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LEG

Leggett & PlattNYSE:LEG Stock Report

Market Cap

US$5.4b

7D

-6.2%

1Y

-5.6%

Updated

30 Nov, 2021

Data

Company Financials +
LEG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends6/6

LEG Stock Overview

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

Leggett & Platt Competitors

Mohawk Industries

NYSE:MHK

US$11.4b

Tempur Sealy International

NYSE:TPX

US$8.2b

Purple Innovation

NasdaqGS:PRPL

US$690.9m

Ethan Allen Interiors

NYSE:ETD

US$568.4m

Price History & Performance

Summary of all time highs, changes and price drops for Leggett & Platt
Historical stock prices
Current Share PriceUS$40.39
52 Week HighUS$59.16
52 Week LowUS$39.87
Beta1.47
1 Month Change-13.79%
3 Month Change-16.31%
1 Year Change-5.63%
3 Year Change5.18%
5 Year Change-16.94%
Change since IPO981.57%

Recent News & Updates

Nov 25
If You Like EPS Growth Then Check Out Leggett & Platt (NYSE:LEG) Before It's Too Late

If You Like EPS Growth Then Check Out Leggett & Platt (NYSE:LEG) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Nov 04

Leggett & Platt: I Am Preparing To Buy More Shares

Leggett & Platt is suffering particularly badly from inflation and supply chain delays. Nevertheless, the business model is extremely resilient. It is true that the company was not able to pass on the price increases in full, so we have to accept some margin squeezes recently. However, when supply chains stabilize next year, we should see a good improvement in margins. From this perspective, the stock currently looks like a good buying opportunity.

Sep 25

Leggett & Platt: An Underappreciated Dividend King

Last month, Leggett & Platt announced its 50th consecutive dividend increase, which makes it a prestigious Dividend King. Leggett & Platt's adjusted EPS payout ratio appears safe considering that its payout ratio will be in the high-50% to low-60% range this year. After posting record second quarter results last month, Leggett & Platt has fully recovered to pre-pandemic levels. Leggett & Platt is trading at a discount to fair value based on my inputs into the dividend discount model and discounted cash flows model. Leggett & Platt appears positioned to deliver 9-10% annual total returns over the next decade.

Shareholder Returns

LEGUS Consumer DurablesUS Market
7D-6.2%-4.8%-2.8%
1Y-5.6%26.9%20.0%

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 26.9% over the past year.

Return vs Market: LEG underperformed the US Market which returned 20% over the past year.

Price Volatility

Is LEG's price volatile compared to industry and market?
LEG volatility
LEG Average Weekly Movement4.4%
Consumer Durables Industry Average Movement5.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: LEG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LEG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188320,400Karl Glassmanhttps://www.leggett.com

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products. The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to shape wires into innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers.

Leggett & Platt Fundamentals Summary

How do Leggett & Platt's earnings and revenue compare to its market cap?
LEG fundamental statistics
Market CapUS$5.39b
Earnings (TTM)US$399.50m
Revenue (TTM)US$4.92b

13.5x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEG income statement (TTM)
RevenueUS$4.92b
Cost of RevenueUS$3.89b
Gross ProfitUS$1.03b
ExpensesUS$632.00m
EarningsUS$399.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)3.00
Gross Margin20.96%
Net Profit Margin8.12%
Debt/Equity Ratio131.0%

How did LEG perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

56%

Payout Ratio

Does LEG pay a reliable dividends?

See LEG dividend history and benchmarks
When do you need to buy LEG by to receive an upcoming dividend?
Leggett & Platt dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateJan 14 2022
Days until Ex dividend13 days
Days until Dividend pay date44 days

Does LEG pay a reliable dividends?

See LEG dividend history and benchmarks

Valuation

Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEG ($40.39) is trading below our estimate of fair value ($65.55)

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 (13.5x) compared to the US Consumer Durables industry average (10.3x).

PE vs Market: LEG is good value based on its PE Ratio (13.5x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (3.4x) compared to the US Consumer Durables industry average (1.8x).


Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 4 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 (2%).

Earnings vs Market: LEG's earnings (5.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: LEG's revenue (3.5% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: LEG's revenue (3.5% 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?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (8.1%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (72.3%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: LEG earnings growth over the past year (72.3%) exceeded the Consumer Durables industry 69.8%.


Return on Equity

High ROE: Whilst LEG's Return on Equity (25.33%) 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 ($2.0B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: LEG's short term assets ($2.0B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: LEG's net debt to equity ratio (115.3%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 95.6% to 131% over the past 5 years.

Debt Coverage: LEG's debt is not well covered by operating cash flow (14.5%).

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?

4.16%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateDec 14 2021Dividend Pay DateJan 14 202231 days from Ex DividendBuy in the next 13 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: LEG's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: LEG's dividend (4.16%) is in the top 25% of dividend payers in the US market (3.63%)


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 (55.9%), 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 (56.8% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Karl Glassman (63 yo)

5.83yrs

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 ($USD8.74M) is above average for companies of similar size in the US market ($USD6.24M).

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 considered experienced (2 years average tenure).


Board Members

Experienced Board: LEG's board of directors are not considered experienced ( 2.5 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 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$5.387b
  • Shares outstanding: 133.38m
  • Website: https://www.leggett.com

Number of Employees


Location

  • Leggett & Platt, Incorporated
  • No. 1 Leggett Road
  • Carthage
  • Missouri
  • 64836
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
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.