LEGRAND SA (LR.PA)

FR0010307819 - Common Stock

98.22  +1.66 (+1.72%)

Fundamental Rating

6

Overall LR gets a fundamental rating of 6 out of 10. We evaluated LR against 53 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 has a correct valuation and a medium growth rate.



8

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.
Each year in the past 5 years LR had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 16.28%, LR belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
LR has a better Return On Equity (35.94%) than 98.04% of its industry peers.
LR's Return On Invested Capital of 19.92% is amongst the best of the industry. LR outperforms 98.04% 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 10.35%.
The last Return On Invested Capital (19.92%) for LR is above the 3 year average (8.90%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.28%
ROE 35.94%
ROIC 19.92%
ROA(3y)7.04%
ROA(5y)6.69%
ROE(3y)15.99%
ROE(5y)15.65%
ROIC(3y)8.9%
ROIC(5y)8.48%

1.3 Margins

LR's Profit Margin of 14.32% is amongst the best of the industry. LR outperforms 96.08% of its industry peers.
LR's Profit Margin has been stable in the last couple of years.
LR has a better Operating Margin (19.65%) than 96.08% of its industry peers.
LR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.40%, LR belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Gross Margin of LR has remained more or less at the same level.
Industry RankSector Rank
OM 19.65%
PM (TTM) 14.32%
GM 52.4%
OM growth 3Y2.68%
OM growth 5Y-0.09%
PM growth 3Y6.91%
PM growth 5Y1.18%
GM growth 3Y0.04%
GM growth 5Y0.04%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LR is creating value.
Compared to 1 year ago, LR has less shares outstanding
The number of shares outstanding for LR has been reduced compared to 5 years ago.
LR has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.59 indicates that LR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LR (4.59) is better than 88.24% of its industry peers.
The Debt to FCF ratio of LR is 3.00, which is a good value as it means it would take LR, 3.00 years of fcf income to pay off all of its debts.
LR has a better Debt to FCF ratio (3.00) than 96.08% 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.
With a Debt to Equity ratio value of 0.63, LR is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 3
Altman-Z 4.59
ROIC/WACC2.83
WACC7.03%

2.3 Liquidity

LR has a Current Ratio of 1.98. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.98, LR is doing good in the industry, outperforming 68.63% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that LR should not have too much problems paying its short term obligations.
LR has a Quick ratio of 1.54. This is in the better half of the industry: LR outperforms 76.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.54

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.99% over the past year.
The Earnings Per Share has been growing by 9.06% on average over the past years. This is quite good.
The Revenue has grown by 36.38% in the past year. This is a very strong growth!
Measured over the past years, LR shows a small growth in Revenue. The Revenue has been growing by 7.01% on average per year.
EPS 1Y (TTM)10.99%
EPS 3Y17.92%
EPS 5Y9.06%
EPS growth Q2Q-1%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y11.33%
Revenue growth 5Y7.01%
Revenue growth Q2Q98.18%

3.2 Future

The Earnings Per Share is expected to grow by 2.83% on average over the next years.
Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y1.16%
EPS Next 2Y3.55%
EPS Next 3Y5.2%
EPS Next 5Y2.83%
Revenue Next Year1.16%
Revenue Next 2Y2.77%
Revenue Next 3Y3.91%
Revenue Next 5Y4.03%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 20.81, LR is valued on the expensive side.
Based on the Price/Earnings ratio, LR is valued a bit cheaper than the industry average as 74.51% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LR to the average of the S&P500 Index (26.48), we can say LR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.56, the valuation of LR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LR is valued a bit cheaper than 60.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LR to the average of the S&P500 Index (22.79), we can say LR is valued inline with the index average.
Industry RankSector Rank
PE 20.81
Fwd PE 20.56

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 78.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LR is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.04
EV/EBITDA 7.54

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)17.96
PEG (5Y)2.3
EPS Next 2Y3.55%
EPS Next 3Y5.2%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.10%, LR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, LR pays a better dividend. On top of this LR pays more dividend than 82.35% of the companies listed in the same industry.
LR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.1%

5.2 History

The dividend of LR is nicely growing with an annual growth rate of 8.58%!
Dividend Growth(5Y)8.58%
Div Incr Years3
Div Non Decr Years5

5.3 Sustainability

20.86% 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.
DP20.86%
EPS Next 2Y3.55%
EPS Next 3Y5.2%

LEGRAND SA

EPA:LR (3/28/2024, 7:00:00 PM)

98.22

+1.66 (+1.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.1%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 20.81
Fwd PE 20.56
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)17.96
PEG (5Y)2.3
Profitability
Industry RankSector Rank
ROA 16.28%
ROE 35.94%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.65%
PM (TTM) 14.32%
GM 52.4%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.98
Quick Ratio 1.54
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.99%
EPS 3Y17.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)36.38%
Revenue growth 3Y11.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y