LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
NYSE:LEG - New York Stock Exchange, Inc. - US5246601075 - Common Stock - Currency: USD
Taking everything into account, LEG scores 3 out of 10 in our fundamental rating. LEG was compared to 67 industry peers in the Household Durables industry. Both the profitability and financial health of LEG have multiple concerns. LEG is valued correctly, 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.
LEG had positive earnings in 4 of the past 5 years.
In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEG (-21.77%) is worse than 90.77% of its industry peers.
LEG's Return On Equity of -111.07% is on the low side compared to the rest of the industry. LEG is outperformed by 92.31% of its industry peers.
With a Return On Invested Capital value of 7.79%, LEG perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEG is below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.77% | ||
| ROE | -111.07% | ||
| ROIC | 7.79% |
ROA(3y)3.53%
ROA(5y)4.48%
ROE(3y)11.01%
ROE(5y)14.95%
ROIC(3y)9.01%
ROIC(5y)9.04%
1.3 Margins
The Operating Margin of LEG (5.96%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LEG has declined.
LEG has a worse Gross Margin (17.51%) than 87.69% of its industry peers.
In the last couple of years the Gross Margin of LEG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 17.51% |
OM growth 3Y-10.47%
OM growth 5Y-7.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.08%
GM growth 5Y-2.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEG is still creating some value.
LEG has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.62 indicates that LEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, LEG is in line with its industry, outperforming 41.54% of the companies in the same industry.
LEG has a debt to FCF ratio of 7.63. This is a slightly negative value and a sign of low solvency as LEG would need 7.63 years to pay back of all of its debts.
The Debt to FCF ratio of LEG (7.63) is comparable to the rest of the industry.
LEG has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LEG (2.13) is worse than 93.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.01
WACC7.71%
2.3 Liquidity
LEG has a Current Ratio of 1.48. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
LEG's Current ratio of 1.48 is on the low side compared to the rest of the industry. LEG is outperformed by 76.92% of its industry peers.
A Quick Ratio of 0.84 indicates that LEG may have some problems paying its short term obligations.
LEG's Quick ratio of 0.84 is on the low side compared to the rest of the industry. LEG is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for LEG have decreased strongly by -27.63% 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 -11.01% on average per year.
The Revenue has decreased by -7.57% in the past year.
LEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.05% yearly.
EPS 1Y (TTM)-27.63%
EPS 3Y-13.26%
EPS 5Y-11.01%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-7.57%
Revenue growth 3Y3.35%
Revenue growth 5Y2.05%
Sales Q2Q%-6.27%
3.2 Future
The Earnings Per Share is expected to grow by 3.32% on average over the next years.
Based on estimates for the next years, LEG will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y-24.25%
EPS Next 2Y-7.7%
EPS Next 3Y-2.3%
EPS Next 5Y3.32%
Revenue Next Year-7.66%
Revenue Next 2Y-4.17%
Revenue Next 3Y-2.42%
Revenue Next 5Y-0.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.40, the valuation of LEG can be described as very reasonable.
67.69% of the companies in the same industry are more expensive than LEG, based on the Price/Earnings ratio.
LEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
With a Price/Forward Earnings ratio of 8.73, the valuation of LEG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LEG is valued a bit cheaper than 70.77% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEG indicates a rather cheap valuation: LEG is cheaper than 93.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
LEG's earnings are expected to decrease with -2.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.7%
EPS Next 3Y-2.3%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
LEG's Dividend Yield is rather good when compared to the industry average which is at 2.94. LEG pays more dividend than 81.54% of the companies in the same industry.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of LEG has a limited annual growth rate of 4.04%.
LEG has been paying a dividend for at least 10 years, so it has a reliable track record.
LEG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.04%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
The earnings of LEG are negative and hence is the payout ratio. LEG will probably not be able to sustain this dividend level.
The dividend of LEG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-23.21%
EPS Next 2Y-7.7%
EPS Next 3Y-2.3%
LEGGETT & PLATT INC
NYSE:LEG (2/4/2025, 8:04:00 PM)
After market: 10.34 0 (0%)10.34
+0.19 (+1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners78.59%
Inst Owner Change-1.18%
Ins Owners0.65%
Ins Owner Change0.46%
Market Cap1.39B
Analysts49.09
Price Target12.92 (24.95%)
Short Float %4.12%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.8
Dividend Growth(5Y)4.04%
DP-23.21%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.37%
Min EPS beat(2)-3.49%
Max EPS beat(2)-3.26%
EPS beat(4)0
Avg EPS beat(4)-4.13%
Min EPS beat(4)-5.12%
Max EPS beat(4)-3.26%
EPS beat(8)1
Avg EPS beat(8)-0.02%
EPS beat(12)4
Avg EPS beat(12)2.03%
EPS beat(16)7
Avg EPS beat(16)5.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-2.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)6
Avg Revenue beat(16)-0.26%
PT rev (1m)-5%
PT rev (3m)0%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-25.69%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-5.46%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.31 | ||
| P/FCF | 5.64 | ||
| P/OCF | 4.21 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.21 |
EPS(TTM)1.1
EY10.64%
EPS(NY)1.18
Fwd EY11.45%
FCF(TTM)1.83
FCFY17.74%
OCF(TTM)2.45
OCFY23.73%
SpS33.08
BVpS5.52
TBVpS-1.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.77% | ||
| ROE | -111.07% | ||
| ROCE | 10.15% | ||
| ROIC | 7.79% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 14.89% | ||
| OM | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 17.51% | ||
| FCFM | 5.54% |
ROA(3y)3.53%
ROA(5y)4.48%
ROE(3y)11.01%
ROE(5y)14.95%
ROIC(3y)9.01%
ROIC(5y)9.04%
ROICexc(3y)9.91%
ROICexc(5y)9.88%
ROICexgc(3y)23.02%
ROICexgc(5y)23.67%
ROCE(3y)11.77%
ROCE(5y)11.79%
ROICexcg growth 3Y-7.57%
ROICexcg growth 5Y-6.76%
ROICexc growth 3Y-3.28%
ROICexc growth 5Y-10.81%
OM growth 3Y-10.47%
OM growth 5Y-7.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.08%
GM growth 5Y-2.79%
F-Score4
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 56.71% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.62 |
F-Score4
WACC7.71%
ROIC/WACC1.01
Cap/Depr(3y)58.65%
Cap/Depr(5y)57.1%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.63%
EPS 3Y-13.26%
EPS 5Y-11.01%
EPS Q2Q%-11.11%
EPS Next Y-24.25%
EPS Next 2Y-7.7%
EPS Next 3Y-2.3%
EPS Next 5Y3.32%
Revenue 1Y (TTM)-7.57%
Revenue growth 3Y3.35%
Revenue growth 5Y2.05%
Sales Q2Q%-6.27%
Revenue Next Year-7.66%
Revenue Next 2Y-4.17%
Revenue Next 3Y-2.42%
Revenue Next 5Y-0.25%
EBIT growth 1Y-25.18%
EBIT growth 3Y-7.47%
EBIT growth 5Y-5.9%
EBIT Next Year15.23%
EBIT Next 3Y8.3%
EBIT Next 5Y8.31%
FCF growth 1Y-14.75%
FCF growth 3Y-10.59%
FCF growth 5Y6.43%
OCF growth 1Y-14.46%
OCF growth 3Y-6.21%
OCF growth 5Y2.46%