LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
9.24 USD
+0.34 (+3.82%)
9.24 USD
0 (0%)
LEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. LEG has an average financial health and profitability rating. LEG has a valuation in line with the averages, but it does not seem to be growing.
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.
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
With a Return On Assets value of 6.37%, LEG perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
LEG's Return On Equity of 23.09% is amongst the best of the industry. LEG outperforms 93.44% 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 9.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 23.09% | ||
| ROIC | 7.58% |
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
Looking at the Profit Margin, with a value of 5.38%, LEG is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
LEG has a Operating Margin (6.28%) which is in line with its industry peers.
LEG's Operating Margin has declined in the last couple of years.
LEG's Gross Margin of 18.28% is on the low side compared to the rest of the industry. LEG is outperformed by 81.97% of its industry peers.
In the last couple of years the Gross Margin of LEG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.28% | ||
| PM (TTM) | 5.38% | ||
| GM | 18.28% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEG is creating some value.
LEG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LEG has been increased compared to 5 years ago.
The debt/assets ratio for LEG is higher compared to a year ago.
2.2 Solvency
LEG has an Altman-Z score of 2.93. 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 (2.93) is comparable to the rest of the industry.
The Debt to FCF ratio of LEG is 5.35, which is a neutral value as it means it would take LEG, 5.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LEG (5.35) is comparable to the rest of the industry.
LEG has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LEG (1.54) is worse than 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.93 |
ROIC/WACC1
WACC7.57%
2.3 Liquidity
LEG has a Current Ratio of 2.15. This indicates that LEG is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.15, LEG perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
LEG has a Quick Ratio of 1.35. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.35, LEG is doing good in the industry, outperforming 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
LEG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.45%.
Measured over the past years, LEG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.39% on average per year.
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -6.06%.
Measured over the past years, LEG shows a decrease in Revenue. The Revenue has been decreasing by -1.60% on average per year.
EPS 1Y (TTM)-5.45%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.93%
3.2 Future
LEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
The Revenue is expected to decrease by -0.23% on average over the next years.
EPS Next Y1%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue Next Year-6.87%
Revenue Next 2Y-5.33%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.23%
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 accelerating.
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
A Price/Earnings ratio of 8.88 indicates a reasonable valuation of LEG.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than 73.77% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of LEG can be described as reasonable.
Based on the Price/Forward Earnings ratio, LEG is valued cheaper than 86.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. LEG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
83.61% of the companies in the same industry are more expensive than LEG, based on the Enterprise Value to EBITDA ratio.
LEG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LEG is cheaper than 91.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.47 | ||
| EV/EBITDA | 5.91 |
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)8.88
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, LEG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, LEG pays a better dividend. On top of this LEG pays more dividend than 80.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of LEG decreases each year by -8.18%.
LEG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LEG pays out 11.94% of its income as dividend. This is a sustainable payout ratio.
DP11.94%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
9.24
+0.34 (+3.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change-2.38%
Ins Owners0.89%
Ins Owner Change-7.98%
Market Cap1.25B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target11.22 (21.43%)
Short Float %5.69%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP11.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.8%
Min EPS beat(2)-2.61%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)2.08%
Min EPS beat(4)-2.61%
Max EPS beat(4)9.25%
EPS beat(8)2
Avg EPS beat(8)-1.02%
EPS beat(12)3
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)2.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)3
Avg Revenue beat(12)-1.51%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)10%
PT rev (3m)10%
EPS NQ rev (1m)2.17%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-4.57%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.3 | ||
| P/FCF | 4.47 | ||
| P/OCF | 3.69 | ||
| P/B | 1.29 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)1.04
EY11.26%
EPS(NY)1.1
Fwd EY11.89%
FCF(TTM)2.07
FCFY22.36%
OCF(TTM)2.5
OCFY27.11%
SpS30.83
BVpS7.18
TBVpS0.95
PEG (NY)8.88
PEG (5Y)N/A
Graham Number12.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 23.09% | ||
| ROCE | 9.59% | ||
| ROIC | 7.58% | ||
| ROICexc | 9.11% | ||
| ROICexgc | 14.5% | ||
| OM | 6.28% | ||
| PM (TTM) | 5.38% | ||
| GM | 18.28% | ||
| FCFM | 6.7% |
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%
ROICexgc growth 3Y-24.14%
ROICexgc 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-Score8
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 47.6% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.66% | ||
| Profit Quality | 124.6% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.93 |
F-Score8
WACC7.57%
ROIC/WACC1
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)-5.45%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-9.38%
EPS Next Y1%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.93%
Revenue Next Year-6.87%
Revenue Next 2Y-5.33%
Revenue Next 3Y-2.2%
Revenue Next 5Y-0.23%
EBIT growth 1Y-1.06%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year50.24%
EBIT Next 3Y19.56%
EBIT Next 5Y11.08%
FCF growth 1Y-40.89%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-43.33%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%
LEGGETT & PLATT INC / LEG FAQ
What is the fundamental rating for LEG stock?
ChartMill assigns a fundamental rating of 4 / 10 to LEG.
Can you provide the valuation status for LEGGETT & PLATT INC?
ChartMill assigns a valuation rating of 6 / 10 to LEGGETT & PLATT INC (LEG). This can be considered as Fairly Valued.
Can you provide the profitability details for LEGGETT & PLATT INC?
LEGGETT & PLATT INC (LEG) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for LEG stock?
The Earnings per Share (EPS) of LEGGETT & PLATT INC (LEG) is expected to grow by 1% in the next year.
Can you provide the dividend sustainability for LEG stock?
The dividend rating of LEGGETT & PLATT INC (LEG) is 5 / 10 and the dividend payout ratio is 11.94%.