Legal & General Group
Market Cap
UK£11.4b
Last Updated
2020/03/30 20:54 UTC
Data Sources
Company Financials +
Executive Summary
Legal & General Group Plc provides various insurance products and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and undervalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
38.7%
LGEN
22.7%
GB Insurance
10.0%
GB Market
1 Year Return
-30.1%
LGEN
-29.4%
GB Insurance
-23.0%
GB Market
Return vs Industry: LGEN underperformed the UK Insurance industry which returned -26.5% over the past year.
Return vs Market: LGEN underperformed the UK Market which returned -22.7% over the past year.
Shareholder returns
| LGEN | Industry | Market | |
|---|---|---|---|
| 7 Day | 38.7% | 22.7% | 10.0% |
| 30 Day | -26.1% | -19.2% | -17.6% |
| 90 Day | -36.6% | -28.9% | -27.3% |
| 1 Year | -25.6%-30.1% | -21.6%-29.4% | -18.9%-23.0% |
| 3 Year | -6.2%-21.5% | -18.8%-33.3% | -12.9%-24.2% |
| 5 Year | -9.2%-31.6% | -10.6%-33.4% | 1.6%-21.8% |
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 weeks ago | Simply Wall St
Is Legal & General Group Plc (LON:LGEN) A High Quality Stock To Own?1 month ago | Simply Wall St
Investors Who Bought Legal & General Group (LON:LGEN) Shares Three Years Ago Are Now Up 27%1 month ago | Simply Wall St
Is Legal & General Group Plc (LON:LGEN) A Smart Pick For Income Investors?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 (£1.92) is trading below our estimate of fair value (£5.97)
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 (6.3x) compared to the Insurance industry average (13.2x).
PE vs Market: LGEN is good value based on its PE Ratio (6.3x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: LGEN is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: LGEN is good value based on its PB Ratio (1.2x) compared to the GB Insurance industry average (1.3x).
Next Steps
Future Growth
How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGEN's forecast earnings growth (4.6% per year) is above the savings rate (0.5%).
Earnings vs Market: LGEN's earnings (4.6% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: LGEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LGEN's revenue is expected to decline over the next 3 years (-8.9% per year).
High Growth Revenue: LGEN's revenue is forecast to decline over the next 3 years (-8.9% 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 (17.8%).
Next Steps
Past Performance
How has Legal & General Group performed over the past 5 years?
14.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LGEN has high quality earnings.
Growing Profit Margin: LGEN's current net profit margins (9.2%) are lower than last year (16.2%).
Past Earnings Growth Analysis
Earnings Trend: LGEN's earnings have grown by 14.5% per year over the past 5 years.
Accelerating Growth: LGEN's earnings growth over the past year (1.5%) is below its 5-year average (14.5% per year).
Earnings vs Industry: LGEN earnings growth over the past year (1.5%) underperformed the Insurance industry 4.5%.
Return on Equity
High ROE: LGEN's Return on Equity (19%) is considered low.
Next Steps
Financial Health
How is Legal & General Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: LGEN has a low level of unsold assets or inventory.
Debt Coverage by Assets: LGEN's debt is covered by short term assets (assets are 8.8x debt).
Financial Institutions Analysis
Asset Level: LGEN's level of assets compared to its equity is very high.
Allowance for Bad Loans: Insufficient data to determine if LGEN has a sufficient allowance for bad loans.
Low Risk Liabilities: LGEN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if LGEN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: LGEN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if LGEN has an appropriate level of bad loans.
Next Steps
Dividend
What is Legal & General Group's current dividend yield, its reliability and sustainability?
9.14%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LGEN's dividend (9.14%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: LGEN's dividend (9.14%) is in the top 25% of dividend payers in the UK market (7.3%)
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 (57.6%), 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 (59.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Nigel Wilson (63yo)
7.75s
Tenure
UK£4,592,000
Compensation
Dr. Nigel David Wilson serves as Group Chief Executive of Legal & General Group Plc since 2012 and serves as its Director since September 2009. Dr. Wilson joined Legal & General Group Plc as Chief Financia ...
CEO Compensation Analysis
Compensation vs Market: Nigel's total compensation ($USD5.70M) is about average for companies of similar size in the UK market ($USD5.57M).
Compensation vs Earnings: Nigel's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Director | 7.75yrs | UK£4.59m | 0.064% £7.3m | |
| Group CFO & Director | 2.83yrs | UK£2.61m | 0.0087% £993.7k | |
| CEO of Legal & General Capital and Director | 3yrs | UK£2.47m | 0.015% £1.7m | |
| CEO of Legal and General Investment Management & Director | 0.50yr | UK£2.35m | no data | |
| Head Investor Relations | 1yr | no data | no data | |
| Group General Counsel & Company Secretary | 21.17yrs | no data | no data | |
| Head of Group Corporate Communications | no data | no data | no data | |
| Group Human Resources Director | 2.5yrs | no data | no data | |
| Group Chief Risk Officer | 13.83yrs | no data | no data | |
| Head of Business Management | no data | no data | no data |
3.0yrs
Average Tenure
53yo
Average Age
Experienced Management: LGEN's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Director | 7.75yrs | UK£4.59m | 0.064% £7.3m | |
| Group CFO & Director | 2.83yrs | UK£2.61m | 0.0087% £993.7k | |
| CEO of Legal & General Capital and Director | 3yrs | UK£2.47m | 0.015% £1.7m | |
| CEO of Legal and General Investment Management & Director | 0.50yr | UK£2.35m | no data | |
| Independent Non-Executive Director | 3.67yrs | UK£116.44k | 0.00085% £97.0k | |
| Independent Non-Executive Director | 3.75yrs | UK£168.06k | 0.0013% £149.5k | |
| Independent Non-Executive Director | 3.17yrs | UK£115.44k | 0.00066% £75.3k | |
| Senior Independent Non-Executive Director | 3.83yrs | UK£115.37k | 0.00087% £99.3k | |
| Chairman of the Board | 3.42yrs | UK£496.25k | 0.0032% £359.4k | |
| Independent Non-Executive Director | 1.42yrs | UK£191.74k | 0.00019% £21.7k |
3.3yrs
Average Tenure
54yo
Average Age
Experienced Board: LGEN's board of directors are considered experienced (3.3 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£11.409b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LGGN.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| LGI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| LGEN | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| LGENL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| LGI | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1992 |
| LGGN.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Oct 1995 |
Biography
Legal & General Group Plc provides various insurance products and services worldwide. It operates in Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), Legal & General Insurance (LGI), and General Insurance (GI) segments. The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; and lifetime mortgages. The LGIM segment provides index fund management; active fixed income and liquidity management; solution and liability driven investment; active equity; corporate pension scheme solutions; and real estate funds. The LGC segment offers investment strategy and implementation, and direct investment and structuring services. The LGI segment protection products, such as health, disability, critical illness and accident; individual term assurance; savings and death benefits; and annuities. The GI segment provides household and accident, sickness, unemployment, and pet insurance products. The company is also involved in insurance agency and brokerage, unit trust, institutional fund management, distribution, mortgage finance, treasury, SPV, building project and modular housing development, general insurance, and open ended investment businesses. It also engages in the real estate investment and trading, fund general partner, fund trustee, long term, commercial lending, venture and development capital, contractual scheme, real estate agency, private equity, management, investor alternative investment fund, collective asset-management, reinsurance, and investment management activities, as well as provides investment advisory and property services. The company was founded in 1836 and is based in London, the United Kingdom. As of December 31, 2018, Legal & General Group Plc operates as a subsidiary of Legal & General Group PLC.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 20:54 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.