LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:LR - FR0010307819 - Common Stock
127.95 EUR
+2.45 (+1.95%)
Taking everything into account, LR scores 6 out of 10 in our fundamental rating. LR was compared to 75 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, LR could be worth investigating further 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.
- 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
- LR's Return On Assets of 10.51% is amongst the best of the industry. LR outperforms 95.89% of its industry peers.
- With an excellent Return On Equity value of 24.75%, LR belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 13.65%, LR belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LR is in line with the industry average of 9.57%.
- 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 | 24.75% | ||
| 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's Profit Margin of 12.96% is amongst the best of the industry. LR outperforms 94.52% of its industry peers.
- LR's Profit Margin has been stable in the last couple of years.
- The Operating Margin of LR (18.98%) is better than 93.15% of its industry peers.
- In the last couple of years the Operating Margin of LR has remained more or less at the same level.
- With an excellent Gross Margin value of 51.35%, LR belongs to the best of the industry, outperforming 80.82% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LR is 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.
- The debt/assets ratio for LR has been reduced compared to a year ago.
2.2 Solvency
- LR has an Altman-Z score of 4.21. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
- LR's Altman-Z score of 4.21 is amongst the best of the industry. LR outperforms 80.82% of its industry peers.
- 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 68.49% 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.
- LR has a worse Debt to Equity ratio (0.78) than 65.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.68
WACC8.12%
2.3 Liquidity
- LR has a Current Ratio of 2.22. This indicates that LR is financially healthy and has no problem in meeting its short term obligations.
- LR has a Current ratio of 2.22. This is in the better half of the industry: LR outperforms 79.45% 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's Quick ratio of 1.69 is amongst the best of the industry. LR outperforms 80.82% 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.
- 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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
- Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 7.60% on average per year.
EPS Next Y2.61%
EPS Next 2Y7.55%
EPS Next 3Y7.81%
EPS Next 5Y7.87%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.6%
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
- A Price/Earnings ratio of 23.69 indicates a rather expensive valuation of LR.
- Based on the Price/Earnings ratio, LR is valued a bit cheaper than the industry average as 79.45% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, LR is valued at the same level.
- The Price/Forward Earnings ratio is 21.69, which indicates a rather expensive current valuation of LR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 64.38% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than 72.60% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than 75.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 12.18 |
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)9.08
PEG (5Y)2.68
EPS Next 2Y7.55%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.75%, LR has a reasonable but not impressive dividend return.
- LR's Dividend Yield is rather good when compared to the industry average which is at 0.79. LR pays more dividend than 86.30% of the companies in the same industry.
- LR's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
- On average, the dividend of LR grows each year by 9.28%, which is quite nice.
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.
- The dividend of LR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.44%
EPS Next 2Y7.55%
EPS Next 3Y7.81%
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 2.61% in the next year.