LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - NYSE:LEG - US5246601075 - Common Stock
8.96 USD
+0.09 (+1.01%)
8.96 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LEG. LEG was compared to 61 industry peers in the Household Durables industry. Both the profitability and financial health of LEG have multiple concerns. 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
LEG had positive earnings in the past year.
LEG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LEG reported negative net income in multiple years.
Each year in the past 5 years LEG had a positive operating cash flow.
1.2 Ratios
LEG's Return On Assets of 3.84% is in line compared to the rest of the industry. LEG outperforms 50.82% of its industry peers.
Looking at the Return On Equity, with a value of 16.63%, LEG is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
LEG has a Return On Invested Capital (7.28%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LEG is below the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 16.63% | ||
| ROIC | 7.28% |
ROA(3y)-3.65%
ROA(5y)0.38%
ROE(3y)-21.86%
ROE(5y)-4.68%
ROIC(3y)8%
ROIC(5y)8.74%
1.3 Margins
LEG's Profit Margin of 3.36% is in line compared to the rest of the industry. LEG outperforms 47.54% of its industry peers.
Looking at the Operating Margin, with a value of 6.31%, LEG is in line with its industry, outperforming 40.98% of the companies in the same industry.
In the last couple of years the Operating Margin of LEG has declined.
LEG's Gross Margin of 18.14% is on the low side compared to the rest of the industry. LEG is outperformed by 81.97% of its industry peers.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.31% | ||
| PM (TTM) | 3.36% | ||
| GM | 18.14% |
OM growth 3Y-18.8%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.29%
GM growth 5Y-4.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LEG is destroying 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 2.75. 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.
The Altman-Z score of LEG (2.75) is comparable to the rest of the industry.
The Debt to FCF ratio of LEG is 7.27, which is on the high side as it means it would take LEG, 7.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.27, LEG perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
LEG has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LEG (2.10) is worse than 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.9
WACC8.11%
2.3 Liquidity
LEG has a Current Ratio of 2.17. This indicates that LEG is financially healthy and has no problem in meeting its short term obligations.
LEG has a Current ratio of 2.17. This is comparable to the rest of the industry: LEG outperforms 42.62% of its industry peers.
A Quick Ratio of 1.36 indicates that LEG should not have too much problems paying its short term obligations.
LEG has a better Quick ratio (1.36) than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for LEG have decreased by -6.14% in the last year.
The earnings per share for LEG have been decreasing by -16.39% on average. This is quite bad
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -6.15%.
LEG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
EPS 1Y (TTM)-6.14%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%3.45%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.26%
3.2 Future
LEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
Based on estimates for the next years, LEG will show a small growth in Revenue. The Revenue will grow by 0.64% on average per year.
EPS Next Y1.72%
EPS Next 2Y5.06%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue Next Year-6.21%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.44%
Revenue Next 5Y0.64%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LEG is valuated reasonably with a Price/Earnings ratio of 8.37.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than 75.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of LEG to the average of the S&P500 Index (27.69), we can say LEG is valued rather cheaply.
LEG is valuated cheaply with a Price/Forward Earnings ratio of 7.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEG indicates a rather cheap valuation: LEG is cheaper than 88.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LEG to the average of the S&P500 Index (23.18), we can say LEG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 72.13% of the companies in the same industry.
LEG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LEG is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.92 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.86
PEG (5Y)N/A
EPS Next 2Y5.06%
EPS Next 3Y9.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, LEG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.06, LEG pays a better dividend. On top of this LEG pays more dividend than 81.97% of the companies listed in the same industry.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of LEG decreases each year by -8.18%.
LEG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
18.85% of the earnings are spent on dividend by LEG. This is a low number and sustainable payout ratio.
DP18.85%
EPS Next 2Y5.06%
EPS Next 3Y9.64%
8.96
+0.09 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change-0.11%
Ins Owners0.89%
Ins Owner Change-8.05%
Market Cap1.21B
Analysts49.09
Price Target10.2 (13.84%)
Short Float %6.91%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP18.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.32%
Min EPS beat(2)-2.61%
Max EPS beat(2)9.25%
EPS beat(4)2
Avg EPS beat(4)1.51%
Min EPS beat(4)-3.26%
Max EPS beat(4)9.25%
EPS beat(8)2
Avg EPS beat(8)-2.19%
EPS beat(12)4
Avg EPS beat(12)1.1%
EPS beat(16)6
Avg EPS beat(16)1.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.54%
Revenue beat(12)3
Avg Revenue beat(12)-1.2%
Revenue beat(16)5
Avg Revenue beat(16)-0.55%
PT rev (1m)0%
PT rev (3m)-3.23%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-10.77%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-4.3%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.29 | ||
| P/FCF | 4.92 | ||
| P/OCF | 3.93 | ||
| P/B | 1.42 | ||
| P/tB | 202.12 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.07
EY11.94%
EPS(NY)1.16
Fwd EY12.93%
FCF(TTM)1.82
FCFY20.33%
OCF(TTM)2.28
OCFY25.45%
SpS31.31
BVpS6.32
TBVpS0.04
PEG (NY)4.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 16.63% | ||
| ROCE | 9.22% | ||
| ROIC | 7.28% | ||
| ROICexc | 8.34% | ||
| ROICexgc | 12.55% | ||
| OM | 6.31% | ||
| PM (TTM) | 3.36% | ||
| GM | 18.14% | ||
| FCFM | 5.82% |
ROA(3y)-3.65%
ROA(5y)0.38%
ROE(3y)-21.86%
ROE(5y)-4.68%
ROIC(3y)8%
ROIC(5y)8.74%
ROICexc(3y)8.89%
ROICexc(5y)9.67%
ROICexgc(3y)18.06%
ROICexgc(5y)21.73%
ROCE(3y)10.16%
ROCE(5y)11.09%
ROICexcg growth 3Y-24.14%
ROICexcg growth 5Y-12.98%
ROICexc growth 3Y-12.28%
ROICexc growth 5Y-5.12%
OM growth 3Y-18.8%
OM growth 5Y-10.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.29%
GM growth 5Y-4.1%
F-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 47.04% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.3% | ||
| Profit Quality | 173.42% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.75 |
F-Score7
WACC8.11%
ROIC/WACC0.9
Cap/Depr(3y)59.68%
Cap/Depr(5y)54.18%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.14%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%3.45%
EPS Next Y1.72%
EPS Next 2Y5.06%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.26%
Revenue Next Year-6.21%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.44%
Revenue Next 5Y0.64%
EBIT growth 1Y-4.64%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year50.24%
EBIT Next 3Y19.56%
EBIT Next 5Y12.51%
FCF growth 1Y-37.12%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-40.64%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%