NYSE:LEG

Stock Analysis Report

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Executive Summary

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide.


Snowflake Analysis

6 star dividend payer with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

LEG

3.5%

US Consumer Durables

4.0%

US Market


1 Year Return

-8.1%

LEG

4.5%

US Consumer Durables

5.0%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 4.5% over the past year.

Return vs Market: LEG underperformed the US Market which returned 5% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day1.7%3.5%4.0%
30 Day-5.2%-6.0%-1.1%
90 Day32.6%47.7%21.1%
1 Year-4.2%-8.1%5.7%4.5%7.2%5.0%
3 Year-25.0%-32.9%-6.0%-10.3%36.0%27.1%
5 Year-18.0%-30.6%8.1%1.7%65.3%46.9%

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?

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEG ($35.21) is trading below our estimate of fair value ($36.6)

Significantly Below Fair Value: LEG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (14.9x) compared to the Consumer Durables industry average (10.7x).

PE vs Market: LEG is good value based on its PE Ratio (14.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (3.8x) compared to the US Consumer Durables industry average (1.3x).


Next Steps

Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (10.3% per year) is above the savings rate (2.2%).

Earnings vs Market: LEG's earnings (10.3% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: LEG's revenue (4.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: LEG's revenue (4.3% 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


Next Steps

Past Performance

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

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (10.1%) exceeds its 5-year average (0.1% per year).

Earnings vs Industry: LEG earnings growth over the past year (10.1%) underperformed the Consumer Durables industry 10.2%.


Return on Equity

High ROE: Whilst LEG's Return on Equity (25.71%) is high, this metric is skewed due to their high level of debt.


Next Steps

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 ($854.7M).

Long Term Liabilities: LEG's short term assets ($1.8B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (199.1%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 89.7% to 199.1% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (26.2%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEG's dividend (4.54%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: LEG's dividend (4.54%) is in the top 25% of dividend payers in the US market (4.5%)


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 (67.9%), 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 (60.5% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Karl Glassman (62yo)

4.5yrs

Tenure

US$10,193,912

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 ($USD10.19M) is above average for companies of similar size in the US market ($USD5.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.5yrsUS$10.19m0.46% $21.5m
J. Dolloff
President0.50yrUS$3.85m0.12% $5.8m
Jeffrey Tate
Executive VP & CFO0.83yrUS$2.29mno data
Scott Douglas
Senior VP10.5yrsUS$1.79m0.036% $1.7m
Tammy Trent
Senior VP & Chief Accounting Officer5.17yrsno data0.021% $963.3k
Susan McCoy
Senior Vice President of Investor Relations1.42yrsno data0.018% $829.2k
Russell Iorio
Senior Vice President of Corporate Development4.5yrsno data0.055% $2.6m
Charles Hutchins
VP & Chief Tax Officer0.58yrno datano data
Steven Henderson
EVP and President of Specialized Products Segmentno datano data0.024% $1.1m
Darrel Wild
VP & Chief Credit Officer0.58yrno datano data

1.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LEG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.5yrsUS$10.19m0.46% $21.5m
J. Dolloff
President0.50yrUS$3.85m0.12% $5.8m
Judy Odom
Lead Independent Director0.50yrUS$321.24k0.048% $2.2m
Manuel Fernandez
Independent Director6.5yrsUS$307.00k0.029% $1.4m
Joseph McClanathan
Independent Director15.5yrsUS$269.52k0.023% $1.1m
Phoebe Wood
Independent Director14.67yrsUS$352.12k0.044% $2.1m
Mark Blinn
Independent Director1.17yrsUS$203.06k0.0054% $249.7k
Robert Brunner
Independent Director11.17yrsUS$329.76k0.042% $1.9m
Jai Shah
Independent Director1.17yrsUS$202.06k0.0063% $291.6k
Srikanth Padmanabhan
Independent Director1.92yrsUS$249.82k0.0071% $331.2k

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: LEG's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if insiders have bought more shares than they have sold 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$4.658b
  • Shares outstanding: 132.30m
  • Website: https://www.leggett.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1970
LP1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1970
0JTTLSE (London Stock Exchange)YesCommon StockGBUSDJan 1970
L1EG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through three segments: Bedding Products; Furniture, Flooring & Textile Products; and Specialized Products. The company offers innersprings, wire forms, specialty foams, and machines to shape wire into various types of innersprings; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions and hard surface flooring underlayment, and geo components to manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; flooring retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. It also provides drawn wires and steel rods to packaging and baling companies, mechanical spring manufacturers, and wire distributors, as well as bedding and furniture components, and automotive seat support and lumbar systems. In addition, the company offers bases, columns, back rests, control devices, and casters and frames; private-label finished furniture; beds and bed frames; adjustable beds; and steel mechanisms and hardware, and springs and seat suspensions to upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. Further, it provides mechanical and pneumatic lumbar support and massage systems, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless steel tubing, formed tube, and tube assemblies; and engineered hydraulic cylinders to automobile and aerospace OEMs, mobile equipment OEMs, and aerospace suppliers. The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 23:58
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
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.