LLOYDS BANKING GROUP PLC-ADR (LYG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYG - US5394391099 - ADR
5.825 USD
+0.13 (+2.37%)
Taking everything into account, LYG scores 3 out of 10 in our fundamental rating. LYG was compared to 383 industry peers in the Banks industry. LYG may be in some trouble as it scores bad on both profitability and health. LYG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year LYG was profitable.
- In the past year LYG had a positive cash flow from operations.
- In the past 5 years LYG has always been profitable.
- Of the past 5 years LYG 4 years had a positive operating cash flow.
1.2 Ratios
- LYG has a worse Return On Assets (0.43%) than 81.72% of its industry peers.
- LYG has a Return On Equity of 8.40%. This is comparable to the rest of the industry: LYG outperforms 45.43% of its industry peers.
| 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
- LYG has a Profit Margin of 10.27%. This is amonst the worse of the industry: LYG underperforms 84.07% of its industry peers.
- LYG's Profit Margin has improved in the last couple of years.
- The Operating Margin and Gross Margin are not available for LYG so they could not be analyzed.
| 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.
- Compared to 1 year ago, LYG has less shares outstanding
- The number of shares outstanding for LYG has been reduced compared to 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 Debt to FCF ratio of 228.60. This is amonst the worse of the industry: LYG underperforms 85.90% of its industry peers.
- A Debt/Equity ratio of 2.55 is on the high side and indicates that LYG has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.55, LYG is doing worse than 90.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 228.6 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.26%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- LYG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.07%, which is quite impressive.
- LYG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.52% yearly.
- Looking at the last year, LYG shows a decrease in Revenue. The Revenue has decreased by -2.11% in the last 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 -0.84% yearly.
- LYG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.71% yearly.
EPS Next Y-8.61%
EPS Next 2Y8.75%
EPS Next 3Y11.82%
EPS Next 5Y-0.84%
Revenue Next Year7.69%
Revenue Next 2Y8.9%
Revenue Next 3Y8.26%
Revenue Next 5Y3.71%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 10.99, the valuation of LYG can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of LYG indicates a somewhat cheap valuation: LYG is cheaper than 73.63% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. LYG is valued rather cheaply when compared to this.
- LYG is valuated reasonably with a Price/Forward Earnings ratio of 10.34.
- LYG's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LYG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, LYG is valued more expensive than 83.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.75%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.27%, LYG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.64, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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.
- The Dividend Rate of LYG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP49.2%
EPS Next 2Y8.75%
EPS Next 3Y11.82%
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 for 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 financial health of LLOYDS BANKING GROUP PLC-ADR (LYG) stock?
The financial health rating of LLOYDS BANKING GROUP PLC-ADR (LYG) is 1 / 10.
How sustainable is the dividend of LLOYDS BANKING GROUP PLC-ADR (LYG) stock?
The dividend rating of LLOYDS BANKING GROUP PLC-ADR (LYG) is 5 / 10 and the dividend payout ratio is 49.2%.