LEGGETT & PLATT INC (LEG)

US5246601075 - Common Stock

18.96  +0.88 (+4.87%)

After market: 19 +0.04 (+0.21%)

Fundamental Rating

3

Taking everything into account, LEG scores 3 out of 10 in our fundamental rating. LEG was compared to 68 industry peers in the Household Durables industry. LEG has a bad profitability rating. Also its financial health evaluation is rather negative. LEG is valued correctly, but it does not seem to be growing. LEG also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

In the past year LEG was profitable.
In the past year LEG had a positive cash flow from operations.
Of the past 5 years LEG 4 years were profitable.
Each year in the past 5 years LEG had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -2.95%, LEG is doing worse than 73.13% of the companies in the same industry.
The Return On Equity of LEG (-10.26%) is worse than 74.63% of its industry peers.
LEG has a Return On Invested Capital (7.58%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEG is in line with the industry average of 9.99%.
Industry RankSector Rank
ROA -2.95%
ROE -10.26%
ROIC 7.58%
ROA(3y)3.53%
ROA(5y)4.48%
ROE(3y)11.01%
ROE(5y)14.95%
ROIC(3y)9.01%
ROIC(5y)9.04%

1.3 Margins

The Operating Margin of LEG (7.05%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LEG has declined.
The Gross Margin of LEG (18.07%) is worse than 85.07% of its industry peers.
In the last couple of years the Gross Margin of LEG has declined.
Industry RankSector Rank
OM 7.05%
PM (TTM) N/A
GM 18.07%
OM growth 3Y-10.47%
OM growth 5Y-7.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.08%
GM growth 5Y-2.79%

2

2. Health

2.1 Basic Checks

LEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LEG has more shares outstanding
LEG has more shares outstanding than it did 5 years ago.
LEG has a worse debt/assets ratio than last year.

2.2 Solvency

LEG has an Altman-Z score of 2.68. This is not the best score and indicates that LEG is in the grey zone with still only limited risk for bankruptcy at the moment.
LEG has a Altman-Z score of 2.68. This is comparable to the rest of the industry: LEG outperforms 41.79% of its industry peers.
The Debt to FCF ratio of LEG is 5.18, which is a neutral value as it means it would take LEG, 5.18 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.18, LEG perfoms like the industry average, outperforming 43.28% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that LEG has dependencies on debt financing.
LEG has a Debt to Equity ratio of 1.26. This is amonst the worse of the industry: LEG underperforms 83.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.26
Debt/FCF 5.18
Altman-Z 2.68
ROIC/WACC0.82
WACC9.29%

2.3 Liquidity

A Current Ratio of 1.49 indicates that LEG should not have too much problems paying its short term obligations.
LEG's Current ratio of 1.49 is on the low side compared to the rest of the industry. LEG is outperformed by 83.58% of its industry peers.
LEG has a Quick Ratio of 1.49. This is a bad value and indicates that LEG is not financially healthy enough and could expect problems in meeting its short term obligations.
LEG has a worse Quick ratio (0.84) than 65.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.84

3

3. Growth

3.1 Past

The earnings per share for LEG have decreased strongly by -38.77% in the last year.
Measured over the past years, LEG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.01% on average per year.
The Revenue has decreased by -8.19% in the past year.
Measured over the past years, LEG shows a small growth in Revenue. The Revenue has been growing by 2.05% on average per year.
EPS 1Y (TTM)-38.77%
EPS 3Y-13.26%
EPS 5Y-11.01%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)-8.19%
Revenue growth 3Y3.35%
Revenue growth 5Y2.05%
Revenue growth Q2Q-6.75%

3.2 Future

The Earnings Per Share is expected to grow by 7.38% on average over the next years.
Based on estimates for the next years, LEG will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-15.53%
EPS Next 2Y-2.19%
EPS Next 3Y-0.89%
EPS Next 5Y7.38%
Revenue Next Year-4.66%
Revenue Next 2Y-1.2%
Revenue Next 3Y-0.32%
Revenue Next 5Y2.04%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.64, the valuation of LEG can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as LEG.
LEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.42.
The Price/Forward Earnings ratio is 16.15, which indicates a correct valuation of LEG.
LEG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LEG to the average of the S&P500 Index (22.74), we can say LEG is valued slightly cheaper.
Industry RankSector Rank
PE 13.64
Fwd PE 16.15

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 65.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LEG is valued cheaper than 82.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.61
EV/EBITDA 8.11

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.19%
EPS Next 3Y-0.89%

8

5. Dividend

5.1 Amount

LEG has a Yearly Dividend Yield of 9.72%, which is a nice return.
In the last 3 months the price of LEG has falen by -27.55%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.20, LEG pays a better dividend. On top of this LEG pays more dividend than 97.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LEG pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.72%

5.2 History

The dividend of LEG has a limited annual growth rate of 4.04%.
LEG has been paying a dividend for at least 10 years, so it has a reliable track record.
LEG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.04%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

The earnings of LEG are negative and hence is the payout ratio. LEG will probably not be able to sustain this dividend level.
The dividend of LEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-175%
EPS Next 2Y-2.19%
EPS Next 3Y-0.89%

LEGGETT & PLATT INC

NYSE:LEG (3/27/2024, 8:24:56 PM)

After market: 19 +0.04 (+0.21%)

18.96

+0.88 (+4.87%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.54B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 9.72%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 13.64
Fwd PE 16.15
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.95%
ROE -10.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.05%
PM (TTM) N/A
GM 18.07%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 1.26
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.49
Quick Ratio 0.84
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-38.77%
EPS 3Y-13.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.19%
Revenue growth 3Y3.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y