# Legal & General Group (LGEN.LSE)

Canonical: https://gigainvestors.com/s/LGEN.LSE

Analysis as of: 2026-10-16T07:34:43.110Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 294.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 0.97×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.05×

- FY2018: 0.17×

- FY2019: 0.03×

- FY2020: 0.03×

- FY2021: 0.14×

- FY2022: 0.03×

- FY2023: 0.01×

- FY2024: 0.02×

- FY2025: 0.03×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.7%

- ROIC, second-lowest year: 2.6%

- Typical minus recent gross margin: 5.5 pp

- Typical gross margin (annual median): 74.3%

- Recent gross margin (lower of latest and 3-year median): 68.8%

- Years with nonpositive capital: 8

- Capital spending / revenue: 0.5%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 11.2%

- FY2017: 15.9%

- FY2018: 13.1%

- FY2019: >100%

- FY2020: 8.1%

- FY2021: 12.5%

- FY2022: 7.1%

- FY2023: 1.8%

- FY2024: 2.6%

- FY2025: 5.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 2.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 7.7B

- Net income, five-year total: GBP 3.8B

- Return on incremental invested capital: -2.7%

- Working capital / revenue, annual change: -4.3 pp

- Working capital / revenue, change between three-year averages: -25.6 pp

- Working capital / revenue, final three-year average: -124.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 1.00×

- FY2023: 0.69×

- FY2024: 3.67×

- FY2025: 9.03×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.1% vs 2.6%

- Per-share earnings: 0.21 to 0.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: GBP 1.1B

- Cumulative retained earnings: GBP -5.1B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -13.6%

- Per-share value change: GBP -0.15

- Per-share value, starting three-year median: GBP 0.21

- Per-share value, ending three-year median: GBP 0.07

- Buybacks concentrated in cheaper years (correlation): -0.11

- Average buyback yield: 0.4%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 413M

- Cumulative net income, 10 years: GBP 12B

- ROIC, first three-year median: 13.1%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.21

- FY2017: GBP 0.32

- FY2018: GBP 0.29

- FY2019: GBP 0.31

- FY2020: GBP 0.21

- FY2021: GBP 0.32

- FY2022: GBP 0.12

- FY2023: GBP 0.07

- FY2024: GBP 0.01

- FY2025: GBP 0.08

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 1.21×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 9.13×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.6%

- FY2017: -0.5%

- FY2018: 0.4%

- FY2019: 0.9%

- FY2020: -0.5%

- FY2021: 0.4%

- FY2022: -3.9%

- FY2023: 2.8%

- FY2024: 0.8%

- FY2025: -0.7%

## Holders

## Price story

Up 39% since Oct 2023 · sales +3.6%

Story as of 2026-10-16T10:00:02.161Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +3.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: GBP 73B 

- FY2017: GBP 40B 

- FY2018: GBP 13B 

- FY2019: GBP 67B 

- FY2020: GBP 50B 

- FY2021: GBP 19B 

- FY2022: GBP 34B 

- FY2023: GBP 26B 

- FY2024: GBP 23B 

- FY2025: GBP 24B 

### Gross margin · FY2025

gross margin 70.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 80.7% 

- FY2017: 83.8% 

- FY2018: 42.5% 

- FY2019: 76.8% 

- FY2020: 71.8% 

- FY2021: 77.4% 

- FY2022: 78.0% 

- FY2023: 67.5% 

- FY2024: 68.8% 

- FY2025: 70.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are GBP 24 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2025: revenue 24047000000; grossProfit 16856000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 67.5% to 70.1% during 2023–25; it earns 9.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2023: grossProfit / revenue = 67.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2024: grossProfit / revenue = 68.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2025: grossProfit / revenue = 70.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); 10-year return on capital observations [[2016,0.11245210727969349],[2017,0.15946087869770698],[2018,0.13106111234870424],[2019,14.768595041322314],[2020,0.08089674771076728],[2021,0.124801466096518],[2022,0.07083333333333333],[2023,0.017814726840855107],[2024,0.025891348804125545],[2025,0.05227916056612982]]; median 0.09667442749523039. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 20 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2016: growth capex 0; upkeep 45000000; owner earnings 1285000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2017: growth capex 0; upkeep 230000000; owner earnings 1745000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2018: growth capex 0; upkeep 401000000; owner earnings 1471000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2019: growth capex 0; upkeep 89000000; owner earnings 1879000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2020: growth capex 0; upkeep 164000000; owner earnings 1227000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2021: growth capex 0; upkeep 205000000; owner earnings 1987000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2022: growth capex 84000000; upkeep 103000000; owner earnings 783000000. Growth capex / owner earnings = 0.10727969348659004.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2023: growth capex 0; upkeep 237000000; owner earnings 316000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2024: growth capex 0; upkeep 95000000; owner earnings 158000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2025: growth capex 0; upkeep 51000000; owner earnings 4497000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); Dividend observations: [[2016,830000000],[2017,872000000],[2018,932000000],[2019,998000000],[2020,1048000000],[2021,1063000000],[2022,1116000000],[2023,1172000000],[2024,1230000000],[2025,1247000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); FY2025: cash repurchases 20000000 GBP.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LGEN.LSE SharesStats.PercentInsiders = 1.981 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:43.110Z); Closing price 294.5 GBX; reporting-to-trading FX 100; FY2025 annual sales per share 4.0117434459453145; price multiple 0.7340947993512704. FY2025 cash earnings/share 0.7502312253676583. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 209.40 per share

- 2016-11: GBX 235.80 per share

- 2016-12: GBX 247.60 per share

- 2017-01: GBX 234.90 per share

- 2017-02: GBX 248.30 per share

- 2017-03: GBX 247.30 per share

- 2017-04: GBX 246.10 per share

- 2017-05: GBX 251.80 per share

- 2017-06: GBX 258.30 per share

- 2017-07: GBX 268.40 per share

- 2017-08: GBX 260.20 per share

- 2017-09: GBX 259.90 per share

- 2017-10: GBX 267.00 per share

- 2017-11: GBX 267.20 per share

- 2017-12: GBX 273.30 per share

- 2018-01: GBX 270.60 per share

- 2018-02: GBX 262.60 per share

- 2018-03: GBX 257.80 per share

- 2018-04: GBX 270.00 per share

- 2018-05: GBX 269.80 per share

- 2018-06: GBX 266.00 per share

- 2018-07: GBX 262.70 per share

- 2018-08: GBX 254.30 per share

- 2018-09: GBX 262.20 per share

- 2018-10: GBX 251.50 per share

- 2018-11: GBX 244.90 per share

- 2018-12: GBX 231.00 per share

- 2019-01: GBX 259.40 per share

- 2019-02: GBX 280.60 per share

- 2019-03: GBX 275.30 per share

- 2019-04: GBX 278.20 per share

- 2019-05: GBX 256.60 per share

- 2019-06: GBX 269.50 per share

- 2019-07: GBX 261.80 per share

- 2019-08: GBX 219.60 per share

- 2019-09: GBX 248.40 per share

- 2019-10: GBX 263.70 per share

- 2019-11: GBX 280.90 per share

- 2019-12: GBX 303.00 per share

- 2020-01: GBX 305.50 per share

- 2020-02: GBX 260.00 per share

- 2020-03: GBX 193.85 per share

- 2020-04: GBX 204.60 per share

- 2020-05: GBX 198.50 per share

- 2020-06: GBX 220.90 per share

- 2020-07: GBX 214.00 per share

- 2020-08: GBX 217.30 per share

- 2020-09: GBX 188.35 per share

- 2020-10: GBX 184.80 per share

- 2020-11: GBX 252.70 per share

- 2020-12: GBX 266.20 per share

- 2021-01: GBX 244.00 per share

- 2021-02: GBX 259.30 per share

- 2021-03: GBX 279.10 per share

- 2021-04: GBX 272.40 per share

- 2021-05: GBX 284.30 per share

- 2021-06: GBX 257.60 per share

- 2021-07: GBX 261.40 per share

- 2021-08: GBX 270.20 per share

- 2021-09: GBX 281.10 per share

- 2021-10: GBX 288.90 per share

- 2021-11: GBX 281.90 per share

- 2021-12: GBX 297.50 per share

- 2022-01: GBX 287.40 per share

- 2022-02: GBX 277.20 per share

- 2022-03: GBX 272.00 per share

- 2022-04: GBX 252.10 per share

- 2022-05: GBX 259.70 per share

- 2022-06: GBX 239.50 per share

- 2022-07: GBX 261.00 per share

- 2022-08: GBX 252.50 per share

- 2022-09: GBX 216.50 per share

- 2022-10: GBX 232.90 per share

- 2022-11: GBX 251.60 per share

- 2022-12: GBX 249.50 per share

- 2023-01: GBX 254.00 per share

- 2023-02: GBX 255.90 per share

- 2023-03: GBX 238.90 per share

- 2023-04: GBX 234.10 per share

- 2023-05: GBX 228.10 per share

- 2023-06: GBX 227.30 per share

- 2023-07: GBX 233.40 per share

- 2023-08: GBX 218.70 per share

- 2023-09: GBX 222.50 per share

- 2023-10: GBX 211.40 per share

- 2023-11: GBX 229.30 per share

- 2023-12: GBX 251.10 per share

- 2024-01: GBX 255.00 per share

- 2024-02: GBX 242.10 per share

- 2024-03: GBX 254.40 per share

- 2024-04: GBX 236.00 per share

- 2024-05: GBX 250.00 per share

- 2024-06: GBX 227.00 per share

- 2024-07: GBX 231.70 per share

- 2024-08: GBX 223.80 per share

- 2024-09: GBX 226.30 per share

- 2024-10: GBX 217.10 per share

- 2024-11: GBX 221.30 per share

- 2024-12: GBX 229.80 per share

- 2025-01: GBX 242.30 per share

- 2025-02: GBX 244.70 per share

- 2025-03: GBX 242.80 per share

- 2025-04: GBX 234.50 per share

- 2025-05: GBX 248.70 per share

- 2025-06: GBX 254.60 per share

- 2025-07: GBX 256.80 per share

- 2025-08: GBX 247.50 per share

- 2025-09: GBX 238.00 per share

- 2025-10: GBX 237.80 per share

- 2025-11: GBX 246.90 per share

- 2025-12: GBX 261.90 per share

- 2026-01: GBX 265.10 per share

- 2026-02: GBX 271.30 per share

- 2026-03: GBX 246.30 per share

- 2026-04: GBX 251.70 per share

- 2026-05: GBX 271.40 per share

- 2026-06: GBX 286.00 per share

- 2026-07: GBX 300.40 per share

- 2026-08: GBX 293.40 per share

- 2026-09: GBX 292.00 per share

- 2026-10: GBX 291.40 per share

## Annual estimated value (GBX per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:28.841Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.