LSE:LWDB

Stock Analysis Report

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Executive Summary

The Law Debenture Corporation p.l.c., an investment trust, provides independent professional services. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Law Debenture's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.5%

LWDB

-1.9%

GB Capital Markets

-1.9%

GB Market


1 Year Return

-12.3%

LWDB

1.1%

GB Capital Markets

-14.5%

GB Market

Return vs Industry: LWDB underperformed the UK Capital Markets industry which returned 1.1% over the past year.

Return vs Market: LWDB exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

LWDBIndustryMarket
7 Day-1.5%-1.9%-1.9%
30 Day2.4%-1.5%-1.7%
90 Day-2.6%-0.9%-4.4%
1 Year-6.8%-12.3%4.5%1.1%-11.3%-14.5%
3 Year-1.7%-13.2%22.9%8.2%-9.0%-20.3%
5 Year18.7%-1.6%66.3%36.0%15.3%-10.6%

Price Volatility Vs. Market

How volatile is Law Debenture's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Law Debenture undervalued compared to its fair value and its price relative to the market?

27.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LWDB (£5.21) is trading below our estimate of fair value (£7.17)

Significantly Below Fair Value: LWDB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LWDB is unprofitable, so we can't compare its PE Ratio to the GB Capital Markets industry average.

PE vs Market: LWDB is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LWDB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LWDB is good value based on its PB Ratio (1x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

18.2%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Law Debenture has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Law Debenture performed over the past 5 years?

-12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWDB is currently unprofitable.

Growing Profit Margin: LWDB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LWDB is unprofitable, and losses have increased over the past 5 years at a rate of 12.9% per year.

Accelerating Growth: Unable to compare LWDB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LWDB is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (0.9%).


Return on Equity

High ROE: LWDB has a negative Return on Equity (-15.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Law Debenture's financial position?


Financial Position Analysis

Short Term Liabilities: LWDB's short term assets (£40.5M) exceed its short term liabilities (£20.7M).

Long Term Liabilities: LWDB's short term assets (£40.5M) do not cover its long term liabilities (£122.6M).


Debt to Equity History and Analysis

Debt Level: LWDB's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: LWDB's debt to equity ratio has increased from 11.8% to 18.7% over the past 5 years.

Debt Coverage: LWDB's debt is well covered by operating cash flow (28%).

Interest Coverage: Insufficient data to determine if LWDB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Law Debenture current dividend yield, its reliability and sustainability?

4.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LWDB's dividend (4.99%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: LWDB's dividend (4.99%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: LWDB's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: LWDB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Denis Jackson (54 yo)

2.75yrs

Tenure

UK£643,393

Compensation

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 Dir ...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD833.80K) is about average for companies of similar size in the UK market ($USD1.14M).

Compensation vs Earnings: Denis's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Denis Jackson
CEO & Executive Director2.75yrsUK£643.39k0.0031%
£ 19.1k
Hester Scotton
Chief Financial Officer0.083yrno datano data
Trish Houston
COO & Executive Director0.083yrno datano data
David Williams
Chief Technology Officer1.17yrsno datano data
Kelly Stobbs
General Counsel0.75yrno datano data
Julian Mason-Jebb
Head of New Business - Corporate Trust & Director of Corporate Trustno datano datano data
Mark Ashworth
Chairman of Pension Scheme Trusteeshipsno datano datano data
Vikki Card
Head of Banking - Trust & Escrow Bankingno datano datano data
Michael Chatterton
Managing Director of Pension Trusteeshipno datano datano data
Darren Levene
Director & Head of Trust Managementno datano datano data
Eliot Solarz
Head of Corporate Trustno datano datano data
Winnie Wong
Director & Head of Corporate Trust - Asia Pacific1.75yrsno datano data

1.0yrs

Average Tenure

Experienced Management: LWDB's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Denis Jackson
CEO & Executive Director2.75yrsUK£643.39k0.0031%
£ 19.1k
Trish Houston
COO & Executive Director0.083yrno datano data
Mark Bridgeman
Independent Non Executive Director7.58yrsUK£51.94k0.021%
£ 129.6k
Robert C. Hingley
Independent Chairman of the Board2.5yrsUK£85.00k0.0041%
£ 25.4k
Robert Laing
Senior Independent Director6.5yrsUK£54.15k0.010%
£ 64.1k
Timothy Bond
Independent Non-Executive Director5.5yrsUK£44.00kno data
Claire Finn
Independent Non-Executive Director1.08yrsUK£13.75kno data

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: LWDB's board of directors are not considered experienced ( 2.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Law Debenture Corporation p.l.c.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Law Debenture Corporation p.l.c.
  • Ticker: LWDB
  • Exchange: LSE
  • Founded: 1889
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£615.595m
  • Shares outstanding: 118.16m
  • Website: https://www.lawdebenture.com

Number of Employees


Location

  • The Law Debenture Corporation p.l.c.
  • 100 Wood Street
  • Fifth Floor
  • London
  • Greater London
  • EC2V 7EX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LWDBLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
LWDBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

The Law Debenture Corporation p.l.c., an investment trust, provides independent professional services. The company operates through two segments, Investment portfolio and Independent Professional Services. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:03
End of Day Share Price2020/10/20 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.