LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
127.25 EUR
-0.3 (-0.24%)
LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Electrical Equipment industry. LR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LR has a decent growth rate and is not valued too expensively. This makes LR very considerable for quality investing!
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.
LR had positive earnings in each of the past 5 years.
LR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LR's Return On Assets of 10.51% is amongst the best of the industry. LR outperforms 96.92% of its industry peers.
With an excellent Return On Equity value of 24.74%, LR belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.65%, LR belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LR is in line with the industry average of 10.08%.
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
Looking at the Profit Margin, with a value of 12.96%, LR belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
LR's Profit Margin has been stable in the last couple of years.
LR's Operating Margin of 18.98% is amongst the best of the industry. LR outperforms 93.85% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 51.35%, LR belongs to the best of the industry, outperforming 81.54% 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
LR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
An Altman-Z score of 4.20 indicates that LR is not in any danger for bankruptcy at the moment.
LR's Altman-Z score of 4.20 is amongst the best of the industry. LR outperforms 81.54% 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.
With a decent Debt to FCF ratio value of 4.28, LR is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that LR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, LR is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.72
WACC7.96%
2.3 Liquidity
A Current Ratio of 2.22 indicates that LR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.22, LR belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
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.
The Quick ratio of LR (1.69) is better than 83.08% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 5.48% on average over the past years.
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 8.18% on average over the next years. This is quite good.
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 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
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
With a Price/Earnings ratio of 23.56, LR is valued on the expensive side.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than 76.92% of the companies in the same industry.
LR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 21.40 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 66.15% of the companies in the same industry.
LR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than LR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.23 | ||
| EV/EBITDA | 12.11 |
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)7.17
PEG (5Y)2.67
EPS Next 2Y7.97%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.88, LR pays a better dividend. On top of this LR pays more dividend than 84.62% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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 (12/31/2025, 7:00:00 PM)
127.25
-0.3 (-0.24%)
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 Cap33.37B
Revenue(TTM)13.69B
Net Income(TTM)1.77B
Analysts78.62
Price Target149.45 (17.45%)
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)11.96%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-1.82%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 21.4 | ||
| P/S | 2.44 | ||
| P/FCF | 23.23 | ||
| P/OCF | 20.19 | ||
| P/B | 4.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.11 |
EPS(TTM)5.4
EY4.24%
EPS(NY)5.95
Fwd EY4.67%
FCF(TTM)5.48
FCFY4.3%
OCF(TTM)6.3
OCFY4.95%
SpS52.19
BVpS27.34
TBVpS-7.17
PEG (NY)7.17
PEG (5Y)2.67
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
WACC7.96%
ROIC/WACC1.72
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 23.56 and the Price/Book (PB) ratio is 4.65.
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.