LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11 USD
+0.06 (+0.55%)
11.05 USD
+0.05 (+0.45%)
Overall LEG gets a fundamental rating of 4 out of 10. We evaluated LEG against 60 industry peers in the Household Durables industry. While LEG is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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.
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.
LEG has a Return On Equity of 23.09%. This is amongst the best in the industry. LEG outperforms 93.33% of its industry peers.
LEG has a Return On Invested Capital (7.58%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LEG is in line with the industry average of 9.70%.
| 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 has a Profit Margin of 5.38%. This is comparable to the rest of the industry: LEG outperforms 60.00% of its industry peers.
LEG has a Operating Margin (6.28%) which is in line with its industry peers.
LEG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.28%, LEG is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
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
Compared to 5 years ago, LEG has more shares outstanding
The debt/assets ratio for LEG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.99 indicates that LEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.99, LEG perfoms like the industry average, outperforming 48.33% 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.
With a Debt to FCF ratio value of 5.35, LEG perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that LEG has dependencies on debt 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 | 2.99 |
ROIC/WACC0.93
WACC8.16%
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 of 2.15. This is in the lower half of the industry: LEG underperforms 60.00% of its industry peers.
A Quick Ratio of 1.35 indicates that LEG should not have too much problems paying its short term obligations.
LEG has a Quick ratio of 1.35. This is in the better half of the industry: LEG outperforms 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 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
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
The Price/Earnings ratio is 10.58, which indicates a very decent valuation of LEG.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LEG to the average of the S&P500 Index (26.51), we can say LEG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.01, the valuation of LEG can be described as very reasonable.
LEG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEG is cheaper than 75.00% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.01 |
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 75.00% of the companies listed in the same industry.
88.33% of the companies in the same industry are more expensive than LEG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.33 | ||
| EV/EBITDA | 6.53 |
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)10.58
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, LEG has a reasonable but not impressive dividend return.
LEG's Dividend Yield is a higher than the industry average which is at 1.23.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
+0.06 (+0.55%)
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 Cap1.49B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target12.75 (15.91%)
Short Float %5.03%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP11.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)13.64%
PT rev (3m)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
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 | 10.58 | ||
| Fwd PE | 10.01 | ||
| P/S | 0.36 | ||
| P/FCF | 5.33 | ||
| P/OCF | 4.39 | ||
| P/B | 1.53 | ||
| P/tB | 11.6 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)1.04
EY9.45%
EPS(NY)1.1
Fwd EY9.99%
FCF(TTM)2.06
FCFY18.77%
OCF(TTM)2.5
OCFY22.75%
SpS30.81
BVpS7.18
TBVpS0.95
PEG (NY)10.58
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
WACC8.16%
ROIC/WACC0.93
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.
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 10.58 and the Price/Book (PB) ratio is 1.53.
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 1% in the next year.