LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11.64 USD
+0.59 (+5.34%)
11.64 USD
0 (0%)
Taking everything into account, LEG scores 4 out of 10 in our fundamental rating. LEG was compared to 60 industry peers in the Household Durables industry. While LEG is still in line with the averages on profitability rating, there are concerns on its financial health. 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 has a Return On Assets (6.37%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 23.09%, LEG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
With a Return On Invested Capital value of 7.58%, LEG perfoms like the industry average, outperforming 53.33% 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 in line with the industry average of 9.69%.
| 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
LEG's Profit Margin of 5.38% is in line compared to the rest of the industry. LEG outperforms 60.00% of its industry peers.
LEG's Operating Margin of 6.28% is in line compared to the rest of the industry. LEG outperforms 43.33% of its industry peers.
In the last couple of years the Operating Margin of LEG has declined.
Looking at the Gross Margin, with a value of 18.28%, LEG is doing worse than 81.67% of the companies in the same industry.
LEG's Gross Margin has declined in the last couple of years.
| 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) below the Cost of Capital (WACC), LEG is destroying value.
Compared to 1 year ago, LEG has more shares outstanding
LEG has more shares outstanding than it did 5 years ago.
LEG has a worse debt/assets ratio than last year.
2.2 Solvency
LEG has an Altman-Z score of 2.99. 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 (2.99) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 5.35, LEG perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that LEG has dependencies on debt financing.
LEG's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. LEG is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.94
WACC8.06%
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.
LEG has a worse Current ratio (2.15) than 60.00% of its industry peers.
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.
LEG's Quick ratio of 1.35 is fine compared to the rest of the industry. LEG outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for LEG have decreased by -5.45% 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.
Looking at the last year, LEG shows a decrease in Revenue. The Revenue has decreased by -6.06% in the last year.
The Revenue has been decreasing by -1.60% on average over the past years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.19, the valuation of LEG can be described as reasonable.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
LEG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 10.60, the valuation of LEG can be described as very reasonable.
76.67% of the companies in the same industry are more expensive than LEG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.79. LEG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 10.6 |
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 73.33% 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 88.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 6.55 |
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)11.19
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.23, LEG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, LEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
11.94% of the earnings are spent on dividend by LEG. This is a low number and sustainable payout ratio.
DP11.94%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
11.64
+0.59 (+5.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change-7.47%
Market Cap1.58B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target12.75 (9.54%)
Short Float %5.03%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP11.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)13.64%
PT rev (3m)25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.38 | ||
| P/FCF | 5.64 | ||
| P/OCF | 4.65 | ||
| P/B | 1.62 | ||
| P/tB | 12.28 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)1.04
EY8.93%
EPS(NY)1.1
Fwd EY9.44%
FCF(TTM)2.06
FCFY17.74%
OCF(TTM)2.5
OCFY21.5%
SpS30.81
BVpS7.18
TBVpS0.95
PEG (NY)11.19
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 | 2.99 |
F-Score8
WACC8.06%
ROIC/WACC0.94
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 Year49.17%
EBIT Next 3Y17.95%
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.
What is the valuation status of LEGGETT & PLATT INC (LEG) stock?
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.
What is the valuation of LEGGETT & PLATT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEGGETT & PLATT INC (LEG) is 11.19 and the Price/Book (PB) ratio is 1.62.
What is the earnings growth outlook for LEGGETT & PLATT INC?
The Earnings per Share (EPS) of LEGGETT & PLATT INC (LEG) is expected to grow by 1% in the next year.