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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Leggett & Platt, Incorporated (XNYS:LEG) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
LEG
Name:
LEGGETT & PLATT, INCORPORATED (XNYS:LEG)
Sector:
20.30M
Industry:
Furnishings, Fixtures & Appliances
CEO:
Mr. Karl Glassman
Total Employees:
20,300
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -67.44% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF LEGGETT & PLATT, INCORPORATED(LEG) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND FURNISHINGS, FIXTURES & APPLIANCES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
37.71
One Month Price Target:
$37.99
Six Month Price Target :
$39.37
Likely Price in One Year's Time:
Ticker:
$41.04
Likely Trading Range Today Under (Normal Volatility)
$37.52
Price Upper limit ($) :
$37.9
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$35.4
This week:
$32.55
This month :
$27.39
Other Primary facts
Market Cap:
4.83B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
132.62M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.89%
-15.38%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$48.42
$43.55
$27.00
$31.87
Medium risk (<10%) entry points
Buy Call
Sell Call
$41.97
Buy Put:
Sell Put:
$40.93
$33.44
$34.49
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
LEG
Sharpe Ratio:
-0.33%
Comparison:
LEG, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -129.92% lower than the industry
& is -114.59% lower than the market/S&P 500 average
Average Returns/Yield of
LEG
Daily returns:
0.00%
Weekly returns:
-0.01%
Monthly returns:
-0.02%
Yearly returns:
14.35%
Comparison of returns:
Average annual returns/yield (last 3 years) is -101.77% below industry average
Classification:
LEG, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.68
Statistical test of Returns:
LEG has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.98%
Weekly Volatility:
6.66%
Monthly Volatility:
13.32%
Yearly Volatility:
46.14%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.61%
Volatility in last five trading days has been -79.64% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.12%
Weekly VaR:
-13.68%
Monthly VaR:
-27.36%
How Much Can the price of
LEG
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
-94.77%
This translates to price declining to:
$28.58
This translates to price declining to:
$1.97
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
LEG is a 93.09% riskier investment compared to the market/S&P 500 & is 65.42% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -24.58% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
LEG
Beta in relation to market/S&P 500--1.31
Expected beta in 1 year's time:
0.936
Expected beta in 3 year's time:
1.323
Unlevered (debt free) Beta:
0.694
Beta in relation to Nasdaq (XNAS):
0.894
Beta in relation to all global stocks::
0.984
Beta Comparison & Analysis
Beta of competitors/peers::
1.374
Beta is -4.43% lower than peers
Average Industry Beta:
1.707
Beta is -23.08% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
18.41%
Sustainable growth rate is -44.96% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.124
Alpha is 2415.97% above industry average alpha yield
Alpha is -789% below the market average
Analysis of Cost of Capital of
LEG
Equity cost of capital:
0.121
Equity cost of capital is -18.18% below industry mean WACC
Unlevered (without debt) cost of capital:
6.42%
Before-tax cost of debt:
3.39%
After-tax cost of debt:
2.68%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.68%
WACC is -10.06% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$39.54
Revenue growth rate per share of (3Y):
2.99
-
EPS:
$2.96
Expected Annual growth rate of EPS (3Y):
5.89%
Expected future EPS growth rate is -51.56% lower than the Furnishings, Fixtures & Appliances industry
Free cash flow (FCF) per share:
$1.58
-
-
Debt per share
$14.73
EBITDA per share
$6.00
Valuation Analysis Today of
LEG
P/E Ratio:
13.29
P/E Ratio of Competitors/Peers:
17.62
P/E ratio is -24.62% lower than main peers & is -17.85% lower than the industry
Stock price/value with industry average P/E ratio: $47.87
LEG is -21.22% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $27.07
Present value of the expected future dividends only: $15.38
P/S (Price to Sales ratio):
0.95
Price to sales ratio is 4.06% above the industry mean
P/B (Price to book value ratio):
2.99
Price to free cash flow: 23.87
-
Net income growth rate (3Y):
-
Dividend Analysis
Dividend payout rate: 13.82%
Dividend yeild: 4.51%
Previous Dividend: $0.44
Previous adjusted dividend: $0.44
Previous Dividend: $1.70
Expected next dividend best case: $0.45
Expected next dividend worst case: $0.43
Average dividend payment (long-term): $0.41
Average dividend increase/decrease (growth rate) % per period: 0.98%
Expected next dividend payment date: 13/10/2022
Expected next dividend record date: 13/09/2022
-
Previous dividend payment date: 15/07/2022
Previous dividend record date: 15/06/2022
-
Dividend History:
2022-06-14--$0.44
2021-12-14--$0.42
2021-06-14--$0.42
2022-03-14--$0.42
2021-09-14--$0.42
2021-03-12--$0.40
Dividend growth rate is -107.36% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
116.90%
Net debt to equity ratio:
118.08%
Debt to assets ratio:
36.56%
Net debt to assets ratio:
36.93%
Debt-to-asset ratio is -50.78% below industry average
Ability to repay debt:
Interest coverage ratio:
10.21
Interest coverage ratio is -88.74% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.01%
Analysis of Key Statistics
Correlation of price movement with the market:
0.679
Statistical significance of correlation:
LEG has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.556
Stock price is 22.18% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.556
Correlation of price movement with Nasdaq (^IXIC):
0.017
Covariance of price movement with the market:
0.029
Kurtosis
6.276
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.021
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
LEG
Gross Profit Margin Ratio:
81%
Operating Profit Margin Ratio:
10.72%
Operating profit margin is 44.87% higher than the industry
Net Profit Margin Ratio:
81%
Effective Tax Rate:
23.62%
Effective tax rate is 27.94% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
24.26%
Return on equity (ROE) is -17.29% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.59%
Return on assets (ROA) is -15.32% lower than the industry
Financial Leverage:
1.6x
Current Ratio:
1.58
Current ratio is 1.77% above industry average
Cash Conversion Cycle (days):
13.5
Cash conversion cycle is -75.87% below industry average
The remaining useful life of property plant & equipment is: 0.0 years
Stock based compensation to net income ratio:
3.18%
In-depth Efficiency Analysis
Revenue generated per employee:
258.3K
Each employee generates -41% less revenue than industry average revenue per employee
EBITDA generated per employee:
39.2K
Each employee generates 4% more EBITDA than industry average revenue per employee
Profit generated per employee:
20.0K
Each employee generates -5% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
1.0K
Each employee generates -108% less free cash flow than industry average revenue per employee
Assets/Capital per employee
157.8K
Each employee generates -108% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
LEG
CHARGEPOINT HOLDINGS, INC. (XNYS:CHPT)
Ardagh Metal Packaging SA (XNYS:AMBP)
SONOCO PRODUCTS COMPANY (XNYS:SON)
ARAD LTD. (XTAE:ARD)
HANESBRANDS INC. (XNYS:HBI)
SEAWORLD ENTERTAINMENT, INC. (XNYS:SEAS)
TERMINIX GLOBAL HOLDINGS, INC. (XNYS:TMX)
THOR INDUSTRIES, INC. (XNYS:THO)
INTERNATIONAL GAME TECHNOLOGY PLC (XNYS:IGT)
Current Analyst Ratings
Strong buy�4%
Buy�17%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
5.24B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
4.19B
1.06B
-
-
427.50M
-
68.70M
496.20M
2.90M
77.90M
186.90M
795.50M
561.90M
405.30M
530.90M
125.40M
405.30M
Statement of Cash Flow
Date:
Period:
45.70M
Differed Income Tax :
2.00M
Stock Based Compensation :
12.90M
Change in Working Capital :
- 114400.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
2.40M
Net Cash Provided by Operating Activities:
39.00M
Investments in PP&E:
- 18700.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
327.30M
-
327.30M
704.90M
1.05B
60.00M
2.14B
959.40M
1.45B
688.10M
-
-
110.70M
3.20B
-
5.34B
622.00M
347.10M
-
-
382.10M
1.35B
1.95B
146.40M
2.32B
-
3.67B
2.00M
3.01B
- 45200.0K
- 1292000.00K
March 31, 2022 at 6:00:00 AM
4.68B
1.67B
5.34B
-
2.30B
2.0B
-
2.40M
- 16300.00K
- 100.00K
-
- 21600.00K
- 56000.00K
20.60M
- 57100.00K
-
- 34400.00K
327.30M
361.70M
39.00M
- 18700.00K
20.30M
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
LEG
2023
2024
2025
2026
2027
$49.87
$54.27
$59.06
$64.27
$69.94