NYSE:LEG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

6.7%

LEG

2.7%

US Consumer Durables

0.5%

US Market


1 Year Return

13.9%

LEG

45.4%

US Consumer Durables

6.8%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 45.4% over the past year.

Return vs Market: LEG exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day6.7%2.7%0.5%
30 Day6.9%4.3%-0.8%
90 Day10.3%8.5%-0.9%
1 Year18.5%13.9%47.4%45.4%9.2%6.8%
3 Year7.3%-2.9%53.8%49.0%45.6%36.2%
5 Year34.5%15.0%43.2%34.1%63.2%45.4%

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?

10.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEG ($43.61) is trading below our estimate of fair value ($48.52)

Significantly Below Fair Value: LEG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (20.2x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: LEG is poor value based on its PE Ratio (20.2x) compared to the US market (17.7x).


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 (4.6x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (8.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LEG's earnings (8.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: LEG's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LEG's revenue (4.1% 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?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: LEG's earnings growth over the past year (2.7%) is below its 5-year average (5.1% per year).

Earnings vs Industry: LEG earnings growth over the past year (2.7%) underperformed the Consumer Durables industry 13.5%.


Return on Equity

High ROE: Whilst LEG's Return on Equity (23.45%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: LEG has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: LEG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.7B) exceeds its short term liabilities ($900.3M)

Long Term Liabilities: LEG's short term assets (1.7B) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (194.5%) is considered high

Reducing Debt: LEG's debt to equity ratio has increased from 87.6% to 194.5% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (21.6%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (6.7x 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?

3.67%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LEG's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LEG's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (71.2%), 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 (58.9% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Karl Glassman (61yo)

3.8yrs

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

Compensation vs. Market: Karl's total compensation ($USD10.57M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Karl's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

58yo

Average Age

Experienced Management: LEG's management team is considered experienced (2.2 years average tenure).


Insider Trading

Insider Buying: LEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$450,07517 Sep 19
Karl Glassman
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,683
Max PriceUS$42.13
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

Ownership Breakdown


Management Team

  • Karl Glassman (61yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$10.57m
  • Matt Flanigan (57yo)

    Non-Executive Officer

    • Tenure: 0.08yrs
    • Compensation: US$3.54m
  • Perry Davis (60yo)

    Executive VP and President of Residential Products & Industrial Products

    • Tenure: 7.7yrs
    • Compensation: US$3.04m
  • Susan McCoy (54yo)

    Senior VP of Investor Relations

    • Tenure: 0.7yrs
  • Scott Douglas (59yo)

    Senior VP

    • Tenure: 9.8yrs
    • Compensation: US$1.56m
  • Jeff Tate (49yo)

    Executive VP & CFO

    • Tenure: 0.08yrs

Board Members

  • Karl Glassman (61yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • 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$5.733b
  • 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 Analysis2019/10/20 23:35
End of Day Share Price2019/10/18 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.