OTCPK:HRGL.Y

Stock Analysis Report

Executive Summary

Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.

Share Price & News

How has Hargreaves Lansdown's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.2%

HRGL.Y

3.0%

US Capital Markets

2.3%

US Market


1 Year Return

-1.9%

HRGL.Y

-0.4%

US Capital Markets

5.6%

US Market

Return vs Industry: HRGL.Y underperformed the US Capital Markets industry which returned -0.4% over the past year.

Return vs Market: HRGL.Y underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

HRGL.YIndustryMarket
7 Day-7.2%3.0%2.3%
30 Day-6.7%-4.0%-1.0%
90 Dayn/a-2.9%-0.7%
1 Year-1.0%-1.9%1.9%-0.4%7.9%5.6%
3 Year70.5%62.9%50.2%41.8%45.6%36.3%
5 Year67.1%51.7%78.4%62.0%65.8%47.6%

Price Volatility Vs. Market

How volatile is Hargreaves Lansdown's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hargreaves Lansdown undervalued compared to its fair value and its price relative to the market?

34.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HRGL.Y ($47.24) is trading above our estimate of fair value ($33.48)

Significantly Undervalued: HRGL.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HRGL.Y is good value based on its PE Ratio (34.5x) compared to the Capital Markets industry average (39.4x).

PE vs Market: HRGL.Y is poor value based on its PE Ratio (34.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HRGL.Y is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: HRGL.Y is overvalued based on its PB Ratio (18.6x) compared to the US Capital Markets industry average (6.5x).


Next Steps

Future Growth

How is Hargreaves Lansdown forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRGL.Y's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).

Earnings vs Market: HRGL.Y's earnings (9.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: HRGL.Y's revenue (9.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HRGL.Y's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HRGL.Y's Return on Equity is forecast to be very high in 3 years time (53.3%).


Next Steps

Past Performance

How has Hargreaves Lansdown performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HRGL.Y's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: HRGL.Y's earnings growth over the past year (4.7%) is below its 5-year average (10.8% per year).

Earnings vs Industry: HRGL.Y earnings growth over the past year (4.7%) underperformed the Capital Markets industry 31.4%.


Return on Equity

High ROE: HRGL.Y's Return on Equity (53.9%) is considered outstanding.


Return on Assets

ROA vs Industry: HRGL.Y has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: HRGL.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hargreaves Lansdown'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

Inventory Level: HRGL.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HRGL.Y's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: HRGL.Y's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HRGL.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: HRGL.Y reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HRGL.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HRGL.Y has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HRGL.Y has an appropriate level of bad loans.


Next Steps

Dividend

What is Hargreaves Lansdown's current dividend yield, its reliability and sustainability?

2.33%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HRGL.Y's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HRGL.Y's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: HRGL.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: HRGL.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.6%), HRGL.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRGL.Y's dividends in 3 years are forecast to be covered by earnings (78.1% payout ratio).


Next Steps

Management

What is the CEO of Hargreaves Lansdown's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Chris Hill (48yo)

2.8yrs

Tenure

UK£649,000

Compensation

Mr. Christopher F. Hill, also known as Chris, ACA, has been the Chief Executive of Hargreaves Lansdown plc since April 13, 2017 and served as its Deputy Chief Executive from October 1, 2016 to April 13, 20 ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD832.91K) is below average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: HRGL.Y's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

61yo

Average Age

Experienced Board: HRGL.Y's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Stephen Lansdown (67yo)

    Co-Founder

    • Tenure: 0yrs
  • Mark Dampier (63yo)

    Head of Research

    • Tenure: 0yrs
  • Lee Gardhouse (46yo)

    Chief Investment Officer

    • Tenure: 3.8yrs
  • Chris Hill (48yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£649.00k
  • Rob Byett (45yo)

    Risk and Compliance Director

    • Tenure: 4.8yrs
  • Philip Johnson

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£457.00k
  • David James

    Marketing Director

    • Tenure: 0.8yrs
  • James Found

    Head of Investor Relations & Group Financial Controller

    • Tenure: 0yrs
  • David Davies

    Chief Information Officer

    • Tenure: 3.3yrs
  • Danny Cox

    Head of Communications

    • Tenure: 4.8yrs

Board Members

  • Deanna Oppenheimer (61yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£325.00k
  • Shirley Garrood (62yo)

    Senior Independent Director

    • Tenure: 1.7yrs
    • Compensation: UK£95.00k
  • Fiona Clutterbuck (61yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£81.25k
  • Chris Hill (48yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£649.00k
  • Philip Johnson

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£457.00k
  • Roger Perkin (71yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£86.25k
  • Dan Olley (49yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£5.83k
  • Stephen Robertson (65yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: UK£67.50k

Company Information

Hargreaves Lansdown plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hargreaves Lansdown plc
  • Ticker: HRGL.Y
  • Exchange: OTCPK
  • Founded: 1981
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£8.531b
  • Listing Market Cap: UK£10.948b
  • Shares outstanding: 473.93m
  • Website: https://www.hl.co.uk

Number of Employees


Location

  • Hargreaves Lansdown plc
  • One College Square South
  • Anchor Road
  • Bristol
  • BS1 5HL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HL.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2007
HRGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
HLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2007
DMBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
HRGL.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2011

Biography

Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland. Its flagship service is Vantage, a direct-to-investor platform. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:13
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.