LEGGETT & PLATT INC (LEG)

US5246601075 - Common Stock

11.675  +0.15 (+1.26%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to LEG. LEG was compared to 67 industry peers in the Household Durables industry. LEG may be in some trouble as it scores bad on both profitability and health. LEG has a valuation in line with the averages, but on the other hand it scores bad on growth.



3

1. Profitability

1.1 Basic Checks

In the past year LEG was profitable.
LEG had a positive operating cash flow in the past year.
Of the past 5 years LEG 4 years were profitable.
LEG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -3.44%, LEG is doing worse than 78.79% of the companies in the same industry.
LEG has a Return On Equity of -12.31%. This is in the lower half of the industry: LEG underperforms 77.27% of its industry peers.
With a Return On Invested Capital value of 6.65%, LEG perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
LEG had an Average Return On Invested Capital over the past 3 years of 9.01%. This is in line with the industry average of 10.10%.
Industry RankSector Rank
ROA -3.44%
ROE -12.31%
ROIC 6.65%
ROA(3y)3.53%
ROA(5y)4.48%
ROE(3y)11.01%
ROE(5y)14.95%
ROIC(3y)9.01%
ROIC(5y)9.04%

1.3 Margins

The Operating Margin of LEG (6.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LEG has declined.
Looking at the Gross Margin, with a value of 17.83%, LEG is doing worse than 92.42% of the companies in the same industry.
In the last couple of years the Gross Margin of LEG has declined.
Industry RankSector Rank
OM 6.44%
PM (TTM) N/A
GM 17.83%
OM growth 3Y-10.47%
OM growth 5Y-7.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.08%
GM growth 5Y-2.79%

2

2. Health

2.1 Basic Checks

LEG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LEG has been increased compared to 1 year ago.
Compared to 5 years ago, LEG has more shares outstanding
LEG has a worse debt/assets ratio than last year.

2.2 Solvency

LEG has an Altman-Z score of 2.46. 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 worse Altman-Z score (2.46) than 62.12% of its industry peers.
The Debt to FCF ratio of LEG is 7.10, which is on the high side as it means it would take LEG, 7.10 years of fcf income to pay off all of its debts.
LEG has a Debt to FCF ratio (7.10) which is in line with its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that LEG has dependencies on debt financing.
The Debt to Equity ratio of LEG (1.38) is worse than 78.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 7.1
Altman-Z 2.46
ROIC/WACC0.76
WACC8.74%

2.3 Liquidity

LEG has a Current Ratio of 1.57. 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 1.57. This is amonst the worse of the industry: LEG underperforms 83.33% of its industry peers.
A Quick Ratio of 0.89 indicates that LEG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, LEG is in line with its industry, outperforming 40.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 0.89

3

3. Growth

3.1 Past

LEG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.50%.
The earnings per share for LEG have been decreasing by -11.01% on average. This is quite bad
Looking at the last year, LEG shows a decrease in Revenue. The Revenue has decreased by -8.52% in the last year.
Measured over the past years, LEG shows a small growth in Revenue. The Revenue has been growing by 2.05% on average per year.
EPS 1Y (TTM)-38.5%
EPS 3Y-13.26%
EPS 5Y-11.01%
EPS Q2Q%-41.03%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y3.35%
Revenue growth 5Y2.05%
Sales Q2Q%-9.62%

3.2 Future

The Earnings Per Share is expected to grow by 2.27% on average over the next years.
Based on estimates for the next years, LEG will show a small growth in Revenue. The Revenue will grow by 0.38% on average per year.
EPS Next Y-17.53%
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%
EPS Next 5Y2.27%
Revenue Next Year-5.65%
Revenue Next 2Y-1.69%
Revenue Next 3Y-0.41%
Revenue Next 5Y0.38%

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 decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.49 indicates a reasonable valuation of LEG.
Compared to the rest of the industry, the Price/Earnings ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 69.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.24, LEG is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.94, the valuation of LEG can be described as very reasonable.
LEG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEG is cheaper than 72.73% of the companies in the same industry.
LEG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.93.
Industry RankSector Rank
PE 9.49
Fwd PE 8.94

4.2 Price Multiples

LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LEG is valued cheaper than 89.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.35
EV/EBITDA 7.02

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%

5

5. Dividend

5.1 Amount

LEG has a Yearly Dividend Yield of 1.64%.
The stock price of LEG dropped by -38.14% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.52, LEG pays a better dividend. On top of this LEG pays more dividend than 84.85% of the companies listed in the same industry.
LEG's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

The dividend of LEG has a limited annual growth rate of 4.04%.
LEG has been paying a dividend for at least 10 years, so it has a reliable track record.
LEG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.04%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

LEG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
LEG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-152.74%
EPS Next 2Y-3.09%
EPS Next 3Y-1.51%

LEGGETT & PLATT INC

NYSE:LEG (6/12/2024, 12:22:54 PM)

11.675

+0.15 (+1.26%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.56B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.49
Fwd PE 8.94
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.44%
ROE -12.31%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.44%
PM (TTM) N/A
GM 17.83%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.57
Quick Ratio 0.89
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-38.5%
EPS 3Y-13.26%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y3.35%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y