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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#823
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$41.5B
Charlie Nunn
Lloyds Banking Group plc provides a range of banking and financial services in the United Kingdom. The Retail segment offers current accounts, savings, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, and debt capital market services. The Insurance and Wealth segment offers insurance, investment and wealth management products and services.
Headcount
59.4K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = LYG ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$LYG Lloyds Banking Group plc | 59 | 32 | 72 | 86 | 2.6x | 1.6x | 848.6% | 5.5% | 60.6% | 39.4% | 82.4% | -7.8% | 5.7% | 1234.0x | $41.5B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Lloyds Banking Group plc (LYG) receives a "Hold" rating with a composite score of 58.6/100. It ranks #823 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
LONDON,
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for LYG.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 32 | 48 | -16DRAG |
| MOMENTUM | 86 | 93 | -7DRAG |
| VALUATION | 72 | 93 | -21DRAG |
| INVESTMENT | 45 | 87 | -42DRAG |
| STABILITY | 56 | 59 | -3NEUTRAL |
| SHORT INT | 53 | 63 | -10DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 22.7% vs WACC 15.4% (spread +7.3%)
GM 61% vs sector 78%, OM 39% vs sector 18%
Capital turnover 1.48x
Rev growth -8%, 8yr history
Interest coverage 0.2x, Net debt/EBITDA 0.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Lloyds Banking Group plc (LYG) as a Hold with a composite score of 58.6/100 at a current price of $5.67. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Lloyds Banking Group plc holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 58.6/100 places it at rank #823 in our full universe.
The near-term outlook is constructive, with revenue growing at -8% and momentum in the 86th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
High
Standard
Undervalued
Gross margins of 61% signal strong pricing power.
Returns on equity of 848.6% exceed cost of capital.
Value factor score of 72 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Leverage of 1234% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Lloyds Banking Group plc represents a hold based on multi-factor quantitative performance.
Our model assigns Lloyds Banking Group plc a Hold rating, with a composite score of 58.6/100 and 3 out of 5 stars. Ranked #823 of 7,333 stocks, LYG presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
LYG's quality score of 32/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 848.6% (sector avg: 9.0%), gross margins of 60.6% (sector avg: 77.7%), net margins of 82.4% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
LYG carries a solid value score of 72/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 2.64x, an EV/EBITDA of 1.55x, a P/B ratio of 11.42x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 45/100, LYG exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -7.8% vs. a sector average of 10.7% and a return on assets of 5.5% (sector: 1.3%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
LYG shows strong momentum characteristics with a score of 86/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at -7.8% year-over-year, while a beta of 0.83 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 56/100, LYG exhibits average financial resilience. Key stability metrics include a beta of 0.83 and a debt-to-equity ratio of 1234.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 53/100 for LYG suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 1234.00x). With a $41.5B market cap (large-cap), Lloyds Banking Group plc may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Lloyds Banking Group plc offers an attractive dividend yield of 5.7%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 2.0%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
Lloyds Banking Group plc is a large-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #823 of 7,333 overall (89th percentile). Key comparisons include ROE of 848.6% exceeding the 9.0% sector median and operating margins of 39.4% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While LYG currently exhibits a HOLD profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
Key factor gap
Momentum (86) vs Quality (32) — closing this gap could shift the rating.
EV/EBITDA 80% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 9329% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 22% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
The S&P 500 was on track for double-digit earnings growth, with more than half of companies having reported Q4 results so far.
The S&P 500 was on track for double-digit earnings growth, with more than half of companies having reported Q4 results so far.
The S&P 500 was on track for double-digit earnings growth, with more than half of companies having reported Q4 results so far.
The S&P 500 was on track for double-digit earnings growth, with more than half of companies having reported Q4 results so far.