LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11.74 USD
-0.16 (-1.34%)
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. Both the profitability and the financial health of LEG get a neutral evaluation. Nothing too spectacular is happening here. LEG has a valuation in line with the averages, but it does not seem to be growing.
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.
- In multiple years LEG reported negative net income over the last 5 years.
- In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 6.37%, LEG perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- LEG has a better Return On Equity (23.09%) than 91.67% of its industry peers.
- LEG has a Return On Invested Capital (7.58%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for LEG is in line with the industry average of 9.70%.
| 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
- The Profit Margin of LEG (5.38%) is comparable to the rest of the industry.
- LEG has a Operating Margin of 6.28%. This is comparable 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.
- With a Gross Margin value of 18.28%, LEG is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LEG is destroying value.
- Compared to 1 year ago, LEG has more shares outstanding
- Compared to 5 years ago, LEG has more shares outstanding
- LEG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.01 indicates that LEG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LEG (3.01) is comparable to the rest of the industry.
- LEG has a debt to FCF ratio of 5.35. This is a neutral value as LEG would need 5.35 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.35, LEG is in line with its industry, 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.
- Looking at the Debt to Equity ratio, with a value of 1.54, LEG is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.92
WACC8.26%
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's Current ratio of 2.15 is on the low side compared to the rest of the industry. LEG is outperformed by 60.00% of its industry peers.
- A Quick Ratio of 1.35 indicates that LEG should not have too much problems paying its short term obligations.
- LEG has a better Quick ratio (1.35) than 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.
- The earnings per share for LEG have been decreasing by -16.39% on average. This is quite bad
- 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
- 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 Y0.76%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
EPS Next 5Y7.17%
Revenue Next Year-6.87%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.22%
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 11.29, 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 63.33% of the companies are valued more expensively.
- LEG is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of LEG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 78.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, LEG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 10.69 |
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 71.67% of the companies listed in the same industry.
- 90.00% of the companies in the same industry are more expensive than LEG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.69 | ||
| EV/EBITDA | 6.85 |
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)14.86
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
- LEG has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
- LEG's Dividend Yield is a higher than the industry average which is at 1.17.
- Compared to an average S&P500 Dividend Yield of 1.82, LEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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%
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 11.29 and the Price/Book (PB) ratio is 1.64.
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 0.76% in the next year.