LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - EPA:LR - FR0010307819 - Common Stock
140.1 EUR
+0.05 (+0.04%)
LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Electrical Equipment industry. LR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LR has a decent growth rate and is not valued too expensively.
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.
In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
LR has a better Return On Assets (10.42%) than 96.67% of its industry peers.
Looking at the Return On Equity, with a value of 22.68%, LR belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
LR has a Return On Invested Capital of 13.33%. This is amongst the best in the industry. LR outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LR is in line with the industry average of 9.28%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.68% | ||
| ROIC | 13.33% |
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
Looking at the Profit Margin, with a value of 13.25%, LR belongs to the top of the industry, outperforming 96.67% 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 18.97%, LR belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
LR's Operating Margin has been stable in the last couple of years.
The Gross Margin of LR (51.70%) is better than 80.00% 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 | 18.97% | ||
| PM (TTM) | 13.25% | ||
| GM | 51.7% |
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
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 about the same amount of shares outstanding.
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 4.54 indicates that LR is not in any danger for bankruptcy at the moment.
LR has a better Altman-Z score (4.54) than 90.00% of its industry peers.
The Debt to FCF ratio of LR is 3.95, which is a good value as it means it would take LR, 3.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.95, LR is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
LR has a Debt/Equity ratio of 0.63. This is a neutral value indicating LR is somewhat dependend on debt financing.
LR's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. LR outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.88
WACC7.1%
2.3 Liquidity
LR has a Current Ratio of 1.94. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.94, LR is doing good in the industry, outperforming 71.67% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that LR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, LR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.76% over the past year.
Measured over the past years, LR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.83% on average per year.
LR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)9.76%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-11.1%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
3.2 Future
LR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.07% yearly.
EPS Next Y4.22%
EPS Next 2Y6.16%
EPS Next 3Y6.75%
EPS Next 5Y6.38%
Revenue Next Year11.64%
Revenue Next 2Y9.08%
Revenue Next 3Y8.33%
Revenue Next 5Y7.07%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 27.74 indicates a quite expensive valuation of LR.
LR's Price/Earnings ratio is a bit cheaper when compared to the industry. LR is cheaper than 73.33% of the companies in the same industry.
LR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.38, which indicates a rather expensive current valuation of LR.
LR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LR to the average of the S&P500 Index (22.86), we can say LR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 24.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than 63.33% of the companies in the same industry.
70.00% of the companies in the same industry are more expensive than LR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.13 | ||
| EV/EBITDA | 13.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LR does not grow enough to justify the current Price/Earnings ratio.
LR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.58
PEG (5Y)3.14
EPS Next 2Y6.16%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
LR's Dividend Yield is a higher than the industry average which is at 2.59.
LR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of LR is nicely growing with an annual growth rate of 9.28%!
Dividend Growth(5Y)9.28%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
LR pays out 31.88% 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.
DP31.88%
EPS Next 2Y6.16%
EPS Next 3Y6.75%
EPA:LR (9/19/2025, 7:00:00 PM)
140.1
+0.05 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners51.99%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap36.74B
Analysts74.48
Price Target133.48 (-4.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP31.88%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.79%
Min EPS beat(2)-1.56%
Max EPS beat(2)37.13%
EPS beat(4)2
Avg EPS beat(4)8.61%
Min EPS beat(4)-6.09%
Max EPS beat(4)37.13%
EPS beat(8)5
Avg EPS beat(8)5.36%
EPS beat(12)8
Avg EPS beat(12)4.91%
EPS beat(16)12
Avg EPS beat(16)5.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)3.15%
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)2
Avg Revenue beat(8)-2.99%
Revenue beat(12)4
Avg Revenue beat(12)13.65%
Revenue beat(16)7
Avg Revenue beat(16)22.17%
PT rev (1m)3.76%
PT rev (3m)18.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.29%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 24.38 | ||
| P/S | 2.84 | ||
| P/FCF | 27.13 | ||
| P/OCF | 23.47 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.98 |
EPS(TTM)5.05
EY3.6%
EPS(NY)5.75
Fwd EY4.1%
FCF(TTM)5.16
FCFY3.69%
OCF(TTM)5.97
OCFY4.26%
SpS49.36
BVpS28.84
TBVpS-7.18
PEG (NY)6.58
PEG (5Y)3.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.68% | ||
| ROCE | 17.99% | ||
| ROIC | 13.33% | ||
| ROICexc | 16.01% | ||
| ROICexgc | 95.08% | ||
| OM | 18.97% | ||
| PM (TTM) | 13.25% | ||
| GM | 51.7% | ||
| FCFM | 10.46% |
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%
ROICexcg growth 3Y-7.71%
ROICexcg 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-Score3
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.95 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 54.18% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 26.69 | ||
| Cash Conversion | 55.02% | ||
| Profit Quality | 78.93% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.54 |
F-Score3
WACC7.1%
ROIC/WACC1.88
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)9.76%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-11.1%
EPS Next Y4.22%
EPS Next 2Y6.16%
EPS Next 3Y6.75%
EPS Next 5Y6.38%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
Revenue Next Year11.64%
Revenue Next 2Y9.08%
Revenue Next 3Y8.33%
Revenue Next 5Y7.07%
EBIT growth 1Y-24.53%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year28.26%
EBIT Next 3Y13.72%
EBIT Next 5Y10.85%
FCF growth 1Y0.65%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y2.39%
OCF growth 3Y11.04%
OCF growth 5Y4.21%