LEGRAND SA (LR.PA)
FR0010307819 - Common Stock
LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Electrical Equipment industry. While LR has a great profitability rating, there are some minor concerns on its financial health. LR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LR had positive earnings in the past year.
In the past year LR had a positive cash flow from operations.
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 has a Return On Assets of 14.87%. This is amongst the best in the industry. LR outperforms 98.28% of its industry peers.
LR has a Return On Equity of 33.05%. This is amongst the best in the industry. LR outperforms 96.55% of its industry peers.
LR has a better Return On Invested Capital (18.13%) than 96.55% of its industry peers.
LR had an Average Return On Invested Capital over the past 3 years of 8.90%. This is in line with the industry average of 9.47%.
The 3 year average ROIC (8.90%) for LR is below the current ROIC(18.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.87% | ||
| ROE | 33.05% | ||
| ROIC | 18.13% |
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%
1.3 Margins
With an excellent Profit Margin value of 13.54%, LR belongs to the best of the industry, outperforming 93.10% 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 19.00% is amongst the best of the industry. LR outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of LR has remained more or less at the same level.
The Gross Margin of LR (52.31%) is better than 72.41% of its industry peers.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19% | ||
| PM (TTM) | 13.54% | ||
| GM | 52.31% |
OM growth 3Y2.68%
OM growth 5Y-0.09%
PM growth 3Y6.91%
PM growth 5Y1.18%
GM growth 3Y0.04%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LR is creating value.
LR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LR has been reduced compared to 5 years ago.
LR has a worse debt/assets ratio than last year.
2.2 Solvency
LR has an Altman-Z score of 4.32. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.32, LR belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
LR has a debt to FCF ratio of 4.43. This is a neutral value as LR would need 4.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.43, LR is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
LR has a Debt/Equity ratio of 0.69. This is a neutral value indicating LR is somewhat dependend on debt financing.
The Debt to Equity ratio of LR (0.69) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 4.32 |
ROIC/WACC2.73
WACC6.64%
2.3 Liquidity
LR has a Current Ratio of 1.95. 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 Current ratio, with a value of 1.95, LR is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
LR has a Quick Ratio of 1.39. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
LR's Quick ratio of 1.39 is fine compared to the rest of the industry. LR outperforms 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
LR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.11%.
Measured over the past years, LR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.06% on average per year.
LR shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.25%.
LR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.01% yearly.
EPS 1Y (TTM)-5.11%
EPS 3Y17.92%
EPS 5Y9.06%
EPS Q2Q%-9.32%
Revenue 1Y (TTM)31.25%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Sales Q2Q%0.31%
3.2 Future
Based on estimates for the next years, LR will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y3.52%
EPS Next 2Y5.27%
EPS Next 3Y5.82%
EPS Next 5Y6.22%
Revenue Next Year0.98%
Revenue Next 2Y3.52%
Revenue Next 3Y4.24%
Revenue Next 5Y4.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.90, the valuation of LR can be described as rather expensive.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than the industry average as 67.24% of the companies are valued more expensively.
LR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.55.
LR is valuated rather expensively with a Price/Forward Earnings ratio of 17.93.
LR's Price/Forward Earnings ratio is in line with the industry average.
LR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.93 |
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 65.52% of the companies listed in the same industry.
LR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LR is cheaper than 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.54 | ||
| EV/EBITDA | 7.84 |
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)5.93
PEG (5Y)2.31
EPS Next 2Y5.27%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, LR pays a better dividend. On top of this LR pays more dividend than 84.48% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
On average, the dividend of LR grows each year by 8.58%, which is quite nice.
Dividend Growth(5Y)8.58%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
24.22% 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.
DP24.22%
EPS Next 2Y5.27%
EPS Next 3Y5.82%
LEGRAND SA
EPA:LR (12/24/2024, 7:00:00 PM)
93.84
+0.42 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners48.16%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap24.61B
Analysts74.48
Price Target107.44 (14.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Dividend Growth(5Y)8.58%
DP24.22%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.57%
Min EPS beat(2)-6.09%
Max EPS beat(2)4.95%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-8.87%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)1.86%
EPS beat(12)9
Avg EPS beat(12)3.11%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)1
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)0.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)0.19%
Revenue beat(8)2
Avg Revenue beat(8)8.97%
Revenue beat(12)5
Avg Revenue beat(12)21.69%
Revenue beat(16)8
Avg Revenue beat(16)28.24%
PT rev (1m)-0.54%
PT rev (3m)3.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.93 | ||
| P/S | 1.48 | ||
| P/FCF | 21.54 | ||
| P/OCF | 18.08 | ||
| P/B | 3.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.84 |
EPS(TTM)4.49
EY4.78%
EPS(NY)5.23
Fwd EY5.58%
FCF(TTM)4.36
FCFY4.64%
OCF(TTM)5.19
OCFY5.53%
SpS63.58
BVpS26.05
TBVpS-8.17
PEG (NY)5.93
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.87% | ||
| ROE | 33.05% | ||
| ROCE | 24.86% | ||
| ROIC | 18.13% | ||
| ROICexc | 21.16% | ||
| ROICexgc | 116.93% | ||
| OM | 19% | ||
| PM (TTM) | 13.54% | ||
| GM | 52.31% | ||
| FCFM | 6.85% |
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%
ROICexc(3y)11.46%
ROICexc(5y)10.81%
ROICexgc(3y)75.83%
ROICexgc(5y)69.33%
ROCE(3y)12.36%
ROCE(5y)12.05%
ROICexcg growth 3Y10.59%
ROICexcg growth 5Y3.37%
ROICexc growth 3Y10.94%
ROICexc growth 5Y3.23%
OM growth 3Y2.68%
OM growth 5Y-0.09%
PM growth 3Y6.91%
PM growth 5Y1.18%
GM growth 3Y0.04%
GM growth 5Y0.04%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 58.19% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 34.44 | ||
| Cash Conversion | 38.4% | ||
| Profit Quality | 50.6% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 4.32 |
F-Score7
WACC6.64%
ROIC/WACC2.73
Cap/Depr(3y)50.67%
Cap/Depr(5y)48.87%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.27%
Profit Quality(3y)118%
Profit Quality(5y)126.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.11%
EPS 3Y17.92%
EPS 5Y9.06%
EPS Q2Q%-9.32%
EPS Next Y3.52%
EPS Next 2Y5.27%
EPS Next 3Y5.82%
EPS Next 5Y6.22%
Revenue 1Y (TTM)31.25%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Sales Q2Q%0.31%
Revenue Next Year0.98%
Revenue Next 2Y3.52%
Revenue Next 3Y4.24%
Revenue Next 5Y4.82%
EBIT growth 1Y33.07%
EBIT growth 3Y14.32%
EBIT growth 5Y6.92%
EBIT Next Year14.4%
EBIT Next 3Y9.42%
EBIT Next 5Y7.91%
FCF growth 1Y39.68%
FCF growth 3Y15.96%
FCF growth 5Y15.81%
OCF growth 1Y39.95%
OCF growth 3Y16.48%
OCF growth 5Y14.69%