Leggett & Platt Inc

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LEG : NYSE : Consumer Goods
$45.58 -0.13 | -0.28%
Today's Range: 45.11 - 45.88
Avg. Daily Volume: 840,000
09/30/16 - 4:02 PM ET

Financial Analysis


LEGGETT & PLATT INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. LEGGETT & PLATT INC has average liquidity. Currently, the Quick Ratio is 1.17 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.30% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)958.9997.3
EBITDA ($mil)156.2143.3
EBIT ($mil)129.5118.9
Net Income ($mil)121.277.7


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)284.8275.1
Total Assets ($mil)3031.83143.7
Total Debt ($mil)1047.91033.4
Equity ($mil)1063.31099.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin26.6925.06
EBITDA Margin16.2814.36
Operating Margin13.5111.92
Sales Turnover1.271.25
Return on Assets12.746.94
Return on Equity34.4322.36
Debt Q2 FY16 Q2 FY15
Current Ratio1.971.49
Debt/Capital0.50.48
Interest Expense10.311.2
Interest Coverage12.5710.62


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)133.4136.8
Div / share0.340.31
EPS0.720.53
Book value / share7.978.04
Institutional Own % n/a n/a
Avg Daily Volume799954.0780871.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 33.09 for the Household Durables industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 6.19 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 3.12. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LEG 19.06 Peers 33.09   LEG 13.39 Peers 16.64

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LEG is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LEG is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LEG 18.11 Peers 23.43   LEG 1.88 Peers 0.89

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

LEG is trading at a discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LEG trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LEG 6.19 Peers 3.12   LEG 50.58 Peers 75.11

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LEG is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, LEG is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LEG 1.71 Peers 1.36   LEG -1.62 Peers 16.81

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LEG is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LEG significantly trails its peers on the basis of sales growth

 

 

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