ENXTPA:LR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.7%

LR

-1.7%

FR Electrical

0.1%

FR Market


1 Year Return

2.6%

LR

10.3%

FR Electrical

2.1%

FR Market

LR underperformed the Electrical industry which returned 10.3% over the past year.

LR matched the France Market (2.1%) over the past year.


Share holder returns

LRIndustryMarket
7 Day-1.7%-1.7%0.1%
30 Day4.8%7.4%4.3%
90 Day1.9%2.2%2.0%
1 Year4.9%2.6%13.3%10.3%5.6%2.1%
3 Year29.2%21.5%32.6%22.9%44.8%30.8%
5 Year77.6%59.7%59.8%37.6%61.9%38.0%

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

Valuation

Is Legrand undervalued based on future cash flows and its price relative to the stock market?

21.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Legrand's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Legrand's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Legrand is overvalued based on earnings compared to the FR Electrical industry average.

Legrand is overvalued based on earnings compared to the France market.


Price Based on Expected Growth

Legrand is poor value based on expected growth next year.


Price Based on Value of Assets

Legrand is overvalued based on assets compared to the FR Electrical industry average.


Next Steps

Future Growth

How is Legrand expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Legrand's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Legrand's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Legrand's revenue growth is positive but not above the France market average.

Legrand's earnings growth is positive but not above the France market average.

Legrand's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Legrand is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Legrand performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Legrand's year on year earnings growth rate has been positive over the past 5 years.

Legrand's 1-year earnings growth is less than its 5-year average (1.5% vs 10.2%)

Legrand's earnings growth has exceeded the FR Electrical industry average in the past year (1.5% vs 1.3%).


Return on Equity

Legrand has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Legrand used its assets more efficiently than the FR Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Legrand's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Legrand's financial position?


Financial Position Analysis

Legrand is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Legrand's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Legrand's level of debt (82.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.9% vs 82.9% today).

Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

2.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Legrand's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.55%).

Legrand's dividend is below the markets top 25% of dividend payers in France (4.49%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Legrand's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Benoît Coquart (46yo)

1.6yrs

Tenure

€2,456,524

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

Benoît's remuneration is lower than average for companies of similar size in France.

Insufficient data for Benoît to compare compensation growth.


Management Age and Tenure

1.1yrs

Average Tenure

51yo

Average Age

The average tenure for the Legrand management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

59yo

Average Age

The tenure for the Legrand board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Philippe Weber

    Deputy COO & Group VP - Energy Distribution & Industrial Applications Div

    • Tenure: 0yrs
  • Paolo Perino (65yo)

    Chairman of Bticino & Executive VP of Strategy & Dev.

    • Tenure: 0yrs
  • Antoine Burel (57yo)

    Deputy CEO & Executive VP of Group Operations

    • Tenure: 0.7yrs
  • Francois-Etienne Poisson

    Director of Finance & Investor Relations

    • Tenure: 0yrs
  • Benoît Coquart (46yo)

    Chief Executive Officer

    • Tenure: 1.6yrs
    • Compensation: €2.46m
  • Frédéric Xerri (50yo)

    Executive Vice President of Europe

    • Tenure: 0yrs
  • Bénédicte Bahier

    Executive Vice President of Human Resources

    • Tenure: 1.7yrs
  • Karine Alquier-Caro (47yo)

    Executive Vice President of Purchasing

    • Tenure: 0yrs
  • Franck Lemery (52yo)

    Executive VP & CFO

    • Tenure: 0.7yrs
  • Jean-Luc Cartet

    Executive Vice President of Asia-Pacific

    • Tenure: 0yrs

Board Members

  • Ned Gilhuly (59yo)

    Independent Director

    • Tenure: 1.3yrs
  • Christel Bories (55yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: €70.00k
  • Olivier Bazil (73yo)

    Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: €64.00k
  • Gilles Schnepp (61yo)

    Chairman

    • Tenure: 13.5yrs
    • Compensation: €625.00k
  • Eliane Rouyer-Chevalier (66yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: €90.00k
  • Benot Valentin

    Observer

    • Tenure: 15.7yrs
  • Paolo Perino (65yo)

    Chairman of Bticino & Executive VP of Strategy & Dev.

    • Tenure: 0yrs
  • Isabelle Boccon-Gibod (51yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: €66.00k
  • Angeles Garcia-Poveda (48yo)

    Lead Independent Director

    • Tenure: 7.3yrs
    • Compensation: €105.00k
  • Annalisa Elia (53yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: €56.00k

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: €17.499b
  • Shares outstanding: 266.51m
  • Website: https://www.legrand.com

Number of Employees


Location

  • Legrand SA
  • 128, avenue du Maréchal 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
LR NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2000
LGRD.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2014

Biography

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers a range of products and solutions that connect buildings to energy, data,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 21:07
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.