LEGRAND SA (LR.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:LR • FR0010307819
135 EUR
-0.9 (-0.66%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to LR. LR was compared to 75 industry peers in the Electrical Equipment industry. While LR has a great profitability rating, there are some minor concerns on its financial health. LR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year LR was profitable.
- LR had a positive operating cash flow in the past year.
- In the past 5 years LR has always been profitable.
- In the past 5 years LR always reported a positive cash flow from operatings.
1.2 Ratios
- LR has a better Return On Assets (10.51%) than 96.00% of its industry peers.
- LR's Return On Equity of 24.75% is amongst the best of the industry. LR outperforms 88.00% of its industry peers.
- With an excellent Return On Invested Capital value of 13.65%, LR belongs to the best of the industry, outperforming 90.67% 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 9.59%.
- The last Return On Invested Capital (13.65%) for LR is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 24.75% | ||
| ROIC | 13.65% |
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
- The Profit Margin of LR (12.96%) is better than 92.00% 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 18.98%. This is amongst the best in the industry. LR outperforms 92.00% 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 51.35%, LR belongs to the top of the industry, outperforming 81.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.98% | ||
| PM (TTM) | 12.96% | ||
| GM | 51.35% |
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) just above the Cost of Capital (WACC), LR is creating some value.
- The number of shares outstanding for LR remains at a similar level compared to 1 year ago.
- The number of shares outstanding for LR has been reduced compared to 5 years ago.
- LR has a better debt/assets ratio than last year.
2.2 Solvency
- LR has an Altman-Z score of 4.33. This indicates that LR is financially healthy and has little risk of bankruptcy at the moment.
- LR's Altman-Z score of 4.33 is fine compared to the rest of the industry. LR outperforms 77.33% of its industry peers.
- The Debt to FCF ratio of LR is 4.28, which is a neutral value as it means it would take LR, 4.28 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LR (4.28) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that LR is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.78, LR is doing worse than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.58
WACC8.64%
2.3 Liquidity
- A Current Ratio of 2.22 indicates that LR has no problem at all paying its short term obligations.
- The Current ratio of LR (2.22) is better than 77.33% of its industry peers.
- LR has a Quick Ratio of 1.69. This is a normal value and indicates that LR is financially healthy and should not expect problems in meeting its short term obligations.
- LR has a better Quick ratio (1.69) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.24% 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 very negative growth in Revenue. The Revenue has decreased by -17.91% in the last year.
- LR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
EPS 1Y (TTM)20.24%
EPS 3Y10.4%
EPS 5Y8.83%
EPS Q2Q%32.71%
Revenue 1Y (TTM)-17.91%
Revenue growth 3Y7.33%
Revenue growth 5Y5.48%
Sales Q2Q%8.84%
3.2 Future
- LR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
- Based on estimates for the next years, LR will show a small growth in Revenue. The Revenue will grow by 7.60% on average per year.
EPS Next Y2.61%
EPS Next 2Y7.55%
EPS Next 3Y7.81%
EPS Next 5Y7.87%
Revenue Next Year11.26%
Revenue Next 2Y10.23%
Revenue Next 3Y9.28%
Revenue Next 5Y7.6%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 25.00, the valuation of LR can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of LR indicates a somewhat cheap valuation: LR is cheaper than 80.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LR to the average of the S&P500 Index (28.32), we can say LR is valued inline with the index average.
- The Price/Forward Earnings ratio is 22.89, which indicates a rather expensive current valuation of LR.
- Based on the Price/Forward Earnings ratio, LR is valued a bit cheaper than 64.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. LR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 22.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LR is valued a bit cheaper than the industry average as 74.67% of the companies are valued more expensively.
- LR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LR is cheaper than 77.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 12.79 |
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)9.58
PEG (5Y)2.83
EPS Next 2Y7.55%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
- LR has a Yearly Dividend Yield of 1.62%.
- Compared to an average industry Dividend Yield of 0.74, LR pays a better dividend. On top of this LR pays more dividend than 88.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, LR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
- 32.44% 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.
DP32.44%
EPS Next 2Y7.55%
EPS Next 3Y7.81%
LEGRAND SA / LR.PA FAQ
Can you provide the ChartMill fundamental rating for LEGRAND SA?
ChartMill assigns a fundamental rating of 6 / 10 to LR.PA.
What is the valuation status for LR stock?
ChartMill assigns a valuation rating of 4 / 10 to LEGRAND SA (LR.PA). This can be considered as Fairly Valued.
What is the profitability of LR stock?
LEGRAND SA (LR.PA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of LEGRAND SA (LR.PA) stock?
The Price/Earnings (PE) ratio for LEGRAND SA (LR.PA) is 25 and the Price/Book (PB) ratio is 4.94.
Can you provide the expected EPS growth for LR stock?
The Earnings per Share (EPS) of LEGRAND SA (LR.PA) is expected to grow by 2.61% in the next year.