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

5.4%

LR

7.4%

FR Electrical

4.2%

FR Market


1 Year Return

17.3%

LR

24.7%

FR Electrical

9.4%

FR Market

Return vs Industry: LR underperformed the French Electrical industry which returned 24.7% over the past year.

Return vs Market: LR exceeded the French Market which returned 9.4% over the past year.


Shareholder returns

LRIndustryMarket
7 Day5.4%7.4%4.2%
30 Day4.6%0.3%0.2%
90 Day8.6%5.7%0.9%
1 Year19.9%17.3%28.1%24.7%13.1%9.4%
3 Year41.0%32.5%36.5%26.5%44.4%30.5%
5 Year88.6%69.6%71.2%47.5%74.5%48.4%

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 compared to its fair value and its price relative to the market?

23.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LR (€69.04) is trading above our estimate of fair value (€67.75)

Significantly Undervalued: 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 (23.1x) compared to the Electrical industry average (13.6x).

PE vs Market: LR is poor value based on its PE Ratio (23.1x) compared to the French market (17.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: LR is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: LR is overvalued based on its PB Ratio (4x) compared to the FR Electrical industry average (2.2x).


Next Steps

Future Growth

How is Legrand forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LR's forecast earnings growth (5.9% per year) is above the savings rate (0.7%).

Earnings vs Market: LR's earnings (5.9% per year) are forecast to grow slower than the French market (11.4% per year).

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

Revenue vs Market: LR's revenue (3.8% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: LR's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LR's Return on Equity is forecast to be low in 3 years time (16.7%).


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

Earnings Trend: LR's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: LR's earnings growth over the past year (1.5%) is below its 5-year average (10.2% per year).

Earnings vs Industry: LR earnings growth over the past year (1.5%) exceeded the Electrical industry 1.3%.


Return on Equity

High ROE: LR's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: LR has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: LR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Legrand's financial position?


Financial Position Analysis

Short Term Liabilities: LR's short term assets (€3.2B) exceeds its short term liabilities (€2.0B)

Long Term Liabilities: LR's short term assets (3.2B) do not cover its long term liabilities (4.6B)


Debt to Equity History and Analysis

Debt Level: LR's debt to equity ratio (82.9%) is considered high

Reducing Debt: LR's debt to equity ratio has increased from 55.9% to 82.9% over the past 5 years.

Debt Coverage: LR's debt is well covered by operating cash flow (27.8%).

Interest Coverage: LR's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet

Inventory Level: LR has a low level of unsold assets or inventory.

Debt Coverage by Assets: LR's 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?

1.94%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%4.6%industryaverage2.5%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LR's dividend (1.94%) is higher than the bottom 25% of dividend payers in the French market (1.55%).

High Dividend: LR's dividend (1.94%) is low compared to the top 25% of dividend payers in the French market (4.61%).

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 (44.8%), 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 (43.1% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Benoît Coquart (46yo)

1.7yrs

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

Compensation vs. Market: Benoît has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the French market.

Compensation vs Earnings: Insufficient data to compare Benoît's compensation with company performance.


Management Age and Tenure

1.2yrs

Average Tenure

51yo

Average Age

Experienced Management: LR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

7.4yrs

Average Tenure

59yo

Average Age

Experienced Board: LR's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 0.8yrs
  • Francois-Etienne Poisson

    Director of Finance & Investor Relations

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

    Chief Executive Officer

    • Tenure: 1.7yrs
    • Compensation: €2.46m
  • Frédéric Xerri (50yo)

    Executive Vice President of Europe

    • Tenure: 0yrs
  • Bénédicte Bahier

    Executive Vice President of Human Resources

    • Tenure: 1.8yrs
  • Karine Alquier-Caro (47yo)

    Executive Vice President of Purchasing

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

    Executive VP & CFO

    • Tenure: 0.8yrs
  • Jean-Luc Cartet

    Executive Vice President of Asia-Pacific

    • Tenure: 0yrs

Board Members

  • Ned Gilhuly (59yo)

    Independent Director

    • Tenure: 1.4yrs
  • Christel Bories (55yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: €70.00k
  • Olivier Bazil (73yo)

    Non-Executive Director

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

    Chairman

    • Tenure: 13.6yrs
    • Compensation: €625.00k
  • Eliane Rouyer-Chevalier (66yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: €90.00k
  • Benot Valentin

    Observer

    • Tenure: 15.8yrs
  • Paolo Perino (65yo)

    Chairman of Bticino & Executive VP of Strategy & Dev.

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

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €66.00k
  • Angeles Garcia-Poveda (48yo)

    Lead Independent Director

    • Tenure: 7.4yrs
    • Compensation: €105.00k
  • Annalisa Elia (53yo)

    Independent Director

    • Tenure: 6.4yrs
    • 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: €18.401b
  • Shares outstanding: 266.52m
  • 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 Analysis2019/10/16 21:05
End of Day Share Price2019/10/16 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.