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Market Cap

US$7.2b

Last Updated

2021/05/05 22:33 UTC

Data Sources

Company Financials +

Executive Summary

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. More Details


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Leggett & Platt's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

9.9%

LEG

2.4%

US Consumer Durables

-1.6%

US Market


1 Year Return

101.6%

LEG

122.8%

US Consumer Durables

52.8%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 120.5% over the past year.

Return vs Market: LEG exceeded the US Market which returned 52.4% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day9.9%2.4%-1.6%
30 Day19.5%6.3%1.3%
90 Day31.4%22.4%3.5%
1 Year109.7%101.6%125.2%122.8%55.4%52.8%
3 Year50.9%34.5%84.2%77.1%63.5%53.2%
5 Year35.5%14.1%116.7%101.3%125.8%100.7%

Long-Term Price Volatility Vs. Market

How volatile is Leggett & Platt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?

26.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEG ($55.97) is trading above our estimate of fair value ($55.51)

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


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (26.1x) compared to the US Consumer Durables industry average (18x).

PE vs Market: LEG is poor value based on its PE Ratio (26.1x) compared to the US market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (5.1x) compared to the US Consumer Durables industry average (2.3x).


Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: LEG's earnings (8.5% per year) are forecast to grow slower than the US market (16% per year).

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

Revenue vs Market: LEG's revenue (3.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: LEG's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Leggett & Platt performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (6.6%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have declined by 6.9% per year over the past 5 years.

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

Earnings vs Industry: LEG had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (56.9%).


Return on Equity

High ROE: LEG's Return on Equity (20%) is considered low.


Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.8B) exceed its short term liabilities ($995.6M).

Long Term Liabilities: LEG's short term assets ($1.8B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (137.6%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 94.9% to 137.6% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (29%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

What is Leggett & Platt current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEG's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: LEG's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: LEG's dividends per share have been stable in the past 10 years.

Growing Dividend: LEG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.7%), LEG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEG's dividends in 3 years are forecast to be covered by earnings (56.9% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Karl Glassman (62 yo)

5.33yrs

Tenure

US$8,742,815

Compensation

Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016, and its Chairman since January 1, 2020. Mr. Glassman served as President of Leggett & Platt...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD8.74M) is above average for companies of similar size in the US market ($USD6.49M).

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


Leadership Team

Experienced Management: LEG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: LEG's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Leggett & Platt, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leggett & Platt, Incorporated
  • Ticker: LEG
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$7.179b
  • Shares outstanding: 133.20m
  • Website: https://www.leggett.com

Number of Employees


Location

  • Leggett & Platt, Incorporated
  • No. 1 Leggett Road
  • Carthage
  • Missouri
  • 64836
  • United States

Listings


Biography

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 22:33
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
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.