NYSE:LYG

Stock Analysis Report

Lloyds Banking Group

Executive Summary

Lloyds Banking Group plc provides range of banking and financial services in the United Kingdom and internationally.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Lloyds Banking Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LYG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

LYG

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-56.2%

LYG

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: LYG underperformed the US Banks industry which returned -34.8% over the past year.

Return vs Market: LYG underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

LYGIndustryMarket
7 Day-6.0%-7.0%-2.6%
30 Day-38.3%-24.6%-15.2%
90 Day-56.8%-41.9%-22.2%
1 Year-55.1%-56.2%-30.8%-32.9%-11.5%-13.3%
3 Year-50.5%-56.0%-21.4%-27.3%13.2%5.7%
5 Year-63.3%-70.2%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Lloyds Banking Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lloyds Banking Group undervalued compared to its fair value and its price relative to the market?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LYG ($1.29) is trading below our estimate of fair value ($1.83)

Significantly Below Fair Value: LYG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LYG is good value based on its PE Ratio (8x) compared to the Banks industry average (8.5x).

PE vs Market: LYG is good value based on its PE Ratio (8x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: LYG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: LYG is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Lloyds Banking Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYG's forecast earnings growth (13.6% per year) is above the savings rate (1.7%).

Earnings vs Market: LYG's earnings (13.6% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: LYG's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: LYG's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LYG's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Lloyds Banking Group performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYG has high quality earnings.

Growing Profit Margin: LYG's current net profit margins (14.3%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: LYG's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: LYG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LYG had negative earnings growth (-38.1%) over the past year, making it difficult to compare to the Banks industry average (10.9%).


Return on Equity

High ROE: LYG's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Lloyds Banking Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: LYG's level of assets compared to its equity is moderate.

Allowance for Bad Loans: LYG has a low allowance for bad loans.

Low Risk Liabilities: LYG's liabilities are made up of primarily low risk sources of funding.

Loan Level: LYG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LYG's loans are broadly funded by customer deposits.

Level of Bad Loans: LYG has an appropriate level of bad loans (1.34%)


Next Steps

Dividend

What is Lloyds Banking Group's current dividend yield, its reliability and sustainability?

9.21%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LYG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LYG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LYG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LYG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LYG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LYG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

António de Sousa Horta-Osório (55yo)

9.08s

Tenure

UK£4,727,000

Compensation

Mr. Antonio Mota de Sousa Horta-Osório has been Group Chief Executive Officer at Lloyds Bank Plc, Lloyds Banking Group Plc, HBOS plc and Bank Of Scotland plc since March 1, 2011. Mr. de Sousa Horta-Osório  ...


CEO Compensation Analysis

Compensation vs Market: António's total compensation ($USD5.79M) is below average for companies of similar size in the US market ($USD12.04M).

Compensation vs Earnings: António's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
António de Sousa Horta-Osório
Group Chief Executive & Executive Director9.08yrsUK£4.73m0.031% £7.9m
William Leon Chalmers
CFO & Executive Director0.67yrUK£5.61m0.0022% £560.1k
Juan Colombás
COO & Executive Director6.42yrsUK£2.58m0.016% £4.0m
Markus Stadalmann
Chief Investment Officer5.5yrsno datano data
John Chambers
Group Chief Information Officer1.83yrsno datano data
Douglas Radcliffe
Group Investor Relations Directorno datano datano data
Catherine Cheetham
Company Secretary & Group General Counsel2.75yrsno datano data
Letitia Smith
Group Director of Conductno datano datano data
Matt Smith
Head of Media Relationsno datano datano data
Eduardo Stock da Cunha
Head of Corporate Development & Head of Commercial Banking Market3.67yrsno datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: LYG's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
António de Sousa Horta-Osório
Group Chief Executive & Executive Director9.08yrsUK£4.73m0.031% £7.9m
William Leon Chalmers
CFO & Executive Director0.67yrUK£5.61m0.0022% £560.1k
Juan Colombás
COO & Executive Director6.42yrsUK£2.58m0.016% £4.0m
Norman Blackwell
Chairman of the Board6yrsUK£770.00k0.00022% £56.3k
Sara Weller
Independent Director8.17yrsUK£207.00k0.00054% £138.1k
Anita Frew
Independent Deputy Chairman5.92yrsUK£357.00k0.00065% £166.2k
Stuart Sinclair
Independent Non-Executive Director4.25yrsUK£210.00k0.00052% £133.0k
Simon Peter Henry
Independent Director5.83yrsUK£186.00k0.00036% £92.1k
Alan Dickinson
Senior Independent Director0.33yrUK£241.00k0.00029% £74.2k
Nicholas E. Prettejohn
Independent Non-Executive Director5.83yrsUK£476.00k0.00010% £25.6k

5.9yrs

Average Tenure

58yo

Average Age

Experienced Board: LYG's board of directors are considered experienced (5.9 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lloyds Banking Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lloyds Banking Group plc
  • Ticker: LYG
  • Exchange: NYSE
  • Founded: 1695
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£20.816b
  • Listing Market Cap: UK£25.575b
  • Shares outstanding: 69.52b
  • Website: https://www.lloydsbankinggroup.com

Number of Employees


Location

  • Lloyds Banking Group plc
  • 25 Gresham Street
  • London
  • Greater London
  • EC2V 7HN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLDT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1987
LLOYLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1987
LLDXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURSep 1987
LLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1987
LLOYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1987
LLOYSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1987
LYGNYSE (New York Stock Exchange)ADR REP 4 ORD GBP0.10(BNY)USUSDNov 2001
LYG NBMV (Bolsa Mexicana de Valores)ADR REP 4 ORD GBP0.10(BNY)MXMXNNov 2001
LLD2DB (Deutsche Boerse AG)ADR REP 4 ORD GBP0.10(BNY)DEEURNov 2001
LYGBASE (Buenos Aires Stock Exchange)CEDAR EACH REP 0.5 ADRARARSFeb 2004
LLD6LSE (London Stock Exchange)ADR REPR 1/100 6.657% NON CUM PRF 144AGBUSDJan 2009
LLD2LSE (London Stock Exchange)6.413%-FRN LT2 PERP USD '144A'GBUSDJan 2009
LLD1LSE (London Stock Exchange)6.413%-FRN PERP USD100000 'REGS'GBUSDOct 2012
A1ZEN2DB (Deutsche Boerse AG)7.875%-FRN PERP GBP200000 'PNC15' 'REGS'DEGBPMar 2014
A1ZEN1DB (Deutsche Boerse AG)7.625%-FRN PERP GBP200000 'PNC9' 'REGS'DEGBPMar 2014
ELB9LSE (London Stock Exchange)7.875%-FRN PERP GBP200000 'PNC15' 'REGS'GBGBPMar 2014

Biography

Lloyds Banking Group plc provides range of banking and financial services in the United Kingdom and internationally. It operates through three segments: Retail; Commercial Banking; and Insurance and Wealth. The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards to personal and small business customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, term lending, and debt capital markets services to corporate clients. The Insurance and Wealth segment offers life, home, and car insurance products; pensions and investment products; and advisory services in areas, including investments, planning for retirement, and protection and inheritance tax planning, as well as personal lending. It also provides digital, telephony, and mobile services. The company offers its products and services under the Lloyds Bank, Halifax, Black Horse, Agricultural Mortgage Corporation, Schroders Personal Wealth, Lex Autolease, Birmingham Midshires, MBNA, LDC, Bank of Scotland, and Scottish Widows brands. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:10
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.