In December 2016, Lloyds Banking Group made a £1.9bn acquisition of MBNA. You can read more about this huge acquisition here.
Lloyds Banking will likely land an insurance deal to insure UK’s entire sheep population against lynx attacks. You can read more about this story here.
Lloyds Banking offers financial services to individual and business customers in the United Kingdom. The Company’s main business activities are retail and commercial banking, general insurance, and long-term savings, protection and investment.
Lloyds Banking Group
LYG shows a bullish pocket pivot cluster (blue dots) over the last couple of weeks before the Credit Suisse upgrade to Outperform. Is that insiders front-running the Credit Suisse upgrade? Not sure but it’s something the SEC might look into over the coming days and weeks.
Lloyds Banking Group is trading above all its moving averages:
We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a good opportunity for an entry. There is a resistance zone just above the current price starting at $3.58. Right above this resistance zone may be a good entry point.
Lloyds Banking Group Review
The Piotroski-F score of LYG is 4. This is a neutral score and indicates average health and profitability for LYG. LYG's Return On Assets of 0.15% is worse than the rest of the industry. The industry average Return On Assets is 0.92%. 96% of the industry peers have a better Return On Assets. LYG has a Return On Equity of 2.45%. This is below the industry average of 8.66%. 99% of the industry peers outperform LYG. LYG has a Profit Margin of 12.13%. This is below the industry average of 23.07%. 91% of the industry peers outperform LYG.
The Forward Price/Earnings Ratio of 8.67 indicates a rather cheap valuation of LYG. The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. Compared to an average industry price book ratio of 1.67, LYG is valuated rather cheaply. On top of this, LYG is cheaper than 89% of the companies listed in the same industry. When comparing the current price to the book value of LYG, we can conclude it is valuated correctly. It is trading at 1.06 times its book value. The Price/Earnings Ratio is 28.00, which means the current valuation is very expensive for LYG. Compared to an average industry Price/Earning Ratio of 19.48, LYG is valuated more expensive than its industry peers.
The Earnings Per Share has grown by an impressive 392.42% over the past year. The Earnings Per Share has been growing by 26.64% on average over the past 5 years. This is a very strong growth. The Earnings Per Share is expected to grow by 109.16% on average over the next 2 years. Again, this is a very strong growth. Looking at the last year, LYG shows a negative growth in revenue. Revenue has decreased by -17.67% in the last year. Revenue for LYG have been decreasing by -27.37% on average which is bad.
The Piotroski-F score of LYG is 4. This is a neutral score and indicates average health and profitability for LYG. Compared to an average industry Debt to Equity Ratio of 0.18, LYG is requires more financing than its industry peers. 96% of its industry peers have a better Debt to Equity Ratio. LYG has an Altman-Z score of 0.06. This is a bad value and indicates that LYG is not financially healthy and even has some risk of bankruptcy. Compared to an average industry Altman-Z score of 0.25, LYG is in worse financial state than most of its industry peers. 97% of its industry peers have a better Altman-Z score.
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