Leggett & Platt Inc

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LEG : NYSE : Consumer Goods
$52.08 | %
Today's Range: 51.91 - 52.21
Avg. Daily Volume: 1002100.0
05/26/17 - 4:02 PM ET

Financial Analysis


LEGGETT & PLATT INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LEGGETT & PLATT INC has average liquidity. Currently, the Quick Ratio is 1.15 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.39% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)960.3938.4
EBITDA ($mil)142.4149.6
EBIT ($mil)114.5123.4
Net Income ($mil)86.189.5


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)268.6250.2
Total Assets ($mil)3119.53024.4
Total Debt ($mil)1123.31035.5
Equity ($mil)1064.01079.1


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin25.9127.14
EBITDA Margin14.8215.94
Operating Margin11.9213.15
Sales Turnover1.211.29
Return on Assets12.2511.33
Return on Equity34.1531.6
Debt Q1 FY17 Q1 FY16
Current Ratio1.971.97
Debt/Capital0.510.49
Interest Expense10.69.2
Interest Coverage10.813.41


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)132.3134.2
Div / share0.340.32
EPS0.620.63
Book value / share8.048.04
Institutional Own % n/a n/a
Avg Daily Volume1014932.0881011.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 17.80 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 6.30 indicates a significant premium versus the S&P 500 average of 3.02 and a significant premium versus the industry average of 2.63. The price-to-sales ratio is below the S&P 500 average, but well above the industry average. Upon assessment of these and other key valuation criteria, LEGGETT & PLATT INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LEG 19.40 Peers 17.80   LEG 13.52 Peers 14.33

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

LEG is trading at a valuation on par with its peers.

 

Average. 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 valuation on par 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 17.58 Peers 31.76   LEG 17.02 Peers 3.94

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 significant 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 6.30 Peers 2.63   LEG 8.75 Peers 6.11

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.

 

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

LEG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LEG 1.78 Peers 1.24   LEG -3.03 Peers 26.74

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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