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LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis

NYSE:LEG - New York Stock Exchange, Inc. - US5246601075 - Common Stock - Currency: USD

7.27  -0.02 (-0.27%)

After market: 8.51 +1.24 (+17.06%)

Fundamental Rating

3

LEG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

2

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.
LEG Yearly Net Income VS EBIT VS OCF VS FCFLEG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

1.2 Ratios

With a Return On Assets value of -13.97%, LEG is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
LEG's Return On Equity of -74.19% is on the low side compared to the rest of the industry. LEG is outperformed by 89.06% of its industry peers.
With a Return On Invested Capital value of 7.20%, LEG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LEG is below the industry average of 12.29%.
Industry RankSector 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%
LEG Yearly ROA, ROE, ROICLEG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

LEG's Operating Margin of 5.85% is in line compared to the rest of the industry. LEG outperforms 42.19% of its industry peers.
In the last couple of years the Operating Margin of LEG has declined.
With a Gross Margin value of 17.39%, LEG is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
LEG's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
LEG Yearly Profit, Operating, Gross MarginsLEG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEG is still creating some value.
The number of shares outstanding for LEG has been increased compared to 1 year ago.
The number of shares outstanding for LEG has been increased compared to 5 years ago.
LEG has a worse debt/assets ratio than last year.
LEG Yearly Shares OutstandingLEG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
LEG Yearly Total Debt VS Total AssetsLEG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

LEG has an Altman-Z score of 2.69. 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 2.69. This is comparable to the rest of the industry: LEG outperforms 48.44% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 8.32, LEG is in line with its industry, outperforming 48.44% of the companies in the same industry.
LEG has a Debt/Equity ratio of 2.70. This is a high value indicating a heavy dependency on external financing.
LEG's Debt to Equity ratio of 2.70 is on the low side compared to the rest of the industry. LEG is outperformed by 92.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.7
Debt/FCF 8.32
Altman-Z 2.69
ROIC/WACC0.97
WACC7.46%
LEG Yearly LT Debt VS Equity VS FCFLEG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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.
LEG has a Current ratio of 2.00. This is comparable to the rest of the industry: LEG outperforms 43.75% of its industry peers.
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 RankSector Rank
Current Ratio 2
Quick Ratio 1.14
LEG Yearly Current Assets VS Current LiabilitesLEG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

3

3. Growth

3.1 Past

The earnings per share for LEG have decreased strongly by -24.46% 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 -16.39% on average per year.
The Revenue has decreased by -7.23% in the past year.
The Revenue has been decreasing by -1.60% on average over the past years.
EPS 1Y (TTM)-24.46%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.26%

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.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y2.44%
EPS Next 2Y5.02%
EPS Next 3Y8.96%
EPS Next 5Y8.46%
Revenue Next Year-4.16%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.21%
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.
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.
LEG Yearly Revenue VS EstimatesLEG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
LEG Yearly EPS VS EstimatesLEG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2 2.5

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 6.92, which indicates a rather cheap valuation of LEG.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.87, LEG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of LEG can be described as very cheap.
Based on the Price/Forward Earnings ratio, LEG is valued a bit cheaper than 79.69% of the companies in the same industry.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.92
Fwd PE 6.76
LEG Price Earnings VS Forward Price EarningsLEG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

62.50% of the companies in the same industry are more expensive than LEG, based on the Enterprise Value to EBITDA ratio.
92.19% of the companies in the same industry are more expensive than LEG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.38
EV/EBITDA 6.36
LEG Per share dataLEG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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)2.83
PEG (5Y)N/A
EPS Next 2Y5.02%
EPS Next 3Y8.96%

5

5. Dividend

5.1 Amount

LEG has a Yearly Dividend Yield of 2.70%.
In the last 3 months the price of LEG has falen by -31.16%. 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 3.60. LEG pays more dividend than 85.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, LEG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.7%

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
LEG Yearly Dividends per shareLEG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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 2Y5.02%
EPS Next 3Y8.96%
LEG Yearly Income VS Free CF VS DividendLEG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M

LEGGETT & PLATT INC

NYSE:LEG (4/28/2025, 8:21:16 PM)

After market: 8.51 +1.24 (+17.06%)

7.27

-0.02 (-0.27%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)04-28 2025-04-28/amc
Inst Owners77.25%
Inst Owner Change0.02%
Ins Owners0.69%
Ins Owner Change11.13%
Market Cap981.09M
Analysts49.09
Price Target9.52 (30.95%)
Short Float %6.6%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP-26.65%
Div Incr Years33
Div Non Decr Years33
Ex-Date03-14 2025-03-14 (0.05)
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)-20%
PT rev (3m)-30%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-11.22%
EPS NY rev (1m)-4.27%
EPS NY rev (3m)-10.13%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-3.64%
Valuation
Industry RankSector Rank
PE 6.92
Fwd PE 6.76
P/S 0.22
P/FCF 4.38
P/OCF 3.21
P/B 1.42
P/tB N/A
EV/EBITDA 6.36
EPS(TTM)1.05
EY14.44%
EPS(NY)1.08
Fwd EY14.8%
FCF(TTM)1.66
FCFY22.84%
OCF(TTM)2.27
OCFY31.16%
SpS32.48
BVpS5.11
TBVpS-1.82
PEG (NY)2.83
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.69
F-Score5
WACC7.46%
ROIC/WACC0.97
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)-24.46%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%-19.23%
EPS Next Y2.44%
EPS Next 2Y5.02%
EPS Next 3Y8.96%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-5.26%
Revenue Next Year-4.16%
Revenue Next 2Y-1.56%
Revenue Next 3Y-0.21%
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%