Lancashire Holdings Limited provides specialty insurance and reinsurance products in London and Bermuda. More Details
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has Lancashire Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LRE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LRE's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: LRE underperformed the UK Insurance industry which returned 41.4% over the past year.
Return vs Market: LRE underperformed the UK Market which returned 26.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Lancashire Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
14 hours ago | Simply Wall StIncreases to Lancashire Holdings Limited's (LON:LRE) CEO Compensation Might Cool off for now
2 weeks ago | Simply Wall StShareholders Of Lancashire Holdings (LON:LRE) Must Be Happy With Their 47% Return
1 month ago | Simply Wall StWhat You Need To Know About Lancashire Holdings Limited's (LON:LRE) Investor Composition
Is Lancashire Holdings 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: LRE (£6.57) is trading below our estimate of fair value (£9.76)
Significantly Below Fair Value: LRE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LRE is poor value based on its PE Ratio (487.5x) compared to the GB Insurance industry average (16.5x).
PE vs Market: LRE is poor value based on its PE Ratio (487.5x) compared to the UK market (26.2x).
Price to Earnings Growth Ratio
PEG Ratio: LRE is poor value based on its PEG Ratio (15.8x)
Price to Book Ratio
PB vs Industry: LRE's PB Ratio (1.4x) is in line with the GB Insurance industry average.
How is Lancashire Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LRE's forecast earnings growth (30.8% per year) is above the savings rate (1%).
Earnings vs Market: LRE's earnings (30.8% per year) are forecast to grow faster than the UK market (20.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LRE's revenue (13.4% per year) is forecast to grow faster than the UK market (6.2% per year).
High Growth Revenue: LRE's revenue (13.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LRE's Return on Equity is forecast to be low in 3 years time (13.2%).
How has Lancashire Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LRE has high quality earnings.
Growing Profit Margin: LRE's current net profit margins (0.8%) are lower than last year (23.8%).
Past Earnings Growth Analysis
Earnings Trend: LRE's earnings have declined by 31.3% per year over the past 5 years.
Accelerating Growth: LRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LRE had negative earnings growth (-96.4%) over the past year, making it difficult to compare to the Insurance industry average (-13%).
Return on Equity
High ROE: LRE's Return on Equity (0.3%) is considered low.
How is Lancashire Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LRE's short term assets ($1.6B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: LRE's short term assets ($1.6B) exceed its long term liabilities ($834.8M).
Debt to Equity History and Analysis
Debt Level: LRE's debt to equity ratio (21.3%) is considered satisfactory.
Reducing Debt: LRE's debt to equity ratio has reduced from 26.8% to 21.3% over the past 5 years.
Debt Coverage: LRE's debt is well covered by operating cash flow (24.7%).
Interest Coverage: LRE's interest payments on its debt are not well covered by EBIT (1.4x coverage).
What is Lancashire Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LRE's dividend (1.64%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).
High Dividend: LRE's dividend (1.64%) is low compared to the top 25% of dividend payers in the UK market (4.08%).
Stability and Growth of Payments
Stable Dividend: LRE's dividend payments have been volatile in the past 10 years.
Growing Dividend: LRE's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (798.6%), LRE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LRE's dividends in 3 years are forecast to be covered by earnings (73.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alex Maloney (46 yo)
Mr. Alexander Terence Maloney, also known as Alex, served as the Chief Executive Officer at Cathedral Capital Holdings Limited. Mr. Maloney has been the Group Chief Executive Officer of Lancashire Holdings...
CEO Compensation Analysis
Compensation vs Market: Alex's total compensation ($USD4.14M) is above average for companies of similar size in the UK market ($USD1.50M).
Compensation vs Earnings: Alex's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: LRE's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: LRE's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.
Lancashire Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Lancashire Holdings Limited
- Ticker: LRE
- Exchange: LSE
- Founded: 2005
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£1.595b
- Shares outstanding: 241.88m
- Website: https://www.lancashiregroup.com
Number of Employees
- Lancashire Holdings Limited
- Power House
- 7 Par-la-Ville Road
- HM 11
Lancashire Holdings Limited provides specialty insurance and reinsurance products in London and Bermuda. The company operates through four segments: Property, Energy, Marine, and Aviation. It offers proper...
Company Analysis and Financial Data Status
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|Company Analysis||2021/04/22 00:20|
|End of Day Share Price||2021/04/21 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.