LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
127.95 EUR
+2.45 (+1.95%)
LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 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. 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.
- In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
- LR has a better Return On Assets (10.51%) than 97.26% of its industry peers.
- LR has a better Return On Equity (24.75%) than 87.67% of its industry peers.
- LR has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. LR outperforms 90.41% 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 9.58%.
- The last Return On Invested Capital (13.65%) for LR is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.75% | ||
| 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 has a Profit Margin of 12.96%. This is amongst the best in the industry. LR outperforms 95.89% of its industry peers.
- LR's Profit Margin has been stable in the last couple of years.
- LR has a Operating Margin of 18.98%. This is amongst the best in the industry. LR outperforms 94.52% of its industry peers.
- In the last couple of years the Operating Margin of LR has remained more or less at the same level.
- LR has a Gross Margin of 51.35%. This is amongst the best in the industry. LR outperforms 82.19% 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.
- 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.
- Compared to 1 year ago, LR has an improved debt to assets ratio.
2.2 Solvency
- LR has an Altman-Z score of 4.17. 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 4.17, LR is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
- The Debt to FCF ratio of LR is 4.28, which is a neutral value as it means it would take LR, 4.28 years of fcf income to pay off all of its debts.
- LR's Debt to FCF ratio of 4.28 is fine compared to the rest of the industry. LR outperforms 69.86% 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.
- Looking at the Debt to Equity ratio, with a value of 0.78, LR is doing worse than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.68
WACC8.12%
2.3 Liquidity
- A Current Ratio of 2.22 indicates that LR has no problem at all paying its short term obligations.
- LR's Current ratio of 2.22 is amongst the best of the industry. LR outperforms 80.82% of its industry peers.
- A Quick Ratio of 1.69 indicates that LR should not have too much problems paying its short term obligations.
- LR has a better Quick ratio (1.69) than 82.19% 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.
- LR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
- The Revenue for LR has decreased by -17.91% in the past year. This is quite bad
- LR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
EPS 1Y (TTM)20.24%
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
- The Earnings Per Share is expected to grow by 7.87% on average over the next years.
- LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
EPS Next Y3.28%
EPS Next 2Y7.97%
EPS Next 3Y8.21%
EPS Next 5Y7.87%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.6%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 23.69, LR is valued on the expensive side.
- 82.19% of the companies in the same industry are more expensive than LR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. LR is around the same levels.
- A Price/Forward Earnings ratio of 21.52 indicates a rather expensive valuation of LR.
- LR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LR is cheaper than 69.86% of the companies in the same industry.
- LR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than 75.34% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 76.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 11.96 |
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.
- The excellent profitability rating of LR may justify a higher PE ratio.
PEG (NY)7.21
PEG (5Y)2.68
EPS Next 2Y7.97%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- LR has a Yearly Dividend Yield of 1.75%.
- Compared to an average industry Dividend Yield of 0.82, LR pays a better dividend. On top of this LR pays more dividend than 84.93% of the companies listed in the same industry.
- LR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
- 32.44% 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.
DP32.44%
EPS Next 2Y7.97%
EPS Next 3Y8.21%
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 23.69 and the Price/Book (PB) ratio is 4.68.
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.