Legal & General Group
Market Cap
UK£17.6b
Last Updated
2021/04/12 17:34 UTC
Data Sources
Company Financials +
Executive Summary
Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and good value.
Similar Companies
Share Price & News
How has Legal & General Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LGEN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LGEN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.5%
LGEN
1.2%
GB Insurance
2.4%
GB Market
1 Year Return
39.1%
LGEN
38.6%
GB Insurance
23.6%
GB Market
Return vs Industry: LGEN matched the UK Insurance industry which returned 38.6% over the past year.
Return vs Market: LGEN exceeded the UK Market which returned 23.6% over the past year.
Shareholder returns
| LGEN | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 1.2% | 2.4% |
| 30 Day | 1.7% | 1.8% | 3.0% |
| 90 Day | 7.6% | 6.9% | 4.0% |
| 1 Year | 51.5%39.1% | 44.8%38.6% | 29.4%23.6% |
| 3 Year | 36.0%10.5% | 9.0%-9.8% | 14.8%1.3% |
| 5 Year | 70.8%23.3% | 42.3%6.2% | 40.4%14.0% |
Long-Term Price Volatility Vs. Market
How volatile is Legal & General Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Only Four Days Left To Cash In On Legal & General Group's (LON:LGEN) Dividend2 weeks ago | Simply Wall St
Is Legal & General Group Plc (LON:LGEN) A Smart Pick For Income Investors?1 month ago | Simply Wall St
Here's What Legal & General Group Plc's (LON:LGEN) Shareholder Ownership Structure Looks LikeValuation
Is Legal & General Group undervalued compared to its fair value and its price relative to the market?
49.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LGEN (£2.96) is trading below our estimate of fair value (£5.9)
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 (13.4x) compared to the GB Insurance industry average (14.8x).
PE vs Market: LGEN is good value based on its PE Ratio (13.4x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: LGEN is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: LGEN is overvalued based on its PB Ratio (1.8x) compared to the GB Insurance industry average (1.4x).
Future Growth
How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGEN's forecast earnings growth (12.7% per year) is above the savings rate (1%).
Earnings vs Market: LGEN's earnings (12.7% per year) are forecast to grow slower than the UK market (21.5% per year).
High Growth Earnings: LGEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LGEN's revenue (41.1% per year) is forecast to grow faster than the UK market (6.7% per year).
High Growth Revenue: LGEN's revenue (41.1% 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 (18.5%).
Past Performance
How has Legal & General Group performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LGEN has high quality earnings.
Growing Profit Margin: LGEN's current net profit margins (7.3%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: LGEN's earnings have grown by 5.4% per year over the past 5 years.
Accelerating Growth: LGEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LGEN had negative earnings growth (-27.5%) over the past year, making it difficult to compare to the Insurance industry average (-13%).
Return on Equity
High ROE: LGEN's Return on Equity (12.9%) is considered low.
Financial Health
How is Legal & General Group's financial position?
Financial Position Analysis
Short Term Liabilities: LGEN's short term assets (£34.8B) do not cover its short term liabilities (£77.6B).
Long Term Liabilities: LGEN's short term assets (£34.8B) do not cover its long term liabilities (£483.0B).
Debt to Equity History and Analysis
Debt Level: LGEN's debt to equity ratio (759.1%) is considered high.
Reducing Debt: LGEN's debt to equity ratio has increased from 304.9% to 759.1% over the past 5 years.
Debt Coverage: LGEN's debt is not well covered by operating cash flow (5.7%).
Interest Coverage: LGEN's interest payments on its debt are well covered by EBIT (7.7x coverage).
Balance Sheet
Dividend
What is Legal & General Group current dividend yield, its reliability and sustainability?
5.93%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LGEN's dividend (5.93%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: LGEN's dividend (5.93%) is in the top 25% of dividend payers in the UK market (4.18%)
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: At its current payout ratio (79.5%), LGEN's 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 (55% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Nigel Wilson (64 yo)
8.83yrs
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 ($USD2.70M) is about average for companies of similar size in the UK market ($USD3.55M).
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 (4.1 years average tenure).
Board Members
Experienced Board: LGEN's board of directors are considered experienced (3.9 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 company bio, 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£17.583b
- 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
Biography
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), Leg...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 17:34 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.