LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - EPA:LR - FR0010307819 - Common Stock
129.85 EUR
+0.6 (+0.46%)
We assign a fundamental rating of 6 out of 10 to LR. LR was compared to 57 industry peers in the Electrical Equipment industry. LR gets an excellent profitability rating and is at the same time showing great financial health properties. LR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LR had positive earnings in the past year.
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.
1.2 Ratios
LR has a better Return On Assets (10.66%) than 94.74% of its industry peers.
Looking at the Return On Equity, with a value of 25.29%, LR belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.83%, LR belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LR is in line with the industry average of 10.00%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 25.29% | ||
| ROIC | 13.83% |
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 (13.07%) is better than 94.74% of its industry peers.
In the last couple of years the Profit Margin of LR has remained more or less at the same level.
With an excellent Operating Margin value of 19.06%, LR belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
LR's Operating Margin has been stable in the last couple of years.
LR has a Gross Margin of 51.45%. This is in the better half of the industry: LR outperforms 78.95% of its industry peers.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 13.07% | ||
| GM | 51.45% |
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 well above the Cost of Capital (WACC), so LR is creating value.
LR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LR has less shares outstanding
Compared to 1 year ago, LR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.26 indicates that LR is not in any danger for bankruptcy at the moment.
LR's Altman-Z score of 4.26 is amongst the best of the industry. LR outperforms 87.72% of its industry peers.
The Debt to FCF ratio of LR is 4.48, which is a neutral value as it means it would take LR, 4.48 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.48, LR is doing good in the industry, outperforming 68.42% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that LR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, LR is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.9
WACC7.29%
2.3 Liquidity
LR has a Current Ratio of 2.13. This indicates that LR is financially healthy and has no problem in meeting its short term obligations.
LR's Current ratio of 2.13 is fine compared to the rest of the industry. LR outperforms 73.68% of its industry peers.
LR has a Quick Ratio of 1.63. 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 Quick ratio of 1.63. This is in the better half of the industry: LR outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
LR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.93%.
The Earnings Per Share has been growing by 8.83% on average over the past years. This is quite good.
Looking at the last year, LR shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
LR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
EPS 1Y (TTM)-6.93%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-81.33%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%10.52%
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 7.27% on average per year.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y4.7%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPS Next 5Y7.27%
Revenue Next Year11.37%
Revenue Next 2Y9.38%
Revenue Next 3Y8.64%
Revenue Next 5Y7.54%
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.
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
Based on the Price/Earnings ratio of 31.06, the valuation of LR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 71.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, LR is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 22.27, the valuation of LR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LR.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, LR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 22.27 |
4.2 Price Multiples
LR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LR is cheaper than 71.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 64.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.32 | ||
| EV/EBITDA | 12.51 |
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)6.61
PEG (5Y)3.52
EPS Next 2Y6.92%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.16, LR pays a better dividend. On top of this LR pays more dividend than 84.21% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, LR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 32.60% 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.
DP32.6%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPA:LR (11/7/2025, 7:00:00 PM)
129.85
+0.6 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.93%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap34.05B
Revenue(TTM)8.65B
Net Income(TTM)1.77B
Analysts79.26
Price Target146.32 (12.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.6%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.55%
Min EPS beat(2)-17.54%
Max EPS beat(2)-1.56%
EPS beat(4)1
Avg EPS beat(4)2.99%
Min EPS beat(4)-17.54%
Max EPS beat(4)37.13%
EPS beat(8)4
Avg EPS beat(8)2.32%
EPS beat(12)7
Avg EPS beat(12)3.14%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)1
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)3.15%
Revenue beat(8)3
Avg Revenue beat(8)-2.34%
Revenue beat(12)4
Avg Revenue beat(12)5.83%
Revenue beat(16)7
Avg Revenue beat(16)16.06%
PT rev (1m)9.62%
PT rev (3m)24.93%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)5.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 22.27 | ||
| P/S | 2.52 | ||
| P/FCF | 25.32 | ||
| P/OCF | 21.9 | ||
| P/B | 4.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.51 |
EPS(TTM)4.18
EY3.22%
EPS(NY)5.83
Fwd EY4.49%
FCF(TTM)5.13
FCFY3.95%
OCF(TTM)5.93
OCFY4.57%
SpS51.51
BVpS26.63
TBVpS-7.83
PEG (NY)6.61
PEG (5Y)3.52
Graham Number50.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 25.29% | ||
| ROCE | 18.67% | ||
| ROIC | 13.83% | ||
| ROICexc | 17.2% | ||
| ROICexgc | 92.84% | ||
| OM | 19.06% | ||
| PM (TTM) | 13.07% | ||
| GM | 51.45% | ||
| FCFM | 9.96% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 52.29% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 22.62 | ||
| Cash Conversion | 52.25% | ||
| Profit Quality | 76.15% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.26 |
F-Score4
WACC7.29%
ROIC/WACC1.9
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)-6.93%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-81.33%
EPS Next Y4.7%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPS Next 5Y7.27%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%10.52%
Revenue Next Year11.37%
Revenue Next 2Y9.38%
Revenue Next 3Y8.64%
Revenue Next 5Y7.54%
EBIT growth 1Y-18.84%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year34.54%
EBIT Next 3Y16.09%
EBIT Next 5Y11.78%
FCF growth 1Y-13.42%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-11.07%
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 5 / 10 and the dividend payout ratio is 32.6%.