NYSE:LEG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star 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


Market Performance


7 Day Return

-1.2%

NYSE:LEG

-0.6%

US Consumer Durables

-0.7%

US Market


1 Year Return

-13.7%

NYSE:LEG

6.3%

US Consumer Durables

-0.5%

US Market

LEG underperformed the Consumer Durables industry which returned 6.4% over the past year.

LEG underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

LEGIndustryMarket
7 Day-1.2%-0.6%-0.7%
30 Day-2.8%0.1%-3.0%
90 Day3.2%2.5%0.9%
1 Year-10.3%-13.7%7.7%6.3%1.7%-0.5%
3 Year-19.1%-26.6%33.9%29.8%39.5%30.4%
5 Year28.4%9.9%27.2%19.0%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Leggett & Platt's share price is below the future cash flow value, and at a moderate discount (> 20%).

Leggett & Platt's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Leggett & Platt is overvalued based on earnings compared to the US Consumer Durables industry average.

Leggett & Platt is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Leggett & Platt is poor value based on expected growth next year.


Price Based on Value of Assets

Leggett & Platt is overvalued based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Leggett & Platt's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Leggett & Platt's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Leggett & Platt's revenue growth is positive but not above the United States of America market average.

Leggett & Platt's earnings growth is positive but not above the United States of America market average.

Leggett & Platt's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Leggett & Platt will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Leggett & Platt's year on year earnings growth rate has been positive over the past 5 years.

Leggett & Platt's 1-year earnings growth is less than its 5-year average (2.7% vs 5.1%)

Leggett & Platt's earnings growth has not exceeded the US Consumer Durables industry average in the past year (2.7% vs 17.1%).


Return on Equity

Whilst Leggett & Platt has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Leggett & Platt used its assets more efficiently than the US Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Leggett & Platt's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Leggett & Platt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Leggett & Platt's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Leggett & Platt's level of debt (194.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87.6% vs 194.5% today).

Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.71%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Leggett & Platt before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Leggett & Platt's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Leggett & Platt's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of Leggett & Platt's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Karl Glassman (61yo)

3.6yrs

Tenure

US$10,567,930

Compensation

Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016. Mr. Glassman has been President of Leggett & Platt, Incorporated since March 2013 and serve ...


CEO Compensation Analysis

Karl's remuneration is higher than average for companies of similar size in United States of America.

Karl's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Leggett & Platt management team is over 5 years, this suggests they are a seasoned and experienced team.


Insider Trading

Leggett & Platt individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$13,36509 Aug 19
Susan McCoy
EntityIndividual
Role
Senior Key Executive
Senior VP of Investor Relations
Shares338
Max PriceUS$39.54
SellUS$503,39627 Feb 19
Russell Iorio
EntityIndividual
Shares11,008
Max PriceUS$45.73
SellUS$444,54415 Feb 19
Joseph McClanathan
EntityIndividual
Shares10,143
Max PriceUS$43.83
SellUS$720,91224 Aug 18
Matthew Flanigan
EntityIndividual
Shares15,672
Max PriceUS$46.00

Ownership Breakdown


Management Team

  • Karl Glassman (61yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$10.57m
  • Perry Davis (60yo)

    Executive VP and President of Residential Products & Industrial Products

    • Tenure: 7.5yrs
    • Compensation: US$3.04m
  • Susan McCoy (54yo)

    Senior VP of Investor Relations

    • Tenure: 0.5yrs
  • Scott Douglas (59yo)

    Senior VP

    • Tenure: 9.6yrs
    • Compensation: US$1.56m

Board Members

  • Karl Glassman (61yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$10.57m

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$5.063b
  • Shares outstanding: 131.47m
  • 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

Biography

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:42
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.