| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 5/6 |
| Financial Health | 1/6 |
| Dividends | 6/6 |
LGEN Overview
Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally.
Legal & General Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£2.89 |
| 52 Week High | UK£1.77 |
| 52 Week Low | UK£2.99 |
| Beta | 1.52 |
| 1 Month Change | 3.62% |
| 3 Month Change | 10.15% |
| 1 Year Change | 55.56% |
| 3 Year Change | 17.69% |
| 5 Year Change | 37.85% |
| Change since IPO | 658.02% |
Recent News & Updates
Legal & General Group (LON:LGEN) Is Increasing Its Dividend To UK£0.052
Legal & General Group Plc ( LON:LGEN ) has announced that it will be increasing its dividend on the 20th of September...
Shareholder Returns
| LGEN | GB Insurance | GB Market | |
|---|---|---|---|
| 7D | 4.6% | 1.8% | 0.5% |
| 1Y | 55.6% | 34.8% | 26.7% |
Return vs Industry: LGEN exceeded the UK Insurance industry which returned 28.2% over the past year.
Return vs Market: LGEN exceeded the UK Market which returned 24.7% over the past year.
Price Volatility
| LGEN volatility | |
|---|---|
| LGEN Beta | 1.52 |
| Industry Beta | 1.2 |
| Market Beta | 1 |
Stable Share Price: LGEN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: LGEN's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1836 | 10,099 | Nigel Wilson | https://www.legalandgeneralgroup.com |
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), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Legal & General Insurance (LGI). The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; lifetime mortgages; lifetime care plans; and retirement interest only mortgages.
Legal & General Group Fundamentals Summary
| LGEN fundamental statistics | |
|---|---|
| Market Cap | UK£16.75b |
| Earnings (TTM) | UK£2.09b |
| Revenue (TTM) | UK£11.96b |
8.2x
P/E Ratio1.4x
P/S RatioIs LGEN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LGEN income statement (TTM) | |
|---|---|
| Revenue | UK£11.96b |
| Cost of Revenue | UK£7.60b |
| Gross Profit | UK£4.36b |
| Expenses | UK£2.27b |
| Earnings | UK£2.09b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Mar 09, 2022
| Earnings per share (EPS) | 0.35 |
| Gross Margin | 36.45% |
| Net Profit Margin | 17.51% |
| Debt/Equity Ratio | 517.6% |
How did LGEN perform over the long term?
See historical performance and comparisonDividends
6.2%
Current Dividend Yield50%
Payout RatioValuation
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 (£2.89) is trading below our estimate of fair value (£7.35)
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 (8.2x) compared to the UK Insurance industry average (14.1x).
PE vs Market: LGEN is good value based on its PE Ratio (8.2x) compared to the UK market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: LGEN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: LGEN is overvalued based on its PB Ratio (1.7x) compared to the GB Insurance industry average (1.3x).
Future Growth
How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGEN's forecast earnings growth (3.1% per year) is above the savings rate (0.9%).
Earnings vs Market: LGEN's earnings (3.1% per year) are forecast to grow slower than the UK market (12.7% per year).
High Growth Earnings: LGEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: LGEN's revenue (35.9% per year) is forecast to grow faster than the UK market (5% per year).
High Growth Revenue: LGEN's revenue (35.9% 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 (17.5%).
Past Performance
How has Legal & General Group performed over the past 5 years?
4.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LGEN has high quality earnings.
Growing Profit Margin: LGEN's current net profit margins (17.5%) are higher than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: LGEN's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: LGEN's earnings growth over the past year (69.6%) exceeds its 5-year average (4.7% per year).
Earnings vs Industry: LGEN earnings growth over the past year (69.6%) exceeded the Insurance industry 18.5%.
Return on Equity
High ROE: Whilst LGEN's Return on Equity (20.26%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Legal & General Group's financial position?
Financial Position Analysis
Short Term Liabilities: LGEN's short term assets (£38.3B) do not cover its short term liabilities (£70.3B).
Long Term Liabilities: LGEN's short term assets (£38.3B) do not cover its long term liabilities (£487.6B).
Debt to Equity History and Analysis
Debt Level: LGEN's debt to equity ratio (517.6%) is considered high.
Reducing Debt: LGEN's debt to equity ratio has increased from 303.2% to 517.6% over the past 5 years.
Debt Coverage: LGEN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: LGEN's interest payments on its debt are well covered by EBIT (11.6x coverage).
Balance Sheet
Dividend
What is Legal & General Group current dividend yield, its reliability and sustainability?
6.17%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LGEN's dividend (6.17%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: LGEN's dividend (6.17%) is in the top 25% of dividend payers in the UK market (4.08%)
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 (50.5%), 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 (58.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Nigel Wilson (65 yo)
9.33yrs
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 ($USD2.71M) is about average for companies of similar size in the UK market ($USD3.87M).
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 (4.6 years average tenure).
Board Members
Experienced Board: LGEN's board of directors are considered experienced (3.8 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 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£16.754b
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 21:14 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.