LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - NYSE:LEG - US5246601075 - Common Stock
8.72 USD
-0.09 (-1.02%)
8.72 USD
0 (0%)
Overall LEG gets a fundamental rating of 3 out of 10. We evaluated LEG against 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LEG was profitable.
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 has a Return On Assets of 3.84%. This is comparable to the rest of the industry: LEG outperforms 50.82% of its industry peers.
LEG has a Return On Equity of 16.63%. This is in the better half of the industry: LEG outperforms 73.77% of its industry peers.
With a Return On Invested Capital value of 7.28%, LEG perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
LEG had an Average Return On Invested Capital over the past 3 years of 8.00%. This is below the industry average of 10.21%.
| 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
The Profit Margin of LEG (3.36%) is comparable to the rest of the industry.
LEG has a Operating Margin of 6.31%. This is comparable to the rest of the industry: LEG outperforms 40.98% of its industry peers.
LEG's Operating Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of LEG has declined.
| 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
LEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LEG has more shares outstanding than it did 1 year ago.
LEG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEG has a worse debt to assets ratio.
2.2 Solvency
LEG has an Altman-Z score of 2.74. 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 (2.74) 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.
LEG has a Debt to FCF ratio of 7.27. This is comparable to the rest of the industry: LEG outperforms 59.02% of its industry peers.
A Debt/Equity ratio of 2.10 is on the high side and indicates that LEG has dependencies on debt financing.
LEG has a Debt to Equity ratio of 2.10. This is amonst the worse of the industry: LEG underperforms 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.9
WACC8.06%
2.3 Liquidity
A Current Ratio of 2.17 indicates that LEG has no problem at all paying 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.
LEG has a Quick Ratio of 1.36. This is a normal value and indicates that LEG is financially healthy and should not expect problems in meeting its short term obligations.
LEG's Quick ratio of 1.36 is fine compared to the rest of the industry. LEG outperforms 70.49% 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 -5.45% in the last year.
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 -6.06%.
LEG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
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
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
Based on estimates for the next years, LEG will show a decrease in Revenue. The Revenue will decrease by -0.23% on average per year.
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
LEG is valuated reasonably with a Price/Earnings ratio of 8.38.
LEG's Price/Earnings ratio is a bit cheaper when compared to the industry. LEG is cheaper than 77.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, LEG is valued rather cheaply.
LEG is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
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.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 70.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LEG is valued cheaper than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.79 | ||
| EV/EBITDA | 6.56 |
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)8.38
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.29, LEG pays a better dividend. On top of this LEG pays more dividend than 80.33% of the companies listed in the same industry.
LEG's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 18.85% of its income as dividend. This is a sustainable payout ratio.
DP18.85%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
8.72
-0.09 (-1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.32%
Inst Owner Change-0.47%
Ins Owners0.89%
Ins Owner Change-8.04%
Market Cap1.18B
Revenue(TTM)4.17B
Net Income(TTM)142.20M
Analysts49.09
Price Target9.86 (13.07%)
Short Float %6.13%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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)-3.33%
PT rev (3m)-6.45%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-10.77%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.28 | ||
| P/FCF | 4.79 | ||
| P/OCF | 3.82 | ||
| P/B | 1.38 | ||
| P/tB | 196.71 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)1.04
EY11.93%
EPS(NY)1.1
Fwd EY12.6%
FCF(TTM)1.82
FCFY20.89%
OCF(TTM)2.28
OCFY26.15%
SpS31.31
BVpS6.32
TBVpS0.04
PEG (NY)8.38
PEG (5Y)N/A
Graham Number12.16
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%
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-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 | 2.74 |
F-Score7
WACC8.06%
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)-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-4.64%
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-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%
LEGGETT & PLATT INC / LEG FAQ
What is the fundamental rating for LEG stock?
ChartMill assigns a fundamental rating of 3 / 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 3 / 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 18.85%.