# Legal & General Group Plc (LGEN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Insurance. Price 292p, market value 15.9 billionp.

## Valuation
- **P/E (trailing): 26.5×** (5-yr avg 3312.4×, 3-yr avg 4991.0×). Legal & General Group Plc trades at 26.5× trailing earnings, well below its own five-year average of 3312.4×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 11.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.07**. A PEG of 0.07 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 7.6×**. The shares trade at 7.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.8×**. Enterprise value is 11.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 2.1%** (5-yr avg 0.1%). Free cash flow equals 2.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 3.8%**. The inverse of the P/E: 3.8% of the price is earned each year.

## Profitability
- **Gross margin: 67.2%**. Legal & General Group Plc keeps 67.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 14.0%**. 14.0% of revenue is left after running the business.
- **Net margin: 4.0%**. 4.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.8%**. 21.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 46.0%**. Return on all capital, debt included, is 46.0%: comfortably above what that capital costs.
- **Return on assets: 0.1%**. Each dollar of assets produces 0.1% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -3.3%** (3-yr 7.2%/yr, 5-yr 6.2%/yr). Revenue fell 3.3% over the last year, against 6.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 174.5%** (3-yr -39.8%/yr, 5-yr -21.3%/yr). Earnings per share rose 174.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -39.5%/yr**. Free cash flow has compounded at -39.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: 17.1 billionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 7.46%** (0p per share, trailing). Legal & General Group Plc yields 7.46%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 250%** (626% of free cash flow). The dividend exceeds earnings (250% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.1%/yr** (1-yr 4.1%). The dividend has grown 4.1% a year over five years.
- **Shareholder yield: 10.0%**. Dividends plus net buybacks return 10.0% of the market value a year.

## Analyst view
- **Analyst consensus: underperform** (13 analysts). 13 analysts cover Legal & General Group Plc; the consensus is underperform, with an average price target of 274p (-6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 25.7%** (YTD 12.7%, 3-mo 9.0%). The shares are up 25.7% over twelve months including dividends.
- **From 52-week high: -8.2%** (34.4% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 1.05** (volatility 22%). Beta of 1.05 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LGEN.L · Page: https://foliofundamentals.com/stocks/lgen.l

Not investment advice.