Legal & General Group Plc
Legal & General Group Plc Fundamental Analysis
Legal & General Group Plc (LGGNF) shows moderate financial fundamentals with a PE ratio of 27.35, profit margin of 1.21%, and ROE of 22.62%. The company generates $43.2B in annual revenue with weak year-over-year growth of -42.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -20.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LGGNF's fundamental strength across five key dimensions:
Efficiency Score
WeakLGGNF struggles to generate sufficient returns from assets.
Valuation Score
ModerateLGGNF shows balanced valuation metrics.
Growth Score
WeakLGGNF faces weak or negative growth trends.
Financial Health Score
WeakLGGNF carries high financial risk with limited liquidity.
Profitability Score
ModerateLGGNF maintains healthy but balanced margins.
Key Financial Metrics
Is LGGNF Expensive or Cheap?
P/E Ratio
LGGNF trades at 27.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LGGNF's PEG of 0.32 indicates potential undervaluation.
Price to Book
The market values Legal & General Group Plc at 6.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.70 times EBITDA. This signals the market has high growth expectations.
How Well Does LGGNF Make Money?
Net Profit Margin
For every $100 in sales, Legal & General Group Plc keeps $1.21 as profit after all expenses.
Operating Margin
Core operations generate 13.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.62 in profit for every $100 of shareholder equity.
ROA
Legal & General Group Plc generates $0.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Legal & General Group Plc produces operating cash flow of $4.49B, showing steady but balanced cash generation.
Free Cash Flow
Legal & General Group Plc generates strong free cash flow of $4.44B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.79 in free cash annually.
FCF Yield
LGGNF converts 31.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
11.000
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How LGGNF Stacks Against Its Sector Peers
| Metric | LGGNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.35 | 18.80 | Worse (Expensive) |
| ROE | 22.62% | 817.00% | Weak |
| Net Margin | 1.21% | -55.00% (disorted) | Weak |
| Debt/Equity | 11.00 | 1.03 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.52 | Weak Liquidity |
| ROA | 0.09% | -23757.00% (disorted) | Weak |
LGGNF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Legal & General Group Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-68.56%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-89.50%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-36.40%
Industry Style: Value, Dividend, Cyclical
Declining