LEGRAND SA (LR.PA) Stock Fundamental Analysis
EPA:LR - Euronext Paris - Matif - FR0010307819 - Common Stock - Currency: EUR
Overall LR gets a fundamental rating of 6 out of 10. We evaluated LR against 54 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LR had positive earnings in the past year.
LR had a positive operating cash flow in the past year.
Each year in the past 5 years LR has been profitable.
In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.57%, LR belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
With an excellent Return On Equity value of 22.55%, LR belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
LR has a Return On Invested Capital of 13.17%. This is amongst the best in the industry. LR outperforms 92.59% 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 8.11%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 22.55% | ||
| ROIC | 13.17% |
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 13.38% is amongst the best of the industry. LR outperforms 96.30% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
LR has a better Operating Margin (18.97%) than 96.30% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
LR's Gross Margin of 51.78% is fine compared to the rest of the industry. LR outperforms 74.07% of its industry peers.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.97% | ||
| PM (TTM) | 13.38% | ||
| GM | 51.78% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LR 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.
The debt/assets ratio for LR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.15 indicates that LR is not in any danger for bankruptcy at the moment.
LR has a Altman-Z score of 4.15. This is amongst the best in the industry. LR outperforms 90.74% of its industry peers.
The Debt to FCF ratio of LR is 3.89, which is a good value as it means it would take LR, 3.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.89, LR is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that LR is somewhat dependend on debt financing.
LR's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. LR is outperformed by 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.87
WACC7.03%
2.3 Liquidity
A Current Ratio of 1.93 indicates that LR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.93, LR is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.41, LR is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
LR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.61%, which is quite good.
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 small growth in Revenue. The Revenue has grown by 2.76% in the last year.
The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)11.61%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%7.76%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%12.31%
3.2 Future
LR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.46% yearly.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y5.46%
Revenue Next Year9.17%
Revenue Next 2Y7.39%
Revenue Next 3Y7.03%
Revenue Next 5Y5.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.87 indicates a rather expensive valuation of LR.
LR's Price/Earnings ratio is a bit cheaper when compared to the industry. LR is cheaper than 75.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of LR to the average of the S&P500 Index (27.15), we can say LR is valued inline with the index average.
LR is valuated rather expensively with a Price/Forward Earnings ratio of 20.12.
The rest of the industry has a similar Price/Forward Earnings ratio as LR.
LR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 11.81 |
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)7.57
PEG (5Y)2.48
EPS Next 2Y5.18%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.66, LR pays a better dividend. On top of this LR pays more dividend than 83.33% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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 32.21% 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.
DP32.21%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPA:LR (6/30/2025, 7:00:00 PM)
113.5
-0.75 (-0.66%)
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 Cap29.77B
Analysts75.71
Price Target112.25 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.21%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.52%
Min EPS beat(2)-6.09%
Max EPS beat(2)37.13%
EPS beat(4)3
Avg EPS beat(4)9%
Min EPS beat(4)-6.09%
Max EPS beat(4)37.13%
EPS beat(8)6
Avg EPS beat(8)6.58%
EPS beat(12)9
Avg EPS beat(12)5.91%
EPS beat(16)13
Avg EPS beat(16)6.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)3.15%
Revenue beat(4)2
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)3.15%
Revenue beat(8)2
Avg Revenue beat(8)-2.6%
Revenue beat(12)5
Avg Revenue beat(12)14.32%
Revenue beat(16)8
Avg Revenue beat(16)22.63%
PT rev (1m)0.96%
PT rev (3m)-2.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 20.12 | ||
| P/S | 2.34 | ||
| P/FCF | 22.67 | ||
| P/OCF | 19.54 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)5.19
EY4.57%
EPS(NY)5.64
Fwd EY4.97%
FCF(TTM)5.01
FCFY4.41%
OCF(TTM)5.81
OCFY5.12%
SpS48.41
BVpS28.71
TBVpS-7.67
PEG (NY)7.57
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 22.55% | ||
| ROCE | 17.84% | ||
| ROIC | 13.17% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 92.66% | ||
| OM | 18.97% | ||
| PM (TTM) | 13.38% | ||
| GM | 51.78% | ||
| FCFM | 10.34% |
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 | 3.89 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 55.39% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 26.26 | ||
| Cash Conversion | 54.64% | ||
| Profit Quality | 77.31% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.15 |
F-Score3
WACC7.03%
ROIC/WACC1.87
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)11.61%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%7.76%
EPS Next Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y5.46%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%12.31%
Revenue Next Year9.17%
Revenue Next 2Y7.39%
Revenue Next 3Y7.03%
Revenue Next 5Y5.87%
EBIT growth 1Y-27.37%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year28.26%
EBIT Next 3Y13.72%
EBIT Next 5Y12.26%
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%