NYSE:LEG

Stock Analysis Report

Executive Summary

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


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

LEGIndustryMarket
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 Year1.0%-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 Year15.9%-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

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

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.2%

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

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.1yrsUS$10.57m0.40% $23.7m
J. Dolloff
President0.08yrsUS$3.00m0.10% $6.1m
Scott Douglas
Senior VP10.1yrsUS$1.56m0.035% $2.1m
Jeffrey Tate
Executive VP & CFO0.4yrsno data0.010% $597.7k
Susan McCoy
Senior Vice President of Investor Relations1yrsno data0.017% $1.0m
Charles Hutchins
VP & Chief Tax Officer0.2yrsno datano data
Steven Henderson
EVP and President of Specialized Products Segment0yrsno data0.013% $789.4k
Darrel Wild
VP & Chief Credit Officer0.2yrsno datano data
Benjamin Burns
VP of Business Support Services & Treasurer0.2yrsno datano data
Wendy Watson
Director of Investor Relations0yrsno datano 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

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.1yrsUS$10.57m0.40% $23.7m
J. Dolloff
President0.08yrsUS$3.00m0.10% $6.1m
Judy Odom
Independent Director0yrsUS$301.14k0.043% $2.5m
Manuel Fernandez
Independent Director0yrsUS$281.82k0.026% $1.6m
Joseph McClanathan
Independent Director0yrsUS$252.28k0.020% $1.2m
Robert Enloe
Lead Director0.08yrsUS$410.93k0.033% $1.9m
Phoebe Wood
Independent Director14.3yrsUS$329.84k0.041% $2.4m
Robert Brunner
Independent Director10.8yrsUS$286.96k0.039% $2.3m
Jai Shah
Independent Director0.8yrsno data0.0034% $198.8k
Srikanth Padmanabhan
Independent Director1.5yrsUS$124.63k0.0047% $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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:51
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.