LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
124.1 EUR
-3.4 (-2.67%)
We assign a fundamental rating of 6 out of 10 to LR. LR was compared to 70 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 correct valuation and a medium growth rate. With these ratings, LR could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year LR was profitable.
LR had a positive operating cash flow in the past year.
In the past 5 years LR has always been profitable.
Each year in the past 5 years LR had a positive operating cash flow.
1.2 Ratios
LR has a Return On Assets of 10.51%. This is amongst the best in the industry. LR outperforms 95.71% of its industry peers.
LR has a better Return On Equity (24.74%) than 85.71% of its industry peers.
LR has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. LR outperforms 88.57% 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 9.63%.
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
LR's Profit Margin of 12.96% is amongst the best of the industry. LR outperforms 94.29% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 18.98%, LR belongs to the top of the industry, outperforming 92.86% 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 (51.35%) is better than 80.00% of its industry peers.
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.
The number of shares outstanding for LR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LR has less shares outstanding
The debt/assets ratio for LR has been reduced compared to a year ago.
2.2 Solvency
LR has an Altman-Z score of 4.20. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.20, LR belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
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 67.14% of its industry peers.
LR has a Debt/Equity ratio of 0.78. This is a neutral value indicating LR is somewhat dependend on debt financing.
The Debt to Equity ratio of LR (0.78) is worse than 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.7
WACC8.04%
2.3 Liquidity
A Current Ratio of 2.22 indicates that LR has no problem at all paying its short term obligations.
The Current ratio of LR (2.22) is better than 80.00% 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.
Looking at the Quick ratio, with a value of 1.69, LR belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.24% 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.
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
LR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
The Revenue is expected to grow by 7.91% on average over the next years.
EPS Next Y3.28%
EPS Next 2Y7.97%
EPS Next 3Y8.21%
EPS Next 5Y8.18%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 22.98 indicates a rather expensive valuation of LR.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
LR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
LR is valuated rather expensively with a Price/Forward Earnings ratio of 20.87.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 65.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
LR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LR is cheaper than 71.43% of the companies in the same industry.
LR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LR is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.66 | ||
| EV/EBITDA | 12.14 |
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)7
PEG (5Y)2.6
EPS Next 2Y7.97%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.73%.
LR's Dividend Yield is rather good when compared to the industry average which is at 0.88. LR pays more dividend than 85.71% of the companies in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 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 2Y7.97%
EPS Next 3Y8.21%
EPA:LR (1/8/2026, 7:00:00 PM)
124.1
-3.4 (-2.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners53.32%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap32.55B
Revenue(TTM)13.69B
Net Income(TTM)1.77B
Analysts78.62
Price Target149.45 (20.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)2.64%
PT rev (3m)9.1%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.87 | ||
| P/S | 2.38 | ||
| P/FCF | 22.66 | ||
| P/OCF | 19.69 | ||
| P/B | 4.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.14 |
EPS(TTM)5.4
EY4.35%
EPS(NY)5.95
Fwd EY4.79%
FCF(TTM)5.48
FCFY4.41%
OCF(TTM)6.3
OCFY5.08%
SpS52.19
BVpS27.34
TBVpS-7.17
PEG (NY)7
PEG (5Y)2.6
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 | 4.2 |
F-Score4
WACC8.04%
ROIC/WACC1.7
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 Y3.28%
EPS Next 2Y7.97%
EPS Next 3Y8.21%
EPS Next 5Y8.18%
Revenue 1Y (TTM)-17.91%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%8.84%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.91%
EBIT growth 1Y-18.02%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year32.76%
EBIT Next 3Y16.73%
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 for LR 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.
What are the PE and PB ratios of LEGRAND SA (LR.PA) stock?
The Price/Earnings (PE) ratio for LEGRAND SA (LR.PA) is 22.98 and the Price/Book (PB) ratio is 4.54.
Can you provide the expected EPS growth for LR stock?
The Earnings per Share (EPS) of LEGRAND SA (LR.PA) is expected to grow by 3.28% in the next year.