LEGGETT & PLATT INC (LEG) Stock Fundamental Analysis
USA - NYSE:LEG - US5246601075 - Common Stock
9.38 USD
-0.26 (-2.7%)
9.381 USD
+0 (+0.01%)
We assign a fundamental rating of 4 out of 10 to LEG. LEG was compared to 63 industry peers in the Household Durables industry. LEG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past 5 years LEG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, LEG is in line with its industry, outperforming 52.38% of the companies in the same industry.
With a decent Return On Equity value of 16.63%, LEG is doing good in the industry, outperforming 74.60% of the companies in the same industry.
LEG has a Return On Invested Capital (7.28%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LEG is below the industry average of 10.52%.
| 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's Operating Margin of 6.31% is in line compared to the rest of the industry. LEG outperforms 42.86% 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 18.14%, LEG is doing worse than 82.54% of the companies in the same industry.
LEG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.31% | ||
| 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.
The number of shares outstanding for LEG has been increased compared to 1 year ago.
The number of shares outstanding for LEG has been increased compared to 5 years ago.
LEG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.76 indicates that LEG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.76, LEG perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
LEG has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as LEG would need 7.27 years to pay back of all of its debts.
LEG has a Debt to FCF ratio of 7.27. This is in the better half of the industry: LEG outperforms 61.90% of its industry peers.
LEG has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.10, LEG is doing worse than 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.91
WACC8.02%
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 46.03% 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.
Looking at the Quick ratio, with a value of 1.36, LEG is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
| 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 -6.14% 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.
LEG shows a decrease in Revenue. In the last year, the revenue decreased by -6.15%.
Measured over the past years, LEG shows a decrease in Revenue. The Revenue has been decreasing by -1.60% on average per year.
EPS 1Y (TTM)-6.14%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%3.45%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.26%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
Based on estimates for the next years, LEG will show a small growth in Revenue. The Revenue will grow by 0.64% on average per year.
EPS Next Y3.4%
EPS Next 2Y6.76%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue Next Year-6.21%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.44%
Revenue Next 5Y0.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.77.
Compared to the rest of the industry, the Price/Earnings ratio of LEG indicates a somewhat cheap valuation: LEG is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. LEG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.84, which indicates a rather cheap valuation of LEG.
90.48% of the companies in the same industry are more expensive than LEG, based on the Price/Forward Earnings ratio.
LEG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
LEG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEG is cheaper than 77.78% of the companies 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 93.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 6.75 |
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)2.57
PEG (5Y)N/A
EPS Next 2Y6.76%
EPS Next 3Y9.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, LEG has a reasonable but not impressive dividend return.
LEG's Dividend Yield is rather good when compared to the industry average which is at 3.03. LEG pays more dividend than 82.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
18.85% of the earnings are spent on dividend by LEG. This is a low number and sustainable payout ratio.
DP18.85%
EPS Next 2Y6.76%
EPS Next 3Y9.64%
9.38
-0.26 (-2.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners79.67%
Inst Owner Change7.24%
Ins Owners0.88%
Ins Owner Change-7.83%
Market Cap1.27B
Analysts49.09
Price Target10.2 (8.74%)
Short Float %6.45%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.23%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.3 | ||
| P/FCF | 5.15 | ||
| P/OCF | 4.11 | ||
| P/B | 1.48 | ||
| P/tB | 211.6 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)1.07
EY11.41%
EPS(NY)1.2
Fwd EY12.76%
FCF(TTM)1.82
FCFY19.42%
OCF(TTM)2.28
OCFY24.31%
SpS31.31
BVpS6.32
TBVpS0.04
PEG (NY)2.57
PEG (5Y)N/A
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%
ROICexcg growth 3Y-24.14%
ROICexcg 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 | 2.76 |
F-Score7
WACC8.02%
ROIC/WACC0.91
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)-6.14%
EPS 3Y-27.71%
EPS 5Y-16.39%
EPS Q2Q%3.45%
EPS Next Y3.4%
EPS Next 2Y6.76%
EPS Next 3Y9.64%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-4.75%
Revenue growth 5Y-1.6%
Sales Q2Q%-6.26%
Revenue Next Year-6.21%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.44%
Revenue Next 5Y0.64%
EBIT growth 1Y-4.64%
EBIT growth 3Y-22.65%
EBIT growth 5Y-12.17%
EBIT Next Year51.78%
EBIT Next 3Y20.01%
EBIT Next 5Y12.51%
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%