LSE:LGEN

Stock Analysis Report

Executive Summary

Legal & General Group Plc provides various insurance products and services worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.7%

LGEN

0.9%

GB Insurance

-0.4%

GB Market


1 Year Return

14.4%

LGEN

2.7%

GB Insurance

2.9%

GB Market

Return vs Industry: LGEN exceeded the UK Insurance industry which returned 2.7% over the past year.

Return vs Market: LGEN exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

LGENIndustryMarket
7 Day5.7%0.9%-0.4%
30 Day8.5%2.4%-1.4%
90 Day1.9%-5.7%-2.1%
1 Year21.9%14.4%7.8%2.7%8.0%2.9%
3 Year56.2%30.7%23.5%6.2%18.0%3.6%
5 Year63.5%23.2%39.3%9.9%35.8%6.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LGEN (£2.74) is trading below our estimate of fair value (£5.6)

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 (8.7x) compared to the Insurance industry average (14.8x).

PE vs Market: LGEN is good value based on its PE Ratio (8.7x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LGEN is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: LGEN is good value based on its PB Ratio (1.9x) compared to the GB Insurance industry average (2x).


Next Steps

Future Growth

How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGEN's forecast earnings growth (2.7% per year) is above the savings rate (1.2%).

Earnings vs Market: LGEN's earnings (2.7% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: LGEN's revenue (12.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: LGEN's revenue (12.8% per year) is forecast to grow slower 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 (18.3%).


Next Steps

Past Performance

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

15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LGEN's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: LGEN's earnings growth over the past year (14.2%) is below its 5-year average (15.4% per year).

Earnings vs Industry: LGEN earnings growth over the past year (14.2%) underperformed the Insurance industry 15.2%.


Return on Equity

High ROE: LGEN's Return on Equity (20.9%) is considered high.


Return on Assets

ROA vs Industry: LGEN's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: LGEN has significantly improved its Return on Capital Employed over the past 3 years.


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 10.362970x 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

  • Explore more healthy companies in the Insurance industry.

Dividend

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

5.98%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.0%markettop25%5.4%industryaverage4.9%forecastin3Years6.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LGEN's dividend (5.98%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: LGEN's dividend (5.98%) is in the top 25% of dividend payers in the UK market (5.36%)

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 (53.1%), 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 (55.5% payout ratio).


Next Steps

Management

What is the CEO of Legal & General Group's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Nigel Wilson (63yo)

7.3yrs

Tenure

UK£3,289,000

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 ($USD4.27M) is about average for companies of similar size in the UK market ($USD4.92M).

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


Management Age and Tenure

5.0yrs

Average Tenure

50yo

Average Age

Experienced Management: LGEN's management team is considered experienced (5 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

Experienced Board: LGEN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LGEN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£1,64101 Oct 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares658
Max PriceUK£2.49
BuyUK£1,04302 Sep 19
Melville Lewis
EntityIndividual
Shares471
Max PriceUK£2.22
BuyUK£4,28402 Sep 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,934
Max PriceUK£2.22
BuyUK£2,75102 Sep 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,242
Max PriceUK£2.22
BuyUK£1,64202 Sep 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares741
Max PriceUK£2.22
BuyUK£1,85202 Sep 19
Henrietta Baldock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares836
Max PriceUK£2.22
BuyUK£1,85501 Aug 19
Henrietta Baldock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares711
Max PriceUK£2.61
BuyUK£4,28701 Aug 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,643
Max PriceUK£2.61
BuyUK£2,75001 Aug 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,054
Max PriceUK£2.61
BuyUK£1,64501 Aug 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares629
Max PriceUK£2.61
BuyUK£1,04101 Aug 19
Melville Lewis
EntityIndividual
Shares399
Max PriceUK£2.61
BuyUK£1,04201 Jul 19
Melville Lewis
EntityIndividual
Shares383
Max PriceUK£2.72
BuyUK£1,85101 Jul 19
Henrietta Baldock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares680
Max PriceUK£2.72
BuyUK£4,28401 Jul 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,574
Max PriceUK£2.72
BuyUK£2,75101 Jul 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,011
Max PriceUK£2.72
BuyUK£1,64301 Jul 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares602
Max PriceUK£2.73
BuyUK£1,82711 Jun 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares678
Max PriceUK£2.70
BuyUK£1,04303 Jun 19
Melville Lewis
EntityIndividual
Shares410
Max PriceUK£2.54
BuyUK£1,85503 Jun 19
Henrietta Baldock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares729
Max PriceUK£2.54
BuyUK£1,64403 Jun 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares649
Max PriceUK£2.53
BuyUK£2,75003 Jun 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,081
Max PriceUK£2.54
BuyUK£4,28603 Jun 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,685
Max PriceUK£2.54
BuyUK£1,04301 May 19
Melville Lewis
EntityIndividual
Shares372
Max PriceUK£2.80
BuyUK£1,64301 May 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares587
Max PriceUK£2.80
BuyUK£2,75001 May 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares981
Max PriceUK£2.80
BuyUK£4,28301 May 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,528
Max PriceUK£2.80
BuyUK£1,88901 May 19
Henrietta Baldock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares674
Max PriceUK£2.80
BuyUK£1,64101 Apr 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares592
Max PriceUK£2.77
BuyUK£2,75201 Apr 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares995
Max PriceUK£2.77
BuyUK£4,28701 Apr 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,550
Max PriceUK£2.77
BuyUK£4,28401 Mar 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,506
Max PriceUK£2.84
BuyUK£2,74801 Mar 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares966
Max PriceUK£2.84
BuyUK£2,75101 Feb 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,057
Max PriceUK£2.60
BuyUK£1,64301 Feb 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares630
Max PriceUK£2.61
BuyUK£4,28401 Feb 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,646
Max PriceUK£2.60
BuyUK£1,64403 Jan 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares714
Max PriceUK£2.30
BuyUK£3,49303 Jan 19
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,537
Max PriceUK£2.27
BuyUK£2,75003 Jan 19
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,210
Max PriceUK£2.27
BuyUK£1,71603 Dec 18
Carolyn Bradley
EntityIndividual
Shares687
Max PriceUK£2.50
BuyUK£3,49503 Dec 18
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,399
Max PriceUK£2.50
BuyUK£2,75003 Dec 18
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,101
Max PriceUK£2.50
BuyUK£1,64103 Dec 18
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares660
Max PriceUK£2.49
BuyUK£3,49601 Nov 18
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,396
Max PriceUK£2.50
BuyUK£1,64401 Nov 18
John Oliver Kingman
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares644
Max PriceUK£2.55
BuyUK£1,71501 Nov 18
Carolyn Bradley
EntityIndividual
Shares685
Max PriceUK£2.50
BuyUK£2,75201 Nov 18
Toby Strauss
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,099
Max PriceUK£2.50

Ownership Breakdown


Management Team

  • Nigel Wilson (63yo)

    Group CEO & Director

    • Tenure: 7.3yrs
    • Compensation: UK£3.29m
  • Simon Gadd

    Group Chief Risk Officer

    • Tenure: 13.4yrs
  • Sharon Niebergall

    Head of Business Management

    • Tenure: 0yrs
  • Katrina McMillan

    Head of Transition Project Management - LGIM

    • Tenure: 0yrs
  • Kerrigan Procter (50yo)

    CEO of Legal & General Capital and Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.58m
  • Richard King

    Head of Group Corporate Communications

    • Tenure: 0yrs
  • Geoffrey Timms

    Group General Counsel & Company Secretary

    • Tenure: 20.8yrs
  • Ed Houghton

    Head Investor Relations

    • Tenure: 0.7yrs
  • Jeff Davies (48yo)

    Group CFO & Director

    • Tenure: 2.4yrs
    • Compensation: UK£1.24m
  • Emma Hardaker-Jones

    Group Human Resources Director

    • Tenure: 2.1yrs

Board Members

  • Nigel Wilson (63yo)

    Group CEO & Director

    • Tenure: 7.3yrs
    • Compensation: UK£3.29m
  • Philip John Broadley (58yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£115.57k
  • Lesley Mary Knox (66yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£116.21k
  • Toby Strauss (59yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£116.55k
  • Julia Wilson (52yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£115.00k
  • John Oliver Kingman (50yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: UK£466.67k
  • Michelle Scrimgeour (56yo)

    CEO of Legal and General Investment Management & Director

    • Tenure: 0.08yrs
  • Kerrigan Procter (50yo)

    CEO of Legal & General Capital and Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.58m
  • Henrietta Baldock (48yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£103.45k
  • Jeff Davies (48yo)

    Group CFO & Director

    • Tenure: 2.4yrs
    • Compensation: UK£1.24m

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£16.292b
  • Shares outstanding: 5.94b
  • Website: https://www.legalandgeneralgroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGGN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LGIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LGENLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
LGENLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
LGGN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:41
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.