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LGEN

Legal & General GroupLSE:LGEN Stock Report

Market Cap

UK£16.8b

7D

4.6%

1Y

55.6%

Updated

26 Oct, 2021

Data

Company Financials +
LGEN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance5/6
Financial Health1/6
Dividends6/6

LGEN Overview

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally.

Legal & General Group Competitors

Prudential

LSE:PRU

UK£40.0b

Phoenix Group Holdings

LSE:PHNX

UK£6.6b

Just Group

LSE:JUST

UK£965.6m

BlackRock

NYSE:BLK

US$141.6b

Price History & Performance

Summary of all time highs, changes and price drops for Legal & General Group
Historical stock prices
Current Share PriceUK£2.89
52 Week HighUK£1.77
52 Week LowUK£2.99
Beta1.52
1 Month Change3.62%
3 Month Change10.15%
1 Year Change55.56%
3 Year Change17.69%
5 Year Change37.85%
Change since IPO658.02%

Recent News & Updates

Aug 07
Legal & General Group (LON:LGEN) Is Increasing Its Dividend To UK£0.052

Legal & General Group (LON:LGEN) Is Increasing Its Dividend To UK£0.052

Legal & General Group Plc ( LON:LGEN ) has announced that it will be increasing its dividend on the 20th of September...

Shareholder Returns

LGENGB InsuranceGB Market
7D4.6%1.8%0.5%
1Y55.6%34.8%26.7%

Return vs Industry: LGEN exceeded the UK Insurance industry which returned 28.2% over the past year.

Return vs Market: LGEN exceeded the UK Market which returned 24.7% over the past year.

Price Volatility

Is LGEN's price volatile compared to industry and market?
LGEN volatility
LGEN Beta1.52
Industry Beta1.2
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
183610,099Nigel Wilsonhttps://www.legalandgeneralgroup.com

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in four segments: Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Legal & General Insurance (LGI). The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; lifetime mortgages; lifetime care plans; and retirement interest only mortgages.

Legal & General Group Fundamentals Summary

How do Legal & General Group's earnings and revenue compare to its market cap?
LGEN fundamental statistics
Market CapUK£16.75b
Earnings (TTM)UK£2.09b
Revenue (TTM)UK£11.96b

8.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LGEN income statement (TTM)
RevenueUK£11.96b
Cost of RevenueUK£7.60b
Gross ProfitUK£4.36b
ExpensesUK£2.27b
EarningsUK£2.09b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 09, 2022

Earnings per share (EPS)0.35
Gross Margin36.45%
Net Profit Margin17.51%
Debt/Equity Ratio517.6%

How did LGEN perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Legal & General Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LGEN (£2.89) is trading below our estimate of fair value (£7.35)

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


Price To Earnings Ratio

PE vs Industry: LGEN is good value based on its PE Ratio (8.2x) compared to the UK Insurance industry average (14.1x).

PE vs Market: LGEN is good value based on its PE Ratio (8.2x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: LGEN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: LGEN is overvalued based on its PB Ratio (1.7x) compared to the GB Insurance industry average (1.3x).


Future Growth

How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGEN's forecast earnings growth (3.1% per year) is above the savings rate (0.9%).

Earnings vs Market: LGEN's earnings (3.1% per year) are forecast to grow slower than the UK market (12.7% per year).

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

Revenue vs Market: LGEN's revenue (35.9% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: LGEN's revenue (35.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LGEN's Return on Equity is forecast to be low in 3 years time (17.5%).


Past Performance

How has Legal & General Group performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGEN has high quality earnings.

Growing Profit Margin: LGEN's current net profit margins (17.5%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: LGEN's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: LGEN's earnings growth over the past year (69.6%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: LGEN earnings growth over the past year (69.6%) exceeded the Insurance industry 18.5%.


Return on Equity

High ROE: Whilst LGEN's Return on Equity (20.26%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Legal & General Group's financial position?


Financial Position Analysis

Short Term Liabilities: LGEN's short term assets (£38.3B) do not cover its short term liabilities (£70.3B).

Long Term Liabilities: LGEN's short term assets (£38.3B) do not cover its long term liabilities (£487.6B).


Debt to Equity History and Analysis

Debt Level: LGEN's debt to equity ratio (517.6%) is considered high.

Reducing Debt: LGEN's debt to equity ratio has increased from 303.2% to 517.6% over the past 5 years.

Debt Coverage: LGEN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LGEN's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

What is Legal & General Group current dividend yield, its reliability and sustainability?

6.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LGEN's dividend (6.17%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: LGEN's dividend (6.17%) is in the top 25% of dividend payers in the UK market (4.08%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), LGEN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LGEN's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Nigel Wilson (65 yo)

9.33yrs

Tenure

UK£1,969,000

Compensation

Dr. Nigel David Wilson serves as Group Chief Executive of Legal & General Group Plc since 2012 and serves as its Executive Director since September 2009. Dr. Wilson joined Legal & General Group Plc as Chie...


CEO Compensation Analysis

Compensation vs Market: Nigel's total compensation ($USD2.71M) is about average for companies of similar size in the UK market ($USD3.87M).

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


Leadership Team

Experienced Management: LGEN's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: LGEN's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LGEN 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

Legal & General Group Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Legal & General Group Plc
  • Ticker: LGEN
  • Exchange: LSE
  • Founded: 1836
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: UK£16.754b
  • Shares outstanding: 5.93b
  • Website: https://www.legalandgeneralgroup.com

Number of Employees


Location

  • Legal & General Group Plc
  • One Coleman Street
  • London
  • Greater London
  • EC2R 5AA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:14
End of Day Share Price2021/10/26 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.