LSE:LGEN

Stock Analysis Report

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Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

LGEN

-0.02%

GB Insurance

0.07%

GB Market


1 Year Return

-27.0%

LGEN

-20.3%

GB Insurance

-15.4%

GB Market

Return vs Industry: LGEN underperformed the UK Insurance industry which returned -20.3% over the past year.

Return vs Market: LGEN underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

LGENIndustryMarket
7 Day3.7%-0.02%0.07%
30 Day10.9%0.9%1.7%
90 Day-10.3%-2.5%-1.8%
1 Year-20.4%-27.0%-17.2%-20.3%-12.1%-15.4%
3 Year-9.5%-26.5%-20.1%-34.2%-8.4%-19.7%
5 Year4.5%-24.5%0.7%-25.6%16.4%-9.7%

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 (£1.97) is trading below our estimate of fair value (£4.49)

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 (9.5x) compared to the GB Insurance industry average (14.4x).

PE vs Market: LGEN is good value based on its PE Ratio (9.5x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: LGEN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LGEN is overvalued based on its PB Ratio (1.2x) compared to the GB Insurance industry average (1.1x).


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?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGEN's forecast earnings growth (12.6% per year) is above the savings rate (1.2%).

Earnings vs Market: LGEN's earnings (12.6% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: LGEN's revenue (48% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: LGEN's revenue (48% 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%).


Next Steps

Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGEN has high quality earnings.

Growing Profit Margin: LGEN's current net profit margins (8.1%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: LGEN's earnings have grown by 10.2% 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 (-34.7%) over the past year, making it difficult to compare to the Insurance industry average (-7.6%).


Return on Equity

High ROE: LGEN's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Legal & General Group's financial position?


Financial Position Analysis

Short Term Liabilities: LGEN's short term assets (£52.7B) exceed its short term liabilities (£28.0B).

Long Term Liabilities: LGEN's short term assets (£52.7B) do not cover its long term liabilities (£553.8B).


Debt to Equity History and Analysis

Debt Level: LGEN's debt to equity ratio (59%) is considered high.

Reducing Debt: LGEN's debt to equity ratio has reduced from 202.6% to 59% over the past 5 years.

Debt Coverage: LGEN's debt is well covered by operating cash flow (116.9%).

Interest Coverage: LGEN's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Next Steps

Dividend

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

8.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LGEN's dividend (8.9%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: LGEN's dividend (8.9%) is in the top 25% of dividend payers in the UK market (5.24%)


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 (84.4%), 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 (69.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Nigel Wilson (64 yo)

8.33yrs

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 ($USD5.99M) is about average for companies of similar size in the UK market ($USD4.90M).

Compensation vs Earnings: Nigel's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nigel Wilson
Group CEO & Director8.33yrsUK£4.59m0.051%
£ 6.0m
Stuart Davies
Group CFO & Director3.42yrsUK£2.61m0.000070%
£ 8.2k
Kerrigan Procter
CEO of Legal & General Capital and Director3.58yrsUK£2.47m0.0078%
£ 910.4k
Michelle Scrimgeour
CEO of Legal and General Investment Management & Director1.08yrsUK£2.35m0.00064%
£ 75.0k
Edward Houghton
Head Investor Relations1.67yrsno datano data
Geoffrey Timms
Group General Counsel & Company Secretary21.75yrsno datano data
Richard King
Head of Group Corporate Communicationsno datano datano data
Emma Hardaker-Jones
Group Human Resources Director3.08yrsno datano data
Simon Gadd
Group Chief Risk Officer14.42yrsno datano data
Sharon Niebergall
Head of Business Managementno datano datano data
Katrina McMillan
Head of Transition Project Management - LGIMno datano datano data
Robert Barnard-Smith
Head of UK Credit - LGIMno datano datano data

3.6yrs

Average Tenure

54yo

Average Age

Experienced Management: LGEN's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nigel Wilson
Group CEO & Director8.33yrsUK£4.59m0.051%
£ 6.0m
Stuart Davies
Group CFO & Director3.42yrsUK£2.61m0.000070%
£ 8.2k
Kerrigan Procter
CEO of Legal & General Capital and Director3.58yrsUK£2.47m0.0078%
£ 910.4k
Michelle Scrimgeour
CEO of Legal and General Investment Management & Director1.08yrsUK£2.35m0.00064%
£ 75.0k
Richard Lewis
Independent Non-Executive Director0.33yrno data0.000040%
£ 4.7k
Philip John Broadley
Independent Non-Executive Director4.25yrsUK£116.44k0.0014%
£ 167.6k
Lesley Mary Knox
Independent Non-Executive Director4.33yrsUK£168.06k0.0013%
£ 153.5k
Toby Strauss
Independent Non-Executive Director3.75yrsUK£115.44k0.00077%
£ 90.2k
Julia Wilson
Senior Independent Non-Executive Director4.42yrsUK£115.37k0.00087%
£ 101.9k
John Oliver Kingman
Chairman of the Board4yrsUK£496.25k0.0042%
£ 490.9k
Henrietta Baldock
Independent Non-Executive Director2yrsUK£191.74k0.00024%
£ 28.1k
Melville Lewis
Independent Non-Executive Director1.92yrsUK£120.61k0.00047%
£ 55.1k

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: LGEN's board of directors are considered experienced (3.7 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£11.717b
  • 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 Analysis2020/10/25 21:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.