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Lion Finance Group (LSE: BGEO) seems to have all the trimmings of a killer progress inventory — regular earnings progress, excessive profitability and a good stability sheet. It has soared 53.4% this yr alone and an astonishing 675% over the previous 5 years.
What makes it much more uncommon is that the shares include a 4% yield and commerce at low valuation multiples. Progress shares often demand a premium, but this one appears low cost. That mixture felt nearly too good to be true, so I made a decision to dig deeper.
A progress and revenue powerhouse?
The numbers look spectacular. Lion Finance Group posts a return on fairness of 30.3% and a web margin of 46%. Income rose 36.1% prior to now 12 months and Q2 2025 earnings got here in at £140.3m. Earnings per share beat expectations by 8% in its newest annual outcomes.
Over the previous decade, the median earnings yield has been 72.4% — an astonishing determine for any financial institution. Web loans jumped 30% to £9.95bn final yr, whereas the London Inventory Trade lists its long-term debt-to-capital ratio at a cushty 20.2%.
The dividend additionally seems wholesome. With a payout ratio as little as 20%, the 4% yield seems properly coated. On valuation, the inventory trades at simply 0.3 instances e-book worth and 5.56 instances earnings, each of that are very low in comparison with friends.
That mentioned, not every little thing is obvious. I seen no reported allowances for unhealthy loans, which feels uncommon for a lender with such speedy mortgage e-book progress. Dependable information on free money move can be onerous to come back by. These gaps increase questions that buyers would possibly need to remember.
So what’s the catch?
Lion Finance Group isn’t precisely a family title. It was beforehand known as Financial institution of Georgia Holdings, with the Georgian financial institution nonetheless working as a subsidiary. The group additionally controls Ameriabank in Armenia, the funding financial institution Galt & Taggart and Belarusky Narodny in Belarus, amongst different smaller corporations.
That geographic combine is the place issues get sophisticated. These are rising economies which have delivered quick progress, however they’re additionally areas the place political and financial threat runs excessive. Georgia, Armenia and Belarus every face various ranges of instability, typically caught between European Union pursuits and Russian affect.
It’s price asking whether or not the current rebrand was a strategic try to distance the corporate from its roots within the area. Both manner, the very fact stays that investing right here means gaining publicity to economies that might be pulled into the broader Russia-Ukraine battle. This provides a level of threat that buyers must weigh fastidiously.
Remaining ideas
Lion Finance Group actually seems like a high candidate for progress inventory standing on the FTSE 250. It’s onerous to say it’s the perfect as that may be subjective. But it combines speedy growth, fats margins, sturdy profitability and a dependable dividend with valuations that look remarkably low cost.
On paper, it’s the type of share many buyers would like to personal.
However the regional publicity can’t be ignored. For these comfy with increased threat, it might be a inventory to contemplate for a well-diversified portfolio. For extra cautious buyers, the political backdrop would possibly outweigh the attraction.
