Logo image of LR.PA

LEGRAND SA (LR.PA) Stock Fundamental Analysis

EPA:LR - Euronext Paris - Matif - FR0010307819 - Common Stock - Currency: EUR

93.95  -1.17 (-1.23%)

Fundamental Rating

6

LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 59 industry peers in the Electrical Equipment industry. LR scores excellent on profitability, but there are some minor concerns on its financial health. LR has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

1. Profitability

1.1 Basic Checks

In the past year LR was profitable.
In the past year LR had a positive cash flow from operations.
LR had positive earnings in each of the past 5 years.
In the past 5 years LR always reported a positive cash flow from operatings.
LR.PA Yearly Net Income VS EBIT VS OCF VS FCFLR.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

1.2 Ratios

The Return On Assets of LR (14.87%) is better than 98.15% of its industry peers.
LR has a better Return On Equity (33.05%) than 96.30% of its industry peers.
The Return On Invested Capital of LR (18.13%) is better than 96.30% 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 9.50%.
The 3 year average ROIC (8.90%) for LR is below the current ROIC(18.13%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 14.87%
ROE 33.05%
ROIC 18.13%
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%
LR.PA Yearly ROA, ROE, ROICLR.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 13.54%, LR belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Profit Margin of LR has remained more or less at the same level.
LR has a Operating Margin of 19.00%. This is amongst the best in the industry. LR outperforms 96.30% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.31%, LR is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
LR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 19%
PM (TTM) 13.54%
GM 52.31%
OM growth 3Y2.68%
OM growth 5Y-0.09%
PM growth 3Y6.91%
PM growth 5Y1.18%
GM growth 3Y0.04%
GM growth 5Y0.04%
LR.PA Yearly Profit, Operating, Gross MarginsLR.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

More info and screens

6

2. Health

2.1 Basic Checks

LR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LR has less shares outstanding
The number of shares outstanding for LR has been reduced compared to 5 years ago.
Compared to 1 year ago, LR has a worse debt to assets ratio.
LR.PA Yearly Shares OutstandingLR.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
LR.PA Yearly Total Debt VS Total AssetsLR.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.2 Solvency

An Altman-Z score of 4.35 indicates that LR is not in any danger for bankruptcy at the moment.
LR has a better Altman-Z score (4.35) than 92.59% of its industry peers.
The Debt to FCF ratio of LR is 4.43, which is a neutral value as it means it would take LR, 4.43 years of fcf income to pay off all of its debts.
LR's Debt to FCF ratio of 4.43 is fine compared to the rest of the industry. LR outperforms 74.07% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that LR is somewhat dependend on debt financing.
The Debt to Equity ratio of LR (0.69) is worse than 68.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF 4.43
Altman-Z 4.35
ROIC/WACC2.75
WACC6.58%
LR.PA Yearly LT Debt VS Equity VS FCFLR.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.95 indicates that LR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.95, LR is doing good in the industry, outperforming 64.81% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that LR should not have too much problems paying its short term obligations.
LR's Quick ratio of 1.39 is fine compared to the rest of the industry. LR outperforms 74.07% of its industry peers.
Industry RankSector Rank
Current Ratio 1.95
Quick Ratio 1.39
LR.PA Yearly Current Assets VS Current LiabilitesLR.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

More info and screens

4

3. Growth

3.1 Past

LR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.11%.
The Earnings Per Share has been growing by 9.06% on average over the past years. This is quite good.
The Revenue has grown by 31.25% in the past year. This is a very strong growth!
LR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.01% yearly.
EPS 1Y (TTM)-5.11%
EPS 3Y17.92%
EPS 5Y9.06%
EPS Q2Q%-9.32%
Revenue 1Y (TTM)31.25%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Sales Q2Q%0.31%

3.2 Future

Based on estimates for the next years, LR will show a small growth in Earnings Per Share. The EPS will grow by 7.90% on average per year.
Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 5.68% on average per year.
EPS Next Y-0.04%
EPS Next 2Y4.22%
EPS Next 3Y5.32%
EPS Next 5Y7.9%
Revenue Next Year0.79%
Revenue Next 2Y3.6%
Revenue Next 3Y4.53%
Revenue Next 5Y5.68%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
LR.PA Yearly Revenue VS EstimatesLR.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
LR.PA Yearly EPS VS EstimatesLR.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.92, which indicates a rather expensive current valuation of LR.
66.67% of the companies in the same industry are more expensive than LR, based on the Price/Earnings ratio.
LR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.32 indicates a rather expensive valuation of LR.
LR's Price/Forward Earnings is on the same level as the industry average.
LR is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.92
Fwd PE 18.32
LR.PA Price Earnings VS Forward Price EarningsLR.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 68.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than 70.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.56
EV/EBITDA 7.94
LR.PA Per share dataLR.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The excellent profitability rating of LR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y4.22%
EPS Next 3Y5.32%

More info and screens

6

5. Dividend

5.1 Amount

LR has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.14, LR pays a better dividend. On top of this LR pays more dividend than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, LR has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

The dividend of LR is nicely growing with an annual growth rate of 8.58%!
Dividend Growth(5Y)8.58%
Div Incr Years3
Div Non Decr Years5
LR.PA Yearly Dividends per shareLR.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

LR pays out 24.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of LR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y4.22%
EPS Next 3Y5.32%
LR.PA Yearly Income VS Free CF VS DividendLR.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
LR.PA Dividend Payout.LR.PA Dividend Payout, showing the Payout Ratio.LR.PA Dividend Payout.PayoutRetained Earnings

More info and screens

LEGRAND SA

EPA:LR (2/5/2025, 4:38:18 PM)

93.95

-1.17 (-1.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners48.16%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap24.64B
Analysts74.48
Price Target107.38 (14.29%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend1.91
Dividend Growth(5Y)8.58%
DP24.22%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.57%
Min EPS beat(2)-6.09%
Max EPS beat(2)4.95%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-8.87%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)1.86%
EPS beat(12)9
Avg EPS beat(12)3.11%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)1
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)0.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)0.19%
Revenue beat(8)2
Avg Revenue beat(8)8.97%
Revenue beat(12)5
Avg Revenue beat(12)21.69%
Revenue beat(16)8
Avg Revenue beat(16)28.24%
PT rev (1m)-0.84%
PT rev (3m)-0.59%
EPS NQ rev (1m)-3.18%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)-3.44%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.18%
Valuation
Industry RankSector Rank
PE 20.92
Fwd PE 18.32
P/S 1.48
P/FCF 21.56
P/OCF 18.1
P/B 3.61
P/tB N/A
EV/EBITDA 7.94
EPS(TTM)4.49
EY4.78%
EPS(NY)5.13
Fwd EY5.46%
FCF(TTM)4.36
FCFY4.64%
OCF(TTM)5.19
OCFY5.52%
SpS63.58
BVpS26.05
TBVpS-8.17
PEG (NY)N/A
PEG (5Y)2.31
Profitability
Industry RankSector Rank
ROA 14.87%
ROE 33.05%
ROCE 24.86%
ROIC 18.13%
ROICexc 21.16%
ROICexgc 116.93%
OM 19%
PM (TTM) 13.54%
GM 52.31%
FCFM 6.85%
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%
ROICexc(3y)11.46%
ROICexc(5y)10.81%
ROICexgc(3y)75.83%
ROICexgc(5y)69.33%
ROCE(3y)12.36%
ROCE(5y)12.05%
ROICexcg growth 3Y10.59%
ROICexcg growth 5Y3.37%
ROICexc growth 3Y10.94%
ROICexc growth 5Y3.23%
OM growth 3Y2.68%
OM growth 5Y-0.09%
PM growth 3Y6.91%
PM growth 5Y1.18%
GM growth 3Y0.04%
GM growth 5Y0.04%
F-Score7
Asset Turnover1.1
Health
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF 4.43
Debt/EBITDA 1.33
Cap/Depr 58.19%
Cap/Sales 1.31%
Interest Coverage 34.44
Cash Conversion 38.4%
Profit Quality 50.6%
Current Ratio 1.95
Quick Ratio 1.39
Altman-Z 4.35
F-Score7
WACC6.58%
ROIC/WACC2.75
Cap/Depr(3y)50.67%
Cap/Depr(5y)48.87%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.27%
Profit Quality(3y)118%
Profit Quality(5y)126.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.11%
EPS 3Y17.92%
EPS 5Y9.06%
EPS Q2Q%-9.32%
EPS Next Y-0.04%
EPS Next 2Y4.22%
EPS Next 3Y5.32%
EPS Next 5Y7.9%
Revenue 1Y (TTM)31.25%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Sales Q2Q%0.31%
Revenue Next Year0.79%
Revenue Next 2Y3.6%
Revenue Next 3Y4.53%
Revenue Next 5Y5.68%
EBIT growth 1Y33.07%
EBIT growth 3Y14.32%
EBIT growth 5Y6.92%
EBIT Next Year14.4%
EBIT Next 3Y9.42%
EBIT Next 5Y9.27%
FCF growth 1Y39.68%
FCF growth 3Y15.96%
FCF growth 5Y15.81%
OCF growth 1Y39.95%
OCF growth 3Y16.48%
OCF growth 5Y14.69%