IG Group Holdings plc Fundamental Analysis
IG Group Holdings plc (IGGHY) shows strong financial fundamentals with a PE ratio of 11.46, profit margin of 43.07%, and ROE of 26.07%. The company generates $1.1B in annual revenue with weak year-over-year growth of -0.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IGGHY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIGGHY demonstrates superior asset utilization.
Valuation Score
ExcellentIGGHY trades at attractive valuation levels.
Growth Score
ModerateIGGHY shows steady but slowing expansion.
Financial Health Score
ExcellentIGGHY maintains a strong and stable balance sheet.
Profitability Score
ExcellentIGGHY achieves industry-leading margins.
Key Financial Metrics
Is IGGHY Expensive or Cheap?
P/E Ratio
IGGHY trades at 11.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IGGHY's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values IG Group Holdings plc at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.27 times EBITDA. This is generally considered low.
How Well Does IGGHY Make Money?
Net Profit Margin
For every $100 in sales, IG Group Holdings plc keeps $43.07 as profit after all expenses.
Operating Margin
Core operations generate 39.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.07 in profit for every $100 of shareholder equity.
ROA
IG Group Holdings plc generates $14.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IG Group Holdings plc produces operating cash flow of $214.41M, showing steady but balanced cash generation.
Free Cash Flow
IG Group Holdings plc generates strong free cash flow of $211.14M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.64 in free cash annually.
FCF Yield
IGGHY converts 4.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
215.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How IGGHY Stacks Against Its Sector Peers
| Metric | IGGHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.46 | 19.35 | Better (Cheaper) |
| ROE | 26.07% | 806.00% | Weak |
| Net Margin | 43.07% | -7465.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 215.53 | 610.69 | Strong Liquidity |
| ROA | 14.94% | -24016.00% (disorted) | Strong |
IGGHY outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IG Group Holdings plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.18%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
64.32%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
75.07%
Industry Style: Value, Dividend, Cyclical
High Growth