NOT FOR DISTRIBUTION
Header cover image

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


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

LGENIndustryMarket
7 Day4.5%1.2%2.4%
30 Day1.7%1.8%3.0%
90 Day7.6%6.9%4.0%
1 Year51.5%39.1%44.8%38.6%29.4%23.6%
3 Year36.0%10.5%9.0%-9.8%14.8%1.3%
5 Year70.8%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

Valuation

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

TodayApr 12 2021Ex Dividend DateApr 15 2021Dividend Pay DateMay 27 202142 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 17:34
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
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.