LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
NYSE:LEG - New York Stock Exchange, Inc. - US5246601075 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to LEG. LEG was compared to 64 industry peers in the Household Durables industry. LEG has a bad profitability rating. Also its financial health evaluation is rather negative. LEG has a bad growth rate and is valued cheaply.
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.
In multiple years LEG reported negative net income over the last 5 years.
Each year in the past 5 years LEG had a positive operating cash flow.
1.2 Ratios
LEG has a worse Return On Assets (-13.67%) than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of -68.63%, LEG is doing worse than 90.63% of the companies in the same industry.
LEG has a Return On Invested Capital (6.99%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LEG is below the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.67% | ||
| ROE | -68.63% | ||
| ROIC | 6.99% |
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
The Operating Margin of LEG (6.03%) 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 (17.73%) than 82.81% of its industry peers.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.03% | ||
| PM (TTM) | N/A | ||
| GM | 17.73% |
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
The number of shares outstanding for LEG has been increased compared to 5 years ago.
The debt/assets ratio for LEG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 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 2.72, LEG perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
LEG has a debt to FCF ratio of 7.76. This is a slightly negative value and a sign of low solvency as LEG would need 7.76 years to pay back of all of its debts.
LEG has a Debt to FCF ratio (7.76) which is comparable to the rest of the industry.
LEG has a Debt/Equity ratio of 2.59. This is a high value indicating a heavy dependency on external financing.
LEG's Debt to Equity ratio of 2.59 is on the low side compared to the rest of the industry. LEG is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 7.76 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.84
WACC8.34%
2.3 Liquidity
A Current Ratio of 2.20 indicates that LEG has no problem at all paying its short term obligations.
LEG has a Current ratio (2.20) which is in line with its industry peers.
LEG has a Quick Ratio of 1.36. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
LEG has a Quick ratio of 1.36. This is in the better half of the industry: LEG outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
LEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.82%.
The earnings per share for LEG have been decreasing by -16.39% on average. This is quite bad
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -6.51%.
Measured over the past years, LEG shows a decrease in Revenue. The Revenue has been decreasing by -1.60% on average per year.
EPS 1Y (TTM)-13.82%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.82%
3.2 Future
LEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.87% yearly.
LEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.83% yearly.
EPS Next Y6.29%
EPS Next 2Y8.55%
EPS Next 3Y9.37%
EPS Next 5Y8.87%
Revenue Next Year-4.73%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.27%
Revenue Next 5Y0.83%
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 8.42 indicates a reasonable valuation of LEG.
LEG's Price/Earnings ratio is a bit cheaper when compared to the industry. LEG is cheaper than 64.06% of the companies in the same industry.
LEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
LEG is valuated cheaply with a Price/Forward Earnings ratio of 7.21.
LEG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEG is cheaper than 79.69% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEG is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LEG is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 2.19%. 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 3.49.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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
The earnings of LEG are negative and hence is the payout ratio. LEG will probably not be able to sustain this dividend level.
DP-15.94%
EPS Next 2Y8.55%
EPS Next 3Y9.37%
8.92
-0.33 (-3.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners79.74%
Inst Owner Change3.67%
Ins Owners0.87%
Ins Owner Change11.19%
Market Cap1.21B
Analysts49.09
Price Target10.2 (14.35%)
Short Float %6.02%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP-15.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.96%
Min EPS beat(2)2.68%
Max EPS beat(2)9.25%
EPS beat(4)2
Avg EPS beat(4)1.3%
Min EPS beat(4)-3.49%
Max EPS beat(4)9.25%
EPS beat(8)2
Avg EPS beat(8)-2.38%
EPS beat(12)4
Avg EPS beat(12)1.23%
EPS beat(16)7
Avg EPS beat(16)3.05%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)6
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)1.68%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)1.14%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.28 | ||
| P/FCF | 4.83 | ||
| P/OCF | 3.78 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)1.06
EY11.88%
EPS(NY)1.24
Fwd EY13.87%
FCF(TTM)1.85
FCFY20.71%
OCF(TTM)2.36
OCFY26.43%
SpS31.88
BVpS5.53
TBVpS-0.64
PEG (NY)1.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.67% | ||
| ROE | -68.63% | ||
| ROCE | 8.84% | ||
| ROIC | 6.99% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 12.13% | ||
| OM | 6.03% | ||
| PM (TTM) | N/A | ||
| GM | 17.73% | ||
| FCFM | 5.79% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 7.76 | ||
| Debt/EBITDA | 4.9 | ||
| Cap/Depr | 51.22% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.72 |
F-Score5
WACC8.34%
ROIC/WACC0.84
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)-13.82%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%4.35%
EPS Next Y6.29%
EPS Next 2Y8.55%
EPS Next 3Y9.37%
EPS Next 5Y8.87%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.82%
Revenue Next Year-4.73%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.27%
Revenue Next 5Y0.83%
EBIT growth 1Y-14.87%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year51.98%
EBIT Next 3Y19.57%
EBIT Next 5Y12.8%
FCF growth 1Y-34.28%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-36.17%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%