LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEG - US5246601075 - Common Stock
11.03 USD
-0.14 (-1.25%)
11.03 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LEG. LEG was compared to 61 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
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.
LEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEG's Return On Assets of 6.37% is in line compared to the rest of the industry. LEG outperforms 59.02% of its industry peers.
The Return On Equity of LEG (23.09%) is better than 93.44% of its industry peers.
LEG's Return On Invested Capital of 7.58% is in line compared to the rest of the industry. LEG outperforms 54.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEG is in line with the industry average of 9.73%.
| 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 better than 60.66% of its industry peers.
LEG has a Operating Margin (6.28%) which is comparable to the rest of the industry.
LEG's Operating Margin has declined in the last couple of years.
LEG's Gross Margin of 18.28% is on the low side compared to the rest of the industry. LEG is outperformed by 81.97% of its industry peers.
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
LEG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LEG is higher compared to a year ago.
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's Altman-Z score of 2.99 is in line compared to the rest of the industry. LEG outperforms 49.18% of 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.
The Debt to FCF ratio of LEG (5.35) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that LEG has dependencies on debt financing.
The Debt to Equity ratio of LEG (1.54) is worse than 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.94
WACC8.09%
2.3 Liquidity
A Current Ratio of 2.15 indicates that LEG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.15, LEG is in line with its industry, outperforming 40.98% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that LEG should not have too much problems paying its short term obligations.
LEG has a Quick ratio of 1.35. This is in the better half of the industry: LEG outperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
LEG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.45%.
LEG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.39% yearly.
The Revenue has decreased by -6.06% in the past 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
LEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
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
With a Price/Earnings ratio of 10.61, the valuation of LEG can be described as very reasonable.
Based on the Price/Earnings ratio, LEG is valued a bit cheaper than 63.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. LEG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.04, which indicates a very decent valuation of LEG.
77.05% of the companies in the same industry are more expensive than LEG, based on the Price/Forward Earnings ratio.
LEG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEG is valued a bit cheaper than the industry average as 77.05% of the companies are valued more expensively.
88.52% 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 | 5.34 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)10.61
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
LEG has a Yearly Dividend Yield of 1.75%.
LEG's Dividend Yield is a higher than the industry average which is at 3.05.
LEG's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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.
Dividend Growth(5Y)-8.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LEG pays out 11.94% of its income as dividend. This is a sustainable payout ratio.
DP11.94%
EPS Next 2Y2.28%
EPS Next 3Y5.09%
11.03
-0.14 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.73%
Inst Owner Change-2.38%
Ins Owners0.87%
Ins Owner Change-7.99%
Market Cap1.49B
Revenue(TTM)4.17B
Net Income(TTM)224.40M
Analysts49.09
Price Target11.22 (1.72%)
Short Float %6.59%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.18%
DP11.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)13.79%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.04 | ||
| P/S | 0.36 | ||
| P/FCF | 5.34 | ||
| P/OCF | 4.41 | ||
| P/B | 1.54 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)1.04
EY9.43%
EPS(NY)1.1
Fwd EY9.96%
FCF(TTM)2.06
FCFY18.72%
OCF(TTM)2.5
OCFY22.69%
SpS30.81
BVpS7.18
TBVpS0.95
PEG (NY)10.61
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
WACC8.09%
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.
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 4 / 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 4 / 10 and the dividend payout ratio is 11.94%.