Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally.
Legal & General Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£2.89|
|52 Week High||UK£1.77|
|52 Week Low||UK£2.99|
|1 Month Change||3.62%|
|3 Month Change||10.15%|
|1 Year Change||55.56%|
|3 Year Change||17.69%|
|5 Year Change||37.85%|
|Change since IPO||658.02%|
Recent News & Updates
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...
|LGEN||GB Insurance||GB Market|
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.
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
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
|LGEN fundamental statistics|
Is LGEN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LGEN income statement (TTM)|
|Cost of Revenue||UK£7.60b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Mar 09, 2022
|Earnings per share (EPS)||0.35|
|Net Profit Margin||17.51%|
How did LGEN perform over the long term?See historical performance and comparison
6.2%Current Dividend Yield
Is Legal & General Group undervalued compared to its fair value and its price relative to the market?
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).
How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
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%).
How has Legal & General Group performed over the past 5 years?
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.
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).
What is Legal & General Group current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nigel Wilson (65 yo)
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.
Experienced Management: LGEN's management team is considered experienced (4.6 years average tenure).
Experienced Board: LGEN's board of directors are considered experienced (3.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Legal & General Group Plc's employee growth, exchange listings and data sources
- 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
- Legal & General Group Plc
- One Coleman Street
- Greater London
- EC2R 5AA
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/26 21:14|
|End of Day Share Price||2021/10/26 00:00|
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.