LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe - EPA:LR - FR0010307819 - Common Stock
139.1 EUR
+0.65 (+0.47%)
LR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Electrical Equipment industry. LR gets an excellent profitability rating and is at the same time showing great financial health properties. LR is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years LR has been profitable.
LR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LR (10.42%) is better than 96.55% of its industry peers.
LR has a better Return On Equity (22.68%) than 89.66% of its industry peers.
LR has a better Return On Invested Capital (13.33%) than 91.38% 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 9.15%.
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.
In the last couple of years the Profit Margin of LR has remained more or less at the same level.
LR has a Operating Margin of 18.97%. This is amongst the best in the industry. LR outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of LR has remained more or less at the same level.
The Gross Margin of LR (51.70%) is better than 77.59% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LR 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.
LR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.51 indicates that LR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LR (4.51) is better than 89.66% of its industry peers.
LR has a debt to FCF ratio of 3.95. This is a good value and a sign of high solvency as LR would need 3.95 years to pay back of all of its debts.
LR has a better Debt to FCF ratio (3.95) than 77.59% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that LR is somewhat dependend on debt financing.
The Debt to Equity ratio of LR (0.63) is worse than 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.88
WACC7.09%
2.3 Liquidity
LR has a Current Ratio of 1.94. 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 Current ratio, with a value of 1.94, LR is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that LR should not have too much problems paying its short term obligations.
LR's Quick ratio of 1.45 is fine compared to the rest of the industry. LR outperforms 77.59% 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.
Looking at the last year, LR shows a small growth in Revenue. The Revenue has grown by 2.76% in the last 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 6.38% yearly.
The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y6.16%
EPS Next 3Y6.75%
EPS Next 5Y6.38%
Revenue Next Year11.42%
Revenue Next 2Y8.85%
Revenue Next 3Y8.09%
Revenue Next 5Y7.07%
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.
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 27.54.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than 70.69% of the companies in the same industry.
LR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.20, the valuation of LR can be described as rather expensive.
LR's Price/Forward Earnings ratio is in line with the industry average.
LR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 24.2 |
4.2 Price Multiples
LR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LR is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.94 | ||
| EV/EBITDA | 13.84 |
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)6.53
PEG (5Y)3.12
EPS Next 2Y6.16%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
LR has a Yearly Dividend Yield of 1.69%.
LR's Dividend Yield is rather good when compared to the industry average which is at 2.63. LR pays more dividend than 81.03% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, LR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 2Y6.16%
EPS Next 3Y6.75%
EPA:LR (9/12/2025, 5:36:15 PM)
139.1
+0.65 (+0.47%)
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 Cap36.48B
Analysts74.48
Price Target130.25 (-6.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)11.21%
PT rev (3m)16.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.29%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 24.2 | ||
| P/S | 2.82 | ||
| P/FCF | 26.94 | ||
| P/OCF | 23.3 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.84 |
EPS(TTM)5.05
EY3.63%
EPS(NY)5.75
Fwd EY4.13%
FCF(TTM)5.16
FCFY3.71%
OCF(TTM)5.97
OCFY4.29%
SpS49.36
BVpS28.84
TBVpS-7.18
PEG (NY)6.53
PEG (5Y)3.12
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 | 4.51 |
F-Score3
WACC7.09%
ROIC/WACC1.88
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 Y4.22%
EPS Next 2Y6.16%
EPS Next 3Y6.75%
EPS Next 5Y6.38%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%14.41%
Revenue Next Year11.42%
Revenue Next 2Y8.85%
Revenue Next 3Y8.09%
Revenue Next 5Y7.07%
EBIT growth 1Y-24.53%
EBIT growth 3Y6.92%
EBIT growth 5Y5.83%
EBIT Next Year28.26%
EBIT Next 3Y13.72%
EBIT Next 5Y10.85%
FCF growth 1Y0.65%
FCF growth 3Y10.51%
FCF growth 5Y4.13%
OCF growth 1Y2.39%
OCF growth 3Y11.04%
OCF growth 5Y4.21%