LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
12.15 USD
-0.39 (-3.11%)
12.15 USD
0 (0%)
Taking everything into account, LEG scores 4 out of 10 in our fundamental rating. LEG was compared to 60 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.
- In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
- LEG's Return On Assets of 6.37% is in line compared to the rest of the industry. LEG outperforms 58.33% of its industry peers.
- The Return On Equity of LEG (23.09%) is better than 91.67% 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 53.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LEG is in line with the industry average of 9.71%.
| 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
- LEG's Profit Margin of 5.38% is in line compared to the rest of the industry. LEG outperforms 60.00% of its industry peers.
- LEG has a Operating Margin (6.28%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of LEG has declined.
- LEG has a Gross Margin of 18.28%. This is amonst the worse of the industry: LEG underperforms 81.67% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LEG is destroying value.
- Compared to 1 year ago, LEG has more shares outstanding
- LEG has more shares outstanding than it did 5 years ago.
- LEG has a worse debt/assets ratio than last year.
2.2 Solvency
- LEG has an Altman-Z score of 3.02. This indicates that LEG is financially healthy and has little risk of bankruptcy at the moment.
- LEG has a Altman-Z score of 3.02. This is comparable to the rest of the industry: LEG outperforms 48.33% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.35, LEG is in line with its industry, outperforming 53.33% of the companies in the same industry.
- LEG has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
- LEG's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. LEG is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.91
WACC8.29%
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.
- Looking at the Current ratio, with a value of 2.15, LEG is doing worse than 60.00% of the companies in the same industry.
- 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.
- The Quick ratio of LEG (1.35) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- LEG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.45%.
- The earnings per share for LEG have been decreasing by -16.39% on average. This is quite bad
- The Revenue has decreased by -6.06% in the past year.
- The Revenue has been decreasing by -1.60% on average over the past years.
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 Y0.76%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue Next Year-6.87%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.22%
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 11.68, the valuation of LEG can be described as reasonable.
- Based on the Price/Earnings ratio, LEG is valued a bit cheaper than 61.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. LEG is valued rather cheaply when compared to this.
- LEG is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
- Based on the Price/Forward Earnings ratio, LEG is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
- LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LEG is valued a bit cheaper than 71.67% 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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 6.94 |
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)15.38
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
- LEG has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
- 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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%
LEGGETT & PLATT INC / LEG FAQ
What is the fundamental rating for LEG stock?
ChartMill assigns a fundamental rating of 4 / 10 to LEG.
What is the valuation status of LEGGETT & PLATT INC (LEG) stock?
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.
What is the valuation of LEGGETT & PLATT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEGGETT & PLATT INC (LEG) is 11.68 and the Price/Book (PB) ratio is 1.69.
What is the earnings growth outlook for LEGGETT & PLATT INC?
The Earnings per Share (EPS) of LEGGETT & PLATT INC (LEG) is expected to grow by 0.76% in the next year.