Lloyds Banking Group plc (LYG): a potential bargain?

Buy — this isn't really a "crash," it's a 2008-crisis relic that's now recovering, with a costly legal overhang finally capped and quantified.

🔥 HOT Fundamentals63/100

Down 87% from its all-time high of $46.47 — now $6.13

Why LYG dropped

The -86.8% drop happened in 2007-2009 (financial crisis), not recently — the stock is actually near its 30-day high today. The real recent story is the UK motor-finance commission mis-selling scandal, where Lloyds has now provisioned £1.95bn, which the FCA's final scheme has now made a known, bounded cost rather than an open-ended risk.

Fwd P/E 9.6Op margin 41.4%Rev growth 11.5%Debt/equity —Analyst upside 0.8%

How this scored 63/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 26.5%

✅ Generates cash Free cash flow unknown

✅ Not drowning in debt Debt/equity unknown — exempt (banks run on leverage by design)

✅ Can pay its bills Exempt (financials)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 19/25

Operating margin 41.4% 9/9

Net profit margin 26.5% 8/8

Return on equity 10.8% 2/8

Growth Is it getting bigger, or dying? 21/25

Revenue growth 11.5% 5/9

Earnings growth 44.7% 8/8

Expected profit change 55.4% 8/8

Value Is it cheap right now? 15/25

Forward P/E 9.6 9/10

PEG ratio 1.2 6/8

Analyst target upside 0.8% 0/7

Balance sheet Will it survive? 8/25

Debt / equity unknown 3/10

Current ratio unknown 2/8

Free cash flow unknown 2/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-28. Research only — not financial advice.