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LLOYDS BANKING GROUP PLC-ADR (LYG) Stock Fundamental Analysis

NYSE:LYG - New York Stock Exchange, Inc. - US5394391099 - ADR - Currency: USD

4.21  +0.11 (+2.68%)

After market: 4.22 +0.01 (+0.24%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to LYG. LYG was compared to 396 industry peers in the Banks industry. Both the profitability and financial health of LYG have multiple concerns. LYG has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

LYG had positive earnings in the past year.
In the past year LYG has reported a negative cash flow from operations.
Each year in the past 5 years LYG has been profitable.
LYG had a positive operating cash flow in 4 of the past 5 years.
LYG Yearly Net Income VS EBIT VS OCF VS FCFLYG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B

1.2 Ratios

LYG has a Return On Assets of 0.43%. This is in the lower half of the industry: LYG underperforms 78.79% of its industry peers.
LYG has a Return On Equity of 8.58%. This is comparable to the rest of the industry: LYG outperforms 52.27% of its industry peers.
Industry RankSector Rank
ROA 0.43%
ROE 8.58%
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
LYG Yearly ROA, ROE, ROICLYG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of LYG (10.25%) is worse than 83.59% of its industry peers.
LYG's Profit Margin has improved in the last couple of years.
LYG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 10.25%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.51%
PM growth 5Y12.8%
GM growth 3YN/A
GM growth 5YN/A
LYG Yearly Profit, Operating, Gross MarginsLYG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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1

2. Health

2.1 Basic Checks

LYG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LYG has less shares outstanding
Compared to 5 years ago, LYG has less shares outstanding
LYG has a better debt/assets ratio than last year.
LYG Yearly Shares OutstandingLYG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
LYG Yearly Total Debt VS Total AssetsLYG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

2.2 Solvency

LYG has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
LYG has a worse Debt to Equity ratio (2.64) than 92.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.64
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC3.24%
LYG Yearly LT Debt VS Equity VS FCFLYG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B 100B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
LYG Yearly Current Assets VS Current LiabilitesLYG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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4

3. Growth

3.1 Past

LYG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.68%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.52% on average over the past years.
Looking at the last year, LYG shows a decrease in Revenue. The Revenue has decreased by -1.92% in the last year.
The Revenue has been decreasing by -2.67% on average over the past years.
EPS 1Y (TTM)83.68%
EPS 3Y1.39%
EPS 5Y-0.52%
EPS Q2Q%294.48%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-0.38%
Revenue growth 5Y-2.67%
Sales Q2Q%4.98%

3.2 Future

Based on estimates for the next years, LYG will show a small growth in Earnings Per Share. The EPS will grow by 4.29% on average per year.
LYG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y-11.33%
EPS Next 2Y5.86%
EPS Next 3Y9.16%
EPS Next 5Y4.29%
Revenue Next Year6.97%
Revenue Next 2Y7.55%
Revenue Next 3Y6.84%
Revenue Next 5Y4.93%

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.
LYG Yearly Revenue VS EstimatesLYG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B
LYG Yearly EPS VS EstimatesLYG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.1 0.2 0.3 0.4

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.33, which indicates a rather cheap valuation of LYG.
Compared to the rest of the industry, the Price/Earnings ratio of LYG indicates a rather cheap valuation: LYG is cheaper than 95.71% of the companies listed in the same industry.
LYG is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.28 indicates a reasonable valuation of LYG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LYG indicates a somewhat cheap valuation: LYG is cheaper than 79.80% of the companies listed in the same industry.
LYG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.33
Fwd PE 8.28
LYG Price Earnings VS Forward Price EarningsLYG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
LYG Per share dataLYG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.86%
EPS Next 3Y9.16%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.24%, LYG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, LYG pays a better dividend. On top of this LYG pays more dividend than 80.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LYG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.24%

5.2 History

The dividend of LYG decreases each year by -2.11%.
LYG has been paying a dividend for at least 10 years, so it has 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
LYG Yearly Dividends per shareLYG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 0.05 0.1 0.15

5.3 Sustainability

LYG pays out 46.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.6%
EPS Next 2Y5.86%
EPS Next 3Y9.16%
LYG Yearly Income VS Free CF VS DividendLYG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B
LYG Dividend Payout.LYG Dividend Payout, showing the Payout Ratio.LYG Dividend Payout.PayoutRetained Earnings

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LLOYDS BANKING GROUP PLC-ADR

NYSE:LYG (5/20/2025, 8:13:13 PM)

After market: 4.22 +0.01 (+0.24%)

4.21

+0.11 (+2.68%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)05-01 2025-05-01
Earnings (Next)07-24 2025-07-24
Inst Owners53.64%
Inst Owner Change11.51%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap63.18B
Analysts69.57
Price Target4.26 (1.19%)
Short Float %0.07%
Short Ratio0.31
Dividend
Industry RankSector Rank
Dividend Yield 4.24%
Yearly Dividend0.16
Dividend Growth(5Y)-2.11%
DP46.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-11 2025-04-11 (0.103503)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.28%
Min EPS beat(2)13.66%
Max EPS beat(2)82.9%
EPS beat(4)4
Avg EPS beat(4)38%
Min EPS beat(4)13.66%
Max EPS beat(4)82.9%
EPS beat(8)7
Avg EPS beat(8)21.65%
EPS beat(12)11
Avg EPS beat(12)29.5%
EPS beat(16)14
Avg EPS beat(16)28.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.33%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)-4.24%
Revenue beat(4)0
Avg Revenue beat(4)-4.83%
Min Revenue beat(4)-7.5%
Max Revenue beat(4)-3.15%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
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)3.07%
PT rev (3m)27.77%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)-3.83%
EPS NY rev (1m)-2.44%
EPS NY rev (3m)4.64%
Revenue NQ rev (1m)-6.19%
Revenue NQ rev (3m)-5.08%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.59%
Valuation
Industry RankSector Rank
PE 5.33
Fwd PE 8.28
P/S 1.23
P/FCF N/A
P/OCF N/A
P/B 1.03
P/tB 1.26
EV/EBITDA N/A
EPS(TTM)0.79
EY18.76%
EPS(NY)0.51
Fwd EY12.08%
FCF(TTM)-0.89
FCFYN/A
OCF(TTM)-0.39
OCFYN/A
SpS3.41
BVpS4.07
TBVpS3.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.43%
ROE 8.58%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 10.25%
GM N/A
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.51%
PM growth 5Y12.8%
GM growth 3YN/A
GM growth 5YN/A
F-Score2
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 2.64
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 164.13%
Cap/Sales 14.69%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score2
WACC3.24%
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)83.68%
EPS 3Y1.39%
EPS 5Y-0.52%
EPS Q2Q%294.48%
EPS Next Y-11.33%
EPS Next 2Y5.86%
EPS Next 3Y9.16%
EPS Next 5Y4.29%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-0.38%
Revenue growth 5Y-2.67%
Sales Q2Q%4.98%
Revenue Next Year6.97%
Revenue Next 2Y7.55%
Revenue Next 3Y6.84%
Revenue Next 5Y4.93%
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-839.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-164.51%
OCF growth 3YN/A
OCF growth 5YN/A