Leggett Platt Incorporated carries a debt of 2.29 billion, with a debt-to-equity ratio of 1.5. This is acceptable within its industry classification. Our advisory module supplements the current consensus of analysts and experts on Leggett Platt Inc. It evaluates the company's growth potential using all available fundamental, technical, and market-related data.
Main Points
Despite a recent dip in its stock price, Leggett Platt Incorporated remains an attractive investment opportunity from a valuation perspective. The company has a healthy return on assets of
4.32% and a trailing P/E ratio of
14.77, which is relatively low compared to industry averages. Furthermore, with a book value per share of
12.27X and a price-to-book ratio of
1.89, the stock appears undervalued, suggesting potential for future price appreciation.
We determine the current worth of Leggett Platt Incorporated using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Leggett Platt based exclusively on its
fundamental and basic
technical indicators. By analyzing Leggett Platt's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Leggett Platt's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Leggett Platt. We calculate exposure to Leggett Platt's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Leggett Platt's related companies.
Leggett Platt Investment Alerts
Leggett investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Leggett Platt Incorporated performance across your portfolios.Please check all
investment alerts for Leggett
Leggett Platt Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Leggett value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Leggett Platt competition to find
correlations between indicators driving the intrinsic value of Leggett.
Leggett Platt Gross Profit
Leggett Platt Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Leggett Platt previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Leggett Platt Gross Profit growth over the last 10 years. Please check Leggett Platt's
gross profit and other
fundamental indicators for more details.
What is driving Leggett Platt Investor Appetite?
The current indifference towards the small price fluctuations of Leggett Platt Incorporated may encourage stockholders to take a closer look at the firm as it is trading at a share price of
23.15 on
984,389 in trading volume. The company executives did not add any value to Leggett Platt Incorp investors in
January. However, most investors can still diversify their portfolios with Leggett Platt Incorporated to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.99. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2021 | 2022 | 2023 | 2024 (projected) |
Consolidated Income | 402.6M | 309.9M | 356.4M | 355.2M | Direct Expenses | 4.0B | 4.2B | 3.8B | 3.3B |
Margins Breakdown
Leggett profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Leggett Platt itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Leggett Platt profit margins.
| Operating Margin | 8.55 |
| EBITDA Margin | 0.15 |
| Gross Margin | 0.19 |
| Profit Margin | 0.0756 |
Leggett Platt Net Income Per Employee is increasing over the last 8 years.
The previous year's value of Leggett Platt Net Income Per Employee was 12,910. Also, Leggett Platt Revenue Per Employee is nearly stable at the moment. Every cloud has a silver lining, and the recent dip in Leggett Platt Incorporated's stock price may just be that silver lining for savvy investors. Despite the company's negative net interest income of $85.7 million, it boasts a healthy current ratio of 2.07X, indicating a strong ability to meet short-term obligations. Furthermore, the company's forward dividend rate of 1.82 and a five-year return of 3.85% make it an attractive option for income-focused investors. With a price to earnings ratio of 13.50X, the stock is reasonably valued, and the dip could present a potential buying opportunity. However, investors should also consider the company's high probability of bankruptcy at 27.84% before making a decision. .
Leggett Platt has 90 percent chance to finish above $23 in March
Despite Leggett & Platt Incorporated's current Market Risk Adjusted Performance standing at -0.01, suggesting a possible price drop, the stock remains robust. Comprehensive market analysis and historical performance trends indicate a 90% likelihood of the stock closing above $23 in March. This implies the stock's resilience to short-term market volatility, potentially making it a worthwhile investment for those seeking stability. Leggett & Platt Incorporated displays minimal volatility with a skewness of -0.75 and kurtosis of 6.32. However, investors are advised to further scrutinize its technical indicators to ensure access to reliable market information. Understanding
market volatility trends can aid investors in market timing. Proper use of volatility indicators allows traders to gauge Leggett Platt's stock risk during both bullish and bearish trends.
The increased volatility of bear markets can affect the stock's price and stress investors, often prompting portfolio rebalancing. Despite today's drop in Leggett Platt Incorporated's stock, the
analyst consensus still holds a 'Sell' recommendation. The company's valuation real value and market value are both at
$23.15, which is slightly below the naive expected forecast value of
$23.81. However, the possible downside price is estimated at $21.82, which is significantly lower than the current valuation. The analyst's highest estimated target price is $24, which suggests a potential upside. However, with the fiscal year end approaching in December and an EPS estimate for next year at 1.36, investors should exercise caution and closely monitor the stock's performance. .
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nico Santiago do not own shares of Leggett Platt Incorporated. Please refer to our
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