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London Stock Exchange Group

DB:LS4D
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LS4D
DB
£24B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, Italy, France, the United States, and internationally. The last earnings update was 13 days ago. More info.


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  • London Stock Exchange Group has significant price volatility in the past 3 months.
LS4D Share Price and Events
7 Day Returns
11.6%
DB:LS4D
12.3%
DE Capital Markets
7.2%
DE Market
1 Year Returns
-
DB:LS4D
-8.8%
DE Capital Markets
-17.5%
DE Market
LS4D Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
London Stock Exchange Group (LS4D) 11.6% -11.6% -14% - - -
DE Capital Markets 12.3% -26.5% -16.8% -8.8% -29% -56.3%
DE Market 7.2% -22.3% -26.1% -17.5% -25.7% -29.1%
1 Year Return vs Industry and Market
  • No trading data on LS4D.
  • No trading data on LS4D.
Price Volatility
LS4D
Industry
5yr Volatility vs Market

Value

 Is London Stock Exchange Group 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 London Stock Exchange Group 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 London Stock Exchange Group.

DB:LS4D Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= £11.68 * 19.7%
£2.30
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. £11.68
Discount Rate (Cost of Equity) See below 4.9%
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:LS4D
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.754 (1 + (1- 19%) (9.51%))
0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.874 * 6.07%)
4.92%

Discounted Cash Flow Calculation for DB:LS4D using Excess Returns Model Model

The calculations below outline how an intrinsic value for London Stock Exchange Group 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:LS4D Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.7% – 4.92%) * £11.68)
£1.72
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £1.72 / (4.92% - -0.39%)
£32.47
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £11.68 + £32.47
£44.14
DB:LS4D Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LS4D represents 0.27879x of LSE:LSE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.27879x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 44.14 x 0.27879
€12.31
Value per share (EUR) From above. €12.31
Current discount Discount to share price of €19.37
= -1 x (€19.37 - €12.31) / €12.31
-57.4%

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

  • The current share price of London Stock Exchange Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 London Stock Exchange Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are London Stock Exchange Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LS4D PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £1.19
LSE:LSE Share Price ** LSE (2020-03-27) in GBP £69.48
Germany Capital Markets Industry PE Ratio Median Figure of 17 Publicly-Listed Capital Markets Companies 21.49x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.49x

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

** Primary Listing of London Stock Exchange Group.

DB:LS4D PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LSE Share Price ÷ EPS (both in GBP)

= 69.48 ÷ 1.19

58.15x

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

  • London Stock Exchange Group is overvalued based on earnings compared to the DE Capital Markets industry average.
  • London Stock Exchange Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does London Stock Exchange Group's expected growth come at a high price?
Raw Data
DB:LS4D PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 58.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
18.2%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.49x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:LS4D PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 58.15x ÷ 18.2%

3.2x

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

  • London Stock Exchange Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on London Stock Exchange Group's assets?
Raw Data
DB:LS4D PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £9.89
LSE:LSE Share Price * LSE (2020-03-27) in GBP £69.48
Germany Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.61x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.42x
DB:LS4D PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LSE Share Price ÷ Book Value per Share (both in GBP)

= 69.48 ÷ 9.89

7.02x

* Primary Listing of London Stock Exchange Group.

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

  • London Stock Exchange Group is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess London Stock Exchange Group'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. London Stock Exchange Group has a total score of 0/6, 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 London Stock Exchange Group expected to perform in the next 1 to 3 years based on estimates from 10 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
18.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is London Stock Exchange Group expected to grow at an attractive rate?
  • London Stock Exchange Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • London Stock Exchange Group's earnings growth is expected to exceed the Germany market average.
  • London Stock Exchange Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LS4D Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LS4D Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 18.2%
DB:LS4D Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 5.2%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 41.2%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*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:LS4D Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LS4D Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2,696 1,196 625 1
2021-12-31 2,582 1,135 650 4
2020-12-31 2,437 966 619 5
2020-03-29
DB:LS4D Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 2,314 837 417
2019-09-30 2,265 836 449
2019-06-30 2,215 835 480
2019-03-31 2,175 779 480
2018-12-31 2,135 722 480
2018-09-30 2,102 704 541
2018-06-30 2,069 685 601
2018-03-31 2,012 672 566
2017-12-31 1,955 659 530
2017-09-30 1,886 567 417
2017-06-30 1,817 474 303
2017-03-31 1,737 358 263

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • London Stock Exchange Group's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).
  • London Stock Exchange Group's revenue is expected to grow by 5.2% 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:LS4D Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from London Stock Exchange Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LS4D Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.78 1.78 1.78 1.00
2021-12-31 1.85 2.01 1.62 4.00
2020-12-31 1.76 2.08 1.53 7.00
2020-03-29
DB:LS4D Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 1.19
2019-09-30 1.29
2019-06-30 1.38
2019-03-31 1.38
2018-12-31 1.38
2018-09-30 1.56
2018-06-30 1.74
2018-03-31 1.64
2017-12-31 1.54
2017-09-30 1.20
2017-06-30 0.87
2017-03-31 0.75

*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.
  • London Stock Exchange Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess London Stock Exchange Group'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.
London Stock Exchange Group has a total score of 4/6, 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 London Stock Exchange Group 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 London Stock Exchange Group'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.
  • London Stock Exchange Group has delivered over 20% year on year earnings growth in the past 5 years.
  • London Stock Exchange Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • London Stock Exchange Group's 1-year earnings growth is negative, it can't be compared to the DE Capital Markets industry average.
Earnings and Revenue History
London Stock Exchange Group'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 London Stock Exchange Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LS4D Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,314.00 417.00 838.00
2019-09-30 2,264.50 448.50 835.00
2019-06-30 2,215.00 480.00 832.00
2019-03-31 2,175.00 480.00 833.00
2018-12-31 2,135.00 480.00 834.00
2018-09-30 2,102.00 540.50 829.50
2018-06-30 2,069.00 601.00 825.00
2018-03-31 2,012.00 565.50 821.50
2017-12-31 1,955.00 530.00 818.00
2017-09-30 1,886.00 416.50 794.00
2017-06-30 1,817.00 303.00 770.00
2017-03-31 1,737.00 263.00 738.50
2016-12-31 1,657.00 223.00 707.00
2016-09-30 1,577.85 231.05 607.55
2016-06-30 1,498.70 239.10 508.10
2016-03-31 1,458.65 249.35 510.80
2015-12-31 1,418.60 259.60 513.50
2015-06-30 1,334.95 173.35 673.30
2015-03-31 1,310.25 174.35 502.20
2014-12-31 1,285.55 175.35 331.10
2014-09-30 1,287.40 167.80 407.30
2014-06-30 1,255.10 186.70 385.00
2014-03-31 1,209.60 184.90 385.10
2013-12-31 1,101.95 176.90 343.85
2013-09-30 994.30 175.90 302.60
2013-06-30 920.15 194.40 164.00
2013-03-31 852.90 217.00 221.30

*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.
  • London Stock Exchange Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • London Stock Exchange Group used its assets less efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • London Stock Exchange Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess London Stock Exchange Group'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.
London Stock Exchange Group 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 London Stock Exchange Group'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 London Stock Exchange Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • London Stock Exchange Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • London Stock Exchange Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of London Stock Exchange Group'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 375.9x 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 London Stock Exchange Group Company Filings, last reported 2 months ago.

DB:LS4D Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,801.00 2,124.00 1,493.00
2019-09-30 3,801.00 2,124.00 1,493.00
2019-06-30 3,788.00 2,320.00 1,499.00
2019-03-31 3,788.00 2,320.00 1,499.00
2018-12-31 3,698.00 2,250.00 1,510.00
2018-09-30 3,698.00 2,250.00 1,510.00
2018-06-30 3,908.00 1,930.00 1,361.00
2018-03-31 3,908.00 1,930.00 1,361.00
2017-12-31 3,752.00 1,982.00 1,381.00
2017-09-30 3,752.00 1,982.00 1,381.00
2017-06-30 3,507.00 1,332.00 1,172.00
2017-03-31 3,507.00 1,332.00 1,172.00
2016-12-31 3,614.00 1,185.00 1,225.00
2016-09-30 3,614.00 1,185.00 1,225.00
2016-06-30 3,356.90 1,093.30 1,060.10
2016-03-31 3,356.90 1,093.30 1,060.10
2015-12-31 3,196.10 1,608.90 923.90
2015-06-30 2,903.40 1,762.00 942.40
2015-03-31 2,903.40 1,762.00 942.40
2014-12-31 2,955.30 1,726.40 1,127.20
2014-09-30 2,930.60 938.20 1,711.60
2014-06-30 1,961.10 1,192.20 985.10
2014-03-31 2,003.00 1,231.10 919.20
2013-12-31 1,956.90 1,231.10 919.20
2013-09-30 1,898.70 1,339.40 1,034.60
2013-06-30 1,599.00 800.30 446.20
2013-03-31 1,599.00 800.30 446.20
  • London Stock Exchange Group's level of debt (55.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (58.4% vs 55.9% today).
  • Debt is well covered by operating cash flow (39.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.6x coverage).
X
Financial health checks
We assess London Stock Exchange Group'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. London Stock Exchange Group has a total score of 5/6, 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 London Stock Exchange Group'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
1.01%
Current annual income from London Stock Exchange Group dividends. Estimated to be 1.29% next year.
If you bought €2,000 of London Stock Exchange Group shares you are expected to receive €20 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?
  • London Stock Exchange Group's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • London Stock Exchange Group's dividend is below the markets top 25% of dividend payers in Germany (4.96%).
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:LS4D 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 10 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

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

DB:LS4D Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 1.86 1.00
2023-12-31 1.61 1.00
2022-12-31 0.99 6.00
2021-12-31 0.83 11.00
2020-12-31 0.77 11.00
2020-03-29
DB:LS4D Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-16 0.700 1.080
2020-02-28 0.700 0.964
2019-03-22 0.604 0.949
2019-03-01 0.604 1.288
2018-03-20 0.516 1.182
2018-03-02 0.516 1.310
2017-03-21 0.432 1.172
2017-03-03 0.432 1.405
2016-03-16 0.372 1.334
2016-03-04 0.360 1.259
2015-04-29 0.225 0.899
2014-06-12 0.308 1.448
2014-05-15 0.308 1.621
2013-11-14 0.299 1.649
2013-05-15 0.295 1.944
2012-11-16 0.287 2.386
2012-06-18 0.283 2.853
2012-05-18 0.283 2.893
2011-11-16 0.273 2.993
2011-05-13 0.268 2.967
2010-05-21 0.244 3.299
2009-11-25 0.244 3.494
2009-05-20 0.244 3.157

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of London Stock Exchange Group'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 (2.6x coverage).
X
Income/ dividend checks
We assess London Stock Exchange Group'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 London Stock Exchange Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. London Stock Exchange Group has a total score of 3/6, 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 London Stock Exchange Group'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
David Schwimmer
COMPENSATION £2,456,000
AGE 41
TENURE AS CEO 1.6 years
CEO Bio

Mr. David A. Schwimmer has been Group Chief Executive Officer and Executive Director at London Stock Exchange Group Plc since August 01, 2018. He served as a European Managing Director of Goldman Sachs Group Inc. since October 26, 2005. Mr. Schwimmer has a twenty year career at Goldman Sachs. Most recently, David was Global Head of Market Structure and Global Head of Metals and Mining in Investment Banking. He began his career at Goldman Sachs in the Financial Institutions Group, focusing on Market Structure, Brokerage and Trading. He also served as Chief of Staff to then President and COO, Lloyd Blankfein, and spent three years in Moscow as Co-Head of Goldman Sachs' business for Russia/CIS. David brings a strategic perspective on the drivers of growth and innovation in financial markets infrastructure. He has extensive experience leading diverse and high performing teams in dynamic markets. He also brings deep experience in capital markets, having advised blue-chip corporate clients across sectors and regions on mergers and acquisitions, initial public offerings and other transactions. He holds a B.A. from Yale University, and post graduate degrees in law (JD) and international affairs (MALD) from Harvard University and The Fletcher School of Law and Diplomacy, respectively.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the London Stock Exchange Group management team in years:

4.4
Average Tenure
55
Average Age
  • The tenure for the London Stock Exchange Group management team is about average.
Management Team

David Schwimmer

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
41
TENURE
1.6 yrs

Dave Warren

TITLE
Group CFO & Executive Director
COMPENSATION
£5M
AGE
65
TENURE
7.7 yrs

Raffaele Jerusalmi

TITLE
CEO of Borsa Italiana & Executive Director
COMPENSATION
£4M
AGE
58

David Shalders

TITLE
Group COO & Chief Integration Officer
AGE
52
TENURE
0.2 yrs

Tony McCarthy

TITLE
Group Chief Information Officer
TENURE
0.2 yrs

Paul Froud

TITLE
Head of Investor Relations

Catherine Johnson

TITLE
Group General Counsel & Head of Compliance

Gavin Sullivan

TITLE
Group Communications Director
TENURE
7.2 yrs

Caroline O'Shaughnessy

TITLE
MD and Global Head of Sales & Marketing and Information Services

Tim Jones

TITLE
Group Head of Human Resources
TENURE
8.8 yrs
Board of Directors Tenure

Average tenure and age of the London Stock Exchange Group board of directors in years:

4.2
Average Tenure
58.5
Average Age
  • The tenure for the London Stock Exchange Group board of directors is about average.
Board of Directors

Don Robert

TITLE
Independent Chairman
COMPENSATION
£421K
AGE
59
TENURE
0.8 yrs

David Schwimmer

TITLE
Group CEO & Executive Director
COMPENSATION
£2M
AGE
41
TENURE
1.6 yrs

Dave Warren

TITLE
Group CFO & Executive Director
COMPENSATION
£5M
AGE
65
TENURE
7.7 yrs

Raffaele Jerusalmi

TITLE
CEO of Borsa Italiana & Executive Director
COMPENSATION
£4M
AGE
58
TENURE
9.8 yrs

Paul Heiden

TITLE
Senior Independent Director
COMPENSATION
£162K
AGE
62
TENURE
5 yrs

Jacques Alfred Aigrain

TITLE
Independent Non-Executive Director
COMPENSATION
£116K
AGE
65
TENURE
6.8 yrs

Stephen O'Connor

TITLE
Senior Independent Director
COMPENSATION
£105K
AGE
57
TENURE
6.8 yrs

Andrea Sironi

TITLE
Independent Non-Executive Director
COMPENSATION
£222K
AGE
55
TENURE
3.4 yrs

Val Rahmani

TITLE
Independent Non-Executive Director
COMPENSATION
£123K
AGE
61
TENURE
2.3 yrs

Marshall Bailey

TITLE
Independent Non-Executive Director
COMPENSATION
£300K
AGE
53
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess London Stock Exchange Group'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. London Stock Exchange Group 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

London Stock Exchange Group plc engages in market infrastructure business primarily in the United Kingdom, Italy, France, the United States, and internationally. The company operates in six segments: Information Services, Post Trade Services – LCH, Post Trade Services – CC&G and Monte Titoli, Capital Markets, Technology Services, and Other. It operates a range of international equity, bond, and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, a European fixed income market; and Turquoise, a pan-European equities multilateral trading facility. The company provides capital formation, intellectual property, and risk and balance sheet management services; financial indexing, benchmarking, and analytic services; data and research services; and post trade and risk management, clearing house, and custody and settlement services. The company also develops and operates technology solutions, including trading, market surveillance, and post trade systems for organizations and exchanges; and offers information and data products, such as indexes and benchmarks, real time pricing data, product identification, reporting, and reconciliation services, as well as network connectivity and server hosting services. In addition, it provides market information services comprising indices, market data and statistics, real time data, and regulatory news; education and training, events space, and studio hire services; and capital markets technology and services, trading solutions, technical services, infrastructure solutions and services, and market connectivity, as well as operates data centers and trading venues. Further, the company licenses capital markets and related IT infrastructure. London Stock Exchange Group plc was founded in 1698 and is headquartered in London, the United Kingdom.

Details
Name: London Stock Exchange Group plc
LS4D
Exchange: DB
Founded: 1698
£27,163,309,202
349,225,141
Website: http://www.lseg.com
Address: London Stock Exchange Group plc
10 Paternoster Square,
London,
Greater London, EC4M 7LS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LSE Ordinary Shares London Stock Exchange GB GBP 20. Jul 2001
OTCPK LDNX.F Ordinary Shares Pink Sheets LLC US USD 20. Jul 2001
DB LS4C Ordinary Shares Deutsche Boerse AG DE EUR 20. Jul 2001
BMV LSE N Ordinary Shares Bolsa Mexicana de Valores MX MXN 20. Jul 2001
BATS-CHIXE LSEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 20. Jul 2001
OTCPK LNST.Y UNSPONSORED ADR Pink Sheets LLC US USD 06. Nov 2015
DB LS4D UNSPONSORED ADR Deutsche Boerse AG DE EUR 06. Nov 2015
Number of employees
Current staff
Staff numbers
4,965
London Stock Exchange Group employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 01:49
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/03/16
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.