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Market Cap

US$6.2b

Last Updated

2021/09/18 22:02 UTC

Data Sources

Company Financials +

Executive Summary

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


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LEG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

LEG

-0.8%

US Consumer Durables

-0.6%

US Market


1 Year Return

4.7%

LEG

36.8%

US Consumer Durables

33.8%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 36.8% over the past year.

Return vs Market: LEG underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day-1.1%-0.8%-0.6%
30 Day-1.6%-0.7%1.6%
90 Day-5.7%3.3%4.6%
1 Year8.4%4.7%38.3%36.8%35.8%33.8%
3 Year13.4%1.1%89.3%81.9%60.0%50.1%
5 Year13.1%-5.1%101.9%86.3%123.0%98.7%

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?

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEG ($46.16) is trading below our estimate of fair value ($63.69)

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 (15x) compared to the US Consumer Durables industry average (11x).

PE vs Market: LEG is good value based on its PE Ratio (15x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (4x) compared to the US Consumer Durables industry average (2x).


Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: LEG's earnings (5.6% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: LEG's revenue (3.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: LEG's revenue (3.8% 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


Past Performance

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

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (8.5%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (82.4%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: LEG earnings growth over the past year (82.4%) exceeded the Consumer Durables industry 71.4%.


Return on Equity

High ROE: Whilst LEG's Return on Equity (26.66%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.9B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: LEG's short term assets ($1.9B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (131.9%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 98.3% to 131.9% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (25.2%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEG's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: LEG's dividend (3.64%) is in the top 25% of dividend payers in the US market (3.6%)


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 (53.8%), 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 (54.1% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Karl Glassman (63 yo)

5.67yrs

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 ($USD8.74M) is above average for companies of similar size in the US market ($USD6.44M).

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 ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: LEG's board of directors are not considered experienced ( 2.3 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$6.153b
  • Shares outstanding: 133.30m
  • 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 Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.