Legal & General Group Plc (LGEN.L) stock analysis

In our weekly check, Legal & General Group Plc is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10.

About Legal & General Group Plc

Legal & General Group Plc is a Financial Services company (Asset Management) based in the United Kingdom, listed on LSE as LGEN.L.

What our checks show for LGEN.L

Red flags

• Net debt is 7.2x a year of EBITDA (debt/equity 10.02). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 8.5 points over 5 years, to 2.1%: the company keeps less of each sale as profit.
• The gross margin fell by 7.3 points, to 70.1%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 12.2% a year.
• Revenue fell 11% a year over the last 3 years.
• The net margin is only 2.1%: little room if costs rise.
• The dividend takes 187% of profit: little cushion if profit falls.
• The stock has fallen as much as 86% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.9 years.
• Return on capital (ROCE) is only 0.2%.

Warning signs

• Operating profit covers interest only 3.9 times: a weak year could make the payments hard.
• Earnings per share fell 39.7% a year over the last 3 years.
• Net profit fell 14% a year over the last 3 years.

Strengths

• Operating cash flow is 9.13x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 47.2% a year over the next years.
• Analysts expect the net margin to improve by 7 points from today's 2.1%.
• Free cash flow is 18.7% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $21.38 billion.
• Actively traded: about 21.9 million shares a day.

Similar companies

PGHN.SW · BEN · CRBG · TPG · OWL · AMUN.PA

Questions

What grade does Legal & General Group Plc (LGEN.L) have?

In our weekly check, Legal & General Group Plc is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LGEN.L stock?

This week's biggest flags for Legal & General Group Plc: High debt, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does Legal & General Group Plc do?

Legal & General Group Plc is a Financial Services company (Asset Management) based in the United Kingdom, listed on LSE as LGEN.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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