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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years LR has been profitable.
In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
LR has a Return On Assets of 10.57%. This is amongst the best in the industry. LR outperforms 98.21% of its industry peers.
The Return On Equity of LR (22.55%) is better than 96.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.17%, LR belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LR is in line with the industry average of 7.58%.
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
With an excellent Profit Margin value of 13.38%, LR belongs to the best of the industry, outperforming 96.43% 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 18.97%, LR belongs to the top of the industry, outperforming 98.21% 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 51.78%. This is in the better half of the industry: LR outperforms 76.79% 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) | 13.38% | ||
| 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
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.
Compared to 5 years ago, LR has less shares outstanding
The debt/assets ratio for LR has been reduced compared to a year ago.
2.2 Solvency
LR has an Altman-Z score of 4.07. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LR (4.07) is better than 92.86% 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.
LR has a better Debt to FCF ratio (3.89) than 73.21% 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 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.8
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.93 indicates that LR should not have too much problems paying its short term obligations.
LR has a Current ratio of 1.93. This is in the better half of the industry: LR outperforms 62.50% of its industry peers.
A Quick Ratio of 1.41 indicates that LR should not have too much problems paying its short term obligations.
LR has a better Quick ratio (1.41) than 73.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.61% over the past year.
The Earnings Per Share has been growing by 8.83% on average over the past years. This is quite good.
Looking at the last year, LR shows a small growth in Revenue. The Revenue has grown by 2.76% in the last 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
The Earnings Per Share is expected to grow by 5.46% on average over the next years.
The Revenue is expected to grow by 5.87% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.18 indicates a rather expensive valuation of LR.
LR's Price/Earnings ratio is a bit cheaper when compared to the industry. LR is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. LR is around the same levels.
Based on the Price/Forward Earnings ratio of 19.48, the valuation of LR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.13. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
67.86% of the companies in the same industry are more expensive than LR, based on the Enterprise Value to EBITDA ratio.
LR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LR is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LR may justify a higher PE ratio.
PEG (NY)7.33
PEG (5Y)2.4
EPS Next 2Y5.18%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, 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 2.21. LR pays more dividend than 87.50% of the companies in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of LR is nicely growing with an annual growth rate of 9.28%!
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.
LR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.21%
EPS Next 2Y5.18%
EPS Next 3Y6.33%
EPA:LR (6/13/2025, 7:00:00 PM)
109.9
-0.4 (-0.36%)
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 Cap28.82B
Analysts75.71
Price Target112.25 (2.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)0.96%
PT rev (3m)-1.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.48 | ||
| P/S | 2.27 | ||
| P/FCF | 21.95 | ||
| P/OCF | 18.92 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.41 |
EPS(TTM)5.19
EY4.72%
EPS(NY)5.64
Fwd EY5.13%
FCF(TTM)5.01
FCFY4.56%
OCF(TTM)5.81
OCFY5.29%
SpS48.41
BVpS28.71
TBVpS-7.67
PEG (NY)7.33
PEG (5Y)2.4
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 | 4.07 |
F-Score3
WACC7.3%
ROIC/WACC1.8
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%