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LEGRAND SA (FR:LR)
:LR
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LEGRAND (LR) AI Stock Analysis

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FR:LR

LEGRAND

(LSE:LR)

Rating:77Outperform
Price Target:
€138.00
▲(11.65%Upside)
Legrand's overall stock score is primarily driven by strong financial performance and positive technical indicators. While the company shows stable financial fundamentals and upward market momentum, the higher P/E ratio suggests valuation concerns that may limit upside potential. The lack of recent earnings call insights or significant corporate events leaves the analysis focused on the core financial and technical aspects.
Positive Factors
Data Center Expansion
Legrand is expected to achieve 300bps of organic growth from its data center businesses alone in FY25.
Mergers and Acquisitions
Legrand significantly scaled up its exposure in 2024 to data centers via M&A, increasing its proforma group sales by 25%.
Organic Growth
Legrand benefits from higher organic growth being more valued than inorganic growth, as it instantly receives a boost to organic growth after consolidating an acquisition.
Negative Factors
Construction Sector Challenges
Construction momentum weak in Europe; US office might not recover until 2026.
Valuation Discount
An ever-increasing cumulative growth gap to the Mag 3 in EU Electricals justifies applying a 15% valuation discount vs just 6% now.
Weak Market Momentum
JEF Low Voltage tracker suggests weaker momentum in Q4 vs consensus.

LEGRAND (LR) vs. iShares MSCI France ETF (EWQ)

LEGRAND Business Overview & Revenue Model

Company DescriptionLegrand (LR) is a global specialist in electrical and digital building infrastructures, providing solutions for residential, commercial, and industrial buildings. The company operates in sectors such as electrical installations, energy distribution, and data networks, offering a range of products including switches, sockets, cable management systems, and home automation solutions. Legrand is recognized for its focus on innovation, sustainability, and design, catering to the evolving needs of its customers worldwide.
How the Company Makes MoneyLegrand makes money through the design, manufacture, and sale of electrical and digital building infrastructure products. Its revenue model predominantly consists of direct sales of its diverse product portfolio, which includes wiring devices, energy distribution solutions, lighting control systems, and building automation products. The company serves a wide array of markets globally, from residential to industrial sectors, leveraging its extensive distribution network and partnerships with electrical professionals, wholesalers, and retailers. Legrand's growth is further supported by strategic acquisitions and investments in new technologies, ensuring a continuous expansion of its product offerings and market reach.

LEGRAND Financial Statement Overview

Summary
Legrand demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The balance sheet is stable with manageable debt levels, and cash flows are healthy with efficient profit conversion to cash. There is room for improvement in operational margins and debt management.
Income Statement
85
Very Positive
Legrand demonstrates strong financial performance with a steady increase in total revenue over the years, evident from a Revenue Growth Rate of 2.88% from 2024 to TTM (Trailing-Twelve-Months). The Gross Profit Margin is robust at 51.51%, reflecting effective cost management. The company also maintains a healthy Net Profit Margin of 13.31%, indicating profitability. However, EBIT and EBITDA margins of 18.98% and 24.29%, respectively, suggest room for improvement in operational efficiency.
Balance Sheet
78
Positive
Legrand's balance sheet is stable, with a moderate Debt-to-Equity Ratio of 0.70, showcasing manageable leverage levels. The Equity Ratio remains strong at 45.95%, indicating a solid equity base compared to total assets. Return on Equity stands at a robust 15.65%, demonstrating effective utilization of shareholder investments for returns. However, ongoing debt levels could pose a risk if not managed carefully.
Cash Flow
80
Positive
The cash flow position of Legrand is strong, with a Free Cash Flow to Net Income Ratio of approximately 1.13, indicating efficient conversion of profits to cash. Operating Cash Flow to Net Income Ratio is 1.32, reflecting healthy cash generation from operations. The Free Cash Flow Growth Rate of 3.75% suggests a positive trend, although fluctuations in capital expenditure highlight the need for careful investment management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.65B8.42B8.34B6.99B6.10B
Gross Profit4.47B4.40B4.15B3.56B3.18B
EBITDA2.11B2.04B1.88B1.66B1.39B
Net Income1.17B1.15B999.50M904.50M681.20M
Balance Sheet
Total Assets16.07B14.84B14.42B14.03B12.91B
Cash, Cash Equivalents and Short-Term Investments2.08B2.82B2.40B2.79B2.79B
Total Debt5.09B4.82B4.67B5.31B5.39B
Total Liabilities8.53B8.11B7.77B8.31B8.00B
Stockholders Equity7.53B6.72B6.64B5.72B4.90B
Cash Flow
Free Cash Flow1.28B1.58B1.03B1.08B1.01B
Operating Cash Flow1.52B1.84B1.24B1.11B1.16B
Investing Cash Flow-1.74B-413.30M-463.50M-466.90M-850.40M
Financing Cash Flow-535.80M-927.00M-1.23B-687.10M823.70M

LEGRAND Technical Analysis

Technical Analysis Sentiment
Positive
Last Price123.60
Price Trends
50DMA
111.22
Positive
100DMA
104.42
Positive
200DMA
100.93
Positive
Market Momentum
MACD
3.91
Negative
RSI
72.80
Negative
STOCH
81.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LR, the sentiment is Positive. The current price of 123.6 is above the 20-day moving average (MA) of 116.08, above the 50-day MA of 111.22, and above the 200-day MA of 100.93, indicating a bullish trend. The MACD of 3.91 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 81.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:LR.

LEGRAND Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€32.32B27.3616.23%1.78%7.27%8.92%
77
Outperform
€5.20B18.6215.96%2.19%9.70%26.01%
75
Outperform
€7.95B23.756.11%4.47%0.69%-56.21%
75
Outperform
€8.01B29.2013.56%2.10%13.69%12.62%
73
Outperform
€11.36B10.5915.80%4.02%7.37%3.85%
72
Outperform
€50.72B17.9211.75%2.14%-2.86%8.16%
65
Neutral
$11.08B15.705.19%2.15%3.13%-24.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:LR
LEGRAND
125.15
34.44
37.96%
FR:FGR
Eiffage
116.90
28.87
32.80%
FR:SPIE
SPIE SA
48.10
13.18
37.74%
FR:SGO
Compagnie de Saint Gobain
102.70
27.98
37.45%
FR:RXL
Rexel SA
26.90
3.30
13.99%
FR:NEX
Nexans
120.60
8.94
8.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025