Leggett & Platt
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
Rewards
Risk Analysis
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
| LEG | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.9% | 2.4% | -1.6% |
| 30 Day | 19.5% | 6.3% | 1.3% |
| 90 Day | 31.4% | 22.4% | 3.5% |
| 1 Year | 109.7%101.6% | 125.2%122.8% | 55.4%52.8% |
| 3 Year | 50.9%34.5% | 84.2%77.1% | 63.5%53.2% |
| 5 Year | 35.5%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
3 days ago | Simply Wall St
Is It Time To Consider Buying Leggett & Platt, Incorporated (NYSE:LEG)?3 weeks ago | Simply Wall St
What Leggett & Platt, Incorporated's (NYSE:LEG) ROE Can Tell Us1 month ago | Simply Wall St
Is Leggett & Platt, Incorporated (NYSE:LEG) A Smart Pick For Income Investors?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/05 22:33 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.