Lloyds Banking logged a 1.9% change during today's morning session, and is now trading at a price of $4.18 per share.
Lloyds Banking returned gains of 44.9% last year, with its stock price reaching a high of $4.19 and a low of $2.56. Over the same period, the stock outperformed the S&P 500 index by 32.8%. More recently, the company's 50-day average price was $3.77. Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial products and services in the United Kingdom and internationally. Based in London, United Kingdom, the Large-Cap Finance company has 61,228 full time employees. Lloyds Banking has returned a 0.8% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Exceptional EPS Growth but Negative Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $19,216 | $22,295 | $17,876 | $6,647 | $20,510 | $34,281 |
| Interest Income (M) | $2,921 | -$3,557 | $1,721 | $3,331 | $8,503 | $19,011 |
| Operating Margins | 15% | 6% | 7% | 19% | 8% | 6% |
| Net Margins | 4% | 6% | 11% | 22% | 13% | 13% |
| Net Income (M) | $781 | $1,368 | $2,020 | $1,476 | $2,654 | $4,477 |
| Depreciation & Amort. (M) | $1,358 | $1,334 | $1,582 | $1,186 | $1,572 | $3,426 |
| Diluted Shares (M) | 70,466 | 71,252 | 71,366 | 67,631 | 63,913 | 60,913 |
| Earnings Per Share | $0.01 | $0.02 | $0.02 | $0.02 | $0.04 | $0.06 |
| EPS Growth | n/a | 100.0% | 0.0% | 0.0% | 100.0% | 50.0% |
| Free Cash Flow (M) | -$431 | -$1,005 | -$101 | $9,961 | -$7,994 | -$4,393 |
| Total Debt (M) | $97,689 | $87,397 | $71,552 | $73,819 | $75,592 | $70,834 |
| Net Debt / EBITDA | 8.95 | 3.36 | -2.77 | -8.94 | -4.14 | 0.0 |
a Very Low P/E Ratio but Priced at a Premium:
Lloyds Banking has a trailing twelve month P/E ratio of 11.4, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $0.36, the company has a forward P/E ratio of 10.5. According to the 66.9% compound average growth rate of Lloyds Banking's historical and projected earnings per share, the company's PEG ratio is 0.17. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 24.2%. On this basis, the company's PEG ratio is 0.47. This suggests that its shares are undervalued. In contrast, Lloyds Banking is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.29 is higher than the sector average of 1.78. The company's shares are currently trading 313.6% below their Graham number. Ultimately, Lloyds Banking's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Lloyds Banking Has a Small Amount of Insider Shareholders:
The 2 analysts following Lloyds Banking have set target prices ranging from $3.88 to $3.9 per share, for an average of $3.89 with a hold rating. The company is trading 7.5% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Lloyds Banking has a very low short interest because 0.1% of the company's shares are sold short. Institutions own 3.6% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Fisher Asset Management, LLC, whose 1% stake in the company is worth $551,956,100.
