LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
128.6 EUR
+0.65 (+0.51%)
Taking everything into account, LR scores 6 out of 10 in our fundamental rating. LR was compared to 75 industry peers in the Electrical Equipment industry. LR has an excellent profitability rating, but there are some minor concerns on its financial health. LR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LR had positive earnings in the past year.
- LR had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.51%, LR belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
- The Return On Equity of LR (24.75%) is better than 88.00% of its industry peers.
- With an excellent Return On Invested Capital value of 13.65%, LR belongs to the best of the industry, outperforming 90.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LR is in line with the industry average of 9.57%.
- The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.75% | ||
| 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 92.00% of its industry peers.
- 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 18.98%. This is amongst the best in the industry. LR outperforms 92.00% of its industry peers.
- In the last couple of years the Operating Margin of LR has remained more or less at the same level.
- LR has a better Gross Margin (51.35%) than 81.33% of its industry peers.
- LR's Gross Margin has been stable in the last couple of years.
| 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.
- LR has about the same amout of shares outstanding than it did 1 year ago.
- LR has less shares outstanding than it did 5 years ago.
- LR has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.22 indicates that LR is not in any danger for bankruptcy at the moment.
- LR has a better Altman-Z score (4.22) than 77.33% of its industry peers.
- The Debt to FCF ratio of LR is 4.28, which is a neutral value as it means it would take LR, 4.28 years of fcf income to pay off all of its debts.
- LR has a better Debt to FCF ratio (4.28) than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that LR is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.78, LR is doing worse than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.22 |
ROIC/WACC1.58
WACC8.62%
2.3 Liquidity
- LR has a Current Ratio of 2.22. This indicates that LR is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.22, LR is doing good in the industry, outperforming 77.33% of the companies in the same industry.
- LR has a Quick Ratio of 1.69. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
- LR has a better Quick ratio (1.69) than 80.00% 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.
- LR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
- LR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.91%.
- 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 small growth in Earnings Per Share. The EPS will grow by 7.87% on average per year.
- The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y2.61%
EPS Next 2Y7.55%
EPS Next 3Y7.81%
EPS Next 5Y7.87%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.6%
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.
- 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
- LR is valuated rather expensively with a Price/Earnings ratio of 23.81.
- Compared to the rest of the industry, the Price/Earnings ratio of LR indicates a rather cheap valuation: LR is cheaper than 81.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, LR is valued at the same level.
- A Price/Forward Earnings ratio of 21.80 indicates a rather expensive valuation of LR.
- 65.33% of the companies in the same industry are more expensive than LR, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 77.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.47 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of LR may justify a higher PE ratio.
PEG (NY)9.12
PEG (5Y)2.7
EPS Next 2Y7.55%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.75%, LR has a reasonable but not impressive dividend return.
- LR's Dividend Yield is rather good when compared to the industry average which is at 0.79. LR pays more dividend than 88.00% of the companies in the same industry.
- LR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 2Y7.55%
EPS Next 3Y7.81%
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 for LR 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.
What are the PE and PB ratios of LEGRAND SA (LR.PA) stock?
The Price/Earnings (PE) ratio for LEGRAND SA (LR.PA) is 23.81 and the Price/Book (PB) ratio is 4.7.
Can you provide the expected EPS growth for LR stock?
The Earnings per Share (EPS) of LEGRAND SA (LR.PA) is expected to grow by 2.61% in the next year.