LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
125.8 EUR
+2.2 (+1.78%)
Taking everything into account, LR scores 6 out of 10 in our fundamental rating. LR was compared to 67 industry peers in the Electrical Equipment industry. LR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LR has a correct valuation and a medium growth rate. This makes LR very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LR was profitable.
LR had a positive operating cash flow in the past year.
LR had positive earnings in each of the past 5 years.
LR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.51%, LR belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
The Return On Equity of LR (24.74%) is better than 88.06% of its industry peers.
LR has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. LR outperforms 91.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LR is in line with the industry average of 9.64%.
The last Return On Invested Capital (13.65%) for LR is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.74% | ||
| ROIC | 13.65% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.18%
ROIC(5y)8.59%
1.3 Margins
The Profit Margin of LR (12.96%) is better than 95.52% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
LR's Operating Margin of 18.98% is amongst the best of the industry. LR outperforms 94.03% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
The Gross Margin of LR (51.35%) is better than 80.60% of its industry peers.
In the last couple of years the Gross Margin of LR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.98% | ||
| PM (TTM) | 12.96% | ||
| GM | 51.35% |
OM growth 3Y-0.39%
OM growth 5Y0.33%
PM growth 3Y1.41%
PM growth 5Y1.36%
GM growth 3Y0.53%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LR is still creating some value.
The number of shares outstanding for LR remains at a similar level compared to 1 year ago.
The number of shares outstanding for LR has been reduced compared to 5 years ago.
LR has a better debt/assets ratio than last year.
2.2 Solvency
LR has an Altman-Z score of 4.14. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.14, LR belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
LR has a debt to FCF ratio of 4.28. This is a neutral value as LR would need 4.28 years to pay back of all of its debts.
LR's Debt to FCF ratio of 4.28 is fine compared to the rest of the industry. LR outperforms 71.64% of its industry peers.
LR has a Debt/Equity ratio of 0.78. This is a neutral value indicating LR is somewhat dependend on debt financing.
LR has a Debt to Equity ratio of 0.78. This is in the lower half of the industry: LR underperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.78
WACC7.69%
2.3 Liquidity
A Current Ratio of 2.22 indicates that LR has no problem at all paying its short term obligations.
LR has a Current ratio of 2.22. This is amongst the best in the industry. LR outperforms 83.58% of its industry peers.
A Quick Ratio of 1.69 indicates that LR should not have too much problems paying its short term obligations.
LR's Quick ratio of 1.69 is amongst the best of the industry. LR outperforms 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
LR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.24%, which is quite impressive.
The Earnings Per Share has been growing by 8.83% on average over the past years. This is quite good.
The Revenue for LR has decreased by -17.91% in the past year. This is quite bad
The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)20.24%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%32.71%
Revenue 1Y (TTM)-17.91%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%8.84%
3.2 Future
Based on estimates for the next years, LR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.18% on average per year.
Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 7.91% on average per year.
EPS Next Y2.83%
EPS Next 2Y7.46%
EPS Next 3Y8.13%
EPS Next 5Y8.18%
Revenue Next Year11.03%
Revenue Next 2Y10.01%
Revenue Next 3Y9.21%
Revenue Next 5Y7.91%
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 stable.
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
With a Price/Earnings ratio of 23.30, LR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 76.12% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. LR is around the same levels.
A Price/Forward Earnings ratio of 21.36 indicates a rather expensive valuation of LR.
Based on the Price/Forward Earnings ratio, LR is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, LR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 21.36 |
4.2 Price Multiples
LR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LR is cheaper than 68.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.97 | ||
| EV/EBITDA | 11.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.23
PEG (5Y)2.64
EPS Next 2Y7.46%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.90, LR pays a better dividend. On top of this LR pays more dividend than 83.58% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of LR grows each year by 9.28%, which is quite nice.
Dividend Growth(5Y)9.28%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
LR pays out 32.44% of its income as dividend. This is a sustainable payout ratio.
LR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.44%
EPS Next 2Y7.46%
EPS Next 3Y8.13%
EPA:LR (12/15/2025, 5:36:15 PM)
125.8
+2.2 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners53.75%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap32.99B
Revenue(TTM)13.69B
Net Income(TTM)1.77B
Analysts78.62
Price Target145.67 (15.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.44%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.18%
Min EPS beat(2)-17.54%
Max EPS beat(2)11.18%
EPS beat(4)2
Avg EPS beat(4)7.3%
Min EPS beat(4)-17.54%
Max EPS beat(4)37.13%
EPS beat(8)4
Avg EPS beat(8)2.4%
EPS beat(12)7
Avg EPS beat(12)3.68%
EPS beat(16)11
Avg EPS beat(16)4.16%
Revenue beat(2)1
Avg Revenue beat(2)-3.89%
Min Revenue beat(2)-7.96%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-7.96%
Max Revenue beat(4)3.15%
Revenue beat(8)3
Avg Revenue beat(8)-2.72%
Revenue beat(12)4
Avg Revenue beat(12)5.29%
Revenue beat(16)7
Avg Revenue beat(16)15.75%
PT rev (1m)-0.44%
PT rev (3m)9.13%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 21.36 | ||
| P/S | 2.41 | ||
| P/FCF | 22.97 | ||
| P/OCF | 19.96 | ||
| P/B | 4.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.8 |
EPS(TTM)5.4
EY4.29%
EPS(NY)5.89
Fwd EY4.68%
FCF(TTM)5.48
FCFY4.35%
OCF(TTM)6.3
OCFY5.01%
SpS52.19
BVpS27.34
TBVpS-7.17
PEG (NY)8.23
PEG (5Y)2.64
Graham Number57.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.74% | ||
| ROCE | 18.43% | ||
| ROIC | 13.65% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 93.67% | ||
| OM | 18.98% | ||
| PM (TTM) | 12.96% | ||
| GM | 51.35% | ||
| FCFM | 10.49% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.18%
ROIC(5y)8.59%
ROICexc(3y)11.43%
ROICexc(5y)10.93%
ROICexgc(3y)71.04%
ROICexgc(5y)70.72%
ROCE(3y)12.5%
ROCE(5y)11.95%
ROICexgc growth 3Y-7.71%
ROICexgc growth 5Y0.85%
ROICexc growth 3Y-1.51%
ROICexc growth 5Y-0.2%
OM growth 3Y-0.39%
OM growth 5Y0.33%
PM growth 3Y1.41%
PM growth 5Y1.36%
GM growth 3Y0.53%
GM growth 5Y-0.11%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 51.81% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 26.08 | ||
| Cash Conversion | 54.81% | ||
| Profit Quality | 80.96% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.14 |
F-Score4
WACC7.69%
ROIC/WACC1.78
Cap/Depr(3y)53.91%
Cap/Depr(5y)49.06%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.26%
Profit Quality(3y)119.67%
Profit Quality(5y)123.7%
High Growth Momentum
Growth
EPS 1Y (TTM)20.24%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%32.71%
EPS Next Y2.83%
EPS Next 2Y7.46%
EPS Next 3Y8.13%
EPS Next 5Y8.18%
Revenue 1Y (TTM)-17.91%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%8.84%
Revenue Next Year11.03%
Revenue Next 2Y10.01%
Revenue Next 3Y9.21%
Revenue Next 5Y7.91%
EBIT growth 1Y-18.02%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year32.53%
EBIT Next 3Y16.52%
EBIT Next 5Y12.65%
FCF growth 1Y-13.41%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-11.41%
OCF growth 3Y11.04%
OCF growth 5Y4.21%
LEGRAND SA / LR.PA FAQ
Can you provide the ChartMill fundamental rating for LEGRAND SA?
ChartMill assigns a fundamental rating of 6 / 10 to LR.PA.
What is the valuation status of LEGRAND SA (LR.PA) stock?
ChartMill assigns a valuation rating of 4 / 10 to LEGRAND SA (LR.PA). This can be considered as Fairly Valued.
What is the profitability of LR stock?
LEGRAND SA (LR.PA) has a profitability rating of 8 / 10.
Can you provide the financial health for LR stock?
The financial health rating of LEGRAND SA (LR.PA) is 7 / 10.
Can you provide the dividend sustainability for LR stock?
The dividend rating of LEGRAND SA (LR.PA) is 6 / 10 and the dividend payout ratio is 32.44%.