LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - EPA:LR - FR0010307819 - Common Stock
146.15 EUR
+1.7 (+1.18%)
Taking everything into account, LR scores 6 out of 10 in our fundamental rating. LR was compared to 61 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making LR a very profitable company, without any liquidiy or solvency issues. LR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LR was profitable.
LR had a positive operating cash flow in the past year.
In the past 5 years LR has always been profitable.
LR 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 10.66%, LR belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
LR has a better Return On Equity (25.29%) than 93.44% of its industry peers.
LR's Return On Invested Capital of 13.83% is amongst the best of the industry. LR outperforms 91.80% of its industry peers.
LR had an Average Return On Invested Capital over the past 3 years of 9.18%. This is in line with the industry average of 9.35%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 25.29% | ||
| ROIC | 13.83% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.18%
ROIC(5y)8.59%
1.3 Margins
Looking at the Profit Margin, with a value of 13.07%, LR belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
LR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 19.06%, LR belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
LR's Operating Margin has been stable in the last couple of years.
The Gross Margin of LR (51.45%) is better than 81.97% of its industry peers.
In the last couple of years the Gross Margin of LR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 13.07% | ||
| GM | 51.45% |
OM growth 3Y-0.39%
OM growth 5Y0.33%
PM growth 3Y1.41%
PM growth 5Y1.36%
GM growth 3Y0.53%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
LR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LR has about the same amount of shares outstanding.
LR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.51 indicates that LR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.51, LR belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
The Debt to FCF ratio of LR is 4.48, which is a neutral value as it means it would take LR, 4.48 years of fcf income to pay off all of its debts.
LR's Debt to FCF ratio of 4.48 is fine compared to the rest of the industry. LR outperforms 65.57% of its industry peers.
LR has a Debt/Equity ratio of 0.79. This is a neutral value indicating LR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, LR is doing worse than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.86
WACC7.45%
2.3 Liquidity
LR has a Current Ratio of 2.13. This indicates that LR is financially healthy and has no problem in meeting its short term obligations.
LR's Current ratio of 2.13 is fine compared to the rest of the industry. LR outperforms 77.05% of its industry peers.
LR has a Quick Ratio of 1.63. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.63, LR is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
LR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.76%, which is quite good.
The Earnings Per Share has been growing by 8.83% on average over the past years. This is quite good.
The Revenue for LR has decreased by -18.95% in the past year. This is quite bad
Measured over the past years, LR shows a small growth in Revenue. The Revenue has been growing by 5.48% on average per year.
EPS 1Y (TTM)9.76%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-11.1%
Revenue 1Y (TTM)-18.95%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
3.2 Future
Based on estimates for the next years, LR will show a small growth in Earnings Per Share. The EPS will grow by 7.27% on average per year.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y4.7%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPS Next 5Y7.27%
Revenue Next Year11.37%
Revenue Next 2Y9.38%
Revenue Next 3Y8.64%
Revenue Next 5Y7.54%
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 stable.
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
LR is valuated quite expensively with a Price/Earnings ratio of 28.94.
78.69% of the companies in the same industry are more expensive than LR, based on the Price/Earnings ratio.
LR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 25.07, LR can be considered very expensive at the moment.
LR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LR to the average of the S&P500 Index (22.94), we can say LR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.07 |
4.2 Price Multiples
70.49% of the companies in the same industry are more expensive than LR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.16
PEG (5Y)3.28
EPS Next 2Y6.92%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 2.00, LR pays a better dividend. On top of this LR pays more dividend than 83.61% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, LR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of LR grows each year by 9.28%, which is quite nice.
Dividend Growth(5Y)9.28%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
LR pays out 32.60% of its income as dividend. This is a sustainable payout ratio.
LR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.6%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPA:LR (10/20/2025, 3:00:06 PM)
146.15
+1.7 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.93%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap38.33B
Analysts79.26
Price Target136.99 (-6.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.6%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.55%
Min EPS beat(2)-17.54%
Max EPS beat(2)-1.56%
EPS beat(4)1
Avg EPS beat(4)2.99%
Min EPS beat(4)-17.54%
Max EPS beat(4)37.13%
EPS beat(8)4
Avg EPS beat(8)2.32%
EPS beat(12)7
Avg EPS beat(12)3.14%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)1
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)3.15%
Revenue beat(8)3
Avg Revenue beat(8)-2.34%
Revenue beat(12)4
Avg Revenue beat(12)5.83%
Revenue beat(16)7
Avg Revenue beat(16)16.06%
PT rev (1m)2.63%
PT rev (3m)16.96%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)7.58%
EPS NY rev (1m)0.47%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.07 | ||
| P/S | 2.84 | ||
| P/FCF | 28.49 | ||
| P/OCF | 24.65 | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.85 |
EPS(TTM)5.05
EY3.46%
EPS(NY)5.83
Fwd EY3.99%
FCF(TTM)5.13
FCFY3.51%
OCF(TTM)5.93
OCFY4.06%
SpS51.51
BVpS26.63
TBVpS-7.83
PEG (NY)6.16
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 25.29% | ||
| ROCE | 18.67% | ||
| ROIC | 13.83% | ||
| ROICexc | 17.2% | ||
| ROICexgc | 92.84% | ||
| OM | 19.06% | ||
| PM (TTM) | 13.07% | ||
| GM | 51.45% | ||
| FCFM | 9.96% |
ROA(3y)7.31%
ROA(5y)6.73%
ROE(3y)15.88%
ROE(5y)15.47%
ROIC(3y)9.18%
ROIC(5y)8.59%
ROICexc(3y)11.43%
ROICexc(5y)10.93%
ROICexgc(3y)71.04%
ROICexgc(5y)70.72%
ROCE(3y)12.5%
ROCE(5y)11.95%
ROICexcg growth 3Y-7.71%
ROICexcg growth 5Y0.85%
ROICexc growth 3Y-1.51%
ROICexc growth 5Y-0.2%
OM growth 3Y-0.39%
OM growth 5Y0.33%
PM growth 3Y1.41%
PM growth 5Y1.36%
GM growth 3Y0.53%
GM growth 5Y-0.11%
F-Score4
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 52.29% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 22.62 | ||
| Cash Conversion | 52.25% | ||
| Profit Quality | 76.15% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.51 |
F-Score4
WACC7.45%
ROIC/WACC1.86
Cap/Depr(3y)53.91%
Cap/Depr(5y)49.06%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.26%
Profit Quality(3y)119.67%
Profit Quality(5y)123.7%
High Growth Momentum
Growth
EPS 1Y (TTM)9.76%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%-11.1%
EPS Next Y4.7%
EPS Next 2Y6.92%
EPS Next 3Y7.2%
EPS Next 5Y7.27%
Revenue 1Y (TTM)-18.95%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
Revenue Next Year11.37%
Revenue Next 2Y9.38%
Revenue Next 3Y8.64%
Revenue Next 5Y7.54%
EBIT growth 1Y-18.84%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year34.54%
EBIT Next 3Y16.09%
EBIT Next 5Y11.78%
FCF growth 1Y-13.42%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-11.07%
OCF growth 3Y11.04%
OCF growth 5Y4.21%