# London Stock Exchange Group (LSEG.LSE)

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

Analysis as of: 2026-10-16T07:33:52.772Z. Financial observations: FY1999–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 8,684.00 per share; close as of 2026-10-15.

Estimated value: low GBX 5,120.78 per share, central GBX 5,710.20 per share, high GBX 6,494.86 per share. Buy at or below the central value GBX 5,710.20 per share. Valuation as of 2026-10-16T07:33:52.772Z; scenarios are not confidence intervals.

Expected annual return: 7.3% at the stated quote. About 7.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.33×

- FY2017: 0.34×

- FY2018: 0.37×

- FY2019: 0.40×

- FY2020: 0.38×

- FY2021: 0.22×

- FY2022: 0.22×

- FY2023: 0.16×

- FY2024: 0.17×

- FY2025: 0.23×

### moat: fail

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

- Recent gross margin fell 47.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 21.9%

- ROIC, second-lowest year: 9.6%

- Typical minus recent gross margin: 47.7 pp

- Typical gross margin (annual median): 87.9%

- Recent gross margin (lower of latest and 3-year median): 40.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.3%

- ROIC including acquisitions, ten-year median: 9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 27.0%

- FY2017: 34.3%

- FY2018: 30.0%

- FY2019: 27.6%

- FY2020: 25.0%

- FY2021: 8.1%

- FY2022: 11.7%

- FY2023: 10.2%

- FY2024: 9.6%

- FY2025: 18.7%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 2.32×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 9.2B

- Net income, five-year total: GBP 3.9B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1059.9 pp

- Working capital / revenue, change between three-year averages: 10.6 pp

- Working capital / revenue, final three-year average: 31.2%

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

- FY2021: 2.66×

- FY2022: 2.00×

- FY2023: 2.22×

- FY2024: 2.58×

- FY2025: 2.32×

### management: fail

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 30.0% vs 10.2%

- Per-share earnings: 0.48 to 1.29 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: GBP 31B

- Cumulative retained earnings: GBP 18B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.1%

- Per-share value change: GBP 0.81

- Per-share value, starting three-year median: GBP 0.48

- Per-share value, ending three-year median: GBP 1.29

- Buybacks concentrated in cheaper years (correlation): 0.54

- Average buyback yield: 1.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 32B

- Cumulative net income, 10 years: GBP 5.9B

- ROIC, first three-year median: 30.0%

- ROIC, last three-year median: 10.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.41

- FY2017: GBP 0.93

- FY2018: GBP 0.89

- FY2019: GBP 0.77

- FY2020: GBP 0.54

- FY2021: GBP 0.82

- FY2022: GBP 1.42

- FY2023: GBP 1.23

- FY2024: GBP 1.29

- FY2025: GBP 2.39

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -0.3%

- Receivables to sales index (DSRI): 4.64×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.90×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.58×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: -0.0%

- FY2018: -0.0%

- FY2019: -0.1%

- FY2020: -0.1%

- FY2021: -0.3%

- FY2022: -0.2%

- FY2023: -0.3%

- FY2024: -0.4%

- FY2025: -0.3%

## Holders

## Price story

Down 28% since Jan 2025 · "LSEG's slowing subscription growth clouds interim profit rise" (ca.finance.yahoo.com, Jul 2025) · sales +5.1%

Story as of 2026-10-16T09:59:58.087Z; price observation 2026-10-15.

Price needs cash profits to grow 6.9% a year for ten years

- 2025-07-31: LSEG's slowing subscription growth clouds interim profit rise ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/lseg-reports-7-8-rise-061643471.html))

- 2026-02-26: LSEG Shares Rise After Forecast of Profitability Boost, $4 Billion Buybacks ([finance.yahoo.com](https://finance.yahoo.com/m/b947fe31-ea60-3ea1-bd4b-f80fb035227a/lseg-shares-rise-after.html))

### Sales · FY2024–2025

sales +5.1%; source https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml; observed 2026-03-18.

- FY2016: GBP 1.7B 

- FY2017: GBP 2.0B 

- FY2018: GBP 2.1B 

- FY2019: GBP 2.3B 

- FY2020: GBP 2.0B 

- FY2021: GBP 6.5B 

- FY2022: GBP 7.7B 

- FY2023: GBP 8.4B 

- FY2024: GBP 8.9B 

- FY2025: GBP 9.3B 

### Gross margin · FY2025

gross margin 40.2%; source https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml; observed 2026-03-18.

- FY2016: 89.4% 

- FY2017: 89.0% 

- FY2018: 89.4% 

- FY2019: 90.9% 

- FY2020: 89.8% 

- FY2021: 86.9% 

- FY2022: 86.3% 

- FY2023: 86.4% 

- FY2024: 86.8% 

- FY2025: 40.2% 

## Owner memo

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

### How it makes money

Operates in financial data & stock exchanges; annual sales are GBP 9.3 billion.

- Source: https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: revenue 9313000000; grossProfit 3748000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LSEG.LSE: London Stock Exchange Group plc provides financial markets infrastructure and data products in the United Kingdom, the United States, Europe, Asia, and internationally. The company operates through four segments: Data & Analytics, FTSE Russell, Risk Intelligence, and Markets. It offers data, analytics, and AI tools through an open and interoperable architecture; real-time data and news, text, reference, and legal entity information; and cross-asset models and analytics solutions, such as Yield Book fixed income, Lipper fund performance, private credit analytics, and StarMine sentiment analysis. The company also provides index and benchmark solutions; risk intelligence solutions to meet Know Your Customer and Know Your Third Party obligations, perform due diligence, and mitigate identity and payment fraud risks; World-Check Verify, a cloud-native screening API; and World-Check On Demand for continuously updated sanctions, politically exposed persons, adverse media, and enforcement data. In addition, it offers access to various liquidity pools in multiple asset classes comprising equities, fixed income, exchange-traded funds and products, and foreign exchange; capital formation and execution venues consisting of London Stock Exchange, AIM, Turquoise, FXall, FX Matching, and Tradeweb; and clearing and capital optimization solutions for interest rate swap, foreign exchange, and credit default swap OTC derivatives. Further, the company provides securities clearing, capital optimization, and regulatory reporting solutions; software licenses; network connections; hosting services; clearing, settlement, and other post trade services; and events and media services. London Stock Exchange Group plc was founded in 1698 and is based in London, the United Kingdom.

### Why customers stay

Margins ranged from 40.2% to 86.8% during 2023–25; it earns 21.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 86.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 86.8%.

- Source: https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: grossProfit / revenue = 40.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 10-year return on capital observations [[2016,0.26959608430744375],[2017,0.34328358208955223],[2018,0.30011550569081025],[2019,0.27578368030629336],[2020,0.2500386270831034],[2021,0.08119646993524793],[2022,0.1165398572011865],[2023,0.10183724319496028],[2024,0.09582924450378098],[2025,0.1870222344647115]]; median 0.21853043077390746. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 86% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml (filed 2026-03-18); Gross margin observations: [[2021,0.8685539403213466],[2022,0.8625855611520082],[2023,0.8635875402792696]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 2.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2016: growth capex 0; upkeep 34000000; owner earnings 422000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2017: growth capex 0; upkeep 47000000; owner earnings 713000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2018: growth capex 0; upkeep 50000000; owner earnings 717000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 195000000; owner earnings 554400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 0; upkeep 222000000; owner earnings 373200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 662000000; owner earnings 1226000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 0; upkeep 966000000; owner earnings 1582600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 0; upkeep 1084000000; owner earnings 1692800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 1008000000; owner earnings 1766200000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: growth capex 0; upkeep 124000000; owner earnings 2898243957.50332. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2016,129700000],[2017,159000000],[2018,189000000],[2019,221000000],[2020,257000000],[2021,426000000],[2022,567000000],[2023,611000000],[2024,642000000],[2025,718000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: cash repurchases 2152000000 GBP.

### Are managers owners

Insiders own 5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LSEG.LSE SharesStats.PercentInsiders = 5.047 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.9% yearly over ten years; actual growth was 22.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.08570540885738775. Price 8684; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7391866913123845 → FY2025 5.55544813147807. Closing-price date 2026-10-15.

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

- 2016-10: GBX 2,810.00 per share

- 2016-11: GBX 2,748.00 per share

- 2016-12: GBX 2,914.00 per share

- 2017-01: GBX 3,171.00 per share

- 2017-02: GBX 3,078.00 per share

- 2017-03: GBX 3,171.00 per share

- 2017-04: GBX 3,383.00 per share

- 2017-05: GBX 3,425.00 per share

- 2017-06: GBX 3,646.00 per share

- 2017-07: GBX 3,748.00 per share

- 2017-08: GBX 3,950.00 per share

- 2017-09: GBX 3,830.00 per share

- 2017-10: GBX 3,761.00 per share

- 2017-11: GBX 3,779.00 per share

- 2017-12: GBX 3,793.00 per share

- 2018-01: GBX 3,927.00 per share

- 2018-02: GBX 4,028.00 per share

- 2018-03: GBX 4,126.00 per share

- 2018-04: GBX 4,300.00 per share

- 2018-05: GBX 4,477.00 per share

- 2018-06: GBX 4,471.00 per share

- 2018-07: GBX 4,397.00 per share

- 2018-08: GBX 4,624.00 per share

- 2018-09: GBX 4,586.00 per share

- 2018-10: GBX 4,315.00 per share

- 2018-11: GBX 4,033.00 per share

- 2018-12: GBX 4,062.00 per share

- 2019-01: GBX 4,579.00 per share

- 2019-02: GBX 4,507.00 per share

- 2019-03: GBX 4,751.00 per share

- 2019-04: GBX 5,014.00 per share

- 2019-05: GBX 5,284.00 per share

- 2019-06: GBX 5,486.00 per share

- 2019-07: GBX 6,626.00 per share

- 2019-08: GBX 6,954.00 per share

- 2019-09: GBX 7,308.00 per share

- 2019-10: GBX 6,954.00 per share

- 2019-11: GBX 6,872.00 per share

- 2019-12: GBX 7,750.00 per share

- 2020-01: GBX 7,836.00 per share

- 2020-02: GBX 7,576.00 per share

- 2020-03: GBX 7,280.00 per share

- 2020-04: GBX 7,456.00 per share

- 2020-05: GBX 8,030.00 per share

- 2020-06: GBX 8,358.00 per share

- 2020-07: GBX 8,484.00 per share

- 2020-08: GBX 8,800.00 per share

- 2020-09: GBX 8,876.00 per share

- 2020-10: GBX 8,278.00 per share

- 2020-11: GBX 8,106.00 per share

- 2020-12: GBX 9,008.00 per share

- 2021-01: GBX 8,686.00 per share

- 2021-02: GBX 9,618.00 per share

- 2021-03: GBX 6,940.00 per share

- 2021-04: GBX 7,400.00 per share

- 2021-05: GBX 7,574.00 per share

- 2021-06: GBX 7,970.00 per share

- 2021-07: GBX 7,490.00 per share

- 2021-08: GBX 7,956.00 per share

- 2021-09: GBX 7,450.00 per share

- 2021-10: GBX 7,100.00 per share

- 2021-11: GBX 6,502.00 per share

- 2021-12: GBX 6,930.00 per share

- 2022-01: GBX 7,220.00 per share

- 2022-02: GBX 6,574.00 per share

- 2022-03: GBX 7,966.00 per share

- 2022-04: GBX 7,916.00 per share

- 2022-05: GBX 7,402.00 per share

- 2022-06: GBX 7,632.00 per share

- 2022-07: GBX 7,998.00 per share

- 2022-08: GBX 8,102.00 per share

- 2022-09: GBX 7,628.00 per share

- 2022-10: GBX 7,566.00 per share

- 2022-11: GBX 8,248.00 per share

- 2022-12: GBX 7,136.00 per share

- 2023-01: GBX 7,406.00 per share

- 2023-02: GBX 7,432.00 per share

- 2023-03: GBX 7,868.00 per share

- 2023-04: GBX 8,346.00 per share

- 2023-05: GBX 8,550.00 per share

- 2023-06: GBX 8,366.00 per share

- 2023-07: GBX 8,462.00 per share

- 2023-08: GBX 8,178.00 per share

- 2023-09: GBX 8,234.00 per share

- 2023-10: GBX 8,280.00 per share

- 2023-11: GBX 8,906.00 per share

- 2023-12: GBX 9,274.00 per share

- 2024-01: GBX 8,942.00 per share

- 2024-02: GBX 8,876.00 per share

- 2024-03: GBX 9,490.00 per share

- 2024-04: GBX 8,846.00 per share

- 2024-05: GBX 9,162.00 per share

- 2024-06: GBX 9,400.00 per share

- 2024-07: GBX 9,470.00 per share

- 2024-08: GBX 10,250.00 per share

- 2024-09: GBX 10,220.00 per share

- 2024-10: GBX 10,515.00 per share

- 2024-11: GBX 11,270.00 per share

- 2024-12: GBX 11,285.00 per share

- 2025-01: GBX 12,035.00 per share

- 2025-02: GBX 11,845.00 per share

- 2025-03: GBX 11,460.00 per share

- 2025-04: GBX 11,625.00 per share

- 2025-05: GBX 11,275.00 per share

- 2025-06: GBX 10,635.00 per share

- 2025-07: GBX 9,260.00 per share

- 2025-08: GBX 9,168.00 per share

- 2025-09: GBX 8,516.00 per share

- 2025-10: GBX 9,486.00 per share

- 2025-11: GBX 8,908.00 per share

- 2025-12: GBX 8,952.00 per share

- 2026-01: GBX 8,122.00 per share

- 2026-02: GBX 8,860.00 per share

- 2026-03: GBX 8,864.00 per share

- 2026-04: GBX 9,550.00 per share

- 2026-05: GBX 9,022.00 per share

- 2026-06: GBX 8,162.00 per share

- 2026-07: GBX 8,398.00 per share

- 2026-08: GBX 9,000.00 per share

- 2026-09: GBX 8,160.00 per share

- 2026-10: GBX 8,350.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 1,164.03 per share, central GBX 1,294.15 per share, high GBX 1,467.37 per share

- FY2017: low GBX 1,361.49 per share, central GBX 1,515.01 per share, high GBX 1,719.38 per share

- FY2018: low GBX 1,487.19 per share, central GBX 1,654.84 per share, high GBX 1,878.03 per share

- FY2019: low GBX 1,906.64 per share, central GBX 2,609.08 per share, high GBX 3,018.12 per share

- FY2020: low GBX 1,621.62 per share, central GBX 2,178.35 per share, high GBX 2,502.53 per share

- FY2021: low GBX 3,508.51 per share, central GBX 3,929.86 per share, high GBX 4,490.77 per share

- FY2022: low GBX 3,706.53 per share, central GBX 4,136.11 per share, high GBX 4,707.99 per share

- FY2023: low GBX 3,546.29 per share, central GBX 3,959.12 per share, high GBX 4,508.67 per share

- FY2024: low GBX 3,996.61 per share, central GBX 4,496.96 per share, high GBX 5,163.03 per share

- FY2025: low GBX 4,541.61 per share, central GBX 5,085.12 per share, high GBX 5,808.66 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 2026-10-15T06:39:39.733Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800QAUUUP6I445N30/2025-12-31/ESEF/GB/0/213800QAUUUP6I445N30-2025-12-31/reports/213800QAUUUP6I445N30-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-03-18.

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.