- Legal & General‘s full-year operating profit rose by 2.6% to GBP 1.71 billion, slightly below the estimated GBP 1.75 billion.
- The company’s Retirement Institutional division exceeded expectations with an operating profit of GBP 1.11 billion, compared to the estimate of GBP 1.07 billion.
- Profit after tax significantly declined by 58% to GBP 191 million, missing the estimate of GBP 816.5 million.
- The dividend per share was set at 21.36 pence.
- Legal & General announced plans to return over £5 billion to shareholders within the next three years.
- A £500 million share buyback has been announced for 2025.
- The company anticipates strong volumes, good profitability, and low new business strain in its Institutional Retirement segment this year.
- Market sentiment reflects 12 buy recommendations, 6 holds, and 1 sell for Legal & General’s stock.
A look at Legal & General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Legal & General Group plc, a holding company with a focus on savings, risk, and investment management services, is showing a mixed long-term outlook based on the Smartkarma Smart Scores. While Legal & General scores high in dividends and momentum, indicating strong potential for consistent payouts to investors and positive market performance, its scores for value, growth, and resilience are more modest. This suggests that while the company may offer attractive dividend returns and solid market momentum, there are areas for potential improvement in terms of valuation, growth opportunities, and overall resilience in the face of market challenges.
Legal & General Group’s strong emphasis on dividends and momentum could make it an appealing choice for investors seeking consistent income and potentially positive stock performance. However, investors may want to closely monitor the company’s progress in enhancing its value, pursuing growth initiatives, and bolstering resilience to ensure a more balanced and sustainable long-term investment outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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