LEGRAND SA (LR.PA) Stock Fundamental Analysis
EPA:LR - Euronext Paris - Matif - FR0010307819 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to LR. LR was compared to 59 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 is not valued too expensively and it also shows a decent growth rate. LR also has an excellent dividend rating. With these ratings, LR could be worth investigating further for dividend investing!.
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.
Each year in the past 5 years LR has been profitable.
Each year in the past 5 years LR had a positive operating cash flow.
1.2 Ratios
LR's Return On Assets of 14.16% is amongst the best of the industry. LR outperforms 96.67% of its industry peers.
With an excellent Return On Equity value of 30.22%, LR belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
LR's Return On Invested Capital of 17.67% is amongst the best of the industry. LR outperforms 96.67% of its industry peers.
LR had an Average Return On Invested Capital over the past 3 years of 9.19%. This is in line with the industry average of 8.25%.
The 3 year average ROIC (9.19%) for LR is below the current ROIC(17.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | 30.22% | ||
| ROIC | 17.67% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.19%
ROIC(5y)8.6%
1.3 Margins
LR's Profit Margin of 13.46% is amongst the best of the industry. LR outperforms 93.33% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.05%, 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.
With a decent Gross Margin value of 51.99%, LR is doing good in the industry, outperforming 75.00% 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 | 19.05% | ||
| PM (TTM) | 13.46% | ||
| GM | 51.99% |
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.
Compared to 1 year ago, LR has about the same amount of shares outstanding.
The number of shares outstanding for LR has been reduced compared to 5 years ago.
LR has a better debt/assets ratio than last year.
2.2 Solvency
LR has an Altman-Z score of 4.43. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.43, LR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
LR has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as LR would need 3.87 years to pay back of all of its debts.
LR has a Debt to FCF ratio of 3.87. This is in the better half of the industry: LR outperforms 73.33% of its industry peers.
LR has a Debt/Equity ratio of 0.62. This is a neutral value indicating LR is somewhat dependend on debt financing.
The Debt to Equity ratio of LR (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 4.43 |
ROIC/WACC2.54
WACC6.97%
2.3 Liquidity
LR has a Current Ratio of 1.93. 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 1.93 is fine compared to the rest of the industry. LR outperforms 63.33% of its industry peers.
LR has a Quick Ratio of 1.41. 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 Quick ratio of 1.41 is fine compared to the rest of the industry. LR outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
LR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.39%.
Measured over the past 5 years, LR shows a small growth in Earnings Per Share. The EPS has been growing by 2.39% on average per year.
Looking at the last year, LR shows a small growth in Revenue. The Revenue has grown by 0.19% 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)-20.39%
EPS 3Y-0.27%
EPS 5Y2.39%
EPS Q2Q%-73.82%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%17.46%
3.2 Future
The Earnings Per Share is expected to grow by 16.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y38.86%
EPS Next 2Y22.29%
EPS Next 3Y18.13%
EPS Next 5Y16.42%
Revenue Next Year10.14%
Revenue Next 2Y8.04%
Revenue Next 3Y7.83%
Revenue Next 5Y4.46%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.31, the valuation of LR can be described as expensive.
61.67% of the companies in the same industry are more expensive than LR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LR to the average of the S&P500 Index (29.35), we can say LR is valued inline with the index average.
LR is valuated rather expensively with a Price/Forward Earnings ratio of 20.39.
LR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.31 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
LR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LR is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.26 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LR has an outstanding profitability rating, which may justify a higher PE ratio.
LR's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)11.83
EPS Next 2Y22.29%
EPS Next 3Y18.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, LR pays a better dividend. On top of this LR pays more dividend than 81.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, LR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 Years3
Div Non Decr Years5
5.3 Sustainability
24.03% of the earnings are spent on dividend by LR. This is a low number and sustainable payout ratio.
The dividend of LR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.03%
EPS Next 2Y22.29%
EPS Next 3Y18.13%
EPA:LR (3/7/2025, 7:00:00 PM)
106.45
+0.25 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners50.11%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap27.92B
Analysts75
Price Target114.24 (7.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP24.03%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.94%
Min EPS beat(2)-77.79%
Max EPS beat(2)-6.09%
EPS beat(4)2
Avg EPS beat(4)-19.73%
Min EPS beat(4)-77.79%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)-7.79%
EPS beat(12)8
Avg EPS beat(12)-3.66%
EPS beat(16)12
Avg EPS beat(16)-0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.6%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)5.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)5.63%
Revenue beat(8)2
Avg Revenue beat(8)-2.29%
Revenue beat(12)5
Avg Revenue beat(12)14.53%
Revenue beat(16)8
Avg Revenue beat(16)22.79%
PT rev (1m)6.39%
PT rev (3m)6.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)1.77%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)3.54%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.31 | ||
| Fwd PE | 20.39 | ||
| P/S | 1.65 | ||
| P/FCF | 21.26 | ||
| P/OCF | 18.33 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)3.76
EY3.53%
EPS(NY)5.22
Fwd EY4.9%
FCF(TTM)5.01
FCFY4.7%
OCF(TTM)5.81
OCFY5.46%
SpS64.47
BVpS28.71
TBVpS-7.67
PEG (NY)0.73
PEG (5Y)11.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.16% | ||
| ROE | 30.22% | ||
| ROCE | 23.85% | ||
| ROIC | 17.67% | ||
| ROICexc | 20.9% | ||
| ROICexgc | 127.18% | ||
| OM | 19.05% | ||
| PM (TTM) | 13.46% | ||
| GM | 51.99% | ||
| FCFM | 7.77% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.19%
ROIC(5y)8.6%
ROICexc(3y)11.45%
ROICexc(5y)10.94%
ROICexgc(3y)71.6%
ROICexgc(5y)71.05%
ROCE(3y)12.5%
ROCE(5y)11.95%
ROICexcg growth 3Y-6.9%
ROICexcg growth 5Y1.38%
ROICexc growth 3Y-1.36%
ROICexc growth 5Y-0.11%
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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 55.39% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 35.11 | ||
| Cash Conversion | 42.32% | ||
| Profit Quality | 57.69% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.43 |
F-Score3
WACC6.97%
ROIC/WACC2.54
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)-20.39%
EPS 3Y-0.27%
EPS 5Y2.39%
EPS Q2Q%-73.82%
EPS Next Y38.86%
EPS Next 2Y22.29%
EPS Next 3Y18.13%
EPS Next 5Y16.42%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%17.46%
Revenue Next Year10.14%
Revenue Next 2Y8.04%
Revenue Next 3Y7.83%
Revenue Next 5Y4.46%
EBIT growth 1Y-2.89%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year26.41%
EBIT Next 3Y12.33%
EBIT Next 5Y12.42%
FCF growth 1Y-18.64%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-17.05%
OCF growth 3Y11.04%
OCF growth 5Y4.21%