Hargreaves Lansdown plc
Hargreaves Lansdown plc Fundamental Analysis
Hargreaves Lansdown plc (HRGLY) shows moderate financial fundamentals with a PE ratio of 26.05, profit margin of 44.05%, and ROE of 50.40%. The company generates $0.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HRGLY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHRGLY demonstrates superior asset utilization.
Valuation Score
ModerateHRGLY shows balanced valuation metrics.
Growth Score
ModerateHRGLY shows steady but slowing expansion.
Financial Health Score
ExcellentHRGLY maintains a strong and stable balance sheet.
Profitability Score
ExcellentHRGLY achieves industry-leading margins.
Key Financial Metrics
Is HRGLY Expensive or Cheap?
P/E Ratio
HRGLY trades at 26.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HRGLY's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Hargreaves Lansdown plc at 11.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.07 times EBITDA. This signals the market has high growth expectations.
How Well Does HRGLY Make Money?
Net Profit Margin
For every $100 in sales, Hargreaves Lansdown plc keeps $44.05 as profit after all expenses.
Operating Margin
Core operations generate 52.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $50.40 in profit for every $100 of shareholder equity.
ROA
Hargreaves Lansdown plc generates $25.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hargreaves Lansdown plc generates strong operating cash flow of $109.12M, reflecting robust business health.
Free Cash Flow
Hargreaves Lansdown plc generates strong free cash flow of $97.61M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.41 in free cash annually.
FCF Yield
HRGLY converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.50
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.53
vs 25 benchmark
How HRGLY Stacks Against Its Sector Peers
| Metric | HRGLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.05 | 18.50 | Worse (Expensive) |
| ROE | 50.40% | 809.00% | Weak |
| Net Margin | 44.05% | 2211.00% | Weak |
| Debt/Equity | 0.02 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 2.15 | 691.82 | Strong Liquidity |
| ROA | 25.18% | -24320.00% (disorted) | Strong |
HRGLY outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hargreaves Lansdown plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical