# Lancashire Holdings Limited (LRE.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Insurance. Price 631p, market value 1.5 billionp.

## Valuation
- **P/E (trailing): 6.6×** (5-yr avg 503.4×, 3-yr avg 503.4×). Lancashire Holdings Limited trades at 6.6× trailing earnings, well below its own five-year average of 503.4×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 7.7×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 1.3×**. Each dollar of revenue is priced at 1.3×.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 16.1×**. Enterprise value is 16.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 15.4%** (5-yr avg 0.3%). Free cash flow equals 15.4% of the market value, above its five-year average of 0.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 15.1%**. The inverse of the P/E: 15.1% of the price is earned each year.

## Profitability
- **Gross margin: 100.0%**. Lancashire Holdings Limited keeps 100.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 98.5%**. 98.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 15.9%**. 15.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 19.8%**. 19.8% on shareholders' equity is solid.
- **Return on invested capital: 103.9%**. Return on all capital, debt included, is 103.9%: comfortably above what that capital costs.
- **Return on assets: 6.1%**. Each dollar of assets produces 6.1% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 10.8%** (3-yr 33.9%/yr, 5-yr 28.3%/yr). Revenue grew 10.8% over the last year, against 28.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -7.7%** (5-yr 133.7%/yr). Earnings per share fell 7.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 14.1%/yr**. Free cash flow has compounded at 14.1% a year over three years.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.
- **Cash and short-term investments: 415 millionp**. 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: 2.67%** (0p per share, trailing). Lancashire Holdings Limited yields 2.67%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 101%** (93% of free cash flow). The dividend exceeds earnings (101% payout), though free cash flow still covers it.
- **Dividend growth (5 yr): 51.4%/yr** (1-yr -17.4%). The dividend has compounded at 51.4% a year over five years, doubling roughly every 1 years at that pace.
- **Shareholder yield: 2.7%**. Dividends plus net buybacks return 2.7% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover Lancashire Holdings Limited; the consensus is buy, with an average price target of 642p (+2% 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): 6.6%** (YTD -1.6%, 3-mo 4.0%). The shares are up 6.6% over twelve months including dividends.
- **From 52-week high: -9.9%** (14.8% above the low). Trading 10% 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): 63**. An RSI of 63 is neutral.
- **Beta (1 yr): 0.87** (volatility 25%). Beta of 0.87 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.