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 56 industry peers in the Electrical Equipment industry. LR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LR has a correct valuation and a medium growth rate.
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.
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
LR has a Return On Assets of 10.57%. This is amongst the best in the industry. LR outperforms 98.25% of its industry peers.
The Return On Equity of LR (22.55%) is better than 94.74% of its industry peers.
LR has a better Return On Invested Capital (13.17%) than 91.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LR is in line with the industry average of 7.80%.
The 3 year average ROIC (9.18%) for LR is below the current ROIC(13.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 22.55% | ||
| ROIC | 13.17% |
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 has a better Profit Margin (13.38%) than 96.49% of its industry peers.
In the last couple of years the Profit Margin of LR has remained more or less at the same level.
LR's Operating Margin of 18.97% is amongst the best of the industry. LR outperforms 96.49% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 51.78%, LR is doing good in the industry, outperforming 73.68% of the companies in the same industry.
LR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.97% | ||
| PM (TTM) | 13.38% | ||
| GM | 51.78% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LR is creating value.
LR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LR has been reduced compared to 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 4.14. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
LR has a Altman-Z score of 4.14. This is amongst the best in the industry. LR outperforms 87.72% of its industry peers.
LR has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as LR would need 3.89 years to pay back of all of its debts.
The Debt to FCF ratio of LR (3.89) is better than 75.44% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that LR is somewhat dependend on debt financing.
LR's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. LR is outperformed by 64.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.89
WACC6.97%
2.3 Liquidity
A Current Ratio of 1.93 indicates that LR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.93, LR is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that LR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.41, LR is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
LR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.61%, which is quite good.
Measured over the past years, LR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.83% on average per year.
The Revenue has been growing slightly by 2.76% in the past year.
The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)11.61%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%7.76%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%12.31%
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 5.46% on average per year.
LR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y5.46%
Revenue Next Year9.17%
Revenue Next 2Y7.39%
Revenue Next 3Y7.03%
Revenue Next 5Y5.87%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.90, LR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 75.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. LR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 20.15, the valuation of LR can be described as rather expensive.
LR's Price/Forward Earnings ratio is in line with the industry average.
LR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.7 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of LR may justify a higher PE ratio.
PEG (NY)7.58
PEG (5Y)2.48
EPS Next 2Y5.18%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.73, LR pays a better dividend. On top of this LR pays more dividend than 80.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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 32.21% of its income as dividend. This is a sustainable payout ratio.
The dividend of LR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.21%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPA:LR (7/11/2025, 7:00:00 PM)
113.65
+0.25 (+0.22%)
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 Cap29.80B
Analysts75.71
Price Target112.25 (-1.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend2.09
Dividend Growth(5Y)9.28%
DP32.21%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.52%
Min EPS beat(2)-6.09%
Max EPS beat(2)37.13%
EPS beat(4)3
Avg EPS beat(4)9%
Min EPS beat(4)-6.09%
Max EPS beat(4)37.13%
EPS beat(8)6
Avg EPS beat(8)6.58%
EPS beat(12)9
Avg EPS beat(12)5.91%
EPS beat(16)13
Avg EPS beat(16)6.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)3.15%
Revenue beat(4)2
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)3.15%
Revenue beat(8)2
Avg Revenue beat(8)-2.6%
Revenue beat(12)5
Avg Revenue beat(12)14.32%
Revenue beat(16)8
Avg Revenue beat(16)22.63%
PT rev (1m)0%
PT rev (3m)-2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 20.15 | ||
| P/S | 2.35 | ||
| P/FCF | 22.7 | ||
| P/OCF | 19.57 | ||
| P/B | 3.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.76 |
EPS(TTM)5.19
EY4.57%
EPS(NY)5.64
Fwd EY4.96%
FCF(TTM)5.01
FCFY4.41%
OCF(TTM)5.81
OCFY5.11%
SpS48.41
BVpS28.71
TBVpS-7.67
PEG (NY)7.58
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 22.55% | ||
| ROCE | 17.84% | ||
| ROIC | 13.17% | ||
| ROICexc | 15.56% | ||
| ROICexgc | 92.66% | ||
| OM | 18.97% | ||
| PM (TTM) | 13.38% | ||
| GM | 51.78% | ||
| FCFM | 10.34% |
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 | 3.89 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 55.39% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 26.26 | ||
| Cash Conversion | 54.64% | ||
| Profit Quality | 77.31% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.14 |
F-Score3
WACC6.97%
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)11.61%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%7.76%
EPS Next Y2.89%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPS Next 5Y5.46%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%12.31%
Revenue Next Year9.17%
Revenue Next 2Y7.39%
Revenue Next 3Y7.03%
Revenue Next 5Y5.87%
EBIT growth 1Y-27.37%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year28.26%
EBIT Next 3Y13.72%
EBIT Next 5Y12.26%
FCF growth 1Y-18.64%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y-17.05%
OCF growth 3Y11.04%
OCF growth 5Y4.21%