LEGRAND SA (LR.PA) Stock Fundamental Analysis
EPA:LR - Euronext Paris - Matif - FR0010307819 - Common Stock - Currency: EUR
Overall LR gets a fundamental rating of 6 out of 10. We evaluated LR against 58 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LR had positive earnings in the past year.
LR had a positive operating cash flow in the past year.
LR had positive earnings in each of the past 5 years.
In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
LR's Return On Assets of 10.42% is amongst the best of the industry. LR outperforms 96.55% of its industry peers.
LR has a Return On Equity of 22.68%. This is amongst the best in the industry. LR outperforms 87.93% of its industry peers.
LR has a better Return On Invested Capital (13.33%) than 89.66% 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 9.14%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.68% | ||
| ROIC | 13.33% |
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
LR's Profit Margin of 13.25% is amongst the best of the industry. LR outperforms 96.55% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 18.97%, LR belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
LR's Operating Margin has been stable in the last couple of years.
LR has a Gross Margin of 51.70%. This is in the better half of the industry: LR outperforms 77.59% of its industry peers.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.97% | ||
| PM (TTM) | 13.25% | ||
| GM | 51.7% |
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.
LR has about the same amout of shares outstanding than it did 1 year ago.
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
LR has an Altman-Z score of 4.37. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.37, LR belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Debt to FCF ratio of LR is 3.95, which is a good value as it means it would take LR, 3.95 years of fcf income to pay off all of its debts.
LR has a Debt to FCF ratio of 3.95. This is in the better half of the industry: LR outperforms 75.86% of its industry peers.
LR has a Debt/Equity ratio of 0.63. This is a neutral value indicating LR is somewhat dependend on debt financing.
LR has a worse Debt to Equity ratio (0.63) than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.89
WACC7.05%
2.3 Liquidity
A Current Ratio of 1.94 indicates that LR should not have too much problems paying its short term obligations.
LR has a better Current ratio (1.94) than 67.24% of its industry peers.
A Quick Ratio of 1.45 indicates that LR should not have too much problems paying its short term obligations.
LR has a Quick ratio of 1.45. This is in the better half of the industry: LR outperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.76% over the past year.
LR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
The Revenue has been growing slightly by 2.76% in the past year.
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)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
3.2 Future
LR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.35% yearly.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y6.35%
Revenue Next Year9.5%
Revenue Next 2Y7.59%
Revenue Next 3Y7.06%
Revenue Next 5Y7.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 25.87, the valuation of LR can be described as expensive.
LR's Price/Earnings ratio is a bit cheaper when compared to the industry. LR is cheaper than 74.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. LR is around the same levels.
LR is valuated rather expensively with a Price/Forward Earnings ratio of 23.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, LR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than 60.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 67.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.3 | ||
| EV/EBITDA | 13.09 |
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)8.96
PEG (5Y)2.93
EPS Next 2Y5.18%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, LR has a reasonable but not impressive dividend return.
LR's Dividend Yield is rather good when compared to the industry average which is at 2.50. LR pays more dividend than 81.03% of the companies 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 | 1.67% |
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
31.88% of the earnings are spent on dividend by LR. This is a low number and sustainable payout ratio.
LR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.88%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPA:LR (8/21/2025, 7:00:00 PM)
130.65
+0.25 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners51.99%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap34.26B
Analysts75.71
Price Target128.65 (-1.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP31.88%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.79%
Min EPS beat(2)-1.56%
Max EPS beat(2)37.13%
EPS beat(4)2
Avg EPS beat(4)8.61%
Min EPS beat(4)-6.09%
Max EPS beat(4)37.13%
EPS beat(8)5
Avg EPS beat(8)5.36%
EPS beat(12)8
Avg EPS beat(12)4.91%
EPS beat(16)12
Avg EPS beat(16)5.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)3.15%
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)2
Avg Revenue beat(8)-2.99%
Revenue beat(12)4
Avg Revenue beat(12)13.65%
Revenue beat(16)7
Avg Revenue beat(16)22.17%
PT rev (1m)14.61%
PT rev (3m)15.71%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 23.16 | ||
| P/S | 2.65 | ||
| P/FCF | 25.3 | ||
| P/OCF | 21.89 | ||
| P/B | 4.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.09 |
EPS(TTM)5.05
EY3.87%
EPS(NY)5.64
Fwd EY4.32%
FCF(TTM)5.16
FCFY3.95%
OCF(TTM)5.97
OCFY4.57%
SpS49.36
BVpS28.84
TBVpS-7.18
PEG (NY)8.96
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 22.68% | ||
| ROCE | 17.99% | ||
| ROIC | 13.33% | ||
| ROICexc | 16.01% | ||
| ROICexgc | 95.08% | ||
| OM | 18.97% | ||
| PM (TTM) | 13.25% | ||
| GM | 51.7% | ||
| FCFM | 10.46% |
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-Score3
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.95 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 54.18% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 26.69 | ||
| Cash Conversion | 55.02% | ||
| Profit Quality | 78.93% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.37 |
F-Score3
WACC7.05%
ROIC/WACC1.89
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 Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y6.35%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
Revenue Next Year9.5%
Revenue Next 2Y7.59%
Revenue Next 3Y7.06%
Revenue Next 5Y7.05%
EBIT growth 1Y-24.53%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year28.26%
EBIT Next 3Y13.72%
EBIT Next 5Y10.82%
FCF growth 1Y0.65%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y2.39%
OCF growth 3Y11.04%
OCF growth 5Y4.21%