LSE:LWDB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

LWDB

0.6%

GB Capital Markets

1.9%

GB Market


1 Year Return

2.1%

LWDB

19.8%

GB Capital Markets

2.4%

GB Market

Return vs Industry: LWDB underperformed the UK Capital Markets industry which returned 19.8% over the past year.

Return vs Market: LWDB matched the UK Market which returned 2.4% over the past year.


Shareholder returns

LWDBIndustryMarket
7 Day3.9%0.6%1.9%
30 Day0%-3.3%-1.1%
90 Day-0.7%2.7%-1.8%
1 Year5.7%2.1%22.7%19.8%7.4%2.4%
3 Year26.7%15.4%78.8%66.1%18.2%3.7%
5 Year38.5%18.3%147.9%117.7%35.7%6.1%

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?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LWDB (£5.86) is trading below our estimate of fair value (£8.86)

Significantly Undervalued: LWDB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LWDB is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (0.9x) 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?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LWDB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LWDB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LWDB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if LWDB's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if LWDB's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if LWDB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Law Debenture performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LWDB is unprofitable, and losses have increased over the past 5 years at a rate of -6.8% 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 (4.6%).


Return on Equity

High ROE: LWDB has a negative Return on Equity (-0.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: LWDB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LWDB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Law Debenture's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LWDB has a low level of unsold assets or inventory.

Debt Coverage by Assets: LWDB's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: LWDB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LWDB has a sufficient allowance for bad loans.

Low Risk Liabilities: LWDB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LWDB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LWDB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LWDB has an appropriate level of bad loans.


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LWDB's dividend (3.23%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: LWDB's dividend (3.23%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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

What is the CEO of Law Debenture's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Denis Jackson (53yo)

1.8yrs

Tenure

UK£611,186

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Denis's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

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


Board Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: LWDB's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£28,99223 Apr 19
Law Debenture Corporation Plc, Employee Share Ownership Trust
EntityCompany
Shares4,800
Max PriceUK£6.04

Ownership Breakdown


Management Team

  • Julian Mason-Jebb

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

    • Tenure: 0yrs
  • Mark Ashworth

    Chairman of Pension Scheme Trusteeships

    • Tenure: 0yrs
  • Michael Chatterton

    Managing Director of Pension Trusteeship

    • Tenure: 0yrs
  • Denis Jackson (53yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£611.19k
  • Vikki Card

    Head of Banking - Trust & Escrow Banking

    • Tenure: 0yrs
  • Ginny Duncan

    Deputy Company Secretary & Transaction Manager of Corporate Services

    • Tenure: 0yrs
  • Darren Levene

    Director & Head of Trust Management

    • Tenure: 0yrs
  • Katie Thorpe

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Suzanne Burgess

    Head of Operations

    • Tenure: 0.6yrs
  • David Williams

    Chief Technology Officer

    • Tenure: 0.2yrs

Board Members

  • Mark Bridgeman

    Non Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£46.91k
  • Robert C. Hingley (58yo)

    Independent Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: UK£69.17k
  • Robert Laing (65yo)

    Senior Independent Director

    • Tenure: 5.5yrs
    • Compensation: UK£52.00k
  • Denis Jackson (53yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£611.19k
  • Tim Bond

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£41.25k
  • Katie Thorpe

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Claire Finn

    Non-Executive Director

    • Tenure: 0.08yrs

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£692.416m
  • 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 Trust and Independent Professional Services. Its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.