LEGRAND SA (LR.PA)
FR0010307819 - Common Stock
Taking everything into account, LR scores 6 out of 10 in our fundamental rating. LR was compared to 57 industry peers in the Electrical Equipment industry. LR has an excellent profitability rating, but there are some minor concerns on its financial health. LR has a correct valuation and a medium growth rate.
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.
LR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LR's Return On Assets of 14.50% is amongst the best of the industry. LR outperforms 96.36% of its industry peers.
With an excellent Return On Equity value of 33.70%, LR belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
LR has a Return On Invested Capital of 18.21%. This is amongst the best in the industry. LR outperforms 96.36% of its industry peers.
LR had an Average Return On Invested Capital over the past 3 years of 8.90%. This is in line with the industry average of 9.16%.
The last Return On Invested Capital (18.21%) for LR is above the 3 year average (8.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 33.7% | ||
| ROIC | 18.21% |
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%
1.3 Margins
Looking at the Profit Margin, with a value of 13.73%, LR belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
LR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.03%, LR belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
In the last couple of years the Operating Margin of LR has remained more or less at the same level.
LR's Gross Margin of 52.35% is fine compared to the rest of the industry. LR outperforms 76.36% of its industry peers.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | 13.73% | ||
| GM | 52.35% |
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%
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.
LR has less shares outstanding than it did 1 year ago.
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.
2.2 Solvency
LR has an Altman-Z score of 4.24. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
LR has a better Altman-Z score (4.24) than 92.73% of its industry peers.
The Debt to FCF ratio of LR is 4.40, which is a neutral value as it means it would take LR, 4.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.40, LR is doing good in the industry, outperforming 70.91% of the companies in the same industry.
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 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 4.24 |
ROIC/WACC2.59
WACC7.02%
2.3 Liquidity
LR has a Current Ratio of 1.67. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
LR's Current ratio of 1.67 is in line compared to the rest of the industry. LR outperforms 50.91% of its industry peers.
A Quick Ratio of 1.24 indicates that LR should not have too much problems paying its short term obligations.
LR has a Quick ratio of 1.24. This is in the better half of the industry: LR outperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for LR have decreased by -0.69% in the last year.
Measured over the past years, LR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.06% on average per year.
The Revenue has grown by 30.70% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.01% on average over the past years.
EPS 1Y (TTM)-0.69%
EPS 3Y17.92%
EPS 5Y9.06%
EPS Q2Q%-3.79%
Revenue 1Y (TTM)30.7%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Sales Q2Q%1.72%
3.2 Future
LR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.59% yearly.
The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y3.42%
EPS Next 2Y4.82%
EPS Next 3Y5.4%
EPS Next 5Y2.59%
Revenue Next Year1.16%
Revenue Next 2Y3.44%
Revenue Next 3Y4.14%
Revenue Next 5Y3.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.67, LR is valued on the expensive side.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.69, LR is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.10 indicates a rather expensive valuation of LR.
LR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, LR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 20.1 |
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 65.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.58 | ||
| EV/EBITDA | 8.65 |
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)6.63
PEG (5Y)2.5
EPS Next 2Y4.82%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
LR's Dividend Yield is rather good when compared to the industry average which is at 2.90. LR pays more dividend than 81.82% of the companies in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
On average, the dividend of LR grows each year by 8.58%, which is quite nice.
Dividend Growth(5Y)8.58%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
23.90% of the earnings are spent on dividend by LR. This is a low number and sustainable payout ratio.
LR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.9%
EPS Next 2Y4.82%
EPS Next 3Y5.4%
LEGRAND SA
EPA:LR (10/30/2024, 7:00:00 PM)
104.3
+0.25 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 20.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.63
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 33.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.03% | ||
| PM (TTM) | 13.73% | ||
| GM | 52.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-0.69%
EPS 3Y17.92%
EPS 5Y
EPS Q2Q%
EPS Next Y3.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.7%
Revenue growth 3Y11.33%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y