Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. More Details
6 star dividend payer and good value.
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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LGEN's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: LGEN underperformed the UK Insurance industry which returned 27.9% over the past year.
Return vs Market: LGEN exceeded the UK Market which returned 21.3% over the past year.
Long-Term 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
1 week ago | Simply Wall StDid You Participate In Any Of Legal & General Group's (LON:LGEN) Respectable 77% Return?
4 weeks ago | Simply Wall StThis Is Why Legal & General Group Plc's (LON:LGEN) CEO Compensation Looks Appropriate
1 month ago | Simply Wall StHow Much Are Legal & General Group Plc (LON:LGEN) Insiders Taking Off The Table?
Is Legal & General Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LGEN (£2.78) is trading below our estimate of fair value (£6.59)
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 (12.6x) compared to the UK Insurance industry average (16.7x).
PE vs Market: LGEN is good value based on its PE Ratio (12.6x) compared to the UK market (25.9x).
Price to Earnings Growth Ratio
PEG Ratio: LGEN is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: LGEN is overvalued based on its PB Ratio (1.7x) compared to the GB Insurance industry average (1.4x).
How is Legal & General Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGEN's forecast earnings growth (12.3% per year) is above the savings rate (0.9%).
Earnings vs Market: LGEN's earnings (12.3% per year) are forecast to grow slower than the UK market (17.4% 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 (-0.6% per year).
High Growth Revenue: LGEN's revenue is forecast to decline over the next 3 years (-0.6% 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 (18.8%).
How has Legal & General Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LGEN has high quality earnings.
Growing Profit Margin: LGEN's current net profit margins (7.3%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: LGEN's earnings have grown by 5.4% 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 (-27.5%) over the past year, making it difficult to compare to the Insurance industry average (-20.7%).
Return on Equity
High ROE: LGEN's Return on Equity (12.9%) is considered low.
How is Legal & General Group's financial position?
Financial Position Analysis
Short Term Liabilities: LGEN's short term assets (£34.8B) do not cover its short term liabilities (£77.6B).
Long Term Liabilities: LGEN's short term assets (£34.8B) do not cover its long term liabilities (£483.0B).
Debt to Equity History and Analysis
Debt Level: LGEN's debt to equity ratio (759.1%) is considered high.
Reducing Debt: LGEN's debt to equity ratio has increased from 304.9% to 759.1% over the past 5 years.
Debt Coverage: LGEN's debt is not well covered by operating cash flow (5.7%).
Interest Coverage: LGEN's interest payments on its debt are well covered by EBIT (7.4x coverage).
What is Legal & General Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LGEN's dividend (6.31%) is higher than the bottom 25% of dividend payers in the UK market (1.29%).
High Dividend: LGEN's dividend (6.31%) is in the top 25% of dividend payers in the UK market (4.02%)
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 (79.5%), 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 (54.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nigel Wilson (64 yo)
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 ($USD2.78M) is about average for companies of similar size in the UK market ($USD3.41M).
Compensation vs Earnings: Nigel's compensation has been consistent with company performance over the past year.
Experienced Management: LGEN's management team is considered experienced (4.3 years average tenure).
Experienced Board: LGEN's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LGEN insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Legal & General Group Plc's company bio, employee growth, exchange listings and data sources
- Name: Legal & General Group Plc
- Ticker: LGEN
- Exchange: LSE
- Founded: 1836
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: UK£16.510b
- Shares outstanding: 5.93b
- Website: https://www.legalandgeneralgroup.com
Number of Employees
- Legal & General Group Plc
- One Coleman Street
- Greater London
- EC2R 5AA
- United Kingdom
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), Leg...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/13 04:14|
|End of Day Share Price||2021/06/11 00:00|
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.