Legal & General (LGGNY) AI Stock Analysis

• Market Cap: $18.57B
• Dividend Yield: N/A
• Average Volume (3M): 2.25K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.55
• Revenue Growth: -37.22%
• EPS Growth: -29.08%
• Country: US
• Employees: 11,956
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management Services
• EPS (TTM): 0.67
• Shares Outstanding: 1,139,546,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,255
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.63
• Revenue Forecast (FY): $20.03B

• Rating: 50 Neutral
• Price Target: ―
• Action: N/A Date: 01/01/25
• Date: Action: N/A 01/01/25

Legal & General faces challenges with declining financial performance and overvaluation concerns. Despite a positive market response post-earnings call, the lack of clear guidance and mixed technical signals warrant caution. The high dividend yield offers some appeal, but overall, the stock's outlook is uncertain.

Positive Factors

Diverse Revenue Streams

The company's diverse revenue streams across insurance, investment management, and retirement solutions provide stability and resilience against sector-specific downturns, supporting long-term growth and sustainability.

Strategic Partnerships

Strategic partnerships and investments in infrastructure and real estate enhance long-term capital growth and income opportunities, strengthening the company's market position and financial performance.

Asset Management Leadership

Being a significant player in asset management, Legal & General benefits from economies of scale and a strong reputation, which can drive client retention and attract new business, supporting sustained revenue growth.

Negative Factors

Revenue Decline

The sharp decline in revenue and profitability indicates challenges in maintaining market share and operational efficiency, which could hinder long-term growth and competitiveness if not addressed.

Cash Flow Challenges

Negative operating cash flow suggests potential liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations without external financing, impacting financial stability.

Increased Leverage

Rising leverage and reduced equity can strain financial resources, increasing risk and reducing flexibility to navigate economic fluctuations, potentially affecting long-term financial health and strategic initiatives.

Legal & General Business Overview & Revenue Model

Company Description

Legal & General Group Plc engages in the provision of risk, savings and investment management products and services. It operates through the following segments: Legal & General Retirement (LGR); Legal & General Investment Management (LGIM); Legal & General Capital (LGC); Legal & General Insurance (LGI); and General Insurance (GI). The LGR segment works with companies, pension fund trustees and its advisers to provide risk transfer solutions. The LGIM segment manages investments for defined benefit plans. The LGC segment develops direct investments and increase the risk-adjusted returns on shareholder assets. The LGI represents UK retail protection, group protection and network business. The GI segment is comprised short-term protection. The company was founded on September 19, 1836 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Legal & General makes money primarily through its diverse financial services offerings. The company generates revenue from premiums paid by policyholders for life insurance and general insurance products. In the investment management sector, it earns fees by managing assets on behalf of clients, including pension funds, sovereign wealth funds, and individual investors. Additionally, Legal & General receives income from its retirement solutions, which include annuities and workplace pensions, benefiting from the growing demand for retirement planning. The company's strategic partnerships and investments in infrastructure and real estate also contribute to its earnings, providing long-term capital growth and income opportunities. By leveraging its extensive distribution network and expertise in financial markets, Legal & General maintains a robust revenue model across its core business areas.

Legal & General Financial Statement Overview

Summary

Legal & General's financial performance reveals significant revenue and profitability declines from 2022 to 2023. Increased leverage and reduced equity, coupled with cash flow challenges, highlight potential liquidity issues. The company's financial health demands attention for revenue stabilization and cost management.

Income Statement

Legal & General experienced significant revenue volatility over the periods, with a sharp decline from 2022 to 2023. Net profit margins were positive, yet they decreased substantially in 2023 compared to previous years, indicating reduced profitability. The absence of gross profit, EBIT, and EBITDA data limits a more comprehensive analysis of operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, with a slight increase in debt levels over the years, indicating rising leverage. Stockholders' equity decreased, impacting the equity ratio. The return on equity was significantly lower in 2023, reflecting declining profitability relative to equity capital.

Cash Flow

Operating cash flow turned negative in 2023, a sharp contrast to the previous year's positive cash flow, indicating potential liquidity concerns. Free cash flow also declined, suggesting limited flexibility for strategic investments without external financing. The absence of capital expenditure data restricts further analysis of investment activities.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	―	―	―	―	―
Gross Profit	―	―	―	―	―
EBITDA	―	―	―	―	―
Net Income	457.00M	21.17B	2.05B	1.61B	1.83B
Balance Sheet
Total Assets	522.10B	512.83B	582.64B	570.57B	560.74B
Cash, Cash Equivalents and Short-Term Investments	―	―	―	―	―
Total Debt	6.12B	5.56B	5.19B	5.61B	5.11B
Total Liabilities	517.31B	507.74B	571.70B	560.60B	551.64B
Stockholders Equity	―	―	―	―	―
Cash Flow
Free Cash Flow	-14.48B	20.28B	-169.00M	―	-3.29B
Operating Cash Flow	-14.24B	20.46B	-169.00M	4.30B	-3.29B
Investing Cash Flow	―	―	―	―	―
Financing Cash Flow	―	―	―	―	―

Legal & General Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGGNY, the sentiment is Negative. The current price of 16.3 is below the 20-day moving average (MA) of 17.62, below the 50-day MA of 17.80, and below the 200-day MA of 16.79, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 4.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGGNY.

Legal & General Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CINF	77 Outperform	$25.92B	10.77	16.13%	2.10%	-0.63%	-30.68%
RGA	76 Outperform	$13.27B	11.38	9.48%	1.76%	2.10%	19.23%
PRI	74 Outperform	$7.91B	11.22	32.29%	1.59%	5.63%	67.39%
TROW	73 Outperform	$19.06B	12.86	19.58%	4.88%	4.26%	0.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
L	59 Neutral	$22.35B	13.21	9.30%	0.23%	6.06%	-8.53%
LGGNY	50 Neutral	$18.57B	29.63	6.78%	―	-37.22%	-29.08%