LEGGETT & PLATT INC (LEG)
US5246601075 - Common Stock
LEG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. LEG may be in some trouble as it scores bad on both profitability and health. LEG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEG (-3.44%) is worse than 78.46% of its industry peers.
With a Return On Equity value of -12.31%, LEG is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
The Return On Invested Capital of LEG (6.65%) is comparable to the rest of the industry.
LEG had an Average Return On Invested Capital over the past 3 years of 9.01%. This is in line with the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.44% | ||
| ROE | -12.31% | ||
| ROIC | 6.65% |
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
LEG's Operating Margin of 6.44% is in line compared to the rest of the industry. LEG outperforms 49.23% of its industry peers.
LEG's Operating Margin has declined in the last couple of years.
LEG's Gross Margin of 17.83% is on the low side compared to the rest of the industry. LEG is outperformed by 89.23% of its industry peers.
In the last couple of years the Gross Margin of LEG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 17.83% |
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. Health
2.1 Basic Checks
LEG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEG has been increased compared to 1 year ago.
Compared to 5 years ago, LEG has more shares outstanding
LEG has a worse debt/assets ratio than last year.
2.2 Solvency
LEG has an Altman-Z score of 2.49. 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 2.49. This is in the lower half of the industry: LEG underperforms 60.00% of its industry peers.
The Debt to FCF ratio of LEG is 7.10, which is on the high side as it means it would take LEG, 7.10 years of fcf income to pay off all of its debts.
LEG has a Debt to FCF ratio of 7.10. This is comparable to the rest of the industry: LEG outperforms 43.08% of its industry peers.
LEG has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
LEG has a worse Debt to Equity ratio (1.38) than 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.75
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.57 indicates that LEG should not have too much problems paying its short term obligations.
The Current ratio of LEG (1.57) is worse than 83.08% of its industry peers.
A Quick Ratio of 0.89 indicates that LEG may have some problems paying its short term obligations.
LEG has a worse Quick ratio (0.89) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for LEG have decreased strongly by -38.50% 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.
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -8.52%.
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)-38.5%
EPS 3Y-13.26%
EPS 5Y-11.01%
EPS Q2Q%-41.03%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y3.35%
Revenue growth 5Y2.05%
Sales Q2Q%-9.62%
3.2 Future
LEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.27% yearly.
LEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.38% yearly.
EPS Next Y-17.53%
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%
EPS Next 5Y2.27%
Revenue Next Year-5.65%
Revenue Next 2Y-1.69%
Revenue Next 3Y-0.41%
Revenue Next 5Y0.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
LEG is valuated reasonably with a Price/Earnings ratio of 10.76.
69.23% of the companies in the same industry are more expensive than LEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LEG to the average of the S&P500 Index (24.41), we can say LEG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.13, the valuation of LEG can be described as very reasonable.
67.69% of the companies in the same industry are more expensive than LEG, based on the Price/Forward Earnings ratio.
LEG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 78.46% of the companies in the same industry.
86.15% of the companies in the same industry are more expensive than LEG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 1.57%.
In the last 3 months the price of LEG has falen by -26.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LEG's Dividend Yield is rather good when compared to the industry average which is at 2.49. LEG pays more dividend than 81.54% of the companies in the same industry.
LEG's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of LEG has a limited annual growth rate of 4.04%.
LEG has paid a dividend for at least 10 years, which is 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 Years33
Div Non Decr Years33
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.
LEG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-152.74%
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%
LEGGETT & PLATT INC
NYSE:LEG (7/26/2024, 7:04:00 PM)
After market: 13.23 0 (0%)13.23
+0.38 (+2.96%)
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 Cap1.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.13 | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.44% | ||
| ROE | -12.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 17.83% | ||
| 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
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.89 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-38.5%
EPS 3Y-13.26%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y3.35%
Revenue growth 5Y
Sales 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