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LR

LegrandENXTPA:LR Stock Report

Market Cap

€25.0b

7D

-0.6%

1Y

40.1%

Updated

27 Sep, 2021

Data

Company Financials +
LR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends5/6

LR 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€93.64
52 Week High€62.60
52 Week Low€99.72
Beta0.90
1 Month Change-3.62%
3 Month Change4.39%
1 Year Change40.05%
3 Year Change48.64%
5 Year Change78.50%
Change since IPO303.27%

Recent News & Updates

Sep 23
Is Legrand SA (EPA:LR) Potentially Undervalued?

Is Legrand SA (EPA:LR) Potentially Undervalued?

Today we're going to take a look at the well-established Legrand SA ( EPA:LR ). The company's stock saw a double-digit...

Sep 10
Estimating The Fair Value Of Legrand SA (EPA:LR)

Estimating The Fair Value Of Legrand SA (EPA:LR)

Today we will run through one way of estimating the intrinsic value of Legrand SA ( EPA:LR ) by projecting its future...

Aug 28
The Returns At Legrand (EPA:LR) Aren't Growing

The Returns At Legrand (EPA:LR) Aren't Growing

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Jul 19
We Think Legrand (EPA:LR) Can Stay On Top Of Its Debt

We Think Legrand (EPA:LR) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

LRFR ElectricalFR Market
7D-0.6%-2.3%0.03%
1Y40.1%46.0%39.2%

Return vs Industry: LR matched the French Electrical industry which returned 46% over the past year.

Return vs Market: LR exceeded the French Market which returned 39.2% over the past year.

Price Volatility

Is LR's price volatile compared to industry and market?
LR volatility
LR Beta0.90
Industry Beta0.89
Market Beta1

Stable Share Price: LR is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: LR's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186537,473Benoît 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 and control and signaling devices, time and light sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; 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; 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€24.98b
Earnings (TTM)€876.80m
Revenue (TTM)€6.72b

28.5x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LR income statement (TTM)
Revenue€6.72b
Cost of Revenue€3.19b
Gross Profit€3.53b
Expenses€2.65b
Earnings€876.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)3.29
Gross Margin52.50%
Net Profit Margin13.05%
Debt/Equity Ratio102.6%

How did LR perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Legrand undervalued compared to its fair value and its price relative to the market?

28.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LR (€94.24) is trading above our estimate of fair value (€86.87)

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 (28.7x) compared to the French Electrical industry average (25x).

PE vs Market: LR is poor value based on its PE Ratio (28.7x) compared to the French market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: LR is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: LR is overvalued based on its PB Ratio (4.9x) compared to the FR Electrical industry average (4x).


Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LR's forecast earnings growth (7.2% per year) is above the savings rate (0.4%).

Earnings vs Market: LR's earnings (7.2% per year) are forecast to grow slower than the French market (12.1% per year).

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

Revenue vs Market: LR's revenue (6% per year) is forecast to grow slower than the French market (6.3% per year).

High Growth Revenue: LR's revenue (6% 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 (16.9%).


Past Performance

How has Legrand performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LR has high quality earnings.

Growing Profit Margin: LR's current net profit margins (13%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: LR's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: LR's earnings growth over the past year (24.3%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: LR earnings growth over the past year (24.3%) underperformed the Electrical industry 44.8%.


Return on Equity

High ROE: LR's Return on Equity (17.2%) is considered low.


Financial Health

How is Legrand's financial position?


Financial Position Analysis

Short Term Liabilities: LR's short term assets (€5.0B) exceed its short term liabilities (€3.3B).

Long Term Liabilities: LR's short term assets (€5.0B) do not cover its long term liabilities (€5.1B).


Debt to Equity History and Analysis

Debt Level: LR's debt to equity ratio (102.6%) is considered high.

Reducing Debt: LR's debt to equity ratio has increased from 51.1% to 102.6% over the past 5 years.

Debt Coverage: LR's debt is well covered by operating cash flow (28.7%).

Interest Coverage: LR's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Dividend

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

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LR's dividend (1.51%) is higher than the bottom 25% of dividend payers in the French market (1.28%).

High Dividend: LR's dividend (1.51%) is low compared to the top 25% of dividend payers in the French market (3.98%).


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 (43.3%), 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 (44.6% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Benoît Coquart (48 yo)

3.58yrs

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

Compensation vs Market: Benoît's total compensation ($USD2.04M) is below average for companies of similar size in the French market ($USD3.33M).

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 (2.7 years average tenure).


Board Members

Experienced Board: LR's board of directors are considered experienced (6.8 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 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: €24.979b
  • Shares outstanding: 266.76m
  • Website: https://www.legrandgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:18
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.