LEGRAND (LR) AI Stock Analysis

• Market Cap: €34.44B
• Dividend Yield: 1.73%
• Average Volume (3M): 608.75K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.10
• Revenue Growth: 12.62%
• EPS Growth: 17.18%
• Country: FR
• Employees: 33,959
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.49
• Shares Outstanding: 262,245,730
• 10 Day Avg. Volume: 595,988
• 30 Day Avg. Volume: 608,755
• PEG Ratio: 3.98
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 3.52
• P/FCF Ratio: 24.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €148.43
• Price Target Upside: 12.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.76
• Revenue Forecast (FY): €10.51B

• Rating: 67 Neutral
• Price Target: €146.00 ▲(10.90% Upside)
• Action: Downgraded Date: 02/26/26
• Date: Action: Downgraded 02/26/26

The score is primarily supported by durable profitability and historically strong cash generation, but it is held back by the recent debt increase and deteriorating free-cash-flow momentum. Technicals show a strong uptrend, yet overbought indicators raise near-term risk, and the elevated P/E with a modest yield further caps the score.

Positive Factors

Durable Profitability

Consistent mid-teens net margins and high operating margins indicate durable underlying profitability from product mix and pricing power. This margin base supports ongoing reinvestment, dividend capacity and resilience through construction cycles, underpinning sustainable earnings generation.

Strong Historical Cash Generation

Historically, free cash flow has covered the majority of reported earnings, showing strong cash conversion. Robust cash generation enables organic capex funding, supports shareholder returns and debt servicing, providing a durable financial buffer for strategic investments.

Market Position & Business Model

Legrand's broad product set across wiring, distribution, cable management and digital infrastructure leverages structural demand from construction, renovation and building digitization. Diverse channels and end-markets create sticky customer relationships and recurring product replacement demand.

Negative Factors

Material Debt Increase (2025)

A material rise in total debt in 2025 reduces financial flexibility and raises interest and refinancing risk if sustained. Higher leverage can constrain capital allocation choices, increase vulnerability to macro shocks, and pressure credit metrics absent a quick cash-flow recovery.

Deteriorating Free-Cash-Flow Momentum

Sharply negative FCF growth undermines the company's ability to self-fund capex, dividends or debt reduction. If weaker cash generation persists, management may need external financing or to scale back returns, reducing financial resilience over the medium term.

Uneven Revenue Growth Profile

An unusually large uptick in reported revenue for 2025 vs prior trends raises questions about sustainability and one-off effects. Uneven top-line growth complicates planning, may mask mixed organic demand, and reduces visibility into durable revenue trajectories over the coming quarters.

LEGRAND Business Overview & Revenue Model

Company Description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers MCBs, RCDs, and din rail equipment, including residual current circuit breakers, RCBOs, add-on modules and accessories, surge protective devices, other control and signaling devices, and time and light-sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; ACBs, MCCBs, head equipment, and busbar systems; enclosures and accessories; equipment and accessories; home network, home automation, and hotel equipment; wiring accessories; weatherproof wiring accessories and other installation equipment; lighting management, emergency lighting, access control, and safety equipment; UPS and LCS products, cable management systems, equipment, and accessories; and mosaic wiring accessories. Its products are used in hotels, offices, data centers, industrial sites, shops, hospitals, schools, and universities, as well as residential, commercial, and industrial buildings. Legrand SA was founded in 1865 and is headquartered in Limoges, France.

How the Company Makes Money

Legrand primarily makes money by selling electrical and digital infrastructure products to the building and construction ecosystem. Its revenue model is predominantly product sales, generated through a mix of (1) new construction demand and (2) renovation/retrofit demand (e.g., upgrading electrical panels, wiring devices, energy management, and network connectivity in existing buildings). Key revenue streams include: (a) Electrical distribution and protection equipment (such as panels, breakers, and protective devices) sold for safe power distribution in buildings; (b) Wiring devices and building interface products (switches, sockets, home/building control interfaces), typically sold in high volumes through professional channels; (c) Cable management systems (trunking, conduits, and related accessories) used to route and protect electrical and data cabling; and (d) Digital infrastructure solutions that support building connectivity and data/communications networks (e.g., structured cabling components and related equipment), benefiting from demand for data connectivity and digitization in buildings and data-centric environments. Sales are executed via distribution networks (including electrical wholesalers and distributors), retailers for certain residential ranges, and direct or project-based sales to contractors, installers, and large commercial/industrial customers depending on geography and product line. Profitability is influenced by volume and mix (higher-value connected/digital products), pricing and input costs (materials/components), and the company’s ability to innovate and maintain strong brand/channel positions. Significant partnerships or specific customer concentration details are not available in this context and are therefore null.

LEGRAND Financial Statement Overview

Summary

Strong and steady profitability (net margins ~12%–14%, operating margins ~18%–20%) and historically solid cash generation (FCF ~83%–98% of net income in 2020–2024). Offsetting factors are the material rise in total debt in 2025 and weakening/free-falling FCF growth in 2024–2025, which reduces near-term quality and flexibility.

Income Statement

Legrand shows solid, steady profitability with net margins holding around ~12%–14% from 2020–2025 and operating profitability consistently near ~18%–20%. Revenue has generally trended upward (notably strong growth in 2021–2022), but the latest annual growth rate appears unusually high in 2025 versus prior years, which adds some uncertainty to the near-term growth profile. Overall, earnings power looks durable, though growth has been uneven year to year.

Balance Sheet

The balance sheet is healthy with equity building over time and moderate leverage in most years (debt-to-equity improved from above 1.0 in 2020 to ~0.68–0.72 in 2023–2024). However, total debt rises materially in 2025 versus 2024, which is a key watch item and could reduce flexibility if sustained. Returns on equity were strong in 2021–2024 (~15%–17%), supporting overall balance sheet quality, but some 2025 leverage/return metrics are not available in the provided data.

Cash Flow

Cash generation is consistently solid: free cash flow is strong and typically covers a large portion of earnings (about ~83%–98% of net income in 2020–2024). Operating cash flow has been steady, but cash conversion can fluctuate, and free cash flow growth turns negative in 2024 and is sharply negative in 2025, suggesting softer incremental cash generation despite higher profits. Overall cash flow quality is good, with near-term momentum the main concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.48B	8.65B	8.42B	8.34B	6.99B
Gross Profit	4.82B	4.47B	4.40B	4.15B	3.56B
EBITDA	2.43B	2.11B	2.04B	1.88B	1.66B
Net Income	1.24B	1.17B	1.15B	999.50M	904.50M
Balance Sheet
Total Assets	17.59B	16.07B	14.84B	14.42B	14.03B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.08B	2.82B	2.40B	2.79B
Total Debt	6.60B	5.09B	4.82B	4.67B	5.31B
Total Liabilities	10.26B	8.53B	8.11B	7.77B	8.31B
Stockholders Equity	7.29B	7.53B	6.72B	6.64B	5.72B
Cash Flow
Free Cash Flow	1.36B	1.28B	1.58B	1.03B	942.20M
Operating Cash Flow	1.58B	1.52B	1.84B	1.24B	1.11B
Investing Cash Flow	-1.61B	-1.74B	-413.30M	-463.50M	-466.90M
Financing Cash Flow	393.70M	-535.80M	-927.00M	-1.23B	-687.10M

LEGRAND Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LR, the sentiment is Negative. The current price of 131.65 is below the 20-day moving average (MA) of 142.57, below the 50-day MA of 138.96, and below the 200-day MA of 132.05, indicating a bearish trend. The MACD of -2.00 indicates Positive momentum. The RSI at 34.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:LR.

LEGRAND Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RXL	70 Neutral	€9.19B	16.83	4.63%	3.61%	2.16%	-64.02%
FGR	69 Neutral	€12.43B	11.12	14.39%	3.87%	7.71%	-2.82%
LR	67 Neutral	€34.44B	26.81	17.16%	1.73%	12.62%	17.18%
SGO	66 Neutral	€33.33B	8.55	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NEX	60 Neutral	€4.92B	15.57	25.83%	2.08%	12.65%	81.77%
SPIE	56 Neutral	€7.38B	190.12	8.70%	2.14%	10.87%	-10.35%