Leggett & Platt (NYSE: LEG) shares currently have a dividend yield of 4.10%. Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. The company has a P/E ratio of 16.57. The average volume for Leggett & Platt has been 1,068,800 shares per day over the past 30 days. Leggett & Platt has a market cap of $4.2 billion and is part of the consumer durables industry. Shares are up 8.3% year to date as of the close of trading on Friday. TheStreet Ratings rates Leggett & Platt as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.37, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $115.60 million or 22.06% when compared to the same quarter last year. Despite an increase in cash flow of 22.06%, LEGGETT & PLATT INC is still growing at a significantly lower rate than the industry average of 86.90%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, LEGGETT & PLATT INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Leggett & Platt Ratings Report.
- Our dividend calendar.
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