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LWDB

Law DebentureLSE:LWDB Stock Report

Market Cap

UK£923.6m

7D

-4.2%

1Y

20.3%

Updated

30 Nov, 2021

Data

Company Financials
LWDB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends5/6

LWDB Stock Overview

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

Law Debenture Competitors

Sanne Group

LSE:SNN

UK£1.5b

SEI Investments

NasdaqGS:SEIC

US$8.6b

Intertrust

ENXTAM:INTER

€1.8b

Price History & Performance

Summary of all time highs, changes and price drops for Law Debenture
Historical stock prices
Current Share PriceUK£7.54
52 Week HighUK£8.13
52 Week LowUK£6.06
Beta1.05
1 Month Change-2.21%
3 Month Change-6.68%
1 Year Change20.26%
3 Year Change32.75%
5 Year Change46.12%
Change since IPO770.67%

Recent News & Updates

Mar 01
What Kind Of Shareholders Own The Law Debenture Corporation p.l.c. (LON:LWDB)?

What Kind Of Shareholders Own The Law Debenture Corporation p.l.c. (LON:LWDB)?

A look at the shareholders of The Law Debenture Corporation p.l.c. ( LON:LWDB ) can tell us which group is most...

Shareholder Returns

LWDBGB Capital MarketsGB Market
7D-4.2%-2.1%-1.9%
1Y20.3%5.7%13.8%

Return vs Industry: LWDB exceeded the UK Capital Markets industry which returned 5.7% over the past year.

Return vs Market: LWDB exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is LWDB's price volatile compared to industry and market?
LWDB volatility
LWDB Average Weekly Movement2.4%
Capital Markets Industry Average Movement3.8%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.6%

Stable Share Price: LWDB is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: LWDB's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1889165Denis Jacksonhttps://www.lawdebenture.com

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. It provides corporate trust services comprising bond/security trustee, escrow agent, and various other trust solutions; governance services, such as pension trustee services consisting of independent trustees, trustee chair, and sole trustee; independent outsourced pensions executive services, including pensions management, and scheme secretarial and specialist support services to pension scheme trustees and corporates; and whistleblowing services.

Law Debenture Fundamentals Summary

How do Law Debenture's earnings and revenue compare to its market cap?
LWDB fundamental statistics
Market CapUK£923.55m
Earnings (TTM)UK£257.91m
Revenue (TTM)UK£300.01m

3.6x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LWDB income statement (TTM)
RevenueUK£300.01m
Cost of RevenueUK£5.82m
Gross ProfitUK£294.19m
ExpensesUK£36.28m
EarningsUK£257.91m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.11
Gross Margin98.06%
Net Profit Margin85.97%
Debt/Equity Ratio13.4%

How did LWDB perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

3.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LWDB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LWDB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LWDB is good value based on its PE Ratio (3.6x) compared to the UK Capital Markets industry average (12.4x).

PE vs Market: LWDB is good value based on its PE Ratio (3.6x) compared to the UK market (19x).


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 (1.1x) compared to the GB Capital Markets industry average (1.7x).


Future Growth

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

8.6%

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.


Past Performance

How has Law Debenture performed over the past 5 years?

-8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWDB has a high level of non-cash earnings.

Growing Profit Margin: LWDB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LWDB's earnings have declined by 8.9% per year over the past 5 years.

Accelerating Growth: LWDB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LWDB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (57.4%).


Return on Equity

High ROE: LWDB's Return on Equity (30.4%) is considered high.


Financial Health

How is Law Debenture's financial position?


Financial Position Analysis

Short Term Liabilities: LWDB's short term assets (£32.6M) exceed its short term liabilities (£32.5M).

Long Term Liabilities: LWDB's short term assets (£32.6M) do not cover its long term liabilities (£125.7M).


Debt to Equity History and Analysis

Debt Level: LWDB's net debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: LWDB's debt to equity ratio has reduced from 19.9% to 13.4% over the past 5 years.

Debt Coverage: LWDB's debt is well covered by operating cash flow (29.8%).

Interest Coverage: LWDB's interest payments on its debt are well covered by EBIT (50.1x coverage).


Balance Sheet


Dividend

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

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LWDB's dividend (4.24%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: LWDB's dividend (4.24%) is in the top 25% of dividend payers in the UK market (4.17%)


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: With its low payout ratio (13.1%), LWDB's dividend payments are thoroughly covered by earnings.


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?

1.3yrs

Average management tenure


CEO

Denis Jackson (55 yo)

3.83yrs

Tenure

UK£643,000

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 Dire...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD851.37K) is below average for companies of similar size in the UK market ($USD1.53M).

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


Leadership Team

Experienced Management: LWDB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: LWDB's board of directors are not considered experienced ( 2.2 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 diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

The Law Debenture Corporation p.l.c.'s 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£923.552m
  • Shares outstanding: 122.49m
  • Website: https://www.lawdebenture.com

Number of Employees


Location

  • The Law Debenture Corporation p.l.c.
  • 100 Bishopsgate
  • 8th Floor
  • London
  • Greater London
  • EC2N 4AG
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:37
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.