ENXTPA:LR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with imperfect 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

-1.5%

LR

1.1%

FR Electrical

-0.6%

FR Market


1 Year Return

-1.7%

LR

23.0%

FR Electrical

-7.9%

FR Market

Return vs Industry: LR underperformed the French Electrical industry which returned 23% over the past year.

Return vs Market: LR exceeded the French Market which returned -7.9% over the past year.


Shareholder returns

LRIndustryMarket
7 Day-1.5%1.1%-0.6%
30 Day6.1%6.5%4.1%
90 Day-2.7%8.6%0.9%
1 Year0.4%-1.7%26.4%23.0%-5.9%-7.9%
3 Year16.8%9.5%45.6%34.4%4.8%-4.2%
5 Year52.9%37.4%105.5%79.7%30.2%12.3%

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

Valuation

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

25.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LR (€68.6) is trading above our estimate of fair value (€42.22)

Significantly Below Fair Value: LR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LR's PE Ratio (26x) is in line with the FR Electrical industry average.

PE vs Market: LR is poor value based on its PE Ratio (26x) compared to the French market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: LR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: LR is overvalued based on its PB Ratio (3.8x) compared to the FR Electrical industry average (2.5x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LR's forecast earnings growth (12.8% per year) is above the savings rate (0.6%).

Earnings vs Market: LR's earnings (12.8% per year) are forecast to grow slower than the French market (23.4% per year).

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

Revenue vs Market: LR's revenue (4.4% per year) is forecast to grow slower than the French market (6.8% per year).

High Growth Revenue: LR's revenue (4.4% 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 (14.7%).


Next Steps

Past Performance

How has Legrand performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LR has high quality earnings.

Growing Profit Margin: LR's current net profit margins (11.3%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: LR's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: LR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LR had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Electrical industry average (-13.1%).


Return on Equity

High ROE: LR's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Legrand's financial position?


Financial Position Analysis

Short Term Liabilities: LR's short term assets (€4.6B) exceed its short term liabilities (€3.0B).

Long Term Liabilities: LR's short term assets (€4.6B) do not cover its long term liabilities (€5.3B).


Debt to Equity History and Analysis

Debt Level: LR's debt to equity ratio (112.1%) is considered high.

Reducing Debt: LR's debt to equity ratio has increased from 44.3% to 112.1% over the past 5 years.

Debt Coverage: LR's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: LR's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LR's dividend (1.95%) is higher than the bottom 25% of dividend payers in the French market (1.55%).

High Dividend: LR's dividend (1.95%) is low compared to the top 25% of dividend payers in the French market (5.17%).


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 reasonable payout ratio (50.7%), LR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LR's dividends in 3 years are forecast to be well covered by earnings (45.9% 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 (47 yo)

2.67yrs

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 ($USD3.26M) is about average for companies of similar size in the French market ($USD4.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Benoît Coquart
CEO & Director2.67yrs€2.75m0.010%
€ 1.9m
Franck Lemery
Executive VP & CFO1.75yrsno datano data
Antoine Burel
Deputy CEO & Executive VP of Group Operations1.75yrsno datano data
Francois-Etienne Poisson
Director of Finance & Investor Relationsno datano datano data
Bénédicte Bahier
Executive Vice President of Human Resources2.75yrsno datano data
Philippe Weber
Deputy COO & Group VP - Energy Distribution & Industrial Applications Divno datano datano data
Frédéric Xerri
Executive Vice President of Europe2.75yrsno datano data
Karine Alquier-Caro
Executive Vice President of Purchasing5.5yrsno datano data
Jean-Luc Cartet
Executive Vice President of Asia-Pacific1.75yrsno datano data
Gloria Glang
Executive Vice President of Strategy & Development1yrno datano data
Doug Bielefeld
Treasurerno datano datano data
John Selldorff
CEO and President of Legrand North & Central America18.75yrsno datano data

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: LR's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benoît Coquart
CEO & Director2.67yrs€2.75m0.010%
€ 1.9m
Edward Gilhuly
Independent Director2.42yrs€34.00k0.045%
€ 8.2m
Michel Landel
Lead Independent Director0.25yrno data0.00019%
€ 34.8k
Christel Bories
Independent Non-Executive Director8.42yrs€85.00k0.00055%
€ 100.9k
Olivier Bazil
Non-Executive Director17.83yrs€70.00k0.78%
€ 143.1m
Gilles Schnepp
Director17.83yrs€625.00k0.90%
€ 165.7m
Patrick Koller
Independent Director2.42yrs€32.00k0.00037%
€ 67.9k
Éliane Rouyer-Chevalier
Independent Non-Executive Director9.42yrs€97.00k0.00050%
€ 91.7k
Benot Valentin
Observer16.75yrsno datano data
Isabelle Boccon-Gibod
Independent Director4.42yrs€84.00k0.00037%
€ 67.9k
Angeles Garcia-Poveda
Independent Chairwoman of the Board0.25yr€118.00k0.0018%
€ 330.1k
Annalisa Elia
Independent Director7.42yrs€66.00k0.00050%
€ 91.7k

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: LR's board of directors are considered experienced (5.9 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

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: €18.340b
  • Shares outstanding: 267.34m
  • Website: https://www.legrand.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
LR NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2000
LRCETLX (Eurotlx)YesOrdinary SharesITEURJul 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 MCBs, RCDs, and din rail equipment; ACBs, MCCBs, head equipment, and power ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 20:33
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.