Legrand
Market Cap
€17.8b
Last Updated
2020/06/05 22:33 UTC
Data Sources
Company Financials +
Executive Summary
Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Legrand's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
8.7%
LR
9.3%
FR Electrical
8.7%
FR Market
1 Year Return
7.6%
LR
25.2%
FR Electrical
-2.4%
FR Market
Return vs Industry: LR underperformed the French Electrical industry which returned 23.2% over the past year.
Return vs Market: LR exceeded the French Market which returned -3.8% over the past year.
Shareholder returns
| LR | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.7% | 9.3% | 8.7% |
| 30 Day | 15.5% | 21.1% | 15.9% |
| 90 Day | 2.0% | 6.4% | 1.3% |
| 1 Year | 10.0%7.6% | 28.6%25.2% | -0.7%-2.4% |
| 3 Year | 16.6%9.3% | 38.3%27.9% | 11.2%2.2% |
| 5 Year | 42.9%28.4% | 65.7%44.9% | 31.1%14.3% |
Price Volatility Vs. Market
How volatile is Legrand's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
There's A Lot To Like About Legrand SA's (EPA:LR) Upcoming €1.34 Dividend3 weeks ago | Simply Wall St
Legrand SA Just Missed EPS By 7.8%: Here's What Analysts Think Will Happen Next1 month ago | Simply Wall St
We Think Legrand (EPA:LR) Can Stay On Top Of Its DebtValuation
Is Legrand undervalued compared to its fair value and its price relative to the market?
21.92x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LR (€66.64) is trading above our estimate of fair value (€39.39)
Significantly Below Fair Value: LR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LR is poor value based on its PE Ratio (21.9x) compared to the Electrical industry average (18.7x).
PE vs Market: LR is poor value based on its PE Ratio (21.9x) compared to the French market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: LR is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: LR is overvalued based on its PB Ratio (3.4x) compared to the FR Electrical industry average (2.6x).
Next Steps
Future Growth
How is Legrand forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
13.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LR's forecast earnings growth (13.4% per year) is above the savings rate (0.6%).
Earnings vs Market: LR's earnings (13.4% per year) are forecast to grow slower than the French market (13.6% per year).
High Growth Earnings: LR's earnings are forecast to grow, but not significantly.
Revenue vs Market: LR's revenue (4% per year) is forecast to grow faster than the French market (3.9% per year).
High Growth Revenue: LR's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LR's Return on Equity is forecast to be low in 3 years time (14.8%).
Next Steps
Past Performance
How has Legrand performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LR has high quality earnings.
Growing Profit Margin: LR's current net profit margins (12.3%) are lower than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: LR's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: LR's earnings growth over the past year (3.1%) is below its 5-year average (10.3% per year).
Earnings vs Industry: LR earnings growth over the past year (3.1%) exceeded the Electrical industry 2.5%.
Return on Equity
High ROE: LR's Return on Equity (15.6%) is considered low.
Next Steps
Financial Health
How is Legrand's financial position?
Financial Position Analysis
Short Term Liabilities: LR's short term assets (€3.7B) exceed its short term liabilities (€2.5B).
Long Term Liabilities: LR's short term assets (€3.7B) do not cover its long term liabilities (€4.7B).
Debt to Equity History and Analysis
Debt Level: LR's debt to equity ratio (83.6%) is considered high.
Reducing Debt: LR's debt to equity ratio has increased from 42.2% to 83.6% over the past 5 years.
Debt Coverage: LR's debt is well covered by operating cash flow (29.5%).
Interest Coverage: LR's interest payments on its debt are well covered by EBIT (15.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Legrand's current dividend yield, its reliability and sustainability?
2.01%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LR's dividend (2.01%) is higher than the bottom 25% of dividend payers in the French market (1.65%).
High Dividend: LR's dividend (2.01%) is low compared to the top 25% of dividend payers in the French market (4.82%).
Stability and Growth of Payments
Stable Dividend: LR's dividends per share have been stable in the past 10 years.
Growing Dividend: LR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.1%), LR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LR's dividends in 3 years are forecast to be well covered by earnings (46.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Benoît Coquart (46yo)
2.33yrs
Tenure
€2,754,258
Compensation
Mr. Benoît Coquart has been the Chief Executive Officer/General Manager at Legrand SA since February 08, 2018. Mr. Coquart is responsible for the general management of Legrand. Mr. Coquart served as an Exe ...
CEO Compensation Analysis
Compensation vs Market: Benoît's total compensation ($USD3.12M) is about average for companies of similar size in the French market ($USD3.89M).
Compensation vs Earnings: Benoît's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 2.33yrs | €2.75m | 0.010% €1.8m | |
| Executive VP & CFO | 1.42yrs | no data | no data | |
| Deputy CEO & Executive VP of Group Operations | 1.42yrs | no data | no data | |
| Director of Finance & Investor Relations | no data | no data | no data | |
| Executive Vice President of Human Resources | 2.42yrs | no data | no data | |
| Deputy COO & Group VP - Energy Distribution & Industrial Applications Div | no data | no data | no data | |
| Executive Vice President of Europe | 2.42yrs | no data | no data | |
| Executive Vice President of Purchasing | 5.17yrs | no data | no data | |
| Executive Vice President of Asia-Pacific | 1.42yrs | no data | no data | |
| Executive Vice President of Strategy & Development | 0.67yr | no data | no data |
1.9yrs
Average Tenure
50yo
Average Age
Experienced Management: LR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 2.08yrs | €34.00k | 0.045% €8.0m | |
| Independent Non-Executive Director | 8.08yrs | €85.00k | 0.00055% €97.8k | |
| Non-Executive Director | 17.5yrs | €70.00k | 0.78% €139.0m | |
| Chairman of the Board | 14.25yrs | €625.00k | 0.91% €160.9m | |
| Independent Director | 2.08yrs | €32.00k | 0.00037% €65.8k | |
| Independent Non-Executive Director | 9.08yrs | €97.00k | 0.00051% €90.6k | |
| Observer | 16.42yrs | no data | no data | |
| Independent Director | 4.08yrs | €84.00k | 0.00037% €65.8k | |
| Lead Independent Director | 8.08yrs | €118.00k | 0.0018% €319.9k | |
| Independent Director | 7.08yrs | €66.00k | 0.00050% €88.9k |
8.1yrs
Average Tenure
59yo
Average Age
Experienced Board: LR's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Legrand SA's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Legrand SA
- Ticker: LR
- Exchange: ENXTPA
- Founded: 1865
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: €17.774b
- Shares outstanding: 266.71m
- Website: https://www.legrand.com
Number of Employees
Location
- Legrand SA
- 128, Avenue de Lattre de Tassigny
- Cedex
- Limoges
- Limousin
- 87045
- France
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LRC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2000 |
| 0MW7 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jul 2000 |
| LGRV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 2000 |
| LR | ENXTPA (Euronext Paris) | Yes | Ordinary Shares | FR | EUR | Jul 2000 |
| LRP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jul 2000 |
| LR | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jul 2000 |
| LR N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jul 2000 |
| LRC | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Jul 2000 |
| LGRD.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2014 |
Biography
Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers MCBs, RCDs, and din rail equipment; ACBs, MCCBs, head equipment, and power factor correction products; enclosures and accessories; equipment and accessories; home network, home automation, and hotel equipment; wiring accessories; weatherproof wiring accessories and other installation equipment; lighting management, emergency lighting, access control, and safety equipment; and UPS and LCS products, cable management systems, equipment, and accessories. Its products are used in hotels, offices, data centers, and shopping centers, as well as residential, healthcare, and industrial sectors. The company was founded in 1865 and is headquartered in Limoges, France.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 22:33 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.