Leggett & Platt
Market Cap
US$5.9b
Last Updated
2020/02/23 00:51 UTC
Data Sources
Company Financials +
Executive Summary
Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
LEG
-0.4%
US Consumer Durables
-1.1%
US Market
1 Year Return
-2.7%
LEG
27.7%
US Consumer Durables
17.9%
US Market
Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 27.7% over the past year.
Return vs Market: LEG underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| LEG | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -0.4% | -1.1% |
| 30 Day | -12.2% | 1.6% | 1.4% |
| 90 Day | -15.5% | 7.9% | 6.9% |
| 1 Year | 1.0%-2.7% | 29.4%27.7% | 20.3%17.9% |
| 3 Year | -0.06%-9.7% | 33.2%27.3% | 47.8%38.3% |
| 5 Year | 15.9%-0.9% | 39.7%30.7% | 71.9%53.0% |
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
6 days ago | Simply Wall St
How Much Of Leggett & Platt, Incorporated (NYSE:LEG) Do Institutions Own?2 weeks ago | Simply Wall St
Leggett & Platt, Incorporated Just Released Its Annual Results And Analysts Are Updating Their Estimates2 weeks ago | Simply Wall St
Should Leggett & Platt (NYSE:LEG) Be Disappointed With Their 16% Profit?Valuation
Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?
28.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LEG ($44.65) is trading below our estimate of fair value ($62.61)
Significantly Below Fair Value: LEG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LEG is poor value based on its PE Ratio (18x) compared to the Consumer Durables industry average (13.7x).
PE vs Market: LEG is good value based on its PE Ratio (18x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: LEG is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: LEG is overvalued based on its PB Ratio (4.5x) compared to the US Consumer Durables industry average (1.5x).
Next Steps
Future Growth
How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LEG's forecast earnings growth (5.4% per year) is above the savings rate (1.7%).
Earnings vs Market: LEG's earnings (5.4% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: LEG's earnings are forecast to grow, but not significantly.
Revenue vs Market: LEG's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: LEG's revenue (2.8% 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?
1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LEG has high quality earnings.
Growing Profit Margin: LEG's current net profit margins (7%) are lower than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: LEG's earnings have grown by 1.6% per year over the past 5 years.
Accelerating Growth: LEG's earnings growth over the past year (9.1%) exceeds its 5-year average (1.6% per year).
Earnings vs Industry: LEG earnings growth over the past year (9.1%) exceeded the Consumer Durables industry 5.5%.
Return on Equity
High ROE: Whilst LEG's Return on Equity (25.44%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Leggett & Platt's financial position?
Financial Position Analysis
Short Term Liabilities: LEG's short term assets ($1.5B) exceed its short term liabilities ($928.1M).
Long Term Liabilities: LEG's short term assets ($1.5B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: LEG's debt to equity ratio (161%) is considered high.
Reducing Debt: LEG's debt to equity ratio has increased from 83.9% to 161% over the past 5 years.
Debt Coverage: LEG's debt is well covered by operating cash flow (31.6%).
Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Inventory Level: LEG has a high level of physical assets or inventory.
Debt Coverage by Assets: LEG's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Leggett & Platt's current dividend yield, its reliability and sustainability?
3.58%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LEG's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: LEG's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 (63.8%), 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 (60.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.3yrs
Average management tenure
CEO
Karl Glassman (61yo)
4.1yrs
Tenure
US$10,567,930
Compensation
Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016 and its Chairman since January 1, 2020. Mr. Glassman served as President of Leggett & Platt, ...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD10.57M) is above average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Karl's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.1yrs | US$10.57m | 0.40% $23.7m | |
| President | 0.08yrs | US$3.00m | 0.10% $6.1m | |
| Senior VP | 10.1yrs | US$1.56m | 0.035% $2.1m | |
| Executive VP & CFO | 0.4yrs | no data | 0.010% $597.7k | |
| Senior Vice President of Investor Relations | 1yrs | no data | 0.017% $1.0m | |
| VP & Chief Tax Officer | 0.2yrs | no data | no data | |
| EVP and President of Specialized Products Segment | 0yrs | no data | 0.013% $789.4k | |
| VP & Chief Credit Officer | 0.2yrs | no data | no data | |
| VP of Business Support Services & Treasurer | 0.2yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data |
0.3yrs
Average Tenure
56yo
Average Age
Experienced Management: LEG's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.1yrs | US$10.57m | 0.40% $23.7m | |
| President | 0.08yrs | US$3.00m | 0.10% $6.1m | |
| Independent Director | 0yrs | US$301.14k | 0.043% $2.5m | |
| Independent Director | 0yrs | US$281.82k | 0.026% $1.6m | |
| Independent Director | 0yrs | US$252.28k | 0.020% $1.2m | |
| Lead Director | 0.08yrs | US$410.93k | 0.033% $1.9m | |
| Independent Director | 14.3yrs | US$329.84k | 0.041% $2.4m | |
| Independent Director | 10.8yrs | US$286.96k | 0.039% $2.3m | |
| Independent Director | 0.8yrs | no data | 0.0034% $198.8k | |
| Independent Director | 1.5yrs | US$124.63k | 0.0047% $274.9k |
0.8yrs
Average Tenure
63.5yo
Average Age
Experienced Board: LEG's board of directors are not considered experienced ( 0.8 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$5.900b
- Shares outstanding: 132.14m
- Website: https://www.leggett.com
Number of Employees
Location
- Leggett & Platt, Incorporated
- No. 1 Leggett Road
- Carthage
- Missouri
- 64836
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LEG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1970 |
| LP1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1970 |
| 0JTT | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1970 |
| L1EG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, and Specialized Products. The Residential Products segment offers innersprings, wire forms, and machines to shape wire into various types of springs; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and geo components. It serves manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. The Furniture Products segment offers molded plywood components; 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. It serves upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. The Industrial Products segment offers drawn wires, bedding and furniture components, automotive seat suspension systems, and steel rods. It serves packaging and baling companies, mechanical spring manufacturers, and wire distributors. The Specialized Products segment offers 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. It serves automobile and 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 headquartered in Carthage, Missouri.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:51 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.