LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
NYSE:LEG - New York Stock Exchange, Inc. - US5246601075 - Common Stock - Currency: USD
Taking everything into account, LEG scores 3 out of 10 in our fundamental rating. LEG was compared to 64 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 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.
In multiple years LEG reported negative net income over the last 5 years.
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 -13.97%, LEG is doing worse than 84.38% of the companies in the same industry.
LEG has a Return On Equity of -74.19%. This is amonst the worse of the industry: LEG underperforms 89.06% of its industry peers.
LEG's Return On Invested Capital of 7.20% is in line compared to the rest of the industry. LEG outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEG is below the industry average of 11.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.97% | ||
| ROE | -74.19% | ||
| ROIC | 7.2% |
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 has a Operating Margin (5.85%) which is comparable to the rest of the industry.
LEG's Operating Margin has declined in the last couple of years.
The Gross Margin of LEG (17.39%) is worse than 82.81% of its industry peers.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% |
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) below the Cost of Capital (WACC), LEG is destroying 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.
Compared to 1 year ago, LEG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that LEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.74, LEG perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
LEG has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as LEG would need 8.32 years to pay back of all of its debts.
LEG has a Debt to FCF ratio (8.32) which is in line with its industry peers.
A Debt/Equity ratio of 2.70 is on the high side and indicates that LEG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.70, LEG is doing worse than 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.9
WACC8.01%
2.3 Liquidity
LEG has a Current Ratio of 2.00. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LEG (2.00) is comparable to the rest of the industry.
LEG has a Quick Ratio of 1.14. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
LEG has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
LEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.82%.
LEG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.39% yearly.
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -6.51%.
The Revenue has been decreasing by -1.60% on average over the past years.
EPS 1Y (TTM)-13.82%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.82%
3.2 Future
Based on estimates for the next years, LEG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y5.09%
EPS Next 2Y8%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue Next Year-4.73%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.27%
Revenue Next 5Y0.88%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.25, the valuation of LEG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LEG is on the same level as its industry peers.
LEG is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
LEG is valuated cheaply with a Price/Forward Earnings ratio of 7.15.
73.44% of the companies in the same industry are more expensive than LEG, based on the Price/Forward Earnings ratio.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.15 |
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 64.06% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEG indicates a rather cheap valuation: LEG is cheaper than 90.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.27 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
LEG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y8%
EPS Next 3Y9.64%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
LEG's Dividend Yield is rather good when compared to the industry average which is at 3.47. LEG pays more dividend than 82.81% of the companies in the same industry.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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.
LEG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.18%
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.
DP-26.65%
EPS Next 2Y8%
EPS Next 3Y9.64%
8.75
-0.42 (-4.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners77.25%
Inst Owner Change3.6%
Ins Owners0.69%
Ins Owner Change11.11%
Market Cap1.18B
Analysts49.09
Price Target10.2 (16.57%)
Short Float %7.53%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP-26.65%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.29%
Min EPS beat(2)-3.26%
Max EPS beat(2)2.68%
EPS beat(4)1
Avg EPS beat(4)-2.3%
Min EPS beat(4)-5.12%
Max EPS beat(4)2.68%
EPS beat(8)2
Avg EPS beat(8)2.71%
EPS beat(12)4
Avg EPS beat(12)1.85%
EPS beat(16)7
Avg EPS beat(16)5.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.29%
PT rev (1m)-14.29%
PT rev (3m)-21.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.12%
EPS NY rev (1m)2.58%
EPS NY rev (3m)-8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.15 | ||
| P/S | 0.27 | ||
| P/FCF | 5.27 | ||
| P/OCF | 3.87 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.01 |
EPS(TTM)1.06
EY12.11%
EPS(NY)1.22
Fwd EY14%
FCF(TTM)1.66
FCFY18.96%
OCF(TTM)2.26
OCFY25.86%
SpS32.45
BVpS5.1
TBVpS-1.82
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.97% | ||
| ROE | -74.19% | ||
| ROCE | 9.11% | ||
| ROIC | 7.2% | ||
| ROICexc | 8.22% | ||
| ROICexgc | 13.25% | ||
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% | ||
| FCFM | 5.11% |
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-Score5
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 60% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 77.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.74 |
F-Score5
WACC8.01%
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)-13.82%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%4.35%
EPS Next Y5.09%
EPS Next 2Y8%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.82%
Revenue Next Year-4.73%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.27%
Revenue Next 5Y0.88%
EBIT growth 1Y-22.94%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year56.29%
EBIT Next 3Y20.09%
EBIT Next 5Y12.89%
FCF growth 1Y-41.55%
FCF growth 3Y10.81%
FCF growth 5Y-15.65%
OCF growth 1Y-38.52%
OCF growth 3Y4.06%
OCF growth 5Y-14.47%