017-06-30 190 23 156
2017-03-31 174 24 140
2016-12-31 157 25 124
2016-09-30 99 25 68
2016-06-30 40 26 11
2016-03-31 35 25 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Law Debenture's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Law Debenture is high growth as no revenue estimate data is available.
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:LWDB 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 0 Analyst Estimates (S&P Global) See Below

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

LSE:LWDB Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 -0.51
2018-09-30 0.02
2018-06-30 0.55
2018-03-31 0.72
2017-12-31 0.89
2017-09-30 1.11
2017-06-30 1.32
2017-03-31 1.19
2016-12-31 1.05
2016-09-30 0.57
2016-06-30 0.10
2016-03-31 0.05

*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.
  • Unable to establish if Law Debenture will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Law Debenture'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.
Law Debenture has a total score of 3/6, 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.

Past Performance

  How has Law Debenture 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 Law Debenture'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.
  • Law Debenture does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Law Debenture's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Law Debenture's 1-year growth to the GB Capital Markets industry average as it is not currently profitable.
Earnings and Revenue History
Law Debenture'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 Law Debenture Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LWDB 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 -27.19 -59.79 23.32
2018-09-30 34.65 2.34 22.85
2018-06-30 96.50 64.47 22.39
2018-03-31 116.21 84.66 21.82
2017-12-31 135.92 104.86 21.25
2017-09-30 162.99 130.57 20.85
2017-06-30 190.06 156.27 20.45
2017-03-31 173.62 140.27 20.41
2016-12-31 157.18 124.27 20.37
2016-09-30 98.77 67.82 20.44
2016-06-30 40.36 11.37 20.52
2016-03-31 34.93 6.05 20.67
2015-12-31 29.50 0.74 20.82
2015-09-30 40.33 11.27 20.72
2015-06-30 51.15 21.81 20.62
2015-03-31 52.69 23.17 20.47
2014-12-31 54.23 24.54 20.32
2014-09-30 87.46 57.62 20.37
2014-06-30 120.70 90.69 20.41
2014-03-31 141.71 112.11 20.26
2013-12-31 162.71 133.52 20.12
2013-09-30 147.51 119.38 19.83
2013-06-30 132.31 105.25 19.54
2013-03-31 117.98 91.06 19.19
2012-12-31 103.66 76.86 18.83
2012-09-30 67.13 39.78 18.91
2012-06-30 30.60 2.71 18.99

*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.
  • It is difficult to establish if Law Debenture has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Law Debenture has efficiently used its assets last year compared to the GB Capital Markets industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Law Debenture improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Law Debenture'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.
Law Debenture has a total score of 0/6, 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.

Health

 How is Law Debenture'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 Law Debenture's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Law Debenture is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Law Debenture's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Law Debenture'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 1.2x 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 Law Debenture Company Filings, last reported 3 months ago.

LSE:LWDB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 669.36 114.11 124.15
2018-09-30 669.36 114.11 124.15
2018-06-30 754.12 114.09 105.25
2018-03-31 754.12 114.09 105.25
2017-12-31 748.26 114.07 134.01
2017-09-30 748.26 114.07 134.01
2017-06-30 708.86 114.05 94.46
2017-03-31 708.86 114.05 94.46
2016-12-31 662.29 114.02 94.80
2016-09-30 662.29 114.02 94.80
2016-06-30 573.18 114.00 68.24
2016-03-31 573.18 114.00 68.24
2015-12-31 557.32 113.98 60.30
2015-09-30 557.32 113.98 60.30
2015-06-30 578.84 67.09 50.63
2015-03-31 578.84 67.09 50.63
2014-12-31 574.21 66.02 50.32
2014-09-30 574.21 66.02 50.32
2014-06-30 576.78 64.71 49.14
2014-03-31 576.78 64.71 49.14
2013-12-31 569.07 66.24 49.69
2013-09-30 569.07 66.24 49.69
2013-06-30 503.14 39.43 21.33
2013-03-31 503.14 39.43 21.33
2012-12-31 451.86 39.42 22.20
2012-09-30 451.86 39.42 22.20
2012-06-30 414.82 39.40 16.38
  • Law Debenture's level of debt (17%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (11.6% vs 17% today).
  • Debt is well covered by operating cash flow (24.7%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Law Debenture's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Law Debenture'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. Law Debenture 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.

Dividends

 What is Law Debenture'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
3.16%
Current annual income from Law Debenture dividends.
If you bought £2,000 of Law Debenture shares you are expected to receive £63 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?
  • Law Debenture's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Law Debenture's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.12%).
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:LWDB 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 0 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 4.2%
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:LWDB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-11 0.189 3.166
2018-03-09 0.173 2.942
2018-02-28 0.173 2.973
2017-04-11 0.167 2.801
2016-04-12 0.162 3.177
2015-03-09 0.157 3.163
2015-02-26 0.157 2.933
2014-04-01 0.150 2.882
2013-03-01 0.143 2.817
2012-07-24 0.090 2.168
2012-03-13 0.135 3.592
2011-07-22 0.130 3.728
2011-03-01 0.127 3.540
2010-03-01 0.122 3.882
2010-02-22 0.122 4.293
2009-04-20 0.122 4.726

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 Law Debenture's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Law Debenture'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 Law Debenture afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Law Debenture has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of Law Debenture'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
Denis Jackson
COMPENSATION £611,186
AGE 52
TENURE AS CEO 1.3 years
CEO Bio

Mr. Denis Jackson is Director of Law Debenture Finance p.l.c. since January 12, 2018. Mr. Jackson serves as Chief Executive Director at The Law Debenture Corporation p.l.c., and serves as its Executive Director since January 2018. He has been the Chief Executive Officer and Executive Director of The Law Debenture Corp. p.l.c. since January 1, 2018. He joined Law Debenture in July 2017 as Chief Commercial Officer. He served as Non-Executive Director of Mitchells & Butlers Plc from August 2009 to December 2, 2009. He served as Business Development Director of Throgmorton Financial Services Ltd. Mr. Jackson has significant investment banking experience, joining Salomon Brothers in 1990, which later became part of Citigroup. Mr. Jackson has extensive expertise in treasury and liability management functions and more recently was Head of EMEA Prime Brokerage Sales in London. He brings a combination of international and capital markets knowledge to the Board, having spent a number of years in New York and Hong Kong and previously within Corporate Banking at The Sumitomo Bank, Limited. Mr. Jackson left Citigroup in 2009 but remains a Trustee of Citigroup Global Markets Limited Pension and Life Assurance Scheme having been elected in 2008.

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

Average tenure of the Law Debenture management team in years:

0.8
Average Tenure
  • The average tenure for the Law Debenture management team is less than 2 years, this suggests a new team.
Management Team

Denis Jackson

TITLE
CEO & Executive Director
COMPENSATION
£611K
AGE
52
TENURE
1.3 yrs

Katie Thorpe

TITLE
CFO & Executive Director
TENURE
0.8 yrs

Suzanne Burgess

TITLE
Head of Operations
TENURE
0.1 yrs

Julian Mason-Jebb

TITLE
Head of New Business - Corporate Trust & Director of Corporate Trust

Mark Ashworth

TITLE
Chairman of Pension Scheme Trusteeships

Vikki Card

TITLE
Head of Banking - Trust & Escrow Banking

Michael Chatterton

TITLE
Managing Director of Pension Trusteeship

Darren Levene

TITLE
Director & Head of Trust Management

Ronan Reilly

TITLE
Managing Director of Law Debenture (Ireland) Limited.

Eliot Solarz

TITLE
Head of Corporate Trust
Board of Directors Tenure

Average tenure and age of the Law Debenture board of directors in years:

2.6
Average Tenure
57
Average Age
  • The average tenure for the Law Debenture board of directors is less than 3 years, this suggests a new board.
Board of Directors

Robert C. Hingley

TITLE
Chairman of the Board
COMPENSATION
£69K
AGE
57
TENURE
1 yrs

Denis Jackson

TITLE
CEO & Executive Director
COMPENSATION
£611K
AGE
52
TENURE
1.3 yrs

Katie Thorpe

TITLE
CFO & Executive Director
TENURE
0.3 yrs

Robert Laing

TITLE
Senior Independent Director
COMPENSATION
£52K
AGE
64
TENURE
5 yrs

Mark Bridgeman

TITLE
Non Executive Director
COMPENSATION
£47K
TENURE
6.1 yrs

Tim Bond

TITLE
Non-Executive Director
COMPENSATION
£41K
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Law Debenture'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. Law Debenture 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.

News

Simply Wall St News

What Type Of Shareholder Owns The Law Debenture Corporation p.l.c.'s (LON:LWDB)?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Law Debenture has a market capitalization of UK£709m, so we would expect some institutional investors to have noticed the stock. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

The Law Debenture Corporation p.l.c. (LON:LWDB) Will Pay UK£0.13 In Dividends

To qualify for the dividend check of UK£0.13 per share, investors must have owned the shares prior to 14 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … How I analyze a dividend stock?

Simply Wall St -

Is The Law Debenture Corporation p.l.c. (LON:LWDB) A Smart Pick For Income Investors?

Historically, The Law Debenture Corporation p.l.c. … Let's take a look at Law Debenture in more detail. … Take the survey and be part of one of the most advanced studies of stock market investors to date

Simply Wall St -

Here's What The Law Debenture Corporation plc's (LON:LWDB) P/E Ratio Is Telling Us

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll show how you can use The Law Debenture Corporation plc's (LON:LWDB) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

The The Law Debenture Corporation plc (LON:LWDB) Ownership Structure Could Be Important

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of UK£700m, Law Debenture is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

The Law Debenture Corporation plc (LON:LWDB): Ex-Dividend Is In 2 Days, Should You Buy?

Investors who want to cash in on The Law Debenture Corporation plc's (LON:LWDB) upcoming dividend of UK£0.06 per share have only 2 days left to buy the shares before its ex-dividend date, 09 August 2018, in time for dividends payable on the 07 September 2018. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Is The Law Debenture Corporation plc (LON:LWDB) An Attractive Dividend Stock?

In the past 10 years The Law Debenture Corporation plc (LON:LWDB) has returned an average of 4.00% per year to investors in the form of dividend payouts. … Does Law Debenture tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Reasons Why I Like The Law Debenture Corporation plc (LON:LWDB)

The Law Debenture Corporation plc (LON:LWDB) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company that has been able to sustain great financial health, trading at an attractive share price.

Simply Wall St -

Best Cheap Stocks To Buy

LWDB's shares are currently floating at around -38% less than its true level of £9.93, at a price tag of UK£6.18, based on my discounted cash flow model. … Moreover, LWDB’s PE ratio stands at 6.96x compared to its Capital Markets peer level of, 15.48x meaning that relative to its peers, you can purchase LWDB’s stock for a lower price right now. … Additionally, IBPO’s PE ratio is trading at 9.3x compared to its IT peer level of, 28.59x suggesting that relative to its comparable company group, we can buy IBPO’s stock at a cheaper price today.

Simply Wall St -

Should The Law Debenture Corporation pl.c. (LON:LWDB) Be Part Of Your Portfolio?

See our latest analysis for Law Debenture 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … Has it increased its dividend per share amount over the past? … However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities.

Simply Wall St -

Company Info

Description

The Law Debenture Corporation p.l.c., an investment trust, provides independent professional services. The company operates through two segments, Investment Trust and Independent Professional Services. Its independent professional services segment include corporate trusts comprising trustee and escrow banking; pension trusts; corporate services, including agent for service of process; whistle blowing services; and governance services. It offers corporate services, such as provision of corporate directors, company secretary, accounting, corporate administration, and facility agent solutions. The company also provides governance, pension trusteeship, employee share scheme, and loan agency services. It serves companies, agencies, organizations, and individuals worldwide. The company was founded in 1889 and is headquartered in London, the United Kingdom.

Details
Name: The Law Debenture Corporation p.l.c.
LWDB
Exchange: LSE
Founded: 1889
£706,248,578
118,101,769
Website: http://www.lawdebenture.com
Address: The Law Debenture Corporation p.l.c.
100 Wood Street,
Fifth Floor,
London,
Greater London, EC2V 7EX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LWDB Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
BATS-CHIXE LWDBL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
123
Law Debenture employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 20:43
End of day share price update: 2019/04/18 00:00
Last earnings filing: 2019/03/08
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.