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LR

Legrand ENXTPA:LR Stock Report

Last Price

€71.08

Market Cap

€18.1b

7D

8.3%

1Y

-21.9%

Updated

04 Oct, 2022

Data

Company Financials +
LR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

LR Stock Overview

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide.

Legrand Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Legrand
Historical stock prices
Current Share Price€71.08
52 Week High€104.45
52 Week Low€64.44
Beta1.02
1 Month Change-3.42%
3 Month Change-0.67%
1 Year Change-21.89%
3 Year Change9.15%
5 Year Change15.09%
Change since IPO206.12%

Recent News & Updates

Sep 26
Legrand (EPA:LR) Might Be Having Difficulty Using Its Capital Effectively

Legrand (EPA:LR) Might Be Having Difficulty Using Its Capital Effectively

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Sep 13
Is Now The Time To Put Legrand (EPA:LR) On Your Watchlist?

Is Now The Time To Put Legrand (EPA:LR) On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Aug 07
Is Legrand (EPA:LR) A Risky Investment?

Is Legrand (EPA:LR) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

LRFR ElectricalFR Market
7D8.3%2.1%0.5%
1Y-21.9%-18.5%-11.3%

Return vs Industry: LR underperformed the French Electrical industry which returned -18.5% over the past year.

Return vs Market: LR underperformed the French Market which returned -11.3% over the past year.

Price Volatility

Is LR's price volatile compared to industry and market?
LR volatility
LR Average Weekly Movement3.7%
Electrical Industry Average Movement5.2%
Market Average Movement4.9%
10% most volatile stocks in FR Market9.3%
10% least volatile stocks in FR Market2.8%

Stable Share Price: LR is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186538,051Benoît Coquarthttps://www.legrandgroup.com

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers MCBs, RCDs, and din rail equipment, including residual current circuit breakers, RCBOs, add-on modules and accessories, surge protective devices, other control and signaling devices, and time and light-sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; ACBs, MCCBs, head equipment, and busbar systems; 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; UPS and LCS products, cable management systems, equipment, and accessories; and mosaic wiring accessories. Its products are used in hotels, offices, data centers, industrial sites, shops, hospitals, schools, and universities, as well as residential, commercial, and industrial buildings.

Legrand Fundamentals Summary

How do Legrand's earnings and revenue compare to its market cap?
LR fundamental statistics
Market Cap€18.09b
Earnings (TTM)€971.30m
Revenue (TTM)€7.63b

19.5x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LR income statement (TTM)
Revenue€7.63b
Cost of Revenue€3.85b
Gross Profit€3.78b
Other Expenses€2.81b
Earnings€971.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)3.64
Gross Margin49.52%
Net Profit Margin12.72%
Debt/Equity Ratio82.6%

How did LR perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

45%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LR?

Other financial metrics that can be useful for relative valuation.

LR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA12.8x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does LR's PE Ratio compare to its peers?

LR PE Ratio vs Peers
The above table shows the PE ratio for LR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.5x
SU Schneider Electric
21.7x7.7%€68.8b
NEX Nexans
15.1x6.2%€4.2b
SO Somfy
14.7x4.1%€3.5b
MRN Mersen
9.6x9.1%€616.7m
LR Legrand
19.5x6.6%€19.0b

Price-To-Earnings vs Peers: LR is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

How does LR's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Earnings vs Industry: LR is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the European Electrical industry average (18.1x)


Price to Earnings Ratio vs Fair Ratio

What is LR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.5x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: LR is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (20x).


Share Price vs Fair Value

What is the Fair Price of LR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LR (€71.08) is trading below our estimate of fair value (€98.43)

Significantly Below Fair Value: LR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Legrand forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LR's forecast earnings growth (6.6% per year) is above the savings rate (0.3%).

Earnings vs Market: LR's earnings (6.6% per year) are forecast to grow slower than the French market (11% per year).

High Growth Earnings: LR's earnings are forecast to grow, but not significantly.

Revenue vs Market: LR's revenue (4.1% per year) is forecast to grow slower than the French market (5.3% per year).

High Growth Revenue: LR's revenue (4.1% 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 (16.6%).


Discover growth companies

Past Performance

How has Legrand performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LR has high quality earnings.

Growing Profit Margin: LR's current net profit margins (12.7%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: LR's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: LR's earnings growth over the past year (10.8%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: LR earnings growth over the past year (10.8%) underperformed the Electrical industry 20.6%.


Return on Equity

High ROE: LR's Return on Equity (15.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Legrand's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LR's short term assets (€5.6B) exceed its short term liabilities (€3.0B).

Long Term Liabilities: LR's short term assets (€5.6B) do not cover its long term liabilities (€5.7B).


Debt to Equity History and Analysis

Debt Level: LR's net debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: LR's debt to equity ratio has increased from 52.2% to 82.6% over the past 5 years.

Debt Coverage: LR's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: LR's interest payments on its debt are well covered by EBIT (17.7x coverage).


Balance Sheet


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Dividend

What is Legrand current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.32%

Current Dividend Yield

Dividend Yield vs Market

Legrand Dividend Yield vs Market
How does Legrand dividend yield compare to the market?
SegmentDividend Yield
Company (Legrand)2.3%
Market Bottom 25% (FR)2.0%
Market Top 25% (FR)6.0%
Industry Average (Electrical)2.4%
Analyst forecast in 3 Years (Legrand)2.7%

Notable Dividend: LR's dividend (2.32%) is higher than the bottom 25% of dividend payers in the French market (2%).

High Dividend: LR's dividend (2.32%) is low compared to the top 25% of dividend payers in the French market (6.02%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.3%), LR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (63%), LR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Benoît Coquart (49 yo)

2.42yrs

Tenure

€1,740,822

Compensation

Mr. Benoît Coquart has been the Chief Executive Officer at Legrand SA since February 08, 2018. Mr. Coquart is responsible for the general management of Legrand. Mr. Coquart served as an Executive Vice Pres...


CEO Compensation Analysis

Benoît Coquart's Compensation vs Legrand Earnings
How has Benoît Coquart's remuneration changed compared to Legrand's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

€971m

Mar 31 2022n/an/a

€935m

Dec 31 2021n/an/a

€905m

Sep 30 2021n/an/a

€887m

Jun 30 2021n/an/a

€877m

Mar 31 2021n/an/a

€742m

Dec 31 2020€2m€700k

€681m

Sep 30 2020n/an/a

€703m

Jun 30 2020n/an/a

€705m

Mar 31 2020n/an/a

€812m

Dec 31 2019€3m€700k

€835m

Sep 30 2019n/an/a

€822m

Jun 30 2019n/an/a

€797m

Mar 31 2019n/an/a

€787m

Dec 31 2018€2m€627k

€772m

Compensation vs Market: Insufficient data to establish whether Benoît's total compensation is reasonable compared to companies of similar size in the French market.

Compensation vs Earnings: Benoît's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LR's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: LR's board of directors are considered experienced (7.9 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

What is the ownership structure of LR?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders4,678,3851.8%
General Public120,780,05745.3%
Institutions141,191,39653.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 43.47% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.99%
Massachusetts Financial Services Company
26,641,639€1.9b-0.53%0.46%
5.12%
BlackRock, Inc.
13,653,203€970.5m0%0.02%
4.14%
Norges Bank Investment Management
11,036,673€784.5m0%0.1%
3.76%
The Vanguard Group, Inc.
10,013,626€711.8m1.3%0.02%
3.37%
FMR LLC
8,974,687€637.9m0.28%0.06%
2.6%
Flossbach von Storch AG
6,928,140€492.5m0%1.19%
1.8%
Fidelity International Ltd
4,791,769€340.6m0%0.17%
1.39%
Allianz Asset Management AG
3,707,616€263.5m0%0.22%
1.25%
Amundi Asset Management
3,342,851€237.6m1.18%0.07%
1.14%
First Eagle Investment Management, LLC
3,045,260€216.5m0%0.35%
1.03%
Pictet Asset Management Limited
2,742,891€195.0m0%0.17%
0.91%
Gilles Schnepp
2,415,082€171.7m0%no data
0.78%
Olivier Bazil
2,085,299€148.2m0%no data
0.69%
T. Rowe Price Group, Inc.
1,833,154€130.3m-0.06%0.01%
0.63%
Janus Henderson Group plc
1,679,342€119.4m-0.06%0.06%
0.62%
BNY Mellon Asset Management
1,644,155€116.9m-0.39%0.02%
0.59%
Baillie Gifford & Co.
1,569,435€111.6m-6.39%0.05%
0.55%
Geode Capital Management, LLC
1,467,460€104.3m0.86%0.01%
0.52%
Schroder Investment Management Limited
1,375,101€97.7m0%0.07%
0.51%
UBS Asset Management
1,372,501€97.6m-1.61%0.02%
0.5%
Jupiter Fund Management Plc
1,338,800€95.2m0%0.3%
0.5%
Natixis Investment Managers International
1,332,901€94.7m13.22%0.36%
0.38%
BLI - Banque De Luxembourg Investments S.A.
1,002,055€71.2m-0.16%0.79%
0.37%
Columbia Management Investment Advisers, LLC
990,188€70.4m5.79%0.02%
0.35%
State Street Global Advisors, Inc.
922,023€65.5m-1.92%no data

Company Information

Legrand SA's 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
  • Implied Market Cap: €18.090b
  • Shares outstanding: 266.65m
  • Website: https://www.legrandgroup.com

Number of Employees


Location

  • Legrand SA
  • 128, Avenue de Lattre de Tassigny
  • Cedex
  • Limoges
  • Limousin
  • 87045
  • France


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2000
0MW7LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2000
LGRV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
LRENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2000
LRPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2000
LRWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2000
LGRD.YOTCPK (Pink Sheets LLC)UNSPON ADR EACH REPR 0.20 ORDUSUSDOct 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.