LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11.44 USD
-0.21 (-1.8%)
11.44 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LEG. LEG was compared to 61 industry peers in the Household Durables industry. LEG has only an average score on both its financial health and profitability. LEG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LEG had positive earnings in the past year.
LEG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LEG reported negative net income in multiple years.
In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEG (6.37%) is comparable to the rest of the industry.
The Return On Equity of LEG (23.09%) is better than 93.44% of its industry peers.
LEG has a Return On Invested Capital (7.58%) which is in line with its industry peers.
LEG had an Average Return On Invested Capital over the past 3 years of 8.00%. This is in line with the industry average of 9.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 23.09% | ||
| ROIC | 7.58% |
ROA(3y)-3.65%
ROA(5y)0.38%
ROE(3y)-21.86%
ROE(5y)-4.68%
ROIC(3y)8%
ROIC(5y)8.74%
1.3 Margins
The Profit Margin of LEG (5.38%) is better than 60.66% of its industry peers.
With a Operating Margin value of 6.28%, LEG perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
In the last couple of years the Operating Margin of LEG has declined.
LEG has a worse Gross Margin (18.28%) than 81.97% of its industry peers.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.28% | ||
| PM (TTM) | 5.38% | ||
| GM | 18.28% |
OM growth 3Y-18.8%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.29%
GM growth 5Y-4.1%
2. Health
2.1 Basic Checks
LEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LEG has more shares outstanding
LEG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEG has a worse debt to assets ratio.
2.2 Solvency
LEG has an Altman-Z score of 3.01. This indicates that LEG is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.01, LEG perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
The Debt to FCF ratio of LEG is 5.35, which is a neutral value as it means it would take LEG, 5.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LEG (5.35) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that LEG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.54, LEG is doing worse than 83.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.92
WACC8.27%
2.3 Liquidity
LEG has a Current Ratio of 2.15. This indicates that LEG is financially healthy and has no problem in meeting its short term obligations.
LEG has a Current ratio (2.15) which is in line with its industry peers.
LEG has a Quick Ratio of 1.35. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
LEG has a better Quick ratio (1.35) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for LEG have decreased by -5.45% in the last year.
Measured over the past years, LEG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.39% on average per year.
The Revenue has decreased by -6.06% in the past year.
Measured over the past years, LEG shows a decrease in Revenue. The Revenue has been decreasing by -1.60% on average per year.
EPS 1Y (TTM)-5.45%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.93%
3.2 Future
LEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
Based on estimates for the next years, LEG will show a decrease in Revenue. The Revenue will decrease by -0.23% on average per year.
EPS Next Y1%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue Next Year-6.87%
Revenue Next 2Y-5.33%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.00 indicates a reasonable valuation of LEG.
Compared to the rest of the industry, the Price/Earnings ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 62.30% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. LEG is valued rather cheaply when compared to this.
LEG is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 73.77% of the companies listed in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 75.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEG indicates a rather cheap valuation: LEG is cheaper than 88.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.54 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)11
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, LEG has a reasonable but not impressive dividend return.
LEG's Dividend Yield is a higher than the industry average which is at 1.16.
LEG's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of LEG decreases each year by -8.18%.
LEG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LEG pays out 11.94% of its income as dividend. This is a sustainable payout ratio.
DP11.94%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
11.44
-0.21 (-1.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.73%
Inst Owner Change-2.38%
Ins Owners0.87%
Ins Owner Change-8.03%
Market Cap1.55B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target11.22 (-1.92%)
Short Float %6.6%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP11.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.8%
Min EPS beat(2)-2.61%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)2.08%
Min EPS beat(4)-2.61%
Max EPS beat(4)9.25%
EPS beat(8)2
Avg EPS beat(8)-1.02%
EPS beat(12)3
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)3
Avg Revenue beat(12)-1.51%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)13.79%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.37 | ||
| P/FCF | 5.54 | ||
| P/OCF | 4.57 | ||
| P/B | 1.59 | ||
| P/tB | 12.07 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)1.04
EY9.09%
EPS(NY)1.1
Fwd EY9.6%
FCF(TTM)2.06
FCFY18.05%
OCF(TTM)2.5
OCFY21.88%
SpS30.81
BVpS7.18
TBVpS0.95
PEG (NY)11
PEG (5Y)N/A
Graham Number12.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 23.09% | ||
| ROCE | 9.59% | ||
| ROIC | 7.58% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 14.5% | ||
| OM | 6.28% | ||
| PM (TTM) | 5.38% | ||
| GM | 18.28% | ||
| FCFM | 6.7% |
ROA(3y)-3.65%
ROA(5y)0.38%
ROE(3y)-21.86%
ROE(5y)-4.68%
ROIC(3y)8%
ROIC(5y)8.74%
ROICexc(3y)8.89%
ROICexc(5y)9.67%
ROICexgc(3y)18.06%
ROICexgc(5y)21.73%
ROCE(3y)10.16%
ROCE(5y)11.09%
ROICexgc growth 3Y-24.14%
ROICexgc growth 5Y-12.98%
ROICexc growth 3Y-12.28%
ROICexc growth 5Y-5.12%
OM growth 3Y-18.8%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.29%
GM growth 5Y-4.1%
F-Score8
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 47.6% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.66% | ||
| Profit Quality | 124.6% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.01 |
F-Score8
WACC8.27%
ROIC/WACC0.92
Cap/Depr(3y)59.68%
Cap/Depr(5y)54.18%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.45%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-9.38%
EPS Next Y1%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.93%
Revenue Next Year-6.87%
Revenue Next 2Y-5.33%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.23%
EBIT growth 1Y-1.06%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year49.17%
EBIT Next 3Y17.95%
EBIT Next 5Y11.08%
FCF growth 1Y-40.89%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-43.33%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%
LEGGETT & PLATT INC / LEG FAQ
What is the fundamental rating for LEG stock?
ChartMill assigns a fundamental rating of 4 / 10 to LEG.
Can you provide the valuation status for LEGGETT & PLATT INC?
ChartMill assigns a valuation rating of 6 / 10 to LEGGETT & PLATT INC (LEG). This can be considered as Fairly Valued.
Can you provide the profitability details for LEGGETT & PLATT INC?
LEGGETT & PLATT INC (LEG) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for LEG stock?
The Earnings per Share (EPS) of LEGGETT & PLATT INC (LEG) is expected to grow by 1% in the next year.
Can you provide the dividend sustainability for LEG stock?
The dividend rating of LEGGETT & PLATT INC (LEG) is 4 / 10 and the dividend payout ratio is 11.94%.