LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11.14 USD
-0.16 (-1.42%)
11.14 USD
0 (0%)
Taking everything into account, LEG scores 4 out of 10 in our fundamental rating. 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 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.
The reported net income has been mixed in the past 5 years: LEG reported negative net income in multiple years.
LEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEG has a Return On Assets (6.37%) which is in line with its industry peers.
LEG's Return On Equity of 23.09% is amongst the best of the industry. LEG outperforms 93.44% of its industry peers.
LEG has a Return On Invested Capital of 7.58%. This is comparable to the rest of the industry: LEG outperforms 54.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEG 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
Looking at the Profit Margin, with a value of 5.38%, LEG is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
Looking at the Operating Margin, with a value of 6.28%, LEG is in line with its industry, outperforming 44.26% of the companies in the same industry.
In the last couple of years the Operating Margin of LEG has declined.
The Gross Margin of LEG (18.28%) is worse than 81.97% of its industry peers.
In the last couple of years the Gross Margin of LEG has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LEG is destroying value.
LEG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LEG has been increased compared to 5 years ago.
Compared to 1 year ago, LEG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that LEG is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 2.99, LEG perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
LEG has a debt to FCF ratio of 5.35. This is a neutral value as LEG would need 5.35 years to pay back of all of its debts.
The Debt to FCF ratio of LEG (5.35) is comparable to the rest of the industry.
LEG has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external 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 | 2.99 |
ROIC/WACC0.92
WACC8.23%
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's Current ratio of 2.15 is in line compared to the rest of the industry. LEG outperforms 40.98% of 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.
With a decent Quick ratio value of 1.35, LEG is doing good in the industry, outperforming 63.93% of the companies in the same industry.
| 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.
LEG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.39% yearly.
The Revenue has decreased by -6.06% in the past year.
LEG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
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.
LEG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.23% yearly.
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
Based on the Price/Earnings ratio of 10.71, the valuation of LEG can be described as reasonable.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than the industry average as 63.93% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LEG to the average of the S&P500 Index (26.39), we can say LEG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.14, the valuation of LEG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LEG is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.84. LEG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
75.41% of the companies in the same industry are more expensive than LEG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LEG is valued cheaper than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)10.71
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, LEG has a reasonable but not impressive dividend return.
LEG's Dividend Yield is a higher than the industry average which is at 1.19.
LEG's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of LEG decreases each year by -8.18%.
LEG has been paying a dividend for at least 10 years, so it has 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%
11.14
-0.16 (-1.42%)
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-7.99%
Market Cap1.51B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target11.22 (0.72%)
Short Float %6.6%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 | 10.71 | ||
| Fwd PE | 10.14 | ||
| P/S | 0.36 | ||
| P/FCF | 5.4 | ||
| P/OCF | 4.45 | ||
| P/B | 1.55 | ||
| P/tB | 11.75 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.04
EY9.34%
EPS(NY)1.1
Fwd EY9.86%
FCF(TTM)2.06
FCFY18.53%
OCF(TTM)2.5
OCFY22.47%
SpS30.81
BVpS7.18
TBVpS0.95
PEG (NY)10.71
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 | 2.99 |
F-Score8
WACC8.23%
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%.