LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
125.75 EUR
+1 (+0.8%)
We assign a fundamental rating of 6 out of 10 to LR. LR was compared to 67 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 correct valuation and a medium growth rate. These ratings would make LR suitable for quality investing!
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.
In the past 5 years LR has always been profitable.
In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
LR has a Return On Assets of 10.51%. This is amongst the best in the industry. LR outperforms 95.65% of its industry peers.
The Return On Equity of LR (24.74%) is better than 86.96% of its industry peers.
LR's Return On Invested Capital of 13.65% is amongst the best of the industry. LR outperforms 89.86% 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 10.10%.
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 | 24.74% | ||
| 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
With an excellent Profit Margin value of 12.96%, LR belongs to the best of the industry, outperforming 92.75% 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.
The Operating Margin of LR (18.98%) is better than 92.75% of its industry peers.
In the last couple of years the Operating Margin of LR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 51.35%, LR is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
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.
Compared to 1 year ago, LR has about the same amount of shares outstanding.
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
LR has an Altman-Z score of 4.18. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
LR has a better Altman-Z score (4.18) than 84.06% of its industry peers.
LR has a debt to FCF ratio of 4.28. This is a neutral value as LR would need 4.28 years to pay back of all of its debts.
LR has a Debt to FCF ratio of 4.28. This is in the better half of the industry: LR outperforms 68.12% 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.77
WACC7.72%
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.
LR has a Current ratio of 2.22. This is amongst the best in the industry. LR outperforms 82.61% of its industry peers.
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 84.06% 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.
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 very negative growth in Revenue. The Revenue has decreased by -17.91% in the last year.
Measured over the past years, LR shows a small growth in Revenue. The Revenue has been growing by 5.48% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.18% on average per year.
Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 7.91% on average per year.
EPS Next Y2.83%
EPS Next 2Y7.46%
EPS Next 3Y8.13%
EPS Next 5Y8.18%
Revenue Next Year11.03%
Revenue Next 2Y10.01%
Revenue Next 3Y9.21%
Revenue Next 5Y7.91%
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.
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
Based on the Price/Earnings ratio of 23.29, the valuation of LR can be described as rather expensive.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LR to the average of the S&P500 Index (26.39), we can say LR is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.35, LR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 65.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
68.12% of the companies in the same industry are more expensive than LR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 11.98 |
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)8.22
PEG (5Y)2.64
EPS Next 2Y7.46%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.91, LR pays a better dividend. On top of this LR pays more dividend than 85.51% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 2Y7.46%
EPS Next 3Y8.13%
EPA:LR (12/19/2025, 7:00:00 PM)
125.75
+1 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners53.75%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap32.98B
Revenue(TTM)13.69B
Net Income(TTM)1.77B
Analysts78.62
Price Target145.67 (15.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.44%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.18%
Min EPS beat(2)-17.54%
Max EPS beat(2)11.18%
EPS beat(4)2
Avg EPS beat(4)7.3%
Min EPS beat(4)-17.54%
Max EPS beat(4)37.13%
EPS beat(8)4
Avg EPS beat(8)2.4%
EPS beat(12)7
Avg EPS beat(12)3.68%
EPS beat(16)11
Avg EPS beat(16)4.16%
Revenue beat(2)1
Avg Revenue beat(2)-3.89%
Min Revenue beat(2)-7.96%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-7.96%
Max Revenue beat(4)3.15%
Revenue beat(8)3
Avg Revenue beat(8)-2.72%
Revenue beat(12)4
Avg Revenue beat(12)5.29%
Revenue beat(16)7
Avg Revenue beat(16)15.75%
PT rev (1m)-0.44%
PT rev (3m)9.13%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.35 | ||
| P/S | 2.41 | ||
| P/FCF | 22.96 | ||
| P/OCF | 19.95 | ||
| P/B | 4.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.98 |
EPS(TTM)5.4
EY4.29%
EPS(NY)5.89
Fwd EY4.68%
FCF(TTM)5.48
FCFY4.36%
OCF(TTM)6.3
OCFY5.01%
SpS52.19
BVpS27.34
TBVpS-7.17
PEG (NY)8.22
PEG (5Y)2.64
Graham Number57.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.74% | ||
| ROCE | 18.43% | ||
| ROIC | 13.65% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 93.67% | ||
| OM | 18.98% | ||
| PM (TTM) | 12.96% | ||
| GM | 51.35% | ||
| FCFM | 10.49% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 51.81% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 26.08 | ||
| Cash Conversion | 54.81% | ||
| Profit Quality | 80.96% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.18 |
F-Score4
WACC7.72%
ROIC/WACC1.77
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)20.24%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%32.71%
EPS Next Y2.83%
EPS Next 2Y7.46%
EPS Next 3Y8.13%
EPS Next 5Y8.18%
Revenue 1Y (TTM)-17.91%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%8.84%
Revenue Next Year11.03%
Revenue Next 2Y10.01%
Revenue Next 3Y9.21%
Revenue Next 5Y7.91%
EBIT growth 1Y-18.02%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year32.53%
EBIT Next 3Y16.52%
EBIT Next 5Y12.65%
FCF growth 1Y-13.41%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-11.41%
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 6 / 10 and the dividend payout ratio is 32.44%.