Legal & General Group
Market Cap
UK£11.7b
Last Updated
2020/10/25 21:32 UTC
Data Sources
Company Financials +
Executive Summary
Legal & General Group Plc provides various insurance products and services worldwide. More Details
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 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
| LGEN | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.7% | -0.02% | 0.07% |
| 30 Day | 10.9% | 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 Year | 4.5%-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
5 hours ago | Simply Wall St
What Kind Of Shareholders Own Legal & General Group Plc (LON:LGEN)?2 weeks ago | Simply Wall St
Will Weakness in Legal & General Group Plc's (LON:LGEN) Stock Prove Temporary Given Strong Fundamentals?1 month ago | Simply Wall St
Insider Buying: The Legal & General Group Plc (LON:LGEN) Chairman of the Board Just Bought 21% More SharesValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Director | 8.33yrs | UK£4.59m | 0.051% £ 6.0m | |
| Group CFO & Director | 3.42yrs | UK£2.61m | 0.000070% £ 8.2k | |
| CEO of Legal & General Capital and Director | 3.58yrs | UK£2.47m | 0.0078% £ 910.4k | |
| CEO of Legal and General Investment Management & Director | 1.08yrs | UK£2.35m | 0.00064% £ 75.0k | |
| Head Investor Relations | 1.67yrs | no data | no data | |
| Group General Counsel & Company Secretary | 21.75yrs | no data | no data | |
| Head of Group Corporate Communications | no data | no data | no data | |
| Group Human Resources Director | 3.08yrs | no data | no data | |
| Group Chief Risk Officer | 14.42yrs | no data | no data | |
| Head of Business Management | no data | no data | no data | |
| Head of Transition Project Management - LGIM | no data | no data | no data | |
| Head of UK Credit - LGIM | no data | no data | no data |
3.6yrs
Average Tenure
54yo
Average Age
Experienced Management: LGEN's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Director | 8.33yrs | UK£4.59m | 0.051% £ 6.0m | |
| Group CFO & Director | 3.42yrs | UK£2.61m | 0.000070% £ 8.2k | |
| CEO of Legal & General Capital and Director | 3.58yrs | UK£2.47m | 0.0078% £ 910.4k | |
| CEO of Legal and General Investment Management & Director | 1.08yrs | UK£2.35m | 0.00064% £ 75.0k | |
| Independent Non-Executive Director | 0.33yr | no data | 0.000040% £ 4.7k | |
| Independent Non-Executive Director | 4.25yrs | UK£116.44k | 0.0014% £ 167.6k | |
| Independent Non-Executive Director | 4.33yrs | UK£168.06k | 0.0013% £ 153.5k | |
| Independent Non-Executive Director | 3.75yrs | UK£115.44k | 0.00077% £ 90.2k | |
| Senior Independent Non-Executive Director | 4.42yrs | UK£115.37k | 0.00087% £ 101.9k | |
| Chairman of the Board | 4yrs | UK£496.25k | 0.0042% £ 490.9k | |
| Independent Non-Executive Director | 2yrs | UK£191.74k | 0.00024% £ 28.1k | |
| Independent Non-Executive Director | 1.92yrs | UK£120.61k | 0.00047% £ 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
| 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 |
| 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/25 21:32 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| 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.