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 64 industry peers in the Household Durables industry. LEG may be in some trouble as it scores bad on both profitability and health. LEG is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LEG had positive earnings in the past year.
In the past year LEG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LEG reported negative net income in multiple years.
Each year in the past 5 years LEG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -13.97%, LEG is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
The Return On Equity of LEG (-74.19%) is worse than 89.06% of its industry peers.
LEG has a Return On Invested Capital of 7.20%. This is comparable to the rest of the industry: LEG outperforms 51.56% of its industry peers.
LEG had an Average Return On Invested Capital over the past 3 years of 8.00%. This is below the industry average of 12.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.97% | ||
| ROE | -74.19% | ||
| ROIC | 7.2% |
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
LEG has a Operating Margin of 5.85%. This is comparable to the rest of the industry: LEG outperforms 45.31% of its industry peers.
LEG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.39%, LEG is doing worse than 84.38% of the companies in the same industry.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEG is still creating some value.
The number of shares outstanding for LEG has been increased compared to 1 year ago.
Compared to 5 years ago, LEG has more shares outstanding
Compared to 1 year ago, LEG has a worse debt to assets ratio.
2.2 Solvency
LEG has an Altman-Z score of 2.68. This is not the best score and indicates that LEG is in the grey zone with still only limited risk for bankruptcy at the moment.
LEG has a Altman-Z score (2.68) which is in line with its industry peers.
LEG has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as LEG would need 8.32 years to pay back of all of its debts.
LEG has a Debt to FCF ratio of 8.32. This is comparable to the rest of the industry: LEG outperforms 51.56% of its industry peers.
LEG has a Debt/Equity ratio of 2.70. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LEG (2.70) is worse than 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.97
WACC7.46%
2.3 Liquidity
A Current Ratio of 2.00 indicates that LEG should not have too much problems paying its short term obligations.
LEG has a Current ratio (2.00) which is in line with its industry peers.
A Quick Ratio of 1.14 indicates that LEG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, LEG perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
LEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.46%.
The earnings per share for LEG have been decreasing by -16.39% on average. This is quite bad
The Revenue has decreased by -7.23% in the past year.
The Revenue has been decreasing by -1.60% on average over the past years.
EPS 1Y (TTM)-24.46%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.26%
3.2 Future
Based on estimates for the next years, LEG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y2.44%
EPS Next 2Y5.02%
EPS Next 3Y8.96%
EPS Next 5Y8.46%
Revenue Next Year-4.05%
Revenue Next 2Y-1.48%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.81 indicates a rather cheap 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 71.88% of the companies listed in the same industry.
LEG is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
LEG is valuated cheaply with a Price/Forward Earnings ratio of 6.65.
LEG's Price/Forward Earnings ratio is rather cheap when compared to the industry. LEG is cheaper than 82.81% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 62.50% of the companies listed 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 92.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 6.23 |
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)2.79
PEG (5Y)N/A
EPS Next 2Y5.02%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 2.91%.
In the last 3 months the price of LEG has falen by -33.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.73, LEG pays a better dividend. On top of this LEG pays more dividend than 85.94% of the companies listed in the same industry.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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.
LEG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.18%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
LEG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-26.65%
EPS Next 2Y5.02%
EPS Next 3Y8.96%
7.15
+0.25 (+3.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners77.25%
Inst Owner Change0.19%
Ins Owners0.69%
Ins Owner Change11.13%
Market Cap964.89M
Analysts49.09
Price Target11.9 (66.43%)
Short Float %5.92%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP-26.65%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.29%
Min EPS beat(2)-3.26%
Max EPS beat(2)2.68%
EPS beat(4)1
Avg EPS beat(4)-2.3%
Min EPS beat(4)-5.12%
Max EPS beat(4)2.68%
EPS beat(8)2
Avg EPS beat(8)2.71%
EPS beat(12)4
Avg EPS beat(12)1.85%
EPS beat(16)7
Avg EPS beat(16)5.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.29%
PT rev (1m)0%
PT rev (3m)-12.5%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-11.22%
EPS NY rev (1m)-4.27%
EPS NY rev (3m)-10.13%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.22 | ||
| P/FCF | 4.31 | ||
| P/OCF | 3.16 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.23 |
EPS(TTM)1.05
EY14.69%
EPS(NY)1.08
Fwd EY15.04%
FCF(TTM)1.66
FCFY23.23%
OCF(TTM)2.27
OCFY31.68%
SpS32.48
BVpS5.11
TBVpS-1.82
PEG (NY)2.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.97% | ||
| ROE | -74.19% | ||
| ROCE | 9.11% | ||
| ROIC | 7.2% | ||
| ROICexc | 8.22% | ||
| ROICexgc | 13.25% | ||
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% | ||
| FCFM | 5.11% |
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%
ROICexcg growth 3Y-24.14%
ROICexcg 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-Score5
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 60% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 77.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.68 |
F-Score5
WACC7.46%
ROIC/WACC0.97
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)-24.46%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-19.23%
EPS Next Y2.44%
EPS Next 2Y5.02%
EPS Next 3Y8.96%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.26%
Revenue Next Year-4.05%
Revenue Next 2Y-1.48%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.88%
EBIT growth 1Y-22.94%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year56.29%
EBIT Next 3Y20.09%
EBIT Next 5Y12.89%
FCF growth 1Y-41.55%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-38.52%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%