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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.08
LM's Cash to Debt is ranked lower than
53% of the 1386 Companies
in the Global Asset Management industry.

( Industry Median: 10000.00 vs. LM: 1.08 )
LM' s 10-Year Cash to Debt Range
Min: 0.05   Max: 16.97
Current: 1.08

0.05
16.97
Equity to Asset 0.65
LM's Equity to Asset is ranked higher than
51% of the 1568 Companies
in the Global Asset Management industry.

( Industry Median: 0.82 vs. LM: 0.65 )
LM' s 10-Year Equity to Asset Range
Min: 0.15   Max: 0.7
Current: 0.65

0.15
0.7
Interest Coverage 8.14
LM's Interest Coverage is ranked lower than
60% of the 1300 Companies
in the Global Asset Management industry.

( Industry Median: 2003.83 vs. LM: 8.14 )
LM' s 10-Year Interest Coverage Range
Min: 1.43   Max: 14.39
Current: 8.14

1.43
14.39
F-Score: 6
Z-Score: 2.67
M-Score: -2.58
WACC vs ROIC
10.65%
6.69%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 17.46
LM's Operating margin (%) is ranked higher than
51% of the 1603 Companies
in the Global Asset Management industry.

( Industry Median: 49.26 vs. LM: 17.46 )
LM' s 10-Year Operating margin (%) Range
Min: -19.93   Max: 31.14
Current: 17.46

-19.93
31.14
Net-margin (%) 7.97
LM's Net-margin (%) is ranked lower than
52% of the 1605 Companies
in the Global Asset Management industry.

( Industry Median: 46.96 vs. LM: 7.97 )
LM' s 10-Year Net-margin (%) Range
Min: -58.61   Max: 43.25
Current: 7.97

-58.61
43.25
ROE (%) 4.79
LM's ROE (%) is ranked higher than
58% of the 1628 Companies
in the Global Asset Management industry.

( Industry Median: 7.99 vs. LM: 4.79 )
LM' s 10-Year ROE (%) Range
Min: -35.08   Max: 28.1
Current: 4.79

-35.08
28.1
ROA (%) 3.15
LM's ROA (%) is ranked higher than
60% of the 1648 Companies
in the Global Asset Management industry.

( Industry Median: 4.74 vs. LM: 3.15 )
LM' s 10-Year ROA (%) Range
Min: -18.69   Max: 13.06
Current: 3.15

-18.69
13.06
ROC (Joel Greenblatt) (%) 198.14
LM's ROC (Joel Greenblatt) (%) is ranked higher than
75% of the 1056 Companies
in the Global Asset Management industry.

( Industry Median: 85.04 vs. LM: 198.14 )
LM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -196.95   Max: 664.37
Current: 198.14

-196.95
664.37
Revenue Growth (3Y)(%) 7.70
LM's Revenue Growth (3Y)(%) is ranked higher than
75% of the 969 Companies
in the Global Asset Management industry.

( Industry Median: 2.70 vs. LM: 7.70 )
LM' s 10-Year Revenue Growth (3Y)(%) Range
Min: -19   Max: 43.1
Current: 7.7

-19
43.1
EBITDA Growth (3Y)(%) 6.70
LM's EBITDA Growth (3Y)(%) is ranked higher than
73% of the 841 Companies
in the Global Asset Management industry.

( Industry Median: 4.30 vs. LM: 6.70 )
LM' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -24.9   Max: 38.9
Current: 6.7

-24.9
38.9
EPS Growth (3Y)(%) 12.60
LM's EPS Growth (3Y)(%) is ranked higher than
75% of the 821 Companies
in the Global Asset Management industry.

( Industry Median: 5.00 vs. LM: 12.60 )
LM' s 10-Year EPS Growth (3Y)(%) Range
Min: -33.5   Max: 46.3
Current: 12.6

-33.5
46.3
» LM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

LM Guru Trades in Q1 2014

Pioneer Investments 67,039 sh (New)
Louis Moore Bacon 9,882 sh (New)
Manning & Napier Advisors, Inc 355,110 sh (New)
Joel Greenblatt 7,535 sh (New)
John Keeley 120,715 sh (+21.52%)
Third Avenue Management 874,388 sh (+2.21%)
Jeff Auxier 38,520 sh (unchged)
Dodge & Cox 20,000 sh (unchged)
Steven Cohen Sold Out
Jim Simons Sold Out
David Einhorn Sold Out
Mason Hawkins Sold Out
Mario Gabelli 5,033,704 sh (-4.35%)
Brian Rogers 5,726,200 sh (-8.03%)
Richard Pzena 1,535,849 sh (-9.27%)
Ken Fisher 68,820 sh (-9.33%)
Robert Olstein 275,800 sh (-15.76%)
Jeremy Grantham 22,200 sh (-43.08%)
Ray Dalio 4,233 sh (-79.08%)
» More
Q2 2014

LM Guru Trades in Q2 2014

Jim Simons 46,900 sh (New)
Joel Greenblatt 15,118 sh (+100.64%)
Ray Dalio 4,333 sh (+2.36%)
Manning & Napier Advisors, Inc 358,710 sh (+1.01%)
Pioneer Investments Sold Out
Ken Fisher 68,800 sh (-0.03%)
Mario Gabelli 4,963,250 sh (-1.40%)
John Keeley 117,900 sh (-2.33%)
Dodge & Cox 18,900 sh (-5.50%)
Jeff Auxier 36,020 sh (-6.49%)
Jeremy Grantham 20,600 sh (-7.21%)
Robert Olstein 242,000 sh (-12.26%)
Louis Moore Bacon 8,457 sh (-14.42%)
Richard Pzena 1,304,475 sh (-15.06%)
Brian Rogers 4,748,939 sh (-17.07%)
Third Avenue Management 672,688 sh (-23.07%)
» More
Q3 2014

LM Guru Trades in Q3 2014

John Burbank 6,319 sh (New)
Paul Tudor Jones 6,535 sh (New)
Jim Simons 179,000 sh (+281.66%)
Jeremy Grantham 29,500 sh (+43.20%)
John Keeley 141,500 sh (+20.02%)
Ken Fisher 69,150 sh (+0.51%)
Mario Gabelli 4,969,983 sh (+0.14%)
Jeff Auxier 36,020 sh (unchged)
Third Avenue Management 672,688 sh (unchged)
Louis Moore Bacon Sold Out
Manning & Napier Advisors, Inc Sold Out
Ray Dalio Sold Out
Richard Pzena 1,294,100 sh (-0.80%)
Robert Olstein 235,000 sh (-2.89%)
Dodge & Cox 17,330 sh (-8.31%)
Brian Rogers 3,668,743 sh (-22.75%)
Joel Greenblatt 8,575 sh (-43.28%)
» More
Q4 2014

LM Guru Trades in Q4 2014

Pioneer Investments 63,010 sh (New)
Andreas Halvorsen 3,683,203 sh (New)
Joel Greenblatt 132,660 sh (+1447.06%)
Paul Tudor Jones 19,303 sh (+195.38%)
Jim Simons 199,800 sh (+11.62%)
Robert Olstein 249,000 sh (+5.96%)
John Burbank Sold Out
Brian Rogers Sold Out
Jeff Auxier 35,920 sh (-0.28%)
Mario Gabelli 4,873,509 sh (-1.94%)
Ken Fisher 67,600 sh (-2.24%)
John Keeley 129,960 sh (-8.16%)
Jeremy Grantham 25,900 sh (-12.20%)
Dodge & Cox 12,060 sh (-30.41%)
Richard Pzena 572,607 sh (-55.75%)
Third Avenue Management 214,949 sh (-68.05%)
» More
» Details

Insider Trades

Latest Guru Trades with LM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)



No Guru Trades Found!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Legg Mason Inc

Mario Gabelli Comments on Legg Mason Inc - Jul 25, 2014

Legg Mason Inc. (LM) (0.8%) (LM - $51.31 - NYSE) is a consortium of investment managers, known as affiliates, that operate under separate brand names, including Royce & Associates in small cap, Western Asset Management in fixed income, Legg Mason Capital in value equities, and Batterymarch Financial in quantitative strategies. As of May 2014, the firm had approximately $685 billion in assets under management. The company has been turning around investment performance while improving operating fundamentals. Using free cash flow, the company continues to retire shares under its $1 billion+ authorization.

From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.

Check out Mario Gabelli latest stock trades

Top Ranked Articles about Legg Mason Inc

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Mario Gabelli (Trades, Portfolio) of GAMCO Investors currently owns 880 stocks in his portfolio, valued at $18.58 billion. According to GuruFocus Real Time Picks, the number of new stocks is 47 and the quarter-over-quarter turnover is 6%. Read more...
Brian Rogers Purchases 5 New Stocks In Q4
During the fourth quarter, Brian Rogers (Trades, Portfolio) of the T. Rowe Price Equity Income Fund added five new positions to the portfolio and sold out of three holdings. Read more...
Mario Gabelli Comments on Legg Mason Inc
Legg Mason Inc. (LM) (0.8%) (LM - $51.31 - NYSE) is a consortium of investment managers, known as affiliates, that operate under separate brand names, including Royce & Associates in small cap, Western Asset Management in fixed income, Legg Mason Capital in value equities, and Batterymarch Financial in quantitative strategies. As of May 2014, the firm had approximately $685 billion in assets under management. The company has been turning around investment performance while improving operating fundamentals. Using free cash flow, the company continues to retire shares under its $1 billion+ authorization. Read more...
Number-Focused Robert Olstein Reports Top Five of Q1
Robert Olstein is the chairman and chief investment officer of the Olstein Financial Fund. Olstein selects stocks by looking behind the numbers. He emphasizes a detailed look behind the numbers of a company's financial statement to assess the company's financial strength and assess potential downside risk. To be considered for his selection, a company must generate more cash flow than necessary to sustain the business, avoid aggressive accounting practices, demonstrate balance sheet fundamentals that are consistent with his defense first approach and be selling at a discount to the private market value. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 29.00
LM's P/E(ttm) is ranked higher than
60% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 23.30 vs. LM: 29.00 )
LM' s 10-Year P/E(ttm) Range
Min: 9.35   Max: 230.65
Current: 29

9.35
230.65
Forward P/E 14.01
LM's Forward P/E is ranked higher than
89% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. LM: 14.01 )
N/A
PE(NRI) 30.70
LM's PE(NRI) is ranked higher than
63% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 23.80 vs. LM: 30.70 )
LM' s 10-Year PE(NRI) Range
Min: 13.73   Max: 232.65
Current: 30.7

13.73
232.65
P/B 1.50
LM's P/B is ranked lower than
53% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 1.02 vs. LM: 1.50 )
LM' s 10-Year P/B Range
Min: 0.31   Max: 5.1
Current: 1.5

0.31
5.1
P/S 2.34
LM's P/S is ranked higher than
85% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 9.63 vs. LM: 2.34 )
LM' s 10-Year P/S Range
Min: 0.47   Max: 10.57
Current: 2.34

0.47
10.57
PFCF 14.40
LM's PFCF is ranked higher than
91% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. LM: 14.40 )
LM' s 10-Year PFCF Range
Min: 2.98   Max: 50.37
Current: 14.4

2.98
50.37
POCF 13.55
LM's POCF is ranked higher than
85% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 274.00 vs. LM: 13.55 )
LM' s 10-Year POCF Range
Min: 2.44   Max: 37.01
Current: 13.55

2.44
37.01
EV-to-EBIT 13.25
LM's EV-to-EBIT is ranked higher than
80% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 25.76 vs. LM: 13.25 )
LM' s 10-Year EV-to-EBIT Range
Min: -12.2   Max: 30.7
Current: 13.25

-12.2
30.7
Shiller P/E 109.90
LM's Shiller P/E is ranked higher than
67% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. LM: 109.90 )
LM' s 10-Year Shiller P/E Range
Min: 3.54   Max: 115.53
Current: 109.9

3.54
115.53
Current Ratio 2.55
LM's Current Ratio is ranked higher than
62% of the 1084 Companies
in the Global Asset Management industry.

( Industry Median: 2.80 vs. LM: 2.55 )
LM' s 10-Year Current Ratio Range
Min: 1.33   Max: 3.53
Current: 2.55

1.33
3.53
Quick Ratio 2.55
LM's Quick Ratio is ranked higher than
62% of the 1084 Companies
in the Global Asset Management industry.

( Industry Median: 2.70 vs. LM: 2.55 )
LM' s 10-Year Quick Ratio Range
Min: 1.33   Max: 3.53
Current: 2.55

1.33
3.53
Days Sales Outstanding 47.05
LM's Days Sales Outstanding is ranked higher than
73% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 104.00 vs. LM: 47.05 )
LM' s 10-Year Days Sales Outstanding Range
Min: 45.76   Max: 507.45
Current: 47.05

45.76
507.45

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.15
LM's Dividend Yield is ranked lower than
87% of the 1280 Companies
in the Global Asset Management industry.

( Industry Median: 3.47 vs. LM: 1.15 )
LM' s 10-Year Dividend Yield Range
Min: 0.36   Max: 8.62
Current: 1.15

0.36
8.62
Dividend Payout 0.32
LM's Dividend Payout is ranked higher than
83% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 3.00 vs. LM: 0.32 )
LM' s 10-Year Dividend Payout Range
Min: 0.03   Max: 4
Current: 0.32

0.03
4
Dividend growth (3y) 37.50
LM's Dividend growth (3y) is ranked higher than
93% of the 627 Companies
in the Global Asset Management industry.

( Industry Median: 7.70 vs. LM: 37.50 )
LM' s 10-Year Dividend growth (3y) Range
Min: -47.1   Max: 54.2
Current: 37.5

-47.1
54.2
Yield on cost (5-Year) 1.45
LM's Yield on cost (5-Year) is ranked lower than
83% of the 1292 Companies
in the Global Asset Management industry.

( Industry Median: 3.86 vs. LM: 1.45 )
LM' s 10-Year Yield on cost (5-Year) Range
Min: 0.43   Max: 10.39
Current: 1.45

0.43
10.39
Share Buyback Rate 7.70
LM's Share Buyback Rate is ranked higher than
91% of the 1021 Companies
in the Global Asset Management industry.

( Industry Median: -0.60 vs. LM: 7.70 )
LM' s 10-Year Share Buyback Rate Range
Min: 7.7   Max: -14.8
Current: 7.7

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.70
LM's Price/DCF (Projected) is ranked higher than
95% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. LM: 0.70 )
LM' s 10-Year Price/DCF (Projected) Range
Min: 0.28   Max: 3.1
Current: 0.7

0.28
3.1
Price/Median PS Value 1.20
LM's Price/Median PS Value is ranked higher than
66% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 1.40 vs. LM: 1.20 )
LM' s 10-Year Price/Median PS Value Range
Min: 0.34   Max: 4.81
Current: 1.2

0.34
4.81
Price/Peter Lynch Fair Value 13.80
LM's Price/Peter Lynch Fair Value is ranked higher than
58% of the 1830 Companies
in the Global Asset Management industry.

( Industry Median: 0.00 vs. LM: 13.80 )
LM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.61   Max: 10.76
Current: 13.8

0.61
10.76
Earnings Yield (Greenblatt) 7.80
LM's Earnings Yield (Greenblatt) is ranked higher than
76% of the 1603 Companies
in the Global Asset Management industry.

( Industry Median: 4.90 vs. LM: 7.80 )
LM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.3   Max: 36.4
Current: 7.8

3.3
36.4
Forward Rate of Return (Yacktman) 24.45
LM's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 646 Companies
in the Global Asset Management industry.

( Industry Median: 6.49 vs. LM: 24.45 )
LM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.1   Max: 37.5
Current: 24.45

0.1
37.5

Analyst Estimate

Mar15 Mar16 Mar17 Mar18
Revenue(Mil) 2,847 3,025 3,243 3,483
EPS($) 2.94 3.98
EPS without NRI($) 2.94 3.98

Business Description

Industry: Asset Management » Asset Management
Compare:AMP, AMG, BEN, BLK, BK » details
Traded in other countries:LGG.Germany,
Legg Mason Inc was incorporated in Maryland in 1981 to serve as a holding company for its various subsidiaries. The Company is an asset management. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. It offers these products and services directly and through various financial intermediaries. The Company has operations in the United States of America and the United Kingdom and also has offices in Australia, Bahamas, Brazil, Canada, Chile, China, Dubai, France, Germany, Italy, Japan, Luxembourg, Poland, Singapore, Spain, Switzerland and Taiwan. It offers investment advisory services, including the discretionary and non-discretionary management of separate investment accounts in various investment styles for institutional and individual investors. It also offers investment products, such as mutual funds comprising fixed income, equity funds, money market, and other liquidity products, as well as funds-of-hedge funds, and other domestic and offshore funds for retail and institutional investors. It serves various customers directly, as well as through various financial intermediaries. The asset management industry in the United States is subject to extensive regulation under both federal and state securities and other laws.
» More Articles for LM

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Mario Gabelli Comments on Legg Mason Inc Jul 25 2014 
Number-Focused Robert Olstein Reports Top Five of Q1 May 17 2014 
Guru Robert Olstein's Top Five Fourth Quarter Stocks Feb 12 2014 
Brian Rogers' Roundtable Year-End Report Card Jan 24 2014 

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