London Stock Exchange Group plc
London Stock Exchange Group plc Fundamental Analysis
London Stock Exchange Group plc (LNSTY) shows weak financial fundamentals with a PE ratio of 46.11, profit margin of 10.81%, and ROE of 4.47%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 5.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LNSTY's fundamental strength across five key dimensions:
Efficiency Score
WeakLNSTY struggles to generate sufficient returns from assets.
Valuation Score
ModerateLNSTY shows balanced valuation metrics.
Growth Score
ModerateLNSTY shows steady but slowing expansion.
Financial Health Score
ExcellentLNSTY maintains a strong and stable balance sheet.
Profitability Score
WeakLNSTY struggles to sustain strong margins.
Key Financial Metrics
Is LNSTY Expensive or Cheap?
P/E Ratio
LNSTY trades at 46.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LNSTY's PEG of 1.32 indicates fair valuation.
Price to Book
The market values London Stock Exchange Group plc at 2.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.49 times EBITDA. This is generally considered low.
How Well Does LNSTY Make Money?
Net Profit Margin
For every $100 in sales, London Stock Exchange Group plc keeps $10.81 as profit after all expenses.
Operating Margin
Core operations generate 18.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.47 in profit for every $100 of shareholder equity.
ROA
London Stock Exchange Group plc generates $0.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
London Stock Exchange Group plc generates strong operating cash flow of $900.49M, reflecting robust business health.
Free Cash Flow
London Stock Exchange Group plc generates strong free cash flow of $643.91M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
LNSTY converts 22.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.002
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How LNSTY Stacks Against Its Sector Peers
| Metric | LNSTY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.11 | 18.50 | Worse (Expensive) |
| ROE | 4.47% | 809.00% | Weak |
| Net Margin | 10.81% | 2211.00% | Weak |
| Debt/Equity | 0.47 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 692.04 | Neutral |
| ROA | 0.12% | -24328.00% (disorted) | Weak |
LNSTY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews London Stock Exchange Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
287.12%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
66.12%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
310.31%
Industry Style: Value, Dividend, Cyclical
High Growth