LLOYDS BANKING GROUP PLC-ADR (LYG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYG - US5394391099 - ADR
5.34 USD
+0.03 (+0.56%)
LYG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 388 industry peers in the Banks industry. Both the profitability and financial health of LYG have multiple concerns. LYG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LYG was profitable.
LYG had a positive operating cash flow in the past year.
Each year in the past 5 years LYG has been profitable.
Of the past 5 years LYG 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.43%, LYG is not doing good in the industry: 81.70% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 8.40%, LYG is in line with its industry, outperforming 44.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 8.4% | ||
| ROIC | N/A |
ROA(3y)0.46%
ROA(5y)0.42%
ROE(3y)8.93%
ROE(5y)7.74%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 10.27%, LYG is not doing good in the industry: 84.28% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LYG has grown nicely.
LYG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.27% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.46%
PM growth 5Y12.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
LYG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for LYG has been reduced compared to 1 year ago.
LYG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LYG has been reduced compared to a year ago.
2.2 Solvency
LYG has a debt to FCF ratio of 228.60. This is a negative value and a sign of low solvency as LYG would need 228.60 years to pay back of all of its debts.
LYG has a worse Debt to FCF ratio (228.60) than 86.34% of its industry peers.
LYG has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LYG (2.55) is worse than 90.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 228.6 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.19%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.07% over the past year.
Measured over the past years, LYG shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.52% on average per year.
The Revenue has decreased by -2.11% in the past year.
The Revenue has been decreasing by -2.71% on average over the past years.
EPS 1Y (TTM)23.07%
EPS 3Y1.39%
EPS 5Y-0.52%
EPS Q2Q%-8.25%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y-0.44%
Revenue growth 5Y-2.71%
Sales Q2Q%6.83%
3.2 Future
LYG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.81% yearly.
Based on estimates for the next years, LYG will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y-8.9%
EPS Next 2Y8.79%
EPS Next 3Y11.72%
EPS Next 5Y-0.81%
Revenue Next Year7.69%
Revenue Next 2Y8.9%
Revenue Next 3Y8.26%
Revenue Next 5Y4.22%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LYG is valuated reasonably with a Price/Earnings ratio of 10.08.
Based on the Price/Earnings ratio, LYG is valued cheaply inside the industry as 81.70% of the companies are valued more expensively.
LYG is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.60, which indicates a very decent valuation of LYG.
Based on the Price/Forward Earnings ratio, LYG is valued a bit cheaper than the industry average as 64.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.40. LYG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
83.51% of the companies in the same industry are cheaper than LYG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.79%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
LYG has a Yearly Dividend Yield of 3.43%.
Compared to an average industry Dividend Yield of 2.74, LYG pays a bit more dividend than its industry peers.
LYG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of LYG decreases each year by -2.11%.
LYG has paid a dividend for at least 10 years, which is a reliable track record.
LYG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
49.20% of the earnings are spent on dividend by LYG. This is a bit on the high side, but may be sustainable.
LYG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP49.2%
EPS Next 2Y8.79%
EPS Next 3Y11.72%
NYSE:LYG (12/30/2025, 11:22:03 AM)
5.34
+0.03 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.55%
Inst Owner Change-18.71%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap78.59B
Revenue(TTM)38.20B
Net Income(TTM)3.92B
Analysts76.36
Price Target5.43 (1.69%)
Short Float %0.04%
Short Ratio0.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.16
Dividend Growth(5Y)-2.11%
DP49.2%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.8%
Min EPS beat(2)32.56%
Max EPS beat(2)33.04%
EPS beat(4)4
Avg EPS beat(4)40.54%
Min EPS beat(4)13.66%
Max EPS beat(4)82.9%
EPS beat(8)7
Avg EPS beat(8)24.91%
EPS beat(12)11
Avg EPS beat(12)29.73%
EPS beat(16)14
Avg EPS beat(16)26.77%
Revenue beat(2)0
Avg Revenue beat(2)-4.83%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)-4.56%
Revenue beat(4)0
Avg Revenue beat(4)-4.58%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-4.24%
Revenue beat(8)0
Avg Revenue beat(8)-5.5%
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)3.88%
PT rev (3m)7.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.47%
EPS NY rev (1m)3.62%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.4%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.6 | ||
| P/S | 1.53 | ||
| P/FCF | 111.66 | ||
| P/OCF | 9.74 | ||
| P/B | 1.25 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.53
EY9.93%
EPS(NY)0.56
Fwd EY10.41%
FCF(TTM)0.05
FCFY0.9%
OCF(TTM)0.55
OCFY10.26%
SpS3.5
BVpS4.28
TBVpS3.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 8.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 10.27% | ||
| GM | N/A | ||
| FCFM | 1.37% |
ROA(3y)0.46%
ROA(5y)0.42%
ROE(3y)8.93%
ROE(5y)7.74%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.46%
PM growth 5Y12.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 228.6 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 159.37% | ||
| Cap/Sales | 14.29% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 13.31% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC4.19%
ROIC/WACCN/A
Cap/Depr(3y)170.93%
Cap/Depr(5y)146.65%
Cap/Sales(3y)14.79%
Cap/Sales(5y)12.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.07%
EPS 3Y1.39%
EPS 5Y-0.52%
EPS Q2Q%-8.25%
EPS Next Y-8.9%
EPS Next 2Y8.79%
EPS Next 3Y11.72%
EPS Next 5Y-0.81%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y-0.44%
Revenue growth 5Y-2.71%
Sales Q2Q%6.83%
Revenue Next Year7.69%
Revenue Next 2Y8.9%
Revenue Next 3Y8.26%
Revenue Next 5Y4.22%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-97.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-75.84%
OCF growth 3YN/A
OCF growth 5YN/A
LLOYDS BANKING GROUP PLC-ADR / LYG FAQ
What is the fundamental rating for LYG stock?
ChartMill assigns a fundamental rating of 3 / 10 to LYG.
What is the valuation status of LLOYDS BANKING GROUP PLC-ADR (LYG) stock?
ChartMill assigns a valuation rating of 4 / 10 to LLOYDS BANKING GROUP PLC-ADR (LYG). This can be considered as Fairly Valued.
How profitable is LLOYDS BANKING GROUP PLC-ADR (LYG) stock?
LLOYDS BANKING GROUP PLC-ADR (LYG) has a profitability rating of 3 / 10.
What is the valuation of LLOYDS BANKING GROUP PLC-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LLOYDS BANKING GROUP PLC-ADR (LYG) is 10.08 and the Price/Book (PB) ratio is 1.25.
Can you provide the dividend sustainability for LYG stock?
The dividend rating of LLOYDS BANKING GROUP PLC-ADR (LYG) is 5 / 10 and the dividend payout ratio is 49.2%.