LEGO is a famous toy brand that contains sets of interlocking bricks and valuable instructions for building intriguing creations.
The LEGO Company brand is devoted to assisting people in discovering their creativity while learning.
LEGO is one of the most well-known in the World, but is Lego stock publicly traded?
What is LEGO?
Ole Kirk Christiansen created LEGO in August 1932. The term "LEGO" is an acronym for the Danish phrase "leg godt," which translates as "play well." The corporation produces LEGO-branded toys and has created several entertainment parks across the globe, each known as a LEGOLAND. There are also various video games, movies, and television series based on interlocking bricks. The corporation's items are mass-produced, packaged, and sent on a big scale.
LEGO Star Wars, LEGO Classic, LEGO Technic, LEGO Disney Princess, LEGO Harry Potter, and LEGO Speed Champions were the best-performing themes in 2020. By revenue, LEGO has overtaken Mattel to become one of the World's top toymakers.
Who owns the LEGO brand?
KIRKBI A/S owns 75% of LEGO, while the Lego Foundation owns the other 25%. KIRKBI A/S is the holding and finance company of the Kirk Kristiansen family.
The Lego Group's Brief History
The Lego Group's origins may be traced to August 10, 1932. The firm, which had yet to be named, did not deal with plastic Lego bricks from the start. It all started with the manufacture and marketing of little wooden toys. This is not surprising given that the firm was founded by a carpenter called Ole Kirk Kristiansen. Kristiansen used to own a modest woodworking shop that sold home furnishings.
It wasn't until after World War II, precisely in 1947, that the firm began selling Lego bricks after purchasing plastic injection molding equipment. Following the success of its newest specialty, LEGO has recently expanded to include factories all around the globe.
Niels B. Christiansen, a Danish businessman, has been the CEO of LEGO since 2017. During his tenure, the corporation was able to recover from its bad performance.
What Is the Value of LEGO?
According to analysts, The LEGO Group is valued at almost $40 billion.
This is unsurprising considering the company's profitability over the previous decade.
Its annual sales exceed some of its closest rivals, particularly in 2021.
What Is the Revenue of LEGO?
While LEGO has always been a very lucrative company, it has been expanding at an exponential rate.
According to the business, revenues grew by more than 40% to $3.6 billion in the first half of 2021.
Profits at LEGO increased by 140 percent to $1.75 billion.
Clearly, this has been a banner year for LEGO.
However, no one knows whether they will be able to maintain the trend, given the epidemic is likely to have had a part in the increase in sales.
Product sales, branded items, and LEGOLAND amusement parks provide income for the privately held corporation.
The Development of Lego
For the last decade, everything has been fairly wonderful for Lego. According to a March 2018 Financial Times newspaper report, Lego has witnessed a drop in sales following 13 years of double-digit growth. Its new-ish CEO Niels Christiansen referred to as "supernatural growth." They aim to "return to a growth trajectory that mimics the market" now that things are slowing down. (Since the stock market averages 7-10%, this is what he means.) You can look at Lego's financial accounts right here if you're inquisitive.
How will they get back on track? Christiansen thinks they will do this by "unleashing the creativity" of the Lego designers - great news for Lego lovers! – and making the company less bureaucratic. In other words, the creators will be able to create without having to consult with their bosses every time they want to do anything. They'll also concentrate more on digital goods like Boost, as plastic bricks complete with mobile phones, drones, and robots. Let's not forget that since the interlocking brick patent expired, there has been a slew of rivals attempting to imitate it. The corporation must also determine if its focus will be on theme parks and movies or on new digital offerings. Companies must concentrate in order to be successful. You can't do it all!
The benefit of not going public for Lego is that it can concentrate on its objective of "putting Lego kits into the hands of children" rather than meeting specific financial benchmarks to appease a group of shareholders. Check out the 50th-anniversary video, which tells the tale of the company's origins and how the name came from the Danish expression "leg godt," which signifies "play well."
If you truly want to invest in Lego, the best way to do so is to buy their products. If you want to add a toymaker to your portfolio, you may do it right now by investing in a rival like Mattel, Hasbro, or Disney.
Will Lego Ever Be Out of Fashion?
After all, it's been ninety years, and Lego is still as popular as ever, so the answer is most likely a loud no. Regrettably, there is no Lego stock. The secret to Lego's continuous success is the company's extraordinary ability to keep on top of what's trendy.
Lego not only seeks out great brands and franchises, but these same brands also seek out Lego. Lego is a brand that appeals to people of all ages, and the addition of income streams from movies and television programs is a clever method for the company to sell its goods. Would you be shocked if Lego was still as popular in another ninety years? I most certainly would not be!
Another reason Lego has been able to stay up with technology is the digital nature of its goods. Lego is producing television shows and movies based on its characters, providing youngsters with a nonviolent way to enjoy superheroes. Of course, this can be transformed into additional products, as well as other income sources such as mobile games.
Despite the fact that the firm is over a century old, LEGO has not slowed down. Forbes placed the firm at number 92 on its list of the Top 100 Most Valuable Brands in the World for 2020.
Since 2017, The Lego Group has outperformed the broader toy industry, a trend that is projected to continue.
Apart from its popularity, the COVID-19 epidemic may be blamed for LEGO's current growth rate. They wanted something to do while their families were quarantined and spent most of their time at home. And they discovered something! Playing with LEGOS and constructing LEGO models are excellent activities to spend time on.
The Lego Group's customer base expanded by 14% during the first half of 2020, while its gross income climbed by 7%. Furthermore, the company's operating profit increased by 11%.
Unfortunately, even if you reside in Denmark, this is not the case. Since its inception, Lego has been a privately held enterprise. But I can understand why you'd be interested in purchasing Lego stock. It is an industry leader with a recognized brand presence in any market.
Lego stock is undoubtedly a popular stock that parents may buy for their children. Stocks such as Walt Disney (NYSE: DIS), Roblox (NYSE: RBLX), and McDonald's are further examples of portfolio starters (NYSE: MCD).
Despite being a big firm and a top-tier worldwide brand, Lego is not yet publicly listed on any global stock exchange.
Lego, as a company, is still expanding rapidly. In 2020, the firm reported a 13% year-on-year increase in sales to around 43.7 billion DKK or a little under $7 billion USD. This places Lego solidly in the $2 billion revenue range every quarter.
Obviously, the holiday quarters will provide higher profits than the other quarters. The increase in income was caused by more individuals remaining at home owing to the COVID-19 epidemic, as well as the growth of worldwide supply chains and a greater dependence and availability on eCommerce platforms.
We like speculating on the value of private firms. It's something we've done with firms like Aldi and Lidl, who have lured you to invest just to find out you can't.
However, it is difficult to predict the Lego stock price. It's also reasonable to suppose that we won't find out since Lego shares will most likely stay securely in the hands of the family that has claimed ownership of the toy since its inception. That's unfortunate for investors, but it's the way of the World. Fortunately, as previously indicated, you may always buy comparable items.
However, we are aware of the company's worth and revenue. We know that Lego's revenue in 2016 was more than $15.5 billion, with operating income accounting for more than $4.5 billion of that total. In fact, there was a significant loss that year. However, this is frequent since they spend substantially on advertising and expanding the brand, not to mention the construction of Legoland, the production and marketing of Lego films and games, and anything else they are involved with.
What is Lego's stock symbol?
There is no corporation that has the Lego stock symbol, which greatly simplifies matters. These issues may develop, and it is not uncommon for a private corporation to have the same name as a stock ticker. This may make things tough for first-time investors and traders who aren't clear about how things operate.
But that is not the situation here. It also implies that, in the improbable event that Lego stock becomes available, they will be permitted to utilize the Lego stock symbol.
When Will The Lego Group Go Public?
Unfortunately, no information on whether or not the firm will go public.
Kirkbi A/S, the holding and investment business of the founder's family, holds about 75% of LEGO's stock. Meanwhile, The Lego Foundation is in charge of the remaining 25%. The Lego Foundation is a non-profit organization dedicated to inspiring children to be creative, involved, and lifelong learners.
Kjeld Kirk Kristiansen and Thomas Kirk Kristiansen are, coincidentally (or not), the deputy chairman and chairman of the board. Both are the company's founder, Ole Kirk Kristiansen's grandson, and a great-grandson.
The Kristiansen family virtually controls the whole firm via its holding and investment company and humanitarian organization. Unless an unusual occurrence occurs in the future, it's difficult to envision the Kristiansen family relinquishing even a smidgeon of authority.
The Best Lego Product Partnerships
One of the nicest things about choosing which Lego kit to construct is the sheer amount of various companies with which it is associated. With no Lego stock, here is a brief rundown of some of the finest Lego product collaborations.
Marvel Universe and DC Universe: When it comes to the two major comic book worlds, Lego doesn't fool around. It works with both. Lego offers hundreds of distinct sets based on these superheroes.
However, one of the most popular pieces of intellectual property for Lego is its movies and television series. The Lego Batman Movie is only one of the many films made by the firm. As well as Lego Avengers, Lego Justice League vs. Bizarro League, and Lego Aquaman.
Lego Star Wars: One of the World's most famous franchises, Star Wars, has a fair number of Lego goods. This contains a number of various episodes and films set in the Lego Star Wars world.
And even a few video games. The Star Wars models, including the notorious Lego Death Star, are some of the most sophisticated and elaborate Lego kits, including over 4,000 pieces and costing more than $1,000.00 to purchase.
Adidas Originals: Lego isn't only about superheroes; it also knows a thing or two about fashion. Lego collaborated with Adidas Originals to develop many items of apparel that integrate Lego patterns, as well as a Lego set for the iconic Adidas Superstar footwear.
Invest in LEGO Competitors
There are various competitors to LEGO in the toy-making market that you may invest in while the firm remains privately held.
These other stocks are also great companies with well-known toy names.
Mattel Inc. (NASDAQ: MAT)
Mattel is one of LEGO's main competitors. It is one of the oldest toy businesses in the United States.
Mattel is, in reality, the World's second-largest toymaker, after only LEGO.
Mattel North America, Mattel International, and American Girl are the three business sectors that make up the corporation today.
Mattel owns a number of iconic brands, including Barbie, Hot Wheels, and Masters of the Universe.
Barbie and Hot Wheels, like LEGO sets and bits, are very collectible and have their own market among collectors.
Funko (NASDAQ: FNKO)
The Funko brand, another plastic toy business, is one of LEGO's competitors in the collectibles industry.
Funko was created in 1998 and soon became a household name in the toy business.
Funko touches all decades of popular culture, manufacturing vinyl figurines resembling thousands of characters from hundreds of franchises.
Franchises span from classics like Betty Boop and The Cat in the Hat to modern pop culture icons like the Marvel Cinematic Universe's characters.
Rarity plays a role in the attractiveness of Funko figurines, with some being more difficult to locate than others.
This uniqueness lends itself to higher aftermarket pricing after the run of figures has concluded, similar to how the price of defunct LEGO sets tends to increase.
Bandai Namco Holdings (OTCMKTS: NCBDY)
Bandai Namco is a Japanese video game creation firm that has recently expanded into the plastic model industry.
Aside from gaming, the firm also produces luxury model sets.
While it does not create model kits like the LEGO brand, it does take a similar strategy to its relationships.
Bandai Namco owns the Mobile Suit Gundam franchise, a very successful animated series about sophisticated robots.
Bandai Namco offers plastic model kits based on the characters from the Gundam series as part of this franchise.
Bandai Namco has collaborated with Star Wars to make movie-accurate model kits in addition to the Gundam brand.
With the rebirth of Star Wars media, kits based on new and old IPs are highly sought for and, like with other Star Wars souvenirs, may be rather costly.
Hasbro, Inc. (NASDAQ: HAS)
Hasbro is active in a variety of sectors, including entertainment, media, and board games.
Parker Brothers and Milton Bradley are two board game manufacturers that have been bought by the corporation.
Transformers, Power Rangers, Nerf, Monopoly, My Little Pony, and Furby are some of the most well-known brands within the Hasbro banner.
Notably, Hasbro also owns Wizards of the Coast, the company behind the famous trading card game Magic: The Gathering and Dungeons & Dragons.
Final Words
Lego remains a privately held firm with no intentions to go public in the near future. While you can't purchase LEGO stock right now, there are lots of competitors. The highly sought-after kits have created a tiny market for themselves as the corporation has manufactured more and more sets and discontinued earlier ones. As the World's biggest toymaker, and unquestionably the most popular, if the firm goes public one day, the share price may be astronomical.
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