LEGAL & GENERAL GROUP PLC (LGI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LGI - GB0005603997 - Common Stock
2.98 EUR
+0.01 (+0.34%)
Taking everything into account, LGI scores 3 out of 10 in our fundamental rating. LGI was compared to 45 industry peers in the Insurance industry. The financial health of LGI is average, but there are quite some concerns on its profitability. LGI has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally LGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LGI had positive earnings in the past year.
In the past year LGI has reported a negative cash flow from operations.
LGI had positive earnings in each of the past 5 years.
In multiple years LGI reported negative operating cash flow during the last 5 years.
1.2 Ratios
LGI's Return On Assets of 0.05% is on the low side compared to the rest of the industry. LGI is outperformed by 86.67% of its industry peers.
The Return On Equity of LGI (11.78%) is worse than 64.44% of its industry peers.
The Return On Invested Capital of LGI (0.12%) is worse than 66.67% of its industry peers.
LGI had an Average Return On Invested Capital over the past 3 years of 0.13%. This is below the industry average of 2.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 11.78% | ||
| ROIC | 0.12% |
ROA(3y)0.09%
ROA(5y)0.18%
ROE(3y)9.64%
ROE(5y)12.73%
ROIC(3y)0.13%
ROIC(5y)0.2%
1.3 Margins
With a Profit Margin value of 1.02%, LGI is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
LGI's Profit Margin has declined in the last couple of years.
LGI has a Operating Margin of 3.33%. This is amonst the worse of the industry: LGI underperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of LGI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.33% | ||
| PM (TTM) | 1.02% | ||
| GM | N/A |
OM growth 3Y-43.66%
OM growth 5Y-5.96%
PM growth 3Y-61.88%
PM growth 5Y-26.59%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LGI is destroying value.
LGI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LGI has been reduced compared to 5 years ago.
The debt/assets ratio for LGI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.09, we must say that LGI is in the distress zone and has some risk of bankruptcy.
LGI has a Altman-Z score of 0.09. This is in the better half of the industry: LGI outperforms 73.33% of its industry peers.
LGI has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
LGI has a Debt to Equity ratio of 1.94. This is amonst the worse of the industry: LGI underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.01
WACC7.98%
2.3 Liquidity
LGI has a Current Ratio of 72.04. This indicates that LGI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 72.04, LGI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LGI has a Quick Ratio of 72.04. This indicates that LGI is financially healthy and has no problem in meeting its short term obligations.
LGI's Quick ratio of 72.04 is amongst the best of the industry. LGI outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 72.04 | ||
| Quick Ratio | 72.04 |
3. Growth
3.1 Past
The earnings per share for LGI have decreased strongly by -31.21% in the last year.
LGI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.59% yearly.
Looking at the last year, LGI shows a very negative growth in Revenue. The Revenue has decreased by -35.67% in the last year.
Measured over the past years, LGI shows a very negative growth in Revenue. The Revenue has been decreasing by -13.35% on average per year.
EPS 1Y (TTM)-31.21%
EPS 3Y-15.89%
EPS 5Y-8.59%
EPS Q2Q%-0.85%
Revenue 1Y (TTM)-35.67%
Revenue growth 3Y18.92%
Revenue growth 5Y-13.35%
Sales Q2Q%-23.25%
3.2 Future
Based on estimates for the next years, LGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.64% on average per year.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y12.51%
EPS Next 2Y13.26%
EPS Next 3Y11.8%
EPS Next 5Y9.64%
Revenue Next Year3.67%
Revenue Next 2Y5.07%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.55, LGI is valued correctly.
LGI's Price/Earnings ratio is a bit cheaper when compared to the industry. LGI is cheaper than 64.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, LGI is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.46 indicates a reasonable valuation of LGI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LGI indicates a somewhat cheap valuation: LGI is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.93. LGI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y13.26%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.42%, LGI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.95, LGI pays a better dividend. On top of this LGI pays more dividend than 95.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, LGI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.42% |
5.2 History
The dividend of LGI has a limited annual growth rate of 4.31%.
Dividend Growth(5Y)4.31%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
LGI pays out 441.55% of its income as dividend. This is not a sustainable payout ratio.
LGI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP441.55%
EPS Next 2Y13.26%
EPS Next 3Y11.8%
FRA:LGI (12/23/2025, 7:00:00 PM)
2.98
+0.01 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners41.67%
Inst Owner ChangeN/A
Ins Owners0.84%
Ins Owner ChangeN/A
Market Cap16.98B
Revenue(TTM)27.90B
Net Income(TTM)284.00M
Analysts68.89
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.42% |
Yearly Dividend0.24
Dividend Growth(5Y)4.31%
DP441.55%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.97%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)12.79%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.15 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.22
EY7.38%
EPS(NY)0.28
Fwd EY9.56%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS5.61
BVpS0.48
TBVpS0.41
PEG (NY)1.08
PEG (5Y)N/A
Graham Number1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 11.78% | ||
| ROCE | 0.17% | ||
| ROIC | 0.12% | ||
| ROICexc | 0.12% | ||
| ROICexgc | 0.12% | ||
| OM | 3.33% | ||
| PM (TTM) | 1.02% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.09%
ROA(5y)0.18%
ROE(3y)9.64%
ROE(5y)12.73%
ROIC(3y)0.13%
ROIC(5y)0.2%
ROICexc(3y)0.14%
ROICexc(5y)0.2%
ROICexgc(3y)0.47%
ROICexgc(5y)0.81%
ROCE(3y)0.19%
ROCE(5y)0.28%
ROICexgc growth 3Y-38.75%
ROICexgc growth 5Y-25.7%
ROICexc growth 3Y-31.39%
ROICexc growth 5Y-17.92%
OM growth 3Y-43.66%
OM growth 5Y-5.96%
PM growth 3Y-61.88%
PM growth 5Y-26.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 72.04 | ||
| Quick Ratio | 72.04 | ||
| Altman-Z | 0.09 |
F-Score4
WACC7.98%
ROIC/WACC0.01
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.21%
EPS 3Y-15.89%
EPS 5Y-8.59%
EPS Q2Q%-0.85%
EPS Next Y12.51%
EPS Next 2Y13.26%
EPS Next 3Y11.8%
EPS Next 5Y9.64%
Revenue 1Y (TTM)-35.67%
Revenue growth 3Y18.92%
Revenue growth 5Y-13.35%
Sales Q2Q%-23.25%
Revenue Next Year3.67%
Revenue Next 2Y5.07%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y34.05%
EBIT growth 3Y-33%
EBIT growth 5Y-18.51%
EBIT Next Year8.85%
EBIT Next 3Y3.48%
EBIT Next 5YN/A
FCF growth 1Y82.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y82.95%
OCF growth 3YN/A
OCF growth 5YN/A
LEGAL & GENERAL GROUP PLC / LGI.DE FAQ
What is the fundamental rating for LGI stock?
ChartMill assigns a fundamental rating of 3 / 10 to LGI.DE.
Can you provide the valuation status for LEGAL & GENERAL GROUP PLC?
ChartMill assigns a valuation rating of 4 / 10 to LEGAL & GENERAL GROUP PLC (LGI.DE). This can be considered as Fairly Valued.
What is the profitability of LGI stock?
LEGAL & GENERAL GROUP PLC (LGI.DE) has a profitability rating of 1 / 10.
What is the valuation of LEGAL & GENERAL GROUP PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEGAL & GENERAL GROUP PLC (LGI.DE) is 13.55 and the Price/Book (PB) ratio is 6.15.
Can you provide the dividend sustainability for LGI stock?
The dividend rating of LEGAL & GENERAL GROUP PLC (LGI.DE) is 7 / 10 and the dividend payout ratio is 441.55%.