Leggett & Platt, Inc. (LEG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tempur Sealy International, Inc.

The Lovesac Co.

La-Z-Boy, Inc.

Hooker Furnishings Corp.

Leggett & Platt, Inc.

Arhaus, Inc.

Ethan Allen Interiors, Inc.

Helen of Troy Ltd.

HNI Corp.

MasterBrand, Inc.

Sleep Number Corp.

Why is Leggett & Platt, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -8.05% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 308.6 MM
NET PROFIT(HY) At USD 88.9 MM has Grown at -27.27%

With ROCE of 10.91%, it has a risky valuation with a 1.47 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.86%, its profits have fallen by -32%

Underperformed the market in the last 1 year

The stock has generated a return of 0.86% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Leggett & Platt, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Leggett & Platt, Inc.

13.19%

-0.10

59.10%

S&P 500

22.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.07%

EBIT Growth (5y)

-9.54%

EBIT to Interest (avg)

4.96

Debt to EBITDA (avg)

3.23

Net Debt to Equity (avg)

2.11

Sales to Capital Employed (avg)

1.55

Tax Ratio

1.16%

Dividend Payout Ratio

11.77%

Pledged Shares

Institutional Holding

97.96%

ROCE (avg)

12.54%

ROE (avg)

22.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.89

EV to EBIT

11.72

EV to EBITDA

7.86

EV to Capital Employed

1.46

EV to Sales

0.71

PEG Ratio

Dividend Yield

137.60%

ROCE (Latest)

12.47%

ROE (Latest)

19.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.4% (YoY

CASH AND EQV(HY)

Highest at USD 1,097.9 MM

DEBT-EQUITY RATIO (HY)

Lowest at 109.45 %

DEBTORS TURNOVER RATIO(HY)

Highest at 7.33 times

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 275.3 MM

NET SALES(Q)

Lowest at USD 918.1 MM

OPERATING PROFIT(Q)

Lowest at USD 73.7 MM

PRE-TAX PROFIT(Q)

Lowest at USD 37.5 MM

NET PROFIT(Q)

Lowest at USD 23.51 MM

EPS(Q)

Lowest at USD 0.14

Here's what is working for Leggett & Platt, Inc.

Cash and Eqv

Highest at USD 1,097.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 109.45 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 7.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Leggett & Platt, Inc.

Net Profit

At USD 23.51 MM has Fallen at -52.1%

over average net sales of the previous four periods of USD 49.09 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 275.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 37.5 MM has Fallen at -37.13%

over average net sales of the previous four periods of USD 59.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

Lowest at USD 918.1 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 918.1 MM has Fallen at -9.5%

over average net sales of the previous four periods of USD 1,014.53 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 73.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 37.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 23.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)