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Legg Mason

DB:LGG
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGG
DB
$4B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Legg Mason, Inc. is a publicly owned asset management holding company. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Legg Mason is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Legg Mason has significant price volatility in the past 3 months.
LGG Share Price and Events
7 Day Returns
-0.5%
DB:LGG
3%
DE Capital Markets
2.2%
DE Market
1 Year Returns
74.7%
DB:LGG
-6.9%
DE Capital Markets
-17.2%
DE Market
LGG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Legg Mason (LGG) -0.5% -1.4% 36% 74.7% 32.4% -13.2%
DE Capital Markets 3% -17.7% -13.1% -6.9% -24.7% -54.9%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • LGG outperformed the Capital Markets industry which returned -6.9% over the past year.
  • LGG outperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
LGG
Industry
5yr Volatility vs Market

Value

 Is Legg Mason undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Legg Mason to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Legg Mason.

DB:LGG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $42.86 * 6.3%
$2.69
Book Value of Equity per Share Median Book Value from the past 5 years. $42.86
Discount Rate (Cost of Equity) See below 5.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LGG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.753 (1 + (1- 21%) (54.59%))
1.052
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.052 * 5.44%)
5.33%

Discounted Cash Flow Calculation for DB:LGG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Legg Mason is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:LGG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.3% – 5.33%) * $42.86)
$0.41
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.41 / (5.33% - -0.39%)
$7.13
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $42.86 + $7.13
$49.99
DB:LGG Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LGG represents 0.89846x of NYSE:LM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89846x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 49.99 x 0.89846
€44.91
Value per share (EUR) From above. €44.91
Current discount Discount to share price of €43.80
= -1 x (€43.80 - €44.91) / €44.91
2.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Legg Mason is available for.
Intrinsic value
2%
Share price is €43.8 vs Future cash flow value of €44.91
Current Discount Checks
For Legg Mason to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Legg Mason's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Legg Mason's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Legg Mason's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Legg Mason's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LGG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.66
NYSE:LM Share Price ** NYSE (2020-04-01) in USD $48.75
Germany Capital Markets Industry PE Ratio Median Figure of 16 Publicly-Listed Capital Markets Companies 22.55x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Legg Mason.

DB:LGG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LM Share Price ÷ EPS (both in USD)

= 48.75 ÷ 2.66

18.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legg Mason is good value based on earnings compared to the DE Capital Markets industry average.
  • Legg Mason is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Legg Mason's expected growth come at a high price?
Raw Data
DB:LGG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
16.2%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 6 Publicly-Listed Capital Markets Companies 1.59x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:LGG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.35x ÷ 16.2%

1.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legg Mason is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Legg Mason's assets?
Raw Data
DB:LGG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $43.82
NYSE:LM Share Price * NYSE (2020-04-01) in USD $48.75
Germany Capital Markets Industry PB Ratio Median Figure of 31 Publicly-Listed Capital Markets Companies 1.5x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:LGG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LM Share Price ÷ Book Value per Share (both in USD)

= 48.75 ÷ 43.82

1.11x

* Primary Listing of Legg Mason.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legg Mason is good value based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess Legg Mason's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Legg Mason has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Legg Mason expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Legg Mason expected to grow at an attractive rate?
  • Legg Mason's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Legg Mason's earnings growth is expected to exceed the Germany market average.
  • Legg Mason's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LGG Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LGG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 16.2%
DB:LGG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 0.5%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 39.4%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LGG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LGG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31
2022-03-31 2,956 368 6
2021-03-31 2,867 451 326 8
2020-04-02
2020-03-31 2,919 379 280 8
DB:LGG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,895 494 230
2019-09-30 2,846 415 -58
2019-06-30 2,861 475 -53
2019-03-31 2,903 561 -33
2018-12-31 2,996 642 -72
2018-09-30 3,084 502 290
2018-06-30 3,094 503 290
2018-03-31 3,140 489 275
2017-12-31 3,078 485 340
2017-09-30 3,001 577 245
2017-06-30 2,981 590 237
2017-03-31 2,887 535 220

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Legg Mason's earnings are expected to grow by 16.2% yearly, however this is not considered high growth (20% yearly).
  • Legg Mason's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LGG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Legg Mason Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LGG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31 4.31 4.54 3.76 4.00
2021-03-31 3.70 4.22 3.15 6.00
2020-04-02
2020-03-31 3.28 3.80 2.82 6.00
DB:LGG Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.66
2019-09-30 -0.67
2019-06-30 -0.61
2019-03-31 -0.38
2018-12-31 -0.85
2018-09-30 3.35
2018-06-30 3.28
2018-03-31 3.03
2017-12-31 3.62
2017-09-30 2.55
2017-06-30 2.41
2017-03-31 2.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Legg Mason is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Legg Mason's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Legg Mason has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Legg Mason performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Legg Mason's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Legg Mason's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Legg Mason has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Legg Mason has become profitable in the last year making it difficult to compare the DE Capital Markets industry average.
Earnings and Revenue History
Legg Mason's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Legg Mason Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LGG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,895.14 229.52 328.68
2019-09-30 2,845.55 -58.01 325.76
2019-06-30 2,860.71 -52.66 329.84
2019-03-31 2,903.26 -32.73 330.59
2018-12-31 2,995.71 -72.41 330.38
2018-09-30 3,084.47 289.50 328.81
2018-06-30 3,094.39 289.53 320.52
2018-03-31 3,140.32 274.95 313.56
2017-12-31 3,078.40 339.58 309.12
2017-09-30 3,000.55 245.35 308.02
2017-06-30 2,980.58 236.66 308.21
2017-03-31 2,886.90 219.87 310.30
2016-12-31 2,783.33 100.57 317.56
2016-09-30 2,727.64 -88.36 323.76
2016-06-30 2,652.36 -87.14 322.58
2016-03-31 2,660.84 -27.32 320.47
2015-12-31 2,743.64 99.30 308.67
2015-09-30 2,803.07 313.47 297.93
2015-06-30 2,833.88 252.65 289.70
2015-03-31 2,819.11 230.74 283.95
2014-12-31 2,798.16 218.96 279.06
2014-09-30 2,799.26 225.71 271.35
2014-06-30 2,765.22 307.28 268.91
2014-03-31 2,741.76 284.78 273.11
2013-12-31 2,728.12 245.04 264.19
2013-09-30 2,681.93 -290.56 267.85
2013-06-30 2,652.38 -296.05 266.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Legg Mason has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Legg Mason used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Legg Mason has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Legg Mason's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Legg Mason has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Legg Mason's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Legg Mason's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Legg Mason is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Legg Mason's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Legg Mason's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Legg Mason Company Filings, last reported 3 months ago.

DB:LGG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,503.63 1,972.41 1,080.07
2019-09-30 4,432.15 1,972.09 877.14
2019-06-30 4,396.02 2,221.74 917.87
2019-03-31 4,381.92 2,221.75 1,209.06
2018-12-31 4,329.63 2,221.77 1,104.45
2018-09-30 4,542.29 2,221.78 871.47
2018-06-30 4,603.41 2,347.30 930.53
2018-03-31 4,584.43 2,347.31 1,084.46
2017-12-31 4,561.20 2,447.32 1,022.94
2017-09-30 4,692.97 2,221.84 967.27
2017-06-30 4,678.98 2,221.85 784.96
2017-03-31 4,688.94 2,221.87 1,049.35
2016-12-31 4,697.67 2,221.88 1,051.84
2016-09-30 4,758.90 2,221.90 933.01
2016-06-30 4,840.13 2,238.32 937.66
2016-03-31 4,411.55 1,780.99 1,780.44
2015-12-31 4,443.79 1,096.76 999.41
2015-09-30 4,535.99 1,059.90 1,001.30
2015-06-30 4,577.72 1,057.12 886.02
2015-03-31 4,530.42 1,048.95 1,085.84
2014-12-31 4,613.74 1,061.43 1,060.56
2014-09-30 4,631.24 1,054.71 1,037.96
2014-06-30 4,746.13 1,701.81 1,696.12
2014-03-31 4,769.87 1,128.20 1,308.81
2013-12-31 4,767.76 1,189.61 1,160.55
2013-09-30 4,780.01 1,196.99 1,051.32
2013-06-30 4,766.27 1,248.64 999.20
  • Legg Mason's level of debt (43.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (23% vs 43.8% today).
  • Debt is well covered by operating cash flow (25%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Legg Mason's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Legg Mason has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Legg Mason's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.28%
Current annual income from Legg Mason dividends. Estimated to be 3.59% next year.
If you bought €2,000 of Legg Mason shares you are expected to receive €66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Legg Mason's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Legg Mason's dividend is below the markets top 25% of dividend payers in Germany (4.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LGG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LGG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 1.76 1.00
2022-03-31 1.80 8.00
2021-03-31 1.71 10.00
2020-04-02
2020-03-31 1.60 10.00
DB:LGG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-04 1.600 3.426
2019-11-05 1.600 4.242
2019-08-01 1.600 4.320
2019-05-13 1.600 4.313
2019-02-11 1.360 4.481
2018-10-29 1.360 4.916
2018-07-31 1.360 4.410
2018-07-25 1.360 4.053
2018-05-30 1.360 3.858
2018-04-25 1.360 3.505
2018-01-31 1.120 2.821
2017-10-31 1.120 2.742
2017-10-25 1.120 2.920
2017-04-26 1.120 2.924
2017-02-07 0.880 2.419
2017-02-01 0.880 2.555
2016-11-01 0.880 2.809
2016-10-28 0.880 3.037
2016-08-02 0.880 2.633
2016-07-27 0.880 2.620
2016-05-23 0.880 2.770
2016-04-29 0.880 2.806
2016-02-02 0.800 2.558
2016-01-22 0.800 2.690
2015-11-05 0.800 2.022
2015-10-30 0.800 1.760
2015-08-06 0.800 1.812
2015-07-31 0.800 1.627
2015-05-22 0.800 1.559
2015-05-01 0.800 1.473
2014-10-31 0.640 1.162
2014-07-31 0.640 1.295
2014-04-29 0.640 1.291
2014-01-31 0.520 1.149
2013-10-25 0.520 1.263
2013-04-23 0.520 1.550
2013-02-01 0.440 1.481
2012-10-26 0.440 1.692
2012-07-27 0.440 1.744
2012-05-01 0.440 1.755
2012-01-27 0.320 1.184
2011-10-27 0.320 1.256
2011-07-28 0.320 1.198
2011-05-03 0.320 0.983
2011-01-26 0.240 0.678
2010-01-26 0.120 0.395
2009-10-27 0.120 0.406
2009-07-28 0.120 0.407
2009-05-05 0.120 0.538

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Legg Mason's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Legg Mason's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Legg Mason afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Legg Mason has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Legg Mason's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Sullivan
COMPENSATION $9,952,270
AGE 61
TENURE AS CEO 7.5 years
CEO Bio

Mr. Joseph A. Sullivan, also known as Joe, serves as the President and Chief Executive Officer of Legg Mason Inc. since February 2013 and is its Chairman since October 2014. Mr. Sullivan also serves on the Board of Governors for the Investment Company Institute (ICI). He previously served as Chair of the Securities Industry Institute, a Board Member of the Bond Market Association and as a Member of the New York Stock Exchange (NYSE) Hearing Board. Mr. Sullivan joined Legg Mason in September 2008 and served as its Head of Global Distribution. He was interim Chief Executive Officer at Legg Mason from October 1, 2012 to February 11, 2013. He was Senior Executive Vice President of Legg Mason since September 2008 and until January 2011, he was responsible for overseeing administrative functions as Chief Administrative Officer. Before joining Legg Mason, he served on the Board of Directors of Stifel Financial and as Executive Vice President and Head of Fixed Income Capital Markets for Stifel Nicolaus from December 2005 to September 2008. He was responsible for overseeing the fixed income capital markets operations of Stifel Nicolaus, a broker-dealer. He has management skills and professional experience. Mr. Sullivan has more than 35 years of industry experience, holding prior executive roles at Legg Mason Wood Walker, Dain Bosworth and Piper Jaffray. From 1993 to December 2005, he oversaw the fixed income capital markets operations of Legg Mason Wood Walker, the company’s broker-dealer subsidiary that was sold in December 2005. He has been a director of Legg Mason since February 2013. Mr. Sullivan is active in public service and committed to improving education by serving or having served as a Member of the Board of Trustees for Johns Hopkins Medicine, Johns Hopkins Carey Business School Financial Services Advisory Board, Catholic Charities, St. Ignatius Loyola Academy, Chair of the Board of Trustees of Loyola Blakefield School, and President of the Baltimore Youth Hockey Association. Mr. Sullivan is the recipient of Pageant Media and Fund Action’s 2017 “Fund Leader of the Year” award, recognizing his innovation and contributions to the mutual fund industry. Mr. Sullivan holds a Bachelor of Arts degree in Economics from St. John's University and is a graduate of the Securities Industry Institute at the Wharton School of Business at the University of Pennsylvania.

CEO Compensation
  • Joe's compensation has increased in line with Legg Mason recently becoming profitable.
  • Joe's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Legg Mason management team in years:

10.2
Average Tenure
57.5
Average Age
  • The average tenure for the Legg Mason management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Joe Sullivan

TITLE
Chairman
COMPENSATION
$10M
AGE
61
TENURE
7.5 yrs

Pete Nachtwey

TITLE
CFO & Senior EVP
COMPENSATION
$4M
AGE
63
TENURE
9.3 yrs

Tom Merchant

TITLE
General Counsel
COMPENSATION
$2M
AGE
50
TENURE
7.1 yrs

Alan Magleby

TITLE
MD & Head of Investor Relations
AGE
66
TENURE
11.1 yrs

Patty Lattin

TITLE
Chief Human Resources Officer & Head of Global Human Resources
AGE
54
TENURE
11.3 yrs

F. Bilson

TITLE
Senior Vice President
COMPENSATION
$1M
AGE
66
TENURE
21.5 yrs

K. Posner

TITLE
Managing Director

Jeff Nattans

TITLE
Head of M&A and Business Development
COMPENSATION
$2M
AGE
53
TENURE
11.1 yrs

Terry Johnson

TITLE
Head of Global Distribution & Executive VP
COMPENSATION
$2M
AGE
46
TENURE
7.1 yrs

Rick Genoni

TITLE
MD & Head of ETF Product Management
Board of Directors Tenure

Average tenure and age of the Legg Mason board of directors in years:

6.2
Average Tenure
64
Average Age
  • The tenure for the Legg Mason board of directors is about average.
Board of Directors

Gary Kleinschmidt

TITLE
Head of Retirement Specialists
TENURE
9.4 yrs

John Murphy

TITLE
Independent Director
COMPENSATION
$250K
AGE
69
TENURE
6.8 yrs

Joe Sullivan

TITLE
Chairman
COMPENSATION
$10M
AGE
61
TENURE
5.5 yrs

John Davidson

TITLE
Lead Independent Director
COMPENSATION
$243K
AGE
64
TENURE
0.6 yrs

Michelle Goldberg

TITLE
Independent Director
COMPENSATION
$222K
AGE
49
TENURE
2.4 yrs

Alison Quirk

TITLE
Independent Director
COMPENSATION
$212K
AGE
57
TENURE
2.4 yrs

Bob Angelica

TITLE
Independent Director
COMPENSATION
$229K
AGE
72
TENURE
13.2 yrs

Nelson Peltz

TITLE
Independent Director
COMPENSATION
$174K
AGE
76
TENURE
0.9 yrs

Ted Benna

TITLE
Member of Retirement Advisory Council
TENURE
9.4 yrs

Paul D'Aiutolo

TITLE
Member of Retirement Advisory Council
TENURE
9.4 yrs
Who owns this company?
Recent Insider Trading
  • Legg Mason individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
12. Mar 20 Sell Peter Nachtwey Individual 12. Mar 20 12. Mar 20 -11,350 €43.67 €-495,618
X
Management checks
We assess Legg Mason's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Legg Mason has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Legg Mason, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices, individuals, as well as to global, institutional, and retail clients. It launches and manages equity, fixed income, and multi-asset customized portfolios through its subsidiaries. The firm also launches and manages mutual funds and exchange traded funds for its clients through its subsidiaries. It invests in private and public equity, fixed income, and multi asset markets across the globe through its subsidiaries. Through its subsidiaries, the firm also invests in alternative markets. It also employs a combination of fundamental and quantitative research to make its investments through its subsidiaries. Legg Mason, Inc. was founded in 1899 and is based in Baltimore, Maryland.

Details
Name: Legg Mason, Inc.
LGG
Exchange: DB
Founded: 1899
$3,912,712,522
87,764,647
Website: http://www.leggmason.com
Address: Legg Mason, Inc.
100 International Drive,
Baltimore,
Maryland, 21202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LM Common Stock New York Stock Exchange US USD 01. Aug 1983
DB LGG Common Stock Deutsche Boerse AG DE EUR 01. Aug 1983
NYSE LMHA JR SUB NT 56 New York Stock Exchange US USD 11. Mar 2016
Number of employees
Current staff
Staff numbers
3,246
Legg Mason employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 03:05
End of day share price update: 2020/04/01 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.